A gud presentation

1. FAST FOOD RESTAURANT
CASE 06
MARKETING MANAGEMENT
GROUP 06

2. CONTENT
 INTRODUCTION
 SUBWAY : SUCCESS FACTOR OF SUBWAY
 MCDONALD’S
 HISTORY
 COMPETITOR
 7P OF MCDONALD’S
 NOWADAYS ISSUE
 RE-BRANDING : THE MCDONALD’S
STRATEGY

3. INTRODUCTION
Fast food is the term given to food that can be
prepared and served very quickly.
Fast food outlets are take-away or take-out
providers, often with a "drive-through" service
which allows customers to order and pick up food
from their cars; but most also have a seating area
in which customers can eat the food on the
premises.

4. VARIANT OF FAST FOOD
Fast food often brings to mind traditional American
fast food such as hamburgers and fries.
The other variant of fast food :
 Japan : Sushi, Bento
 United States : Pizza
 Middle East Asia : Kebab
 United Kingdom : Fish and Chips

5. WHY FAST FOOD RESTAURANT
GROWS FASTLY?
 With today’s hectic lifestyles, time-saving
products are increasingly in demand. One of the
most obvious examples is fast food.
 The fast food industry focuses heavily on rapid
consumer turnover, speed of service, take-out
sales, and less expensive price compare to table
service restaurant meals.

6. SUBWAY
 Subway is a fast food franchise that primarily
sells submarine sandwiches, salads and personal
pizzas. It is owned and operated by Doctor's
Associates, Inc. (DAI).
 Subway is one of the fastest growing franchises
in the world with approximately 31,835
restaurants in 91 countries as of September
2009.It is the largest single-brand restaurant
chain globally and is the second largest
restaurant operator globally after Yum! Brands
(35,000 locations).

7. SUCCESS FACTOR OF
SUBWAY
 Menu reflects demand for fresh, healthy and fast.
 Partnering with the American Heart Association.
 Worldwide brand recognition.
 Customizable menu offerings.
 Low franchisee start up costs
 Size and number stores and channels

8. McDonald’s
 McDonald’s Corporation, known as McD, started
it business from 1940.
 McD primarily sells hamburgers, cheese burgers,
chicken products, and french fries. More recently,
it has begun to offer salads, wraps, and fruit.
 McD is the world's largest chain of fast-food
restaurants with more than 31,000 local
restaurants serving more than 58 million people in
118 countries each day.
 Low price, speed, service and cleanliness
became the critical success factor of the
bussiness.

9. McDonald’s
McD is looking for homogeneous consumer
groups and replicating the same format in
foreign countries, making only minor changes
to suit the local or national preferences but
recognizably maintaining the original concept.
India Thailand Dubai Indonesia

10. McDonald’s
Despite the diverse environments, most outlets were
operated using the same reward systems, the same
hierarchical management structure, and the same
routine for serving food.
McD centralized the design of its service concept,
restaurant layout, the selection of franchisees and
other personnel, and the design and content of
training of restaurant managers and staff.
Such strategy, structure, and uniformity have made
McDonald’s the brand name that defined American
fast food.

11. COMPETITOR
 Yum!
 the world's largest fast food
restaurant company in terms of
system units
 Fortune 500 coorparations, that
operates or licenses Taco Bell,
KFC, Pizza Hut, and A&W
restuarant
 Subway
 The third largest fast food operator
globally after Yum! Brands and
McDonalds

12. How McD become a global
brand
 By franchising, McD are able to expand rapidly
across countries.
 Establish Hamburger University that only aim to
train franchisees and corporate decision-makers.

13. McD MISSION
“McD mission is to be the world’s best
quick service restaurant experience.
Being the best means providing
outstanding quality, service, cleanliness,
and value, so that we make every
customer in every restaurants smile.”

14. 7P OF McD
 McDonald’s overall strategic plan is
called Plan to Win: created better
McDonald’s experiences through
the execution of multiple initiatives
surrounding the five factors of
exceptional customer experiences
– product, price, place, promotion,
people, physical evidence, process.

15. PRODUCT
 Hamburgers
 Various types of chicken sandwiches
 French fries
 Soft drinks
 Breakfast items
 Dessert
 Salads
 Vegetarian items
 Wraps

16. PRICE
 McDonald’s has a unique pricing strategy that
falls solely on their many product lines.
 The most notable and recent example of this is
McDonald’s “Dollar Menu”.

17. PLACE
Number of locations more than 31,000 worldwide.
Type of restaurant :
 counter service
 drive-through service
 gas stations
 convenience stores
 shopping mall
 McStop

18. PROMOTION
 Happy meals
McDonald’s used to give children a choice
between toys, milk, fruit, or vegetables as part
of their Happy Meals.
 Slogan “I’m Lovin’ it”

19. PEOPLE
 Stars as their performance
 Gives employee larger role in decision
 Philosophy of quality, service, cleanliness, and
value is the guiding force behind its service
 Fast friendly service

20. PHYSICAL EVIDENCE
 Cleaness
 Speed
 Quality
 Transparency

21. PROCESS
 Food manufacturing transparent to the customers
 Training to the licenses
 Invented the most efficient cooking equipment
 New method of food packaging and distribution

22. FALLEN OF McD
 In 2002, McDonald’s posted its first loss. Earnings
were $893.5 million, down 45 per cent from $1.64
billion in 2001. McDonald's share of fast-food
sales in the U.S. has slipped almost two
percentage points, to 16.2%.
 The drop has come even as the company has
increased its number of restaurants by 50%, and
the Total revenue from 2001 to 2002 just
increased for 3.6%.

23. Table : McDonald’s Revenue (dollars in millions)
2000 2001 2002
Total Revenue 14,243 14,870 15,406
Operating Income 3,330 2,697 2,113
Net Income 1,977 1,637 893
Source: McDonald’s financial report 2004
Net Income (2001-2002)= (893-1,637)/1,637= 45.5%
Total Revenue (2001 -2002) = (15,406-14,870)/14,870 = 3.6%

24. What went wrong?
The most fundamental problem the is the quality of its
food. While the company focused on building more
stores, consumers have decided they want better food
and more variety.

25. HEALTH ISSUE
 Obesity
• According to the Massachusetts Medical Society Committee on
Nutrition, fast food is especially high in fat content, and studies
have found associations between fast food intake and increased
body mass index (BMI) and weight gain.
 Food poisoning
• Manure gets mixed with meat, contaminating it with salmonella
and Escherichia coli 0157:H7. E. coli 0157:H7 is one of the worst
forms of food poisoning. Usually spread through undercooked
hamburgers .

26. ENVIRONMENTAL ISSUE
The biggest environmental nightmare for
McDonald’s :
 Waste
 Packaging
 Global warming

27. Obesity and Well being issue
 There is increasing concern about obesity rates and
related risks to well-being, and a holistic approach by
McDonald

28.  High-Quality Choices - Continue to develop high
quality menu offerings that provide customers
with a range of choices that meet their needs and
preferences and that fit in a balanced diet.
 Consumer-Friendly Nutrition Information -
Enable consumers to make the right decisions -
continuing to provide even easier access to
nutrition information
 Communicate Responsibly - Continue to refine
marketing and communication practices,
particularly to children

29. High-Quality
Choices
Examples of nutrition
information on the packaging.
Communicat
e
Responsibly
particularly
to the
children

30. NUTRITION INFO

31. Enviromental issue
 McD efforts on minimizing environmental impact of
restaurants business

32.  Energy efficiency – Find
further ways to increase energy
efficiency in restaurants to save
money and reduce our environmental
impact.
 In 2007 and 2008, McDonald’s was ranked second among
food service companies by Climate Counts, designating
the company in the organization’s “Starting” category, as a
“better choice for the climate conscious consumer.”
 McDonald’s restaurant managers are equipped with a
variety of energy management tools, including restaurant
energy surveys and audits, and in selected restaurants,
Energy Management Systems (EMS).
 In 2007, McDonald’s USA was named an Energy Star
Partner of the Year by the U.S. Environmental Protection
Agency.

33.  Sustainable Packaging & Waste Management –
Continue exploring ways to reduce environmental
impacts of consumer packaging and waste in
restaurant operations.

34.  Green Restaurant Design – Enhance our current
strict building standards to incorporate further
opportunities for efficiency and innovation in the
design and construction of our restaurants.
McDonald’s France
Beaugrenelle restaurant
in Paris with an array of
sustainability
enhancements
and environmentallythemed
decor.

35. Re-branding: the McDonald’s
strategy
McDonald’s Value
 We place the customer experience at the core of
all we do
 We are committed to our people
 We believe in the McDonald’s System
 We operate our business ethically
 We give back to our communities
 We grow our business profitably
 We strive continually to improve

36. We place the customer experience
at the core of all we do
 Allowing franchisees to launch extensive
experiments in food and décor, launching “I’m
lovin’ it” marketing theme
 Providing the customers with high quality food
and superior service, in a clean, welcoming
environment, at a great value.

37. We are committed to our
people
 Talented people, with diverse backgrounds and
experiences, working together in an environment
that fosters respect and drives high levels of
engagement, is essential to continued success.
 McD Employee Benefits are organized into 4
categories:
 Health and Protection
 Pay and Rewards
 Investing Employee future
 Helping Balancing Employee work and life

38. People Priority: McDonald’s Approach is to address all employees'
interests
Respect - Create a diverse and inclusive culture where everyone feels
valued and respected.
Commitment Enhancement - Continue to enhance our employment value
proposition to drive high levels of employee commitment.
Talent Management - Attract, develop and retain the most talented people
at all levels.

39. We believe in the McDonald’s
System
 The balance of interests among the three groups
: owner/operators, suppliers, and company
employees.

40. We operate our business
ethically
 McDonald’s conducts its business to high
standards of fairness, honesty, and integrity. And
the people are individually accountable and
collectively responsible.

41. We give back to our
communities
• Support Ronald McDonald House Charities
• Support World Children’s Day
•“ Ronald McDonald Reading Corner “, to utilize
Ronal McDonald to promote early literacy.
•Increase financial and volunteer support to
RMHC
•Partnerships and sponsorships
•Owner/Operator Involvement
•Disaster Relief

42. McDonald’s serves as the
McDonald’s Champion Official Restaurant of
Kids programs the Olympic Games
More than 930 restaurants, McDonald’s
China will support the kind blood donors
with a free orange juice and hamburger to
replenish their nutrients, upon their
presentation of a blood donation certificate
(Sichuan region earthquake relief efforts)

43. We grow our business
profitably
 Provide sustained profitable growth for our
shareholders.
 Requires a continuing focus on customers and the
health of the company.

44. We strive continually to
improve
 Anticipate and respond to changing customer,
employee and system needs through constant
evolution and innovation.

45. CONCLUSION
 Nowadays fast food are recognized as an
unhealthy food
 However: their income keep on growing,
because: they offer: speed, cleanliness, and
delicious food.
 McDonalds do their repositioning from
unhealthy to healthy fast food.

46. Octawati
Buntaran
M987Z249