McDonald’s, a multinational fast food company
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Abstract
McDonald’s has had to adapt in a variety of ways in order to become successful. Studies on the changes in the chain’s menu, layout, and location have shown that such adaptations made the profits soar. This paper is by no means intended to promote the fast-food chain, but rather a deep insight into some of the adaptations the Spain outlet has taken in terms of menu changes, layout, and structure. Prior to making these changes, McDonald’s management makes wise calculation. This has then been compared the McDonald's enterprise in the United States of America.
Introduction
McDonald’s, a multinational fast food company, operates 31,000 restaurants across 120 countries. It handles over 46 million customers every day. McDonald's most notable feature is its impressive adapting capability in different locations worldwide including Spain at different times. The menu has been changed and expanded in order to suit the popular culinary needs of various crowds. This includes, but is not limited to the relatively postmodern McCaffe that exists in all countries in Europe. However, the question has been whether design makeover and the extent to which network is changing the costume are included in this adaptation process. The success that McDonald’s has achieved around the globe has been attributed to its embracing of globalization. McDonald’s thinks globally but acts locally. For example, the advertising campaign McDonald’s has adapted globally is quite elaborate. It has advertised its restaurants globally, although the background setting as well as the characters has been made to adapt in accordance with the local customs and culture. As far as the layout is concerned, the multinational company has adopted the café style, making its restaurants more attractive to families with children and single adults. The dining areas have been made comfortable with lavish tables and chairs that attract even 'parasites' that prefer to order a small snack in order to get a chance to remain seated in the comfortable environment throughout the day.
McDonald’s used to be a hamburger chain predominantly. With time, however, competition became extremely stiff. By the late 1970s, there was unbearable competition from Burger King and Wendy's, which were other hamburger producers. The fast-food industry at this time had grown as big as it ever had been imagined. Therefore, the fast food companies started to fight fiercely for a share in the market. A period characterized by price slashing and aggressive promotional campaigns arose in the early 1980s. This came to be popularly called the ‘burger wars’. Wendy's took advantage of the situation and offered itself as a fresh alternative. Simultaneously, Burger King claimed the customers would have it their way and kept asking where the beef for the other restaurants was. In spite of all these difficult circumstances, the sales as well as the market share for McDonald's continued to grow.
McDonald’s now faces stiff competition from other fast food outlets in Spain. The competing firms include Burgy, which McDonald’s has bought recently. Others include the Wendy’s and Burger King. However, most Spanish customers apparently know McDonald’s is a multinational company that sells products that have passed quality assurance tests. Any new product McDonald’s comes up with becomes a popular delicacy within a short time in Zaragora, and eventually in the rest of the country. However, McDonald’s also has a number of factors that put it at a disadvantage over the competitors. For instance, a certain laboratory claimed to have analyzed the McChicken, a popular McDonald’s product, and found hairs, strings, and other unidentified substances within the flesh. Nobody knew whether this was true, but it has affected McDonald’s Spain, as chicken customers would rather buy the chicken elsewhere now.
Literature Review
Studies have shown that large portions of the Spanish society are nowadays becoming wealthier. According to (Gasparro 20), the management of McDonald's Spain faces two options: keeping the various branches in their present form or upgrading the chain's appearance or expanding its menu. The first option, the researchers have reported, will probably result in members of the higher and middle classes preferring more 'classier' options and high quality restaurants. Meanwhile, other middle class members will continually remain McDonald’s loyal customers. The second option attracts the Spanish with a 'sophisticated' taste.
An investigation was carried out at the Natural News Forensic Food Laboratory. The laboratory belongs to the Natural News and is a science-based research laboratory. Foods from popular fast food companies and outlets were examined under the light microscope in an attempt to find the real contents of common delicacies. A 10-piece Chicken McNuggets purchased from a McDonald's restaurant was examined under a high-powered microscope in Austin, Texas. The expected result was an image of processed chicken bits and its fried outer coating only, under carefully controlled conditions. The researchers reported they saw many strange substances. Weird fibers were found embedded within the Chicken McNuggets. These fibers resembled the so-called ‘Morgellon's.’ The black hair-like structures stuck out of the McNugget mass, and there were blue egg-shaped structures containing attached tail-like fibers or hairs. In photos they circulated all over the world, the researchers showed these fibers in extreme detail. For forensic evidence, the investigators frozen and stored the samples of the Chicken McNugget samples whose representation was depicted in the photos (Han 55).
The investigation also led to identification of odd, red splotches in some of the chicken parts. In addition, a circular green object that resembled algae was observed. However, the researchers were quick to point out that they were not implying or claiming that the objects identified in McDonald's Chicken McNuggets made it unsafe to consume in any way. Overall, that visual evidence warranted an investigation by the United States Foods and Drugs Administration (FDA) into the exact composition of these McNuggets. For instance, the origin of the hair-like structures was important to know. This, the researchers asserted, was important to know because it is common knowledge chicken do not possess hair. The question that needed to be answered is whether there existed cross-species contamination as the Chicken McNuggets underwent processing.
McDonald’s
Menu Changes
McDonald’s is able to address its customers’ tastes and preferences according to their various cultures and religious practices (Vignali 7). For example, to be fully established in Spain it has introduced meals that are popular with Spaniards. McChicken proved to be a disappointment and a year later a series of various chicken sandwiches were introduced to replace it. Rene Arend invented Chicken McNuggets in 1979. So good were they that every franchise desired to taste them. It was not until 1983 that a system to supply sufficient chicken products was put in place. These forms of innovations have been instrumental to see McDonald’s stay ahead of the cutthroat competition in the fast food industry. In addition, the way the meals are served attracts the customers because it is done in a way that puts into account their culture and traditions (RayKroc 54).
McDonald’s Spain has had to consider several aspects of the Spanish dining culture for their business venture in Spain to be successful. Importantly, Spanish culture and customs revolve around mealtime as an opportunity to socialize and relax. With the availability of a wide variety of scented, delicious Spanish food, it is no wonder a mealtime in Spain often lasts for hours. Most Spaniards prefer to start the day with a light breakfast, treat themselves to a multiple-course lunch, but eat a late, scanty dinner. There is a long gap between lunch and supper because of the timing of the traditional light breakfast. This necessitates the inclusion of the afternoon and mid-morning snacks popularly known as the ‘tapas’, which are quite a common part of the Spanish culture. McDonald’s has adapted its menu appropriately to these preferences. The breakfast menu offers light meals exclusively, just like the midmorning one.
McDonald’s Spain now deals with a wide range of fast foods. However, the McDonald’s hamburger remains the most cherished; as it is the product, the food chain is known for worldwide. McDonald’s Spain, whose physical location is the ground floor of a post-modern building in a Zaragoza suburb, offers a regionalized version of its global menu. This is meant to cater for culinary traditions as well as the local tastes in respect of religious beliefs or cultural laws. Recently, the restaurant has introduced the NYCrispy burger. The burger exclusively sells in Spain, and may not permeate other markets soon. It is a product customized to the local tastes of Spanish customers. The Spanish are reporting that the burger is the greatest in the world, both in terms of taste and size.
NYCrispy burger is now the major product McDonald’s Spain is offering. According to McDonald’s Spain management, the new burger has been introduced as a physical manifestation of the attitude of the New York City in Spain. Cosmopolitan cultures including cutting-edge music, uber-cool attitude, as well as funky art accompany this patty. Apparently, a New Yorker in Spain will like this product and feel at home.
Though available in Spain only, the NYCrispy burger is a New York flavor. This burger is put together very well. It is made up of slices of tomato and cheese, shredded lettuce, bacon, Parmesan bun, barbecue sauce, as well as mayonnaise specked with an unidentified herb. In addition, it has a crispy part hence the name. The crispy section has fried onion bits and tiny battered specks of an unknown substance. In general, the burger falls short of easily attainable culinary standards but is successful by standards of fast food. Coupled with the fact that it is a first time product in a fast food restaurant, the burger is extremely attractive to customers. The sales have soared drastically because of its marketability (Peck 78).
Being the largest burger chain globally, McDonald’s is able to offer all its products at highly competitive prices. The management has adopted a unique pricing strategy where the product is sold depending on the demand it attracts. Products that have become quite popular with both domestic and foreign customers sell at extremely high prices. For instance, the NYCrisp burger is going at 3.29 U.S. dollars currently and the Big Mac at approximately 5 U.S. dollars. However, such a product is usually sold at a low, affordable price initially. The price goes up once customers have been allowed to taste and give feedback on the product. McDonald’s Spain has not been reported of engaging in cutthroat wars with its competitors. Nevertheless, in the recent past, McDonald’s Spain has been accused of supersizing its prices, a factor likely to reduce sales significantly if not regulated.
McDonald’s market has grown substantially since inception of the fast food restaurant in Zaragora. McDonald’s does not target the market provided by the people living around Zaragora suburbs only. The location notwithstanding, McDonald’s Spain attracts customers from all over Spain and in extension from all over the globe. For instance, New Yorkers on holidays in Spain have become the major target of NYburger, a product available only in Spain. The fast food company is located strategically in the market. Identifying itself with production of exclusive burgers, anyone in need of a burger is most likely referred to McDonald's.
The marketing communication mix is an innovative one. To advertise its products, McDonald’s in Spain has sought to train its marketing staff the elements of promotional mix and their role in increasing the sales. The chain branch in Spain depends not only on the television but also on the print media including popular newspapers, magazines, and journals. Through this media, McDonald’s Spain is able to reach a large population of prospective customers.
Layout
The layout of the restaurant outlets in Spain changes from time to time to adapt to the ever-changing needs of the esteemed customers. One cannot exaggerate to say that revolutions are taking place in the McDonald's system, but major changes in the appearance of the eating areas as well as the recreational floors are getting more and more spacious and attractive in which to spend time. The changes in layout occur principally through renovation of some of the urban outlets of the chain. The renovations transform the outlets into stylish modern Cafés. Fans of Big-Mac are able to get their familiar options at the same price as in restaurants elsewhere, but the McDonald’s provides a wider variety of options compared to other areas. In the created Cafés, the designers prefer to use dark colors, provide the most comfortable seats, and play chill-out music constantly. In addition, the staffs offer extensive Café options, probably with the intention of scratching off some customers from the rival restaurants, which are also doing quite well in Spain.
Time has come for the chain’s management to see what results the changes in the layout of the branches in Spain will bring. Both café lovers and burgers now flock these outlets, the result of which is supernormal profits. Other critics attribute the increased profits to soaring markets due to an improvement of the economy in Spain, rather than the attraction of customers by changes in the layout (Kincheloe 30).
Another aspect of the transformed layout is the creation of large tracts of empty land on the rear side of the restaurants. On the margins of these empty areas are well-arranged hard plastic chairs. These have been placed to replace the comfortable sofa sets that lay in the previously smaller recreational areas. The chairs have been made of hard plastic in an attempt to urge the relaxed customers to eat quickly, or even better, go with the food in the form of a take-away. Rather than having a design-sophistication, a casual setting seeks to attract only bored teens and children. These categories of customers promote greasy Spanish fast foods as the flagship choices of the menu. The features characterize most of the McDonald outlets in other parts of the world, but in Spain, the McDonald's system experience is taking a significant turn.
The brains of McDonald's Spain have figured the advantage of making it uncomfortable for customers to hang around their premises for prolonged durations. Apart from promoting the creation of large tracts of lands where customers could easily rest and doze off, they have advocated for the spread of the Mc-Drive takeaway service. However, the layout inside the dining areas is such that the rooms are spacious and comfortable because the Spanish people enjoy the dining experience as a critical part of expressing their European aspirations. The parking bay now also lies at the front of the restaurant premises, not at the back as it used to be. This, apart from making it easy for customers to maneuver their way in between other vehicles, helps to improve on the security. Still, no significant changes have proved necessary or new investments required improving on the state of the feeder roads leading up to the premises, as the distance of McDonald’s outlets is quite short from the main highways (Gilbert 20).
A meal with the Spanish, McDonald’s has learnt, is an event that may include eating, dancing, entertainment, and drinking. The layout has been changed to accommodate all these activities because of this complexity. Each dining area inside the restaurants is built slightly far from the others. It consists of around ten chairs arranged in a circle, inside of which is a large round table. Adjacent to the eating area is a medium sized dance hall, which is meant to be shared by 5 or so dining area groups. In the course of each meal, many customers are seen dancing in the hall, but they hardly take more than a few minutes in the hall. In addition, counters where customers can buy alcoholic drinks stand strategically in virtually all corners of the restaurants in such a way that the customers do not have to travel far to get the drinks.
Location
McDonald's restaurants used to be located principally in the middle of major towns in Spain. However, the management has changed this strategy. The restaurants are also located in the suburbs nowadays. In the ground floor of a magnificent building in the Zaragoza suburb now lays a McDonald’s outlet. The focus from the middle of urban centers has increased the sales significantly. Customers’ preferences have begun to change and are now more oriented towards the suburb ones as they adopt the latest architectural styles (Mieth 100).
Comparison of McDonald’s in the United States to Spain
Great changes have been made leading to differences between the McDonald’s in the United States and that in Spain. The differences are reflected in several aspects of the restaurants. The menu differs significantly, and so does the layout as well as the locations. The menu in Spain is quite elaborate and tailored to meet the needs of Spaniards. The Spanish customer usually gets a choice of wedges, fries, cherry tomatoes, or even carrot sticks as accompaniments in a child’s meal. However, in the United States, the population is quite diverse and in extension, there is a wide variety of cultural practices. Apart from the Native Americans, there are African Americans, Hispanics, Arabs and Jews. All these are distinct cultures with varied tastes and preferences. With this in mind, the management at McDonald’s United States offers almost all types of food in their menu. One may be required likely to choose from a wide variety of all food types known on earth. A dessert selection of apple wedges, grapes, chocolate, or yoghurt is common. The customer may additionally get a burger, nuggets, or fish fingers free (Gasparro 81).
The way McDonald’s in Spain function is now largely different to that of the chain in the United States. The burgers sell more in the United States compared to Spain partly because U.S. nationals are used to them, unlike the Spanish who are introducing themselves to the product slowly. However, it is important to remember the McDonald’s policy of regionalizing its products. It will stock certain foods depending on the cultural and/or religious preferences. Consequently, McDonald’s United States offers a wide range of products to cater for its diverse market. In Spain, products are tailored carefully and served in a way that satisfies the cultural needs of the Spaniards. A similar aspect in both countries is McDonald’s reluctance to open new branches. The strategy has been to focus on markets that are already in existence. In addition, McDonald’s in both locations do franchising where possible in order to avert potential competitors who might threaten their continued success.
Conclusion
From the foregoing, McDonald's has been in the front line when it comes to responding to the needs of the market making it grow significantly over the decades. Its fast-changing menu has served to lure health-conscious customers day by day. The 1980s had been singled out as the period when the fastest-paced achievements were made. Changes in the layout, efficiency, and the expanded menu are some of the factors that can be attributed to the interest customers have continued to show worldwide. McDonald's restaurants do not look identical any longer. The one in the United States differs significantly from the Spain one. However, the management has ensured the quality of food and service remains constant.
In Spain, McDonald’s is doing extremely well. It has cut a niche for itself in Spain where it is thriving despite the stiff competition. Its success has been largely attributed to the near ideal pricing strategies, high quality products, strategic location, as well as a readily available market for its products. In terms of its menu, Mc Donald’s is able to change the foods offered as the influence of immigrants takes a toll on the Spanish culture, and in extension the foods the people consider popular. In addition, the management of McDonald’s has picked out the special days in the Spanish calendar in order to respond to their dietary needs appropriately at different times of the year. As far as the layout of the restaurant, arrangements have been made to have the premises reflect the social needs of the customers. Extensive rooms have been built for purposes of accommodating large groups of people, because the Spaniards prefer to take all their meals when in groups of not less than five people. Additionally, parking bays have been made in a way that allows thousands of automobiles to be packed just in front of the premises.