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I. Introduction to McDonald's
I. Introduction to McDonald's
1937, McDonald's Brothers started to run an obscure drive-in restaurant in Pasadena, east of Los Angeles, and it soon became a success. But there are many imitators, which leads to business depression. 1938, the two brothers closed the drive-in restaurant and switched to fast food, which soon became full of vitality. 1953, a man named FOSS won the franchise of McDonald's by paying 1000 USD to the McDonald's brothers, and then successively approved more than ten franchise stores. Because these fast food restaurants have no obligation to follow McDonald's operating procedures, it has seriously damaged McDonald's image and reputation. (Importance of unified management in chain operation) 1954, Crocker, as the agent of McDonald's franchise, transferred the franchise for McDonald's brothers. Crocker set the franchise fee at $950, and soon he interpreted McDonald's as an excellent company, so people often regarded Crocker as one of the founders of McDonald's. 196 1 year, McDonald's Brothers transferred all McDonald's to Crocker for $2.7 million. In the next 30 years, due to Crocker's good management, McDonald's fast food restaurant became the fastest growing enterprise in the world. McDonald's fast food restaurant is recognized as one of the world famous fast food restaurants because of its warm atmosphere and franchise system.
Mcdonald's is headquartered in Oak Town, Illinois, where Jack Greenberg, president of the American head office, and James Kentrub, president of the international department, lead this international company with billions of dollars in assets. McDonald's is the largest catering group in the world, and the countries and regions with McDonald's have surpassed the seats in the United Nations. Since 1955, the founder ray kroc opened the first McDonald's in Portland, Illinois, USA, it has more than 28,000 restaurants all over the world, covering 128 countries and regions. The southernmost part is located in Invikakir, New Zealand, and the northernmost part is located in rovaniemi, a tourist resort in Finland. On the earth, every 15 hours, a McDonald's restaurant opens. In China, McDonald's has opened more than 400 restaurants. The golden arch of McDonald's has been deeply rooted in people's hearts and has become one of the most famous world brands.
Second, Crocker's McDonald's myth
1937 Dick McDonald and his brother Mike McDonald opened a drive-in restaurant in East Los Angeles. Their hamburgers are very popular with customers because they are delicious and cheap. Although the cost of each hamburger is only 15 cents, its annual turnover still exceeds $250 thousand. This is a considerable number. With more and more drive-in restaurants, the operation is becoming more and more chaotic. In view of this situation, McDonald's brothers boldly franchised and began to sell McDonald's franchise. 1953, FOSS, the first franchisee, bought the franchise of McDonald's for 1000 dollars and opened a McDonald's fast food restaurant in Phoenix. He got nothing but the design of the new building, the basic instructions of Zhou Fu and the quick service. No matter in finance or operation, franchisees are entirely on their own, and of course they have no obligation to act according to McDonald's regulations. This management mode of "spreading fertilizer" has caused confusion in management. Many McDonald's franchisees change the taste or variety of hamburgers at will, which seriously damages McDonald's reputation and its convenient and unique management mode. The operating conditions of more than a dozen McDonald's franchise stores are generally shrouded in the shadow of failure. At this time, a man named Crocker found the MacDonald brothers.
At that time, Crocker was just a salesman of paper cups and mixers, but he knew more about the huge development potential of McDonald's than the McDonald's brothers. At that time, small families became more and more common in America, the number of family members going out together increased, and the pace of life became faster and faster. Crocker knows that a clean, hygienic, economical, high-quality, convenient and fast family restaurant like McDonald's will be very popular. He saw the huge market potential of young families in the suburbs. At that time, there were few restaurants serving this market, and McDonald's could just fill this space. Besides, opening a McDonald's restaurant only costs 75,000 dollars. Franchising through this system is really suitable. As long as he can get the franchise of McDonald's, he can open McDonald's restaurants in large and small towns.
Crocker immediately negotiated with the McDonald's brothers and got their support to become the only franchise agent of McDonald's in the United States. 1955, Crocker established the franchise company-McDonald's Company System Company (1960 was renamed McDonald's Company).
From 65438 to 0955, Crocker opened the first truly modern McDonald's franchise store in northeast Chicago. This restaurant embodies Crocker's understanding of fast food restaurants, that is, paying attention to quality, service, hygiene and economy. Since Crocker intended to use this store as a model for future franchisees from the beginning, he created an extremely strict management system. Crocker also strictly implemented this system when establishing the franchise system in the future. This is the famous QCV (quality-hamburger with excellent quality, delicious taste and comprehensive nutrition; Service-fast and agile service, warm and thoughtful; Clean-the store is clean and hygienic, and the environment is pleasant; Value-reasonable price, high quality, convenient and fast) as the core of the unified management system. The system stipulates that the variety, quality and price of hamburgers in each McDonald's franchise store must be the same, and even the storefront decoration and service methods are exactly the same. The quality of condiments, meat and vegetables used in all McDonald's fast food restaurants is standardized by the head office (joining the head office). The production process is exactly the same. For example, McDonald's has strict standards for the raw materials of hamburgers: the fat content of McDonald's hamburgers should be between 17%-20.5%, and additives are refused; In addition, it is stipulated that patties must be mixed with 83% shoulder meat and 17% fine pork belly. Potatoes used for French fries are specially cultivated and carefully selected, and the contents of starch and sugar are adjusted after appropriate storage time, and they are sold to customers immediately after frying. If it's not sold in seven minutes. Throw it away. Other regulations are even more diligent.
196 1 year, McDonald's Brothers transferred all McDonald's to Crocker at a price of $2.7 million, and McDonald's embarked on a rapid development highway in the form of franchise.
Crocker first changed the original system of McDonald's franchisees and franchisees. He believes that the success of the franchisee depends on the success of the franchisee. Only when every franchisee is rich can the whole franchise system become stronger. So, how can we make franchisees profitable? The only way is to give franchisees enough support and cultivate franchisees to master management secrets. Crocker attaches great importance to the operation of franchise stores. Because the franchise fee of each franchise store is only $950, and other fees are charged at 1.9% of the franchise store turnover, the profit of the headquarters is closely related to the operating conditions of the franchise stores, and the economic interests of the headquarters and the franchise stores are the same.
General franchise headquarters are often tempted by money to "exploit" franchisees, such as charging high franchise fees and selling raw materials, equipment and finished products to franchisees, thus undermining long-term cooperative relations. Crocker is firmly opposed to this practice. In the franchise system of McDonald's, the main sources of headquarters income are franchise fees and royalties, as well as the fees for consulting and guiding services provided by franchisees. Although we also sell some equipment and products to franchisees, we insist on not profiteering. In purchasing, Crocker insists on the principle of no refund, allowing franchisees to enjoy the preferential treatment of collective purchasing.
Crocker brought revolutionary new ideas to the fast food industry. He signed a franchise contract in the spirit of fairness and reciprocity. His original intention is very simple, that is, to make McDonald's a stable company with unified quality standards. To this end, he must be able to control the investors who come to buy the franchise to a certain extent, so he must give up some short-term interests.
Crocker's franchise system has the following main features:
First, and most importantly, the regional joining system will not be adopted. Although it is easier to make money by selling regional concessions, it also increases risks. If a franchise store is unsuccessful, the trouble is not too big; But if this store has the whole area to join, the consequences can be imagined. Crocker decided that McDonald's would only sell the franchise of one restaurant at a time. At first, the crocodile took the metropolis as the authorized business area, but he quickly narrowed down the authorized area. After 1969, its franchise contract was even limited to city and street names. For the large-scale regional franchisees authorized before, the original franchisees have the priority to purchase the franchise rights of new stores, but they have no right to open their own stores. (Size of Franchisee)
Secondly, it is stipulated that franchisees with excellent performance can have multiple franchisees, while franchisees with poor performance can only have one store.
Third, carefully select and strictly control the business activities of franchise stores, and no deviation is allowed.
Crocker never sells franchises to powerful people, fearing that they will one day go beyond the headquarters and get out of control. His logic is: "When you sell a large area of franchise, it is equivalent to giving him all the local business. His organization replaced your organization and you lost control. "
Crocker thus controlled the franchisees and urged them to pay attention to quality, cleanliness, service and value. Crocker thinks this is an important reason to keep McDonald's long-term profit.
In addition to excellent management skills, Crocker also has many unique features in business strategy. First of all, he made an extensive and detailed survey of the fast food market and positioned McDonald's market in the middle and lower classes of American families. Considering that most members of these families need economical, convenient and cheap McDonald's hamburgers after a hard day's work. In order to make it convenient for customers to eat, Crocker opened a fast food restaurant near where people work and live.
Crocker believes that McDonald's, the world's largest fast food company, has formulated a strategic management policy, that is, "QSGV", as the working principle of all employees to ensure the service quality of McDonald's. In addition, Crocker attaches great importance to the standardization and systematization of food production. He asked all hamburgers produced by McDonald's fast food restaurants to have the same taste, quality and even size, and to establish a special supply system for meat, vegetables and tableware, which is the most advantageous link for franchise stores. Crocker also pays attention to recruiting talents, introducing talents, and training employees regularly to improve their quality and service level. Crocker attaches great importance to research and development. He sent people to help farms and factories reform the planting and processing methods of bell-shaped potatoes, introduce new working methods of milk, improve cattle raising methods and meat production methods, invent high-temperature and efficient cooking equipment, and improve packaging and distribution technologies. These efforts will naturally bring better products. The famous French fries are an example. Shortly after McDonald's was founded, it took ten years and $3 million to improve the method of making French fries. The amount of investment is so large that many food companies are at a loss. Despite all the difficulties, Crocker's firm belief has not wavered, and he is still moving forward.
1968, McDonald's has 1000 stores, 1978, reaching 5,000 stores. After more than 40 years of development, McDonald's has more than 28,000 stores all over the world, covering more than 128 countries and regions. 1965 April 15, when McDonald's went public, its share was 22.5 yuan, which doubled in less than a month. After 20 years, the stock price is about 175 times of the original. It is because of Crocker's excellent management and painstaking management that McDonald's has rapidly grown from an unknown fast food restaurant to the king of fast food industry today. McDonald's success is a miracle, and Crocker is the creator of the miracle.
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