McDonald’s, in full McDonald’s Corporation, American fast-food chain that is one of the largest in the world, known for its hamburgers, especially its Big Macs. Company headquarters are in Chicago.
Early history
The first McDonald’s restaurant was opened in 1940 by brothers Maurice (“Mac”) and Richard McDonald in San Bernardino, California. It originally was a drive-in that offered a wide selection of items. However, in 1948 the brothers decided to revamp the business, and after a three-month renovation, a newly envisioned McDonald’s opened. The small restaurant was designed to produce huge quantities of food at low prices. To achieve this, the brothers limited the menu—which only featured hamburgers, potato chips (later replaced by french fries), drinks, and pie—and developed a simple, efficient format that they named the Speedee Service System. This included a self-service counter that eliminated the need for waiters and waitresses, and customers received their food quickly because hamburgers were cooked ahead of time, wrapped, and warmed under heat lamps. These innovations allowed the brothers to charge just 15 cents for a basic hamburger, about half the price of competing restaurants. McDonald’s was a huge success, and the brothers began a franchise program.
Appliances for McDonald’s were purchased from a salesman named Ray Kroc, who was intrigued by their need for eight malt and shake mixers. In 1954 he visited the restaurant to see how a small shop could sell so many milk shakes. Realizing there was great promise in their restaurant concept, Kroc became a franchise agent for the brothers. In April 1955 Kroc launched McDonald’s Systems, Inc., later known as McDonald’s Corporation, in Des Plaines, Illinois, and there he also opened the first McDonald’s franchise east of the Mississippi River. In 1961 Kroc bought out the McDonald brothers.
Developing the brand: from franchisees to Big Macs
Realizing that franchisees were vital to the company’s success, Kroc developed exacting standards for how each McDonald’s should be run, from food preparation to cleaning. To ensure the standardized operation of the outlets, he created (1961) a program, later known as Hamburger University, to train franchisees. In addition, he eventually changed the format of the restaurants, adding counter staff to take orders, and in 1975 a McDonald’s in Arizona opened the chain’s first drive-through window, a feature that soon became ubiquitous.
During this time McDonald’s also introduced three features that would define its brand and further public recognition. First, in 1963, the public face of the company was introduced, a clown named Ronald McDonald; however, criticism over marketing to children and the growing negative perception of clowns resulted in the company largely sidelining the character in the early 21st century. Perhaps the most notable addition occurred in 1968, when McDonald’s added the Big Mac to its national menu; the iconic hamburger went on to reportedly become the company’s top-selling item after french fries. In addition, during the 1960s the chain refined its logo, eventually debuting the famous double-arch M design, which became its enduring symbol and one of the most famous logos in the world; it was inspired by the tall yellow arches that had dominated earlier McDonald’s restaurant rooftops.
Expansion and products
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The chain continued to expand domestically and internationally. In 1967 a franchise opened in Richmond, British Columbia, Canada, McDonald’s first location outside the United States. By the early 21st century, there were some 34,000 outlets operating in more than 115 countries and territories. Growth was so swift in the 1990s that it was said a new McDonald’s opened somewhere in the world every five hours. It effectively became the most popular family restaurant, emphasizing affordable food, fun, and flavours that appealed to children and adults alike.
Over the years McDonald’s also expanded its menu, introducing Filet-O-Fish sandwiches (1965), Quarter Pounders (1973), Egg McMuffins (1975), Happy Meals (1979), and Chicken McNuggets (1983). In addition, restaurants in foreign countries also adapted their menus to appeal to local customs and tastes.
In the late 20th century, McDonald’s moved beyond the hamburger business by acquiring Chipotle Mexican Grill (1998), Donatos Pizza (1999), and Boston Market (2000) in the United States, and in the United Kingdom McDonald’s purchased Aroma Cafe (1999) and an interest in Pret A Manger (2001), a sandwich restaurant chain. However, by late 2008 McDonald’s no longer owned or had a stake in any of those companies, instead concentrating on its own brand.
Criticism and response
The success of McDonald’s brought increased criticism, much of which concerned its perceived association with a global increase in obesity. In the early 2000s various lawsuits were filed against the company in the United States, alleging that its food caused health problems. Although none of the plaintiffs prevailed, a number of states passed bills banning obesity lawsuits against fast-food companies. McDonald’s also experienced a backlash following the popular documentary Super Size Me (2004), in which the filmmaker saw his health drastically decline while on a diet of only McDonald’s foods.
McDonald’s responded to the criticism by adding healthy items to its menu, and it began developing a vegan “hamburger,” variations of which would appear under such names as McVegan, P.L.T., and McPlant. In 2017 the company released its first plant-based hamburger, though it was only available in certain markets. Two years later it began testing another vegan hamburger. In addition, in 2018 McDonald’s announced that it had stopped using preservatives in most of its hamburgers. During this time the company also eliminated supersized portions, and its U.S. and Canadian restaurants stopped using trans fat in a number of items. Such measures, however, did little to stem health concerns.
As one of the world’s largest private employers, McDonald’s faced numerous calls to increase wages. The term McJob was added to the Merriam-Webster dictionary to mean “low-paying job.” The company also was criticized for its negative impact on the environment, especially in regard to its contributions to greenhouse gas emissions. In the early 21st century, McDonald’s launched initiatives to reduce emissions at its restaurants and in its suppliers’ production of beef. In addition, the company’s packaging was a source of concern, and during this time McDonald’s launched a program to move toward renewable or recycled bags, utensils, and other items.
Charity work
McDonald’s was active in various charities. In 1974 it joined Philadelphia Eagles football player Fred Hill, whose daughter had been diagnosed with leukemia, in founding the Ronald McDonald House in Philadelphia. The residence allowed families to live near the hospital where their children were receiving treatment. By the early 21st century more than 360 such houses existed around the world. In addition, the Ronald McDonald House Charities (established 1987) supports various other efforts. McDonald’s also launched additional initiatives, and these included a college scholarship program for Hispanic students.
Conclusion
The last half of the twentieth century witnessed the development of many fast food chains. None were as successful as McDonald’s at maximizing profit and minimizing cost. The rapid growth of McDonald’s from one small store in 1948, to its first restaurant in 1955, to its worldwide dominance and market saturation at the turn of the twenty-first century, is a story of capitalist enterprise, sometimes at its worst and (to its shareholders) sometimes at its best. The business practices of McDonald’s are, to put it kindly, slightly suspect. By keeping employee wages low and refraining from hiring full time workers, the company was able to save money on health care packages and employee benefits.
The packaging that beef is wrapped in to be given to the consumer is used for mere minutes before being thrown away, many times landing back on the ground, polluting the environment. When two activists had finally had enough and spoke out against the business practices of McDonald’s, McDonald’s sued. They however would later make clear their intention not to collect any damages they were awarded. This was an effort to move attention away from the negative publicity of the McLibel case, and reclaim the positive image the case brought into question. In each instance, McDonald’s claims they are not at fault—the cattle ranchers are to blame for rainforest destruction, the consumer for the litter, and the members of London Greenpeace were spreading lies. This distancing strategy only causes McDonald’s self-promoted image of environmental friendliness to take center stage. Thinking of McDonald’s as a good citizen and good neighbor, America orders their hamburgers and McDonald’s success increases.
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