As Ray Kroc advanced the parking lot in 1954, he noticed an unusual site. He saw dozens of people making a line for a restaurant and coming out of it with a big smile on their face. Upon enquiring, he received an interesting answer. One of the passersby said, “You’ll get the best hamburger you ever ate for fifteen cents. And you don’t have to wait and mess around tipping waitresses.”
Unknown authorUnknown author, Public domain, via Wikimedia Commons
That baffled Kroc as he had travelled the country selling milkshake machines, visiting countless restaurants of all types. But he had never encountered a merchandising operation like this. Today, the year is 2021; which means 80 years have passed since the McDonald brothers decided to open their drive-in restaurant in San Bernardino, California.
Now, McDonald’s is the world’s largest restaurant chain by revenue, serving over 69 million customers daily in over 100 countries. McDonald’s have mastered the art of sustaining and developing a business franchise.
Without lingering much, let’s dive deep into the business tactics that the fast-food giant used to create a sustainable company
Table of Contents
Everything has a system
The key to developing a successful business model lies in the fact that everything is systemized. When you run a company with thousands of outlets, you need to ensure that everything that people have to do is simple, logical, and repeatable. When it comes to strategizing, McDonald’s seems to have crushed it. They have systemized every facet of the business-from the number of fries to the amount of ketchup that gets pumped onto the big mac. This helps in building consistency and productivity.
Adapting to changes
What might work in a McDonald’s restaurant in America may not work in restaurants in India. So, how does a huge fast-food chain restaurant appeal to a diverse audience? They adapt. The core products are the same in all outlets – Burgers, fries, and coke. However, the taste changes as per the local culture.
Upselling/ cross-selling
Nowadays, if you order fries in a fast-food restaurant, getting that extra sauce is a must. With the simple phrase ‘would you like fries with a dip?”, Mcdonald’s effectively takes advantage of an opportunity to increase their sales. It is their strategy to allow customers to first decide what they want, then add value to their selection with an additional item.
Never stop promoting your product
Even though McDonald’s has a huge market presence, they still invest a lot in advertisements. They never let their guard down and constantly come up with unique marketing strategies to build consumer awareness of certain products. They understand their target audience and continue to talk to them relentlessly.
Know your strengths
McDonald’s never claimed their consumers a fine dining experience. They are very self-aware and understand that their food isn’t a prime culinary experience. This should be an added liability that hampers their business. But it isn’t. How is that possible?
McDonald’s focuses their marketing strategy on its strengths, which are- convenience, affordability and hassle-free good food.
The bottom line is, wherever you are and from whichever country you belong to, you can find Mcdonald’s in every nook and crevice of the world. Their presence brings a sense of familiarity and nostalgia to people. Throughout the years, McDonald’s have remained consistent with their marketing and image branding. This is what every aspiring entrepreneur must take away from McDonald’s. With their marvelous marketing strategy and strong conviction towards customer service, Mcdonald’s is arguably way ahead of its game-concludes business development expert and advisor Hirav Shah.
