Franchise Pick

McMillionaires: They’re Lovin’ It!

by sean on January 23rd, 2008

(FranchisePick.com) McDonald’s has 14,000 restaurants in the U.S. and additional 17,000 in 117 other countries. The company will add 1,000 others in 2008, and 900 out of 1,000 will be located abroad. Its global success makes McDonald’s the corporation so many love to hate. The ultimate symbol of Big Business. The unstoppable enemy of the little guy.

In a recent Washington Post article, George Will challenges that notion, pointing out the McDonald’s is, in fact, a bunch of little guys empowered by one of Earth’s strongest brands. Will points out that McDonald’s is largely a coalition of small businesses: 85 percent of its U.S. restaurants — average annual sales, $2.2 million — are owned by franchisees. McDonald’s franchise program creates millionaires, especially in the minority demographic. McDonald’s has created more black and Latino millionaires than any other economic entity ever, anywhere.

Source: www.washingtonpost.com

Lovin’ It All Over
OAK BROOK, Ill. — To gauge this pell-mell nation’s velocity, visit here with Jim Skinner, chief executive of a company on pace to have net income for 2007 of $3.46 billion, up 12.7 percent, on revenue of almost $23 billion. The evolution of McDonald’s mirrors that of the nation in which it serves 27 million customers a day.

Americans commonly say this or that distinction is “as clear as night and day.” Americans, ricocheting around the country around the clock, are erasing the distinction between night and day. Breakfast, the meal most apt to be eaten at home, now accounts for more than 25 percent of U.S. business for McDonald’s. More than 90 percent of its restaurants have extended hours — beyond the regular 6 a.m. through 10 p.m. — and almost 35 percent are open 24 hours a day, seven days a week, up from less than 10 percent just five years ago.

America is in the third era since its meals began to mirror its mobility. First came the Steak ‘n Shake Era. That restaurant chain began downstate in 1934, in the perfectly named town of Normal, Ill., as Americans were getting used to eating out. They were leery of food that came from a kitchen they could not see, so Steak ‘n Shake put its grills behind glass in full view of the dining area and adopted the slogan “In sight it must be right.”

In 1955, when Ray Kroc launched the McDonald’s Era, Americans were doing what Dinah Shore urged them to do, seeing the USA in their Chevrolets, seeking novel experiences — but not in food. When they got out of their cars for nourishment, they wanted no surprises. Hence the rise of franchising — the same food here, there and, eventually, everywhere.

Now we are in the Snack Wrap Era. Last year McDonald’s started selling chicken and other stuff wrapped in tortillas. This product was a response to consumer appetites for something to eat between meals and with one hand on the steering wheel. More and more Americans do not want to get out of their cars: Most of America’s McDonald’s have drive-through windows, and most of these restaurants sell most of their food through those windows.

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