I love McDonalds!

Franchise but do it well!

I am fascinated by successful companies in the world. Besotted with them. My last article was on how a company can have predictabilty and permanency in bottomline success if it merges the industry demands by creating good products which echo the brand value of the company.

Today I am going to talk about successful franchise ooperation and management. In my book, if your company takes the franchise route, it’s the toughest thing to manage.

The core of franchise management lies in one thing and one thing only. That is SIMILARITY. The feeling of entering the same store all across the globe which is quite tough given the demographics, given the aspirations of franchise owners and their management styles. Imagine doing that across 119 countries and 33000 franchised outlets!

Yes, I am talking about McDonalds. I travel a lot and whenever I travel, eating out is a necessity. Where do I eat, what do I eat? You don’t know the quality of food being served in the best restaurant in an alien city. You don’t know whether that food will suit your stomach or not. No such thing with a McD! You know the prices, you know the food and the best thing is, they taste the same.

Check out McDonalds last financial results. Everything is UP. No reds, all blacks and blacks in billions! They are wonderfully poised to use their franchise management to usher in the new era of growth.

Consumerism is on a high. Work related travel is on a high. Brand Recall is phenomenal.

Not every company succeeds in this model. Businesspundit.com has an article on the 25 worst business failures in history. You’ll NOT be surprised to know that more than 40% cases are related to franchising!

It’s easy to manage when you have 10 franchises, 15 franchises, 100 franchises. How do you do it when you have 33000+ franchises? When Ray Kroc began shaping McDonalds to what is today, he only had one thing in his mind, SIMILARITY. Similarity is how the store looks, how the food is served, how the order is taken and how the experience is delivered. Nah! These all were secondary. His primary aim was to maintain the similarity in taste.

This thing bowls me over. Hats off to people responsible behind the quality management and training.

(ok, writing a blog post while getting your hair cut is not a good idea. It just stops the flow of thoughts)

Surpringly, I do not find myself saying the same thing about some of the fabled Pizza companies.

Well, that’s just me. I, atleast, scout for McD and 12 out of 15 dines of mine would be at a McD outlet. What do you do? What are your eating preferences when on a travel? 🙂

That’s it! 🙂

Sent from my Nokia

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About Ashutosh

A family guy who loves phones, music, movies, tea, sweats and gizmos :)
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3 Responses to I love McDonalds!

  1. Great article!!!

    I could never imagined McDonald has so much similarity across the globe.

    After all it depends how much one is dedicated to its goals. Hats off to their efforts to spoil the world’s health and earn money through it.

    I am seriously worried about your health now (even though I have no clue of your medical history, but 12 out of 15 dines at McDonald tells me everything of your health risks)

    God bless you 🙂

    • Ashutosh says:

      Ha Ha. Rakesh ji, that’s a metaphor. I meant to say, when I travel and am out of station, most of the time I end up visitng McDonalds as I trust the food. I know it does not fall under the category of healthy food but I know, it’s safer to have that than some oil laden sabji and roti of a restaurant I have never visited in my life!

  2. I do trust McDonald food, for its uselessness. I trust oil laden sabji and tandoor products at a reasonable clean outlet. Most whenever I travel, I prefer Indian home made fast foods, like laddoos, chiwda, thepla, which are much more healthy. Oil and desi ghee is not that dangerous……its just propaganda of blood sucker doctors and dieticians.

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