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Franchise Prospector » Success Stories

McDonald's Franchise Profile

Fast Food Pioneers Stay One Step Ahead


When you think of fast food, McDonald's is likely to pop into your mind. As far as fast food pioneers go, if there is such a term, McDonald's leads the pack. Like all great inventions, imitators come along who try to duplicate, improve upon and cash in on the popularity of a good concept. These days there is a McDonald's in every populated town, and, most likely at least one other fast food chain, if not dozens of competitors. Brands like Jack in the Box and Subway are picking up steam by targeting a younger generation of health-conscious eaters, as well as continuing to romance the French Fry and hamburger loving masses who've grown up on McDonald's. So how it is that McDonald's continues to lead the pack? Nearly 50 years of experience may have something to do with it.

On April 15, 1955 families piled into their shiny, new Fords and headed to McDonald's #1 Restaurant in Des Plaines, Ill. to get juicy hamburgers and golden, crisp French Fries. The food was good and better yet, it was fast-hence an American tradition was born. Even though the Des Plaines store went down in history as the first in the chain of restaurants, the first McDonald's location was actually in California. In 1954, McDonald's Corp. Founder Ray Kroc, who at the time was the exclusive distributor of a product called the Multimixer (a five-spindled milk shake maker) ventured West to see for himself how eight of his Multimixers were employed at once to quickly serve a multitude of customers at a hamburger stand called McDonald's. A true entrepreneur, Kroc pitched the idea of opening several of the restaurants to McDonald brothers Dick and Mac, who agreed that Kroc would open the outlets. So, on that fateful spring day back in 1955, McDonald's began its journey to become a household name-and the rest is history.

The Wheels of Change

One of the reasons McDonald's has remained an institution is its ability to grow with each generation of customers. Can you imagine McDonald's without the Big Mac or Egg McMuffin? These tasty menu staples were invented by McDonald's franchisees and were not among the original menu offerings. Today, the "Big Cheeses" at McDonald's Corp. continually review their menu items and make changes contingent upon market demand, among other factors such as nutritional awareness. While McDonald's is synonymous with the hamburger, they were among the first, if not the first, fast food establishment to offer salads in lieu of a burger or sandwich. Despite McDonald's popularity, it's an undeniable fact that the fast food market is saturated with competition, which have made names for themselves in their own right. Franchises like Subway and Panera Bread are giving McDonald's a run for their money. McDonald's has responded to the competition in several ways. Even though both Subway and Panera Bread charge notably higher prices for their fresh deli meat and gourmet sandwiches than McDonald's charges for hamburgers, McDonald's offers their customers an even deeper discount through special $1 menus and other promotions. McDonald's new Premium Salads provide healthy alternatives to customers. Salads like the Premium Fiesta Salad and the California Cobb round out the menu, with dressing options like Newman's Own Low Fat Balsamic Vinaigrette.

McDonald's continued success is attributable not only to its tasty burgers and fries but for its dedication to people around the world, as well as in the US. More so than any other fast food company, McDonald's ongoing commitment to charitable causes and active lifestyles keeps it a household name. The Ronald McDonald House Charities ™ helps countless children globally, including patients at the Pendeli Pediatric Hospital in Athens, who gained access to the hospital's first hospital playroom. During the 2004 Olympics in Athens, McDonalds launched the first ever Go Active! Day celebration for citizens and visitors in Athens, featuring the distribution of thousands of stepometers to encourage walking for people of all ages.

Another advantage McDonald's has over its competitors is nostalgia. Most of our parents remember going to McDonald's, either as children, teens or adults. Even if you grew up outside the US, chances are you knew about McDonald's. McDonald's celebrated first location is now a museum, drawing visitors from around the world who want to see what it was like to eat at McDonald's way back when.

MORE: McDonald's Franchising Information


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