CHAPTER II: Description of the Organization

The first McDonald's drive-in was opened in 1940 by brothers Maurice (“Mac”) and Richard McDonald in San
Bernardino, California. In 1948 the brothers revamped the business, and a newly envisioned McDonald's
restaurant was created to produce huge quantities of food at low prices.

Date: 1955 - present

Replica of the first McDonald's restaurant opened by Ray Kroc, in Des Plaines, Illinois; demolished in 2018.

Early Years: The Birth of Fast-Food Pioneers (1940–1948):

The first McDonald’s drive-in was opened in 1940 by brothers Maurice (“Mac”) and Richard McDonald in San
Bernardino, California. In 1948 the brothers revamped the business, and a newly envisioned McDonald’s
restaurant was created to produce huge quantities of food at low prices.
The brothers developed a simple, efficient format that they named the Speedee Service System, including a
self-service counter that eliminated the need for waiters and waitresses. By 1949, the menu was condensed to
include 15-cent hamburgers, shakes, and fries. Customers received their food quickly because hamburgers
were cooked ahead of time, wrapped, and warmed under heat lamps.

McDonald’s was a huge success, and the brothers began a franchise program of 10 restaurants plus their
original San Bernardino location.

The Ray Kroc Revolution (1954–1961):

In 1954, Ray Kroc, a distributor for a special milkshake mixing machine, was intrigued by the McDonald
brothers’ need for eight mixers. 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, where he also opened the first McDonald’s franchise east of
the Mississippi River. In 1961 Kroc bought out the McDonald brothers.
Standardization and Expansion (1961–1975):

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 a program in 1961, later known as Hamburger University, to train franchisees. In
addition, he eventually changed the format of the restaurants, adding counter staff to take orders.

McDonald's: Ronald McDonald

© Marynaanna/[Link]

During this time McDonald’s also introduced features that would define its brand and further public
recognition:

 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.
 In 1968, 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.
  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.
 In 1975 a McDonald’s in Arizona opened the chain’s first drive-through window, a feature that soon
became ubiquitous.

These changes helped spur McDonald’s growth. In less than 10 years after Kroc became the sole owner of
McDonald’s, the number of the chain’s outlets topped 1,000. Boosted by these numbers, the company’s stock
began trading publicly in 1965.

Global Dominance and Diverse Menu (1980s–1990s):

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 by emphasizing affordable food, fun, and flavors that appealed to
children and adults alike.

Marrakech: McDonald's
McDonald's restaurant, Marrakech, Morocco.
Over the years McDonald’s also expanded its menu. In addition, restaurants in foreign countries also adapted
their menus to appeal to local customs and tastes.

 Filet-O-Fish sandwiches (1965)

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.

Facing Challenges and Criticisms (2000s):

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
addition, in 2018 McDonald’s announced that it had stopped using preservatives in most of its hamburgers.
During this time the company also eliminated supersize 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 was criticized
for its negative impact on the environment, especially 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.

Amid the controversy, however, McDonald’s Corporation continues to grow internationally and domestically,
continuing the core strengths established by Ray Kroc: delivering fast food at value prices and in a friendly
atmosphere, with aggressive marketing of its restaurants. Its 2020s strategy calls this “Committing to the
Core,” with a focus on what it calls the 4 Ds: Digital, delivery, drive-through, and (restaurant) development.

Organizational Structure:

McDonald's India is part of the McDonald's Corporation, which has a divisional organizational structure. This
structure is designed to help the company manage its global operations efficiently.

 CEO: The chief executive officer (CEO) is at the top of the organizational structure.
 Regional divisions: These divisions are split into McDonald's USA and International Markets.
 Corporate division: This division includes executives who are responsible for global functions.
 Functional divisions: These divisions focus on specific areas, such as learning and development,
communications, and sustainability.

Responsibilities:

 Top-level executives: These executives are responsible for making decisions, setting objectives, and
managing finances and operations.
 Regional managers: These managers oversee operations in their respective regions.
 Functional groups: These groups handle operational areas and strategic objectives.

Communication:

The organizational structure defines how components communicate and coordinate with each other. The CEO
directs and guides the activities of all business areas.

Different Products and Services Offered:

McDonald's India South offers a diverse menu tailored to local tastes, featuring both vegetarian and non-
vegetarian options. Here are some popular items:
Vegetarian Options:

 McAloo Tikki Burger: A classic burger with a spiced potato patty, lettuce, and mayonnaise.
 Paneer Wrap: Soft paneer cubes marinated in spices, wrapped in a soft tortilla.
 Veg Maharaja Mac: A larger-sized burger with a spicy paneer patty, lettuce, and special sauce.

Non-Vegetarian Options:

 Chicken Maharaja Mac: A larger-sized burger with a spicy chicken patty, lettuce, and special sauce.
 McChicken Burger: A classic burger with a crispy chicken patty, lettuce, and mayonnaise.
 Fish McMuffin: A breakfast item featuring a fish patty with cheese and mayonnaise on a soft muffin.

Breakfast Items:

 Masala Scrambled Eggs: Spiced scrambled eggs served with a choice of bread.
 McMuffin: A soft muffin filled with a choice of egg, cheese, and sausage or bacon.

Desserts and Beverages:

 McFlurry: A creamy ice cream dessert mixed with various toppings like Oreo or M&M's.
 Shakes: Available in flavors like chocolate, vanilla, and strawberry.
 McCafe Coffees: A range of coffee beverages, including cappuccinos, lattes, and espressos.

Please note that menu items may vary by location and are subject to change.