UNIVERSITY OF MUMBAI

PROJECT WORK ON
“A STUDY OF RETAIL MANAGEMENT OF MCDONALD’S”
A Project Submitted to
University of Mumbai for completion of the degree of
MASTER OF COMMERCE
(MANAGEMENT)

By
RICHA AMOL GHOSALKAR
ROLL NO.203
SEMESTER IV

Under the guidance of

PROF. MAYA HANDE

VIVEK COLLEGE OF COMMERCE

GOREGAON – 400062
2020-2021
 CERTIFICATE
This is to Certify that MISS RICHA AMOL GHOSALKAR has worked and duly completed her Project
Work for the degree of Master in Commerce under the Faculty of Management in the subject of RETAIL
MANAGEMENT and her project is entitled, “A STUDY OF RETAIL MANAGEMENT OF
MCDONALD’S” under my supervision. I further certify that the entire work has been done by the learner
under my guidance and that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is her own work and facts reported by her personal findings and investigations.

INTERNAL EXAMINER. EXTERNAL EXAMINER.

Prof. Pradeep Hathi Dr. Vijetha Shetty

CO-ORDINATOR. PRINCIPAL.

COLLEGE SEAL.
 DECLARATION
I, MISS. RICHA AMOL GHOSALKAR student of Master of Commerce (Management) Semester IV,
Vivek College of Commerce, hereby declare that I have completed the project on titled “A STUDY OF
RETAIL MANAGEMENT OF MCDONALD’S” in the academic year 2020 – 2021.

The information submitted is true and original to the best of my knowledge.

Place: Mumbai

Signature:- Date:-

Miss Richa Amol Ghosalkar

 ACKNOWLEDGEMENT

To list who all have helped me in difficult because they are so numerous and the department is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimension in completion of
this project.

I take this opportunity to thank the University of Mumbai for giving me a chance to do this project.

I would like to thank our Principal, Dr. Vijetha Shetty for providing the necessary facilities required for the
completion of this project.

I take this opportunity to thank our Co – ordinator Prof. Pradeep Hathi for his moral support and guidance.

I would also like to express my sincere gratitude towards my project guide Prof. Maya Hande whose
guidance and care made this project successful.

I would like to thank my college library for having provided various references books and magazines
related to my project.

Lastly I would like to thank each and every person who directly or indirectly helped me with the completion
of the project especially my parents and peers who supported me throughout the project.

MISS. RICHA AMOL GHOSALKAR.

 INDEX

Chapter No Title of the Chapter Page No

1 Introduction 1- 6
2 Research Methodology 7
3 Literature Review 8-9
4 Data Analysis 10 - 58
5 Findings & Conclusion 59 - 60
6 Suggestions 61
7 Bibliography & Webliography 62 - 63
 CHAPTER 1

INTRODUCTION

This project on retail management of McDonald’s is to analyse what is the need of management in a retail
business or stores and how it works. Retail Management is the process which helps the customers to procure
the desired merchandise form the retail stores for their personal use. McDonald’s is the world’s leading
global foodservice retailer with over 38,696 locations in over hundred countries. McDonald’s is the largest
fast food restaurant chain that serves approximately 47 million customers daily. McDonald’s is an American
fast food company, founded in 1940 as a restaurant.

McDonald restaurant has a quality that it serves its product according to the culture of that region where they
are operating. McDonald’s is best known for its hamburgers, cheeseburgers, and French fries, they feature
chicken products, breakfast items, soft drinks, milkshakes, wraps and deserts.

Corporate Philosophy: QSC&V (Quality, Service, and Cleanliness & Value) is a corporate motto
adopted by McDonald's to describe the company's philosophy for operating restaurants. The motto is
codified in the procedures McDonald's uses to evaluate its franchisees.

Before studying on Retail Management of McDonald’s will see the overview of

company McDonald’s

1st will understand the Company or Restaurant History by following chart:

1937 The McDonald brothers start their hot dog stand, getting into the food service
business as a team.

They open their barbecue restaurant in San Bernardino.

1940

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 Brothers Maurice and Richard McDonald started the first McDonald's restaurant by
converting their barbecue restaurant into a burger and milkshake joint. That restaurant
was the second venture into the food industry.

1948

Ray Kroc buys the rights to franchise McDonald's restaurants across the country. He
1955
opens his first franchised restaurant of McDonald's company, in Des Plaines.

1959: Kroc names Sonnenborn the first CEO of the McDonald's company.
1959 & 1962
1962: Indoor seating over 700 stores.

1963: McDonald's launches its two most recognizable Logos: the golden arches and
Ronald McDonald.

1963 & 1965

1965: McDonald's launches its public stock. They offered shares for $22.50.
1974: The first Ronald McDonald House opens.

1974 & 1984

1984: Kroc dies.

1990: During cold war in Moscow the McDonald's served more than 30,000 Russian
citizens on the first day.
1993: The company opens its first McCafe coffee restaurant in Australia.
1990 & 1993

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 1998-1996: McDonald's has entered an era of rapid growth. The company doubles its number of
restaurants, opening location number 20,000 in a year.
 2000: By the end of the 1900s, McDonald's has opened more than 11,000 restaurants outside of the
U.S.
 2003: McDonald's first global ad campaign, “i’m lovin it” is launched on September 2.
 2009: McDonald's being awarded for Being Green & in 2010 McDonald's introduced free WiFi in
over 11,000 restaurants
 2013: McDonald's opens its first restaurant in Vietnam.
 2014: McDonald's at Fashion week for Italian fashion brand Moschino.

 2015: McDonald's launches its all day breakfast menu.

 2016: The ultimate toy showcase.

 2017: McDonald's offered delivery in 13,000 of its restaurants worldwide. Global McDelivery is
celebrated on July 26 to support the global launches of McDelivery with UberEats.

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  2018: McCafe celebrates its 25th birthday on February
 2019: Crosses 38,000 location mark. Debuts prototype to go location in London.
 2020: McDonald's opens its first net zero-designed restaurant at Walt Disney World Resort.
McDonald's distributed 40 millions masks to the Canada public. McDonald's won the Global Three-
Legged Stool Award.

Glance of McDonald’s:

McDonald’s Corporation is the world’s leading food service organization. The corporation started out as a
small drive-through in 1948 by two brothers, Dick and Mac McDonald. In addition, McDonald’s opens a
new restaurant every three hours. ‘Big Mac’ is the biggest attraction and backbone of the corporation.
Moreover, McDonald’s maintains its competitive advantage by constantly creating new items to add onto its
menu. McDonald's is the world's leading chain of hamburger fast food restaurant and the prominent global
foodservice retailer. McDonald's Headquartered are in the United States, Chicago & Illinois and McDonald's
serves more than 68 million customers daily with over 38,000 local restaurants in 100 countries

McDonald’s opened its doors in India in October 1996. McDonald’s in India is a 50–50 joint venture
partnership between McDonald’s Corporation [USA] and two Indian businessmen. Amit Jatia’s company
Hardcastle Restaurants Pvt. Ltd. owns and operates McDonald’s restaurants in Western India. While
Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the Northern operations.

McDonald’s is Franchisor. The McDonald's has been a franchising organization since 1955. McDonald's
35,085 of the 37,855 restaurants were franchised. Franchising has enabled McDonald’s to experience
significantly faster expansion and growth, helping it to achieve a truly global brand identity and a well
known trademark. McDonalds is able to gain more income and revenues from the monthly fees and rent paid
by its franchisees worldwide, this means they can generate more finance which can later be used to develop
and expand the business. By having many franchise outlets worldwide, McDonalds achieves diversification
and spreads its risks worldwide. This means that a failure in any one of its restaurant will not be very
disastrous to the company, because there are many other successful and profitable restaurants that can help
offset or compensate for this loss.

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 Key Points:

 Franchise Model, only 15% of the total number of restaurants are owned by the company and the
remaining 85% is operated by Franchises.
 Product Consistency: the company has consistent product taste and quality across geographies.
 Act like a Retailer and think like a Brand: McDonald's always protects its long-term brand
reputation.

NAME & LOGO of McDonald’s

The logo for McDonald's is the golden arches of the letter M on a red background. The M stands for
McDonald's, but the rounded m represents mummy's mummeries, according the design consultant and
psychologist Louis Cheskin. This “maternal” aspect of the logo supposedly encouraged people to eat
McDonald's rather than a home-cooked meal.

The colour red is stimulating and is associated with being active. The colour yellow is associated with
happiness and is the most visible colour in daylight, so that's why a McDonald's logo is so easy to spot on a
crowded road.

The colour yellow is associated with happiness and is the most visible colour in daylight, so that's why
a McDonald's logo is so easy to spot on a crowded road.

Mission, Vision & Values of McDonald's

“To be our customer’s favourite place and way to eat.”

“To provide Simple Easy Enjoyment to every customer at

every visit.”

“McDonald's mission is to be our customers' favourite place

and way to eat – with inspired people who delight each
customer with unmatched quality, service, cleanliness and
value every time.”

Other Company Details are as follows:

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 McDonald's is the largest Worldwide Franchised Food Service Organization. There was training at
"Hamburger University" in Illinois. The franchise owners earned certificates in "Hamburgerology
with a minor in french fries". This helped with creating consistent experiences at each McDonald's.
 McDonald's has found strategic ways to Co-Brand with major companies such as:
 Coca Cola is their drink supplier
 Walmart (McDonald's can be found in 314 Walmart stores in Canada)
 Walt Disney (Happy Meal toys)
 Hasbro Monopoly Game
 TY Beanie Babies -Miniature beanie babies in Happy Meals
 NASCAR- McDonald's has sponsored various NASCAR cars
 Olympics- Official Sponsor and themed cups, Olympic collectible cards
 Nickelodeon toys in Happy Meals
 Barbie figurines in Happy Meals
 Cadbury- this is found it items like McFlurrys and Milkshakes
 Oil Companies (Such as Bharat Petroleum In India)- To have McDonald's available at gas stations.
 Competitors of McDonald's: Burger King, KFC, Pizza Hut, Subway, Domino’s Pizza, Burger
Factory, Mince Burger

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 RESEARCH METHODOLOGY

Sources of Data Collection: The research studies based on the completely on the secondary data. The
secondary sources of information was collected through past research works, books, internet search, articles,
news papers etc.

Duration of the Project: The Duration of the project this 30 Days.

Objectives of the Study:

The general objective of this study is to learn and understand the retail management activities of restaurant
McDonald's. The specific Objectives of this study are as follows:

1. To know the overall retail store operations of McDonald's.

2. To know about the unique strategies associated with retail business.
3. To analyze the retailing activities used by McDonald's.
4. To identify the problems related to the retail management of McDonald's company.
5. To understand that how the retail management strategies help the McDonald’s to retained in the
market over the years.
6. To know how the McDonald’s concentrate and improve their retailing activities in the market.
7. To know the role of Retail Management in McDonald’s Company and from when and how the
McDonald’s using the retailing techniques in all their functional areas.

Limitations:

I have faced many categories of limitation, such as:

1. The time limitation is important factor to prepare project properly.

2. There were laptop technical difficulties and barriers while preparing the project.
3. Risk when visiting unsecured websites for information.
4. Lack of importance to daily reading of newspapers.

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 CHAPTER 3

LITERATURE REVIEW

1. Marten Fristedt (2010) supply chain management in practice, this study describes a supply chain
where its member to a large extent collaborate as described in SCM literature. The report identifies
and describes how significant supply chain management characteristics as described in information
sharing, joint planning and the sharing of risks and rewards are managed in this case. The report
identifies market saturation and the search for economies of scale outside the primary supply chain as
for future supply chain management practices.
2. Megha Sachdeva (2016) McDonald's takes the share on this attribute by providing the customer
with fast and friendly services. At McDonald's you get order usually within 60-90 seconds from the
time it is placed. Providing the customer fast and friendly services is the philosophy of McDonald's.
This is the big advantage McDonald having over the other restaurant. The advantage McDonald
having over the other restaurants is Ambiance, Employ Behaviour and Cleanness there is the factor
the today customer is looking for. It is give an edge to McDonald over Dominoes and Pizza Hut.
3. Sonali Rammohan (2017) McDonald's represents a company that is a solid player in supply chain
management. As a global company, they understand what it takes to bring food from farm to fork
effectively while still making a sizable profit. They also take significant steps to promote and
effective corporate responsibility in both their own actions and in their respective supplier
companies. While there is always improvement to be achieved, they are a company with many
positive attributes and emulate in the global business arena.
4. Keith Rich (2018) on 10th July in Business McDonald’s posses good information about market and
knows a great deal about the common attributes of its most valued customers. There is high rate of
franchising in fast food industry, so this sector is supposed to be one of the most challenging sectors
to operate in. McDonald’s is trying to get good will from the customers by providing hot, fresh and
testy fast food of good value to customers on every occasion. McDonald’s uses four terms for their
operational missions which are quality, cleanliness, service and value. McDonalds take a resources
view of their operations strategy.
5. Rajiv Shah (2020) mentions in his online article in Content Whale, December, 9th, that McDonald’s
is a very successful business with and without social responsibility. Doing a favour for the public
benefits the business through creating good image and attracting their customers. McDonald’s could
work on increasing their social actions by taking more responsibility over their charity by promoting
it a lot more on their packages and on other promotional site. This will make their charity more
recognised and it will have more contribution over the Ronald McDonald charity. McDonald’s has a

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good culture and I have learnt that they are very keen about taking care of their employees and their
customers and they have made a lot of innovation to help their stakeholders.

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 CHAPTER 4

DATA ANALYSIS

What is Retailing

Retailing includes all the activities involved in selling goods and services to the final consumer for personal
and non-business use. Any organisation selling to final consumers whether it is a manufacturer, wholesaler
or retailer is doing Retailing.

What is Retail Management

Retail management is a process of promoting greater sales and consumer satisfaction by gaining a better
understanding of the consumer of goods and services produced by a company. In short, retail management
includes all the steps required to bring the consumer into the store and fulfil their buying need.

Importance of Retail & Retail Management

1. Retailers create Utilities & Values

2. Customer Convenience
3. Accessibility
4. Supply Chain
5. Risk bearing & Financing

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 6. Helps in Introducing New Products & Advertising
7. Economic Development, Social Responsibility & Employment

The Study of Retail Management of McDonald’s

The retail management involves taking control of a number of internal process such as inventory/stock
management, offline & online storefronts, warehouse operations, human resource etc. Number of initiatives
light sensitive switches, low consumption bulbs in McDonald’s warehouses. Now will study each
points/factors of McDonald’s retail operations or techniques. Simply will understand how the McDonald’s
manage and functioning its Retail business/store or restaurants.

INVENTORY/STOCK MANAGEMENT OF MCDONALD’S

McDonald’s Inventory Management System involves following steps:

 Regional Planner: A mixture of specialist stock controllers and employees who previously worked
in the restaurants makes up the Central team. This team of 14 regional planners works with around
80 restaurants. In short, a central team, including employees who have worked in the individual
restaurants as well as stock control specialists serve as the regional manager.
 Constant communication between the Regional Planner and Restaurants: Every day, each
regional planner communicates with about 100 restaurants by making conference calls and
exchanging emails.
 Inventory management system: McDonald’s inventory is managed by using the stock control
system & Just in Time (JIT) system of inventory management to ensure constant availability of raw
materials. JIT (just in time) strategy which helps them to reduce or sometimes eliminate waste and
efficiency within purpose of minimum cost. JIT helps McDonalds to keep eye on Economic Order
Quantity which determines how much to be ordered and there are two factors that drive economic
order quantities down: low ordering costs and high holding costs. A stock control chart shows the
balance of orders for new stocks against sales. The system is depend on figures for expected sales.
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 Accurate demand forecasting: Regional planners analyze the past performance and work on future
sales campaigns, thus predicting the future demand. They use the stock control charts of their
inventory management system to display the product sales history and generate forecasts for each
restaurant. Forecast is done on the basis of restaurant historic product-mix data from last year, store-
specific and national causal factors such as national promotions and school holidays, information
from store managers about factors that might affect demand .e.g. road closure or local events and
new promotions.
 Entering data: Restaurant manager need to ensure that the data they enter into the system is as
accurate possible. Every day restaurant manager record opening and closing stock of key food items.
Other items are recorded weekly and monthly basis. The store computers system identifies any stock
count deviations from last stock count so it gives opportunity to manager to investigate missing
product. For example, the manager may have missed off a box of regular meat while counting them
earlier on the shift.
 Ordering: The ordering process involves holding a small buffer stock. McDonald’s store managers
use a simple web-based communication tool called ‘WebLog’ to view and amend store order
proposals. WebLog enables managers and central planners to see what quantities have been ordered,
what the current stock levels are and exactly how much stock is dude to be delivered at a particular
time. The system now automatically generates a delivery note that gives the exact quantities and
descriptions of the delivery. All McDonald’s managers need to do is simply click on WebLog. This
saves time and makes the process more cost-effective. Ordering Manager work with the new stock
control system, to ensure sufficient raw stock is available.
 Storage and distribution: McDonald’s warehouses management runs with separate areas for dry,
refrigerated and frozen foods. In each area, a specific temperature is maintained so the products are
not spoiled because of weather and climate changes. The same goes for distribution – McDonald’s
has the same three distribution channels through which they efficiently deliver food to restaurants
while maintaining the correct product temperature.
 Structure of supply chain: McDonalds deals with different suppliers for its different products and
ultimately which aims to provide customers great taste and on affordable price. McDonalds has been
working in partnership with household brand such as with Coca cola, Tropicana and Buxton who act
as second tier supplier because they supply its products to keystone distribution who works for
McDonalds as first tier supplier. Also there are number of other suppliers such as Sun Valley and
Moy Park who supply McDonalds with Chicken product all these works as second tier supplier for
McDonalds.
 McDonald's Inventory is managed by using the Just in Time (JIT) system of inventory
management. This is the system of supplying products to customers as soon as they have ordered for
it, with minimal delay between placing the order and getting it in hand. McDonalds doesn’t begin to
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 cook or assemble or preheat their stuff until they receive a customer order this resulted in maximum
satisfaction to the customer and lower costs to McDonalds.

Inventory Control at McDonalds Store

 Inbound Logistics: Inbound logistics is the raw material McDonald received in its warehouse and
then distributes it to different branches according to their requirements McDonald has an efficient
warehousing and transporting goods to its branches. All the products are made in the warehousing
and goods are distributed as per the requirement of each branch.
 Outbound logistics: McDonald has a very well established transporting system. As all of its
products are prepared at the warehouse, so in order to improve the distribution process it has applied
the IT technology which inform the warehouse body that which branch is running out of the
products, so before the products get finished it immediately make available the product to the branch.
This process is very cost effective as branches do not need to have the stock room for the goods.
 Raw Material: These ingredients go into producing finished product. Such as buns, beef patties,
paper cups and packaging. They are delivered three and five times a week. There are three sections of
raw material Frozen, chilled, ambient which arrive together in one lorry so that each product can be
stored at their suitable temperature.
 Work-in-progress: A Big Mac consists of a bun, two beef patties, lettuce, cheese, pickles, onions,
sauce and a small amount of seasoning. The restaurant waits until the order is placed so that Big
Macs stays hot and fresh when served.
 Finished Stock: The product ready for immediate sale to customer are known as finished products.
At lunch time and busy evening hours restaurant will have range of Big Macs and chickens ready for
sale to customers. First-in-first-out method (FIFO) is used to handle all stock whether raw material,
work-in-progress, or finished product, in order to minimise waste and also it helps in providing fresh
food at all time to each and every customer.

LOCATION STRATEGY OF MCDONALD’S

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As we see McDonald’s is the world’s leading quick service restaurant with over 38 thousand locations in
over 119 markets. The McDonald Company keeps a close watch on where its stores can be located.
McDonald’s outlets are very evenly spread throughout the cities making them very accessible. McDonald’s
mainly global expansion is done through new locations.

Now will understand what the strategies are regarding to locations which are used by the retailer
McDonald’s:

 McDonald's Real Estate Team decides where to build and then once the property is complete,
selects a candidate from their current pool and the company will consider offers of property from the
potential franchisees. Requirements are that available space must be approximately 50,000 square
feet with additional room to build on approximately 4,000 square feet. McDonald's prefers the
location to have a "corner wrap" (at the intersection of two roads) with permission for signage.
The location must support height requirements of just under 24 feet. McDonald’s location in terms
of space it requires minimum 2,500-3,000 square feet carpet area on the Ground Floor with a clear
height of 11 feet and a Frontage of at least 35 to 40 feet.

 McDonald’s is highly accessible with many outlets located within close proximity to City Centres
and Shopping Malls. McDonald in shopping malls tends to attract families, teenagers and the
elderly crowds. McDonald’s use the Food Court/Food Hall system or format. Food Courts is an
area in shopping mall where fast food outlets are located. The Food courts that have at least 13-15
kiosks and food counters have better visibility. McDonald’s at mall space that attracts a massive
number of visitors. Also will find that Other McDonald’s are located in Wal-Mart store. The
following two pictures are of the zoning in mall which involves the McDonald’s store.

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 McDonald’s locations includes Restaurants, Kiosks, and the Company’s Website and Mobile App as
venues. Through these locations/venues, McDonald’s reaches customers in Traditional and
Online ways. For instance, Google Maps allowing customers to take a virtual tour before visiting at
McDonald’s location. Such as Google Maps provides the layout of roads, the locations of cities and
towns and satellite images where store or restaurant is located.

 McDonald’s restaurants are also located where the company generates most of its Sales Revenues. It
also prefers location that are suitable for raw material delivery that is availability of ample space for
deliveries of raw material.

 McDonald’s build quality restaurants location in play places (neighbourhoods) as well as business
centres (airports), toll ways, highway rest stops and colleges.
McDonald’s at Sydney Airport, Australia

 McDonald’s also selects the location by considering population in a particular Geographical

Area. For instance, The United States is the leading country with the most McDonald's restaurants at

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 14.15. Most of the McDonald's outlets are concentrated in states that have highest number of
population such as California, New York, and Texas.
 McDonald’s selects the Major busy streets locations like Chandni Chowk in Delhi, Colaba in
Mumbai and Commercial Street in Bangalore attract customers from far off.

McDonald’s Colaba Mumbai

 McDonald’s also has some stunning locations around the world, utilizing Architecture Native to
the region, Old Buildings and some very Modern Architectural Marvels. In Bergen, Norway one
outlet is housed in one of the town’s oldest traditional wooden buildings. This is one of the most
exquisite and oldest traditional Norwegian timber buildings in the district. With white wood
panelling and no yellow arches mounted onto the exterior.

 The following chart shows the location names & sum of McDonald’s restaurants over worldwide:

Location Number of McDonald’s Location Number of McDonald’s

United 14,146 Philippines 449
States

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 Japan 2,975 Taiwan 413
China 2,391 Mexico 402
Germany 1,472 Poland 400
Canada 1,450 Malaysia 314
France 1,485 India 300
United 1,274 Turkey 255
Kingdom
Australia 981 Netherlands 254
Brazil 812 Thailand 240
Russia 609 Hong Kong 237
Italy 609 Sweden 225
Spain 497 South 225
Africa

HUMAN RESOURCE MANAGEMENT OF MCDONALD’S

David Guest in the year 1987 has introduced Guest’s model of HRM which is based on employee
commitment further differing from various factors of personnel management. Guest’s model of HRM
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applied to McDonald’s. Objectives of Guest’s model is, Employee commitment, Quality, Strategic
Planning. McDonalds is a very responsible and is a very reputed organization and the human resource
practices provide equal opportunities for their work and for better performance. They provide best training to
bring the unique skills and high qualities to the team members. There is no gender discrimination in
McDonald’s company. HIRE THE SMILE is the policy of the McDonald’s when they hire the members
and this help to nurture a work force of employee with a positive approach and outlook, in return they earn
cheerful and friendly atmosphere. McDonald’s thinks that it’s not only just about hiring happy and
cheerful people it’s about keep them smiling by doing everything. McDonald’s offers rewards and
benefits that fit in with their lifestyle, which so ever it may be whether they are a part-time employees
working to fund their school and college education or Trainee Business Manager straight out of university.

Strategic Human Resources at McDonalds

1. Recruitment:

Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs.
McDonald’s advertise their job vacancies on their specialized websites and use their own personnel
department to recruit staff. The objectives of the recruitment and selection process of human resource
management in McDonald’s are as below:

a. To identify the most appropriate candidate to fill each post.

b. Making sure that necessary skills and qualities have been specified and developing a process for
identifying them in candidates.
c. Make sure that the candidate selected will want the job, and will stay with McDonald’s.
d. In the McDonald’s, recruiting process is run throughout the year.

2. McDonald’s Online Application Form:

This online application process is the part of recruitment. McDonald’s uses the application form with
questions which are typical questions, to know what qualification the applicant has, such as knowledge,
skills, experience, and etc. This form also includes the Personality Questionnaire. Towards the end of the
application, applicant will be asked to take a "personality" test. The personality test usually takes 30
minutes to an hour to complete. This allows McDonald's to gauge applicant personality and judgment.

3. Interview:
The McDonald’s has designed a Three-Step application process for potential crew member to make sure
that they are right for everyone. The first phase of the application is an online; people go through an online
process which contains some questions. If the candidate is successful in the first phase they send the
invitation to the candidate for an interview with HR officer after that they send the successful candidate for

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(OJE) On Job Evaluation and for interview at the restaurants with manager. This OJE process takes
about 15 minutes. In addition the candidates have and interview with the business manager and the whole
process will take about 30 minutes for assessing the candidates.

This selecting process will be carried on until the right numbers of candidates are found with the wanted
quality. As a result, the recruiting team can be able to distinguish easily the strong applicants from the weak
hundreds of applicants. If interviewee passes the final interview, will be hired on at your agreed-upon rate.
Then, candidate will be scheduled for the Orientation. McDonald’s inform to the successful candidate
over mobile phone or by email within one week

4. Welcome Meeting:

After candidates are selected and they are called to attend the Welcome meeting at their chosen
restaurants or a recruitment centre. The meeting involves viewing a DVD which provides important
information about the McDonald’s and also allows for interaction between manger and the new starter.

 The second part is orientation which is compulsory it’s an online process which provides
information regarding the Health n Safety test that the new starter has to complete in their own time.
Orientation is a process candidate will pass through before he/she starts working at McDonalds just
like other employees. Also manager will educate you on what a typical day at work entails.

5. Training:

Includes complete development McDonald’s constant success of is constructed on the highest principles of
quality, delivery of services and cleanliness to customer in each of the McDonald’s restaurants. The policy
of McDonald’s that provide the career opportunities that allows the workers to improve and develop their
full potential. This policy programme is for both crew and operation management, and a career
advancement that enables a ‘first job’ for the progression of the employees to the senior management
position through merit based promotions. Additional information of McDonald’s training is as follows:

 12-18 months training in a restaurant.

 Self-directed, part-time training for 20 hours per week.

 Seminars, conferences and one-on-one training sessions.

 Operator training classes conducted by local training professionals

In McDonald’s has 21 days of employment probationary period. During this probationary period,
employee’s performance is to evaluate. For example, standard of work, personal attitude, teamwork, focus
of customers, hygiene and etc. After completing the probationary period, they must be achieved a
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competency rating of satisfactory. If they fail to meet the standards of required of performance, they can be
terminated at any time during their probationary period.

6. Performance appraisal

Employee performance is the result of work that has been accomplished by an employee. Thus, the
performance appraisal is done to evaluate the job performance of each employee, especially in relation to
predetermined targets. Every performance appraisal is done with the intention to record employee
performance. The record, in the end, will be used to decide whether the employees deserve either
punishment or reward. So basically, the result of performance appraisal will be used to evaluate the quality
of employees and how far they push themselves in certain working environment.

A McDonald’s methods of appraisal such a method as graphic rating scales uses a specific form to
checks off the level of performance of an employee. The next method, essay evaluation, is used to describe
weaknesses and strengths of an employee’s behaviour. At the end of method, the manager should find the
highest score, which becomes the most preferred options. McDonald's also uses Graphical rating scale or
360 degree feedback.

7. Promotion:

The company promotes employees on the basis of their performance. The HR policies suggest four
different levels in the company to evaluate the performance of the employees and to measure the
promotion part of each employee which is the most important in job duties. Those areas and levels are
known as “outstanding, excellent, good, needs improvement” and so on. They have flexible working hours

8. Recognition:

The best recognition that McDonald’s provides to the employee is peer-to-peer recognition. This -to-peer
recognition strategy of the McDonald’s that helped many employees working as a crew member for the
company to become restaurant managers within a few years of dedication and hard work to the company. By
using this strategy McDonald’s creates a workforce of young and energetic staff and also makes a large pool
of potential leaders and managers in the organisation.

Pay: Macdonald is a big restaurant with so many branches around the world and helps to reduce the
unemployment around us. The Company give a good pay to their staffs and encourage them to work.

Staff retention: Macdonald tries to keep their staffs and give them promotions to enable them become a
manager of a branch someday in the future.

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 Human Resource Planning OF McDonald’s

”Human Resource Planning (HRP) is the process of ensuring an organisation has the correct staff at the right
time, with the right skills and abilities in the right place.”

Achievement of the Human Resource Planning in restaurant McDonald’s

Like all other businesses, for daily activities carry out McDonald’s need the assistance of staff. All the
important number of staff in McDonald’s fulfils a key role in its operation. Without sophisticated technology
McDonald’s would not be successful, for setting up properly human being are responsible. If the manager of
McDonald’s do not select the potential employees in careful way and do not match against the ability of post
that means who are unsuitable, it can create a number of problem, for example

 poor productivity levels

 no good feeling among staff
 job dissatisfaction
 high absenteeism levels
 customer complains
 dismissal
 replacement
For demand of labour, McDonald’s analysis its future plans and estimate the levels of activity within
McDonald’s. As a result, they can predict that the organisation has right number of potential employee
with right quality.
The external labour market is very important for any organisation because of it can make up of potential
employees, locally, regionally, who have the right skills and qualification necessary at any time. For
McDonald’s, local unemployment figures are very important who give the indication of the general labour
availability required at that time.

Outcomes from HRP:

Behaviour Outcomes: Are the efforts, employee motivations, cooperation, their involvement and
organizational autonomy within McDonalds

Performance Outcomes: McDonalds relates with this dimension by maintaining higher productivity levels
through quality and innovation, reduced turnover, absenteeism and workplace conflicts.

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Financial Outcomes: McDonalds relates it with cost effective approaches it executes by generating profits and
ROI

The other Employee Benefits Practices by McDonald’s which are as follows:

Medical: McDonald’s offers three Preferred Provider Organization (PPO) medical plan options that
use the First Health network of providers. The plans have different benefit levels and pay more for in-
network covered costs than for out-of-network covered costs. All three of the plans feature a prescription
drug program and an unlimited lifetime benefit maximum. In addition, the McDonald's medical plans cover
preventive care, including annual physical exams for employees and covered family members (up to $400
per person per year), well-baby care, and child immunizations and inoculations. In some areas, HMOs are
also available.

Dental: McDonald’s offers dental plan which allows employees to see the dentist of their choice and
covers a wide range of dental services.

Dependent Life Insurance: McDonald’s provides basic life insurance of two times the employee’s
base salary at no cost to employee. In addition, employees can purchase additional life insurance coverage
for themselves.

Accident, Death & Dismemberment Insurance: This insurance covers employees if they die or
are seriously injured in an accident. If the employee elects additional life insurance coverage, he/she
automatically has an equal amount of optional ADA&D coverage at no extra cost.

Travel & Business Accident Insurance: McDonald’s provides travel accident coverage of two times
an employee’s base salary at no cost to employees. Travel accident pays benefits in the event of an accident
when travelling for either business or personal reasons.

McSave & MCDirect Shares: McSave is a special money market fund for McDonald’s employees.
MCDirect Shares is a direct stock purchase plan that lets employee’s further build ownership and reinvests
dividends in the company.

Credit Union: All McDonald’s employees can take advantage of full range of service available through
the Corporate America Family Credit Union.

Vacation & Holidays: McDonald’s offers the amount of vacation time or nine paid holidays for eligible
employees.

Child Care: McDonald’s has agreements with three national child care providers, that is Childtime
Learning Centre, Knowledge Learning Corporation & La Petite Academy for % discounts on tuition for
employees children.

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 PROMOTION MANAGEMENT OF MCDONALD’S

McDonald's has implemented various promotional activities to communicate the product to its target
customers effectively. The appropriate message has to be communicated to the target customers through the
right media. McDonald’s does its advertising promotions through Printed ads in newspapers &
magazines, televisions, radios, hoardings and also bus shelters. McDonald’s also used to put big
billboards or big icons of their burgers and fries on streets. McDonald’s chooses their ad agency based
on creativity, not price.

Following are the Promotional strategies/activities used by the McDonald’s:

Advertising

McDonald’s three main advertising objectives are to make people aware of its product, having position
perception about it and remember it. McDonald’s spends over a billion dollars each year in advertising.
There are a few aspects of advertising that McDonald’s does exceptionally well, namely:

 Symbols & slogan: The golden arches and Ronald McDonald clown have become synonymous with
McDonald's. McDonald’s first ads were come out in 1997 with short and simple slogan-“I’m lovin’
it.” This slogan frequently appears in both digital and print advertisements and is accompanied by
a catchy jingle. One of the most successful methods of promotion by McDonalds was by coming up
with their latest jingle, “I’m loving it”. These eye-catching symbols, as well as the memorable
slogan, make it easy for people to remember the McDonald’s brand, strongly establishing it across
the world. Tag line to attract Indian customers is “Aap Ke Zamaane Mein Baap Ke Zamaane Ke
Daam”, which means buy at a price, which your father used to buy in his days” or “You Deserve a
break today, so get up and get away- To McDonald’s” or “Food, Folks, and Fun” or

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 ‘McDonald’s Mein Hai Kuch Baat’: Making McDonalds the consumers’ favourite place and
way to eat.
 Co-branding: McDonald’s is also working together with other companies to market their products
together. One notable example is their collaboration with Hasbro where they created the
McDonald’s Monopoly Game. Seasonally, it also offers collectibles when buying a meal, such as
Transformer figurines, Hot Wheel cars, NBA and Olympic themed merchandise, etc.
 Bill Boards & Bus Shelters: Following are the two examples of McDonald’s Billboards.

 In the above billboard, the sun casts a shadow on each item that corresponds to the time of day you
would eat it.
 In this following campaign, the developer used 10 light beams, and the lights can be seen from up to
3 miles away.

McDonalds Outdoor Promotion

In April, McDonald’s just opened 2 stores near Bandra Kurla Complex. The campaign was built around
the lines to cover the entire neighbourhood in the vicinity of the store. McDonald’s wanted to make people
aware of the presence of the store in their locality and channelize the people to point of sales that is the store.
The focus was on visibility and to create the maximum number of impressions in a shorter time span.

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 Direct marketing

The McDonalds uses tool in the home delivery services in which they directly serve the order to their home.
Also they have a websites which are more in preference for direct marketing in that they usually mentioned
all the new offers along with the contact number of your nearby outlets. McDonald’s try to appear in all
events, occasion that catch the attention of boys and girls. For instance, McDonalds may mail out a letter
regarding about a forthcoming product to keen and enthusiastic customers.
Public Relations

McDonalds have been environmental ‘friendly’ by dealing with environmental issues in recent years to
get good publicity and gain their reputation. They take the responsibility to protect and to keep the
environment safe. They do this by collecting litter to reduce the environmental impact. McDonalds have
in addition improved their packaging material to make progress on their environmental performances.
McDonalds have changed their packaging from to further environmental ‘friendly’ reusable
alternatives.

 They have done a lot good public relation works in the recent years for instance:
 Ronald McDonald House Programs: More than just a place to sleep, each House is just steps from
the hospital and provides meals, comfort and support to families with sick kids.
 McDonald Family Room Programs: Located within the hospital, this program offers families a
place to recharge rest and have a snack, all within a few paces from their child’s bedside.
 RMHC (Ronald McDonald Health Care): Provide medical, dental and health care resources to
children and families in underserved communities around the world.

Sponsorship

Sponsorship on the occasions of major sporting, cultural events, holiday seasons, special days etc.
McDonalds sponsor by giving financial support in exchange of their name being mentioned with the
product. McDonalds have recently sponsored Walt Disney to get good publicity. Currently McDonalds are
giving out free tickets to football matches in their happy meal boxes. As a result, in this case the match is
being advertised through McDonalds’ Happy Meal box and McDonalds are being advertised all around
the pitch in the stadium.
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 Sales promotion/Discounts & Offers

McDonald's uses sales promotion strategies like menu upgrades, gift cards (called Arch Cards, that can
be reloaded by the consumer), demographic-specific marketing campaigns, digital initiatives and a focus
on breakfast sales. Customers can enjoy McDonald’s breakfast and lunch sets in cheaper price in a
certain period of the day. Besides that, discount coupons will be given to customers from time to time for
them to enjoy McDonald’s foods in cheaper prices. McDonald’s also gives a special discounts and gifts to
the birthday kids so that they will come back next year and tell it to their friends. Other sales promotion
techniques of sales promotion such as, if customers buy six cups of tea/coffee and collect six stickers,
they become eligible to have a cup of tea/coffee free. In recent years, McDonald's has pursued
demographic-specific promotions that target patrons in specific age ranges, such as teens, baby boomers and
families.

McDonald’s Promotion Management through Digital Advertising on Social Media

Platform:
Digital platforms allow McDonald’s to reach their consumers quickly and provide a means to make a
personal connection with consumers. On digital platform McDonald’s can easily localized their online
promotions for different worldwide markets. This McDonald’s uses its products to match every event and
celebrations and promotes social media. Creative comebacks of Pop cultures, using artworks, hashtags are
their regular promotional activities to make people connected with their brand.

Web

McDonalds now promote their products through Internet. McDonald’s has its official websites
(www.mcdonalds.com). The website provides all the Company Details (history, franchise information etc.),
Career Details (staff & management, employee perks etc.), Services Information (McDelivery, Offers),
Product Information and other details.

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  Every country has its own website with multiple links. UK McDonalds’ website has links to
healthy eating or healthy foods, active living, kids’ zone, Toasted Deli Sandwiches, their good
works and Contact Us.
 There website in Canada has nutrition meter also known as a nutrition calculator. The idea of this is
to raise awareness about the nutritional value of the products purchased by the customers.

Twitter

McDonald’s Twitter handle @ McDonalds was created in 2009 to provide consumers with the latest news
about company, its promotions and to create excitement around new products and deals. McDonald’s
has more than 3.5 million followers on Twitter. On Twitter it does not send too many tweets and generally
sends just one a day, in order to avoid a mess which can happen due to too much promotional content.

YouTube

McDonald’s has 4.67 lakh subscribers on YouTube is. McDonalds uploads videos related to branding,
promotional videos promoting the items of McDonald’s menu. Other videos of about McDonald’s public
oriented campaigns, social & environment works, internal and external management of restaurant etc.

Linked In

McDonald’s is using an attractive strategy to exploit all the benefits that Linked In offers. Number of
McDonald’s followers on Linked In is a little higher than 1.4M. It actively engages its audience on a wide
range of topics that most often include opportunities for work and collaboration on other issues. Apart
from it, the company also uses Linked In to attract attention towards other issues and ignite discussions
on topics like supply chain sustainability and Corporate social responsibility. McDonald’s does not let
any opportunity go to showcase the success of its employment and training programs through Linked
In.

Instagram

McDonalds has got 3.9million followers on Instagram and has made around 500 posts including
promotional videos or images which either promote new deals or items on the menu. However, the
response from customers is still very good and the level of engagement impressive. Even Instagram helps
McDonald’s at staying connected with users and maintaining the right image in the eyes of users.

Facebook:

McDonald’s was extremely active on Facebook, with more than 78.5 Million followers, the Facebook page
of McDonald’s looks quite popular. McDonald’s has used Facebook mainly for promotions. McDonald’s
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also uses it to some extent to address customer service related issues and people’s complaints. The
McDonald’s respond to people’s recommendations or complaints as required. Overall, the number of views,
likes, shares and comments on each posts shows an impressive level of engagement with McDonald’s.
McDonald’s promotes mainly the freshest deals and new arrivals in its Facebook account. Apart from its
main account, McDonald’s also has an India account with more than 1.7M followers.

Pinterest

Pinterest had emerged as the third most popular social network by 2012. McDonald’s use Pinterest for
marketing and advertisement.

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 USE OF TECHNOLOGY IN STORE MANAGEMENT

WIFI

One aspect of technology the McDonald’s utilizes is within physical aspect of retail outlets. When the
company first began (Jan 15, 2010) to use Wi-Fi. Today in order to compete with their coffee competitors,
the McDonald’s outlets offer Free Wi-Fi. We can access the Internet on laptops or mobile devices at
more than 11,500 participating restaurants with McDonald’s Wi-Fi. We need to simply accept the Terms
of agreement in order to sign into McDonald’s Wi-Fi. AT&T Company provides WiFi service to the
McDonald’s. McDonald’s uses Wayport for high speed connectivity to the internet.

GOOGLE MAPS

Google Maps provides the layout of roads, the locations of cities and towns, state boundaries, geographical
features, restaurant reviews and satellite images. The Google Maps website gives you directions for trips by
car, bike, foot or public transportation. A popular example of geotargeting is Google search results. If a
user searches “McDonald’s” Google will use location data based on the IP address of the device the search
is conducted from to return information on McDonald’s shops in the area.

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 WhatsApp

McDonald’s has introduced WhatsApp based ordering for its customers. A customer has to send ‘Hi’ text
on the McDonald’s WhatsApp number & follow easy steps and get delicious food delivered to their
doorsteps. This ordering process is simple. This kind of McDonald’s ordering service provides more
convenience to its customers, an extension of 100% contactless ordering service.

 Once customers message ‘Hi’ on the McDonald’s WhatsApp number, a link to the menu will appear.
 After opening the link, customers will experience a smooth and easy interface while placing their
order. Once the items are selected, customers will need to enter their details: WhatsApp number and
delivery address.
 Once the order is confirmed, an invoice will be sent to the customers’ WhatsApp number with the
details.

KISKO

The self-service kiosks, allow to completely transform the customer experience and significantly decrease
waiting times while, at the same time, increasing the number of orders their restaurants could process.
The McDonald’s kiosks allow people who order something to easily customize what they want as well as
asking for what it calls “table service”-having workers bring the food to their table as they sit and wait.
Customers are more in control of exactly what goes into their order. No more awkward requests to remove
tomatoes and toppings customers can build a burger directly to their own specification in any McDonald’s
store. We can customise up to 30 burgers, 2 types of buns, 12 toppings and nine sauces. Cash customers can
place a kiosk order and then pay at the counter. Methods of Using Kiosk in McDonald’s:

 We need to tap on the screen to start ordering and screen will show two choices that will you be
eating in, or grabbing your food to go.
 The menu is broken into submenus: Beverages, Sandwiches & Meals, All Day Breakfast, etc.
Under these are further submenus to help us narrow in on your order: chicken, fish, burgers, or
whatever else you desire.
 When we’ve chosen what we want, we're ready to pay. There's a Review Screen that shows every
customization and choice too, so we can make sure our order is correct. There's even a calorie count
which some may wish to ignore.
 We can pay at the kiosk with a debit, credit, or gift card or most mobile payment systems or wait in
line to pay with cash or coupon. Once we've paid, the kiosk spits out a receipt with our order number
on it, and we're off to wait at the pick-up counter.
 So this thing also has helped the management to know what actually happening inside the business.
What customer likes and what they dislikes.
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 Nintendo system

McDonald's uses Nintendo DS system as a E-Learning Training tool for their new recruit staff in over
3,000 of their restaurants. These gaming systems train the recruits and grade them on their performance, in
which they can compare with other colleagues and view their progress. This new usage of technology allow
McDonald's to use less paper and have their employees enjoy their on the job learning experience.

Delivery

McDonald's expanded the number of restaurants offering delivery and it is now available in over half of the
global system. In 2017, McDonald's announced it would partner with Uber Eats for home delivery for the
first time in the U.S and followed that up by adding Doordash and GrubHub this year (2019). These
partnerships are part of a strategy to keep up with the newer generations who prefer home delivery over
pickup.

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 McDelievery

McDonald's uses a 100% biodiesel Technology. Doing this has helped reduce carbon emissions with the
truck making the deliveries. McDelivery is a McDonald's service that delivers food to the customer's door.
McDelivery was introduced to India in 2017. McDelivery is available across various platforms such as web
ordering, mobile app and call centre. There is no restriction on the minimum order for home delivery.
However, there is a fee of Rs.33 per order as delivery charges, irrespective of the size of the order. Hot
beverages are not delivered through McDelivery. McDonald's deliver between 7 am to 11 am for
Breakfast Restaurants & 11 am to 11 pm for Non Breakfast Restaurants. To use McDelivery we need to
download the Uber Eats App or the DoorDash App, input our delivery address, and we will be able to order
from participating McDonald's restaurants in our area.

Drive-Thru

A drive-through or drive is a type of take-out service provided by a McDonald's that allows customers to
purchase products without leaving their cars. Orders are generally placed using a microphone and picked up
in person at the window. In India, McDonald's launched first drive-thru in west and south region at
Kalamboli, Navi Mumbai in 2011.
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How McDonald’s Drive-Thru System works:

 First Pull In, there is a speaker and microphone, beneath our car there are sensors in the ground,
they pick up the metal components of our car and a little beep sounds in the headsets of the
employees working drive through. If there are two lanes, there are two different sounds. When we
go to the speaker and set off the sensor, the employee, most likely will answer with “hi there what
can i get for you” or something like that, we can order the food based off of the current menu and
the employee punches it in and it appears on the screen with the menu. Once we are done
ordering the employee will tell you the price and to drive round to window one to pay.

 Once you pay either cash or card, the order will have been put through as you ordered, they will ask
you to drive to the next window where you can pick it up as another employee greets us with
our drinks (if we had any) and then hand you your food.

 Once we receive your order. We drive out and be on our way.

Arch Card

It is like a McDonald's gift card. It can be used to motivate employees and customer. McDonald's gives
award an Arch Card to an Employee of the Month and also give out Arch Cards to the team when sales goals
are met. Anyone can purchase the Arch Card. Arch Card purchases are not refundable and cannot be
exchanged. McDonald's Arch Cards never expire and there are no penalty or dormancy fees.

McDonald’s App

The McDonald's app is a Free & Mobile app for iPhone and Android that allows users to get free food,
deals and rewards. It also can help users find the closest McDonald's location and share feedbacks. The
food section of the app allows users to look up the nutrition information for McDonald's food easily. The
McDonald's App that will give us Coupons for Free Food, Special Offers & More. This app is so simple
to use firstly app users need to register themselves with the McDonald's app. Then app users are given a
unique redemption code that is shown at the time of the transaction. Customers click on the offer they want
to use and show it to the sales clerk for redemption. McDonald's app offers contains all the details of each
offer. For Instance, Medium Meal @ Rs. 165 (Save Rs. 71- Chatpata Naan with Chicken Kebab + Medium
Coke + Medium Free Fries). McDonald's app regularly adds new offers.

Equipments

McDonald's has advanced kitchen equipment” designed to automate repetitive tasks such as cooking fries
and dispensing beverages. An illustration provided by the company shows three fry baskets automating the
agitation of fries in oil. Other equipments such as French fries freezer with different temperature system and
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the oil is changes a per daily schedule, Veg patty fridge, Universal folding cabinet for Veg patty’s, Waffle &
Rice Bowl machine, for buns there’s a Bun crates & Bun slicer, Universal folding cabinet for Non-veg
patty’s, Maharaja Grill Patty Stove, Separate Non-veg fridge, Soft drink & coffee mixer etc. McDonald’s
uses the LOV machinery. The low down oil quantity Fryer is the next age band fryer. LOV improves
cooking efficiency, simplifies filtering and cleaning, and provide enhanced environmental benefits.

The LOV’s ground-breaking design allows McDonald’s to roast the same sum of produce within the region
of 40% smaller amount oil. It in addition uses more or less 4 % a lesser amount of liveliness than average
fryers.

 Earlier McDonald’s was making milkshakes with a hand dipping ice-cream method, which was a
time-consuming process and the quality was operator-dependent. But McDonald’s modified it using a
pre-measured ice-cream drawn from the overhead tank, improving the productivity and
consistency.

 Fryer Equipment: McDonald’s also developed High-Efficiency Fryers which would drastically
reduce the time to fry the chips. The fryer machine also simplified filtering and cleaning, thereby
improving the taste and also provided enhanced environmental benefits. The machine consumed 40%
less oil than the normal manual process.

 McDonald’s use Reusable Cardboard Box for holding individual buns. It was easy to handle,
transport and reduced shipping costs.

 Tray and The Scoop Handle: McDonald’s serving trays across the countries made with UBQ
Materials waste conversion technology to replace the food giant’s plastic trays with a more sustainable
version. McDonald’s has the scoop handle that would fill french-fries in exact portions in the
delivery bag.

 Computers and smart cashiers are used by the employees so that they would not get confused and
they are provided with customized database management system.

RETAIL PRICING MANAGEMENT

McDonalds is a monopolistic firm, which means they don’t follow any other firm’s price for the goods,
they still have concern about the price regulation. McDonalds have to set their price to adapt their
environment and based on their location rather than following the global price. There are few steps they

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have to implement before setting a rational and affordable price for the customers. The steps are
selecting price objective, determined the demand, estimate costs, analyzing competitors price and offers,
select pricing method and lastly selecting the final price.
McDonald’s mission statement highlights its pricing policy, the most fundamental element of determining
price was: Being in touch with the price of our competitors allows us to price our products correctly,
balancing quality and value.
McDonald’s overall pricing objective is to “increase market share. McDonald’s researched the demand,
competitor’s position in the market and the cost of creating the product and created a price that will create a
customer demand. When the recession hit, a vast majority of businesses began to lose customers and in
return income. McDonald’s was one of the few that cashed in on the recession by creating a value menu.
The value menu, which features select items sold for one dollar each, has helped McDonald’s bring in
customers consistently and this steady income has helped increased market share. McDonald’s has been
successful at employing Cost Leadership Marketing Strategy by offering fast food meals at Low Prices.
Prices have been kept low by:

 Hiring and Training Inexperienced Employees instead of Trained Cooks.

 Hiring only few Trained Managers

 McDonald’s Pricing Decision: McDonald’s has different pricing for different countries. Each
country undergoes a strict process to determine the price for a particular market. The process is:

 Selecting the Price Objective

 Determining Demand & Estimating Costs

 Analysing Competitors Costs, Prices And Offers

 Selecting Pricing Method & Selecting The Final Price

 Now will understand the McDonald’s bundle pricing strategy & psychological pricing:

 In the Bundle Pricing Strategy, McDonald’s offers meals and other product bundles for prices that
are discounted, compared to purchasing each item separately. For example, customers can purchase a
Happy Meal or an Extra Value Meal to optimize cost and product value. On the other hand, in
Psychological Pricing, the company uses prices that appear significantly more affordable, such as
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 $99 instead of rounding it off to the nearest dollar. This pricing strategy helps encourage consumers
to purchase the company’s products based on perceived affordability. Thus, this element of
McDonald’s price mix highlights the importance of bundle pricing and psychological pricing to
encourage customers to buy more products.

 Will understand the pricing strategy of McDonald’s by two examples: McDonald’s strategy is to
offer quality food quickly to customers at a good value. Over years the McDonald’s strives to
differentiate itself from other fast food restaurants by offering a variety of menu items that appeal
to a variety of people from those who just want great hamburgers, to those who just want a quick
healthy meal. The above First picture is of one offer by McDonald’s app, we can see the total/actual
amount of meal is Rs.320, which includes three food items and the offer price is just Rs.229. So here
by using this McDonald’s offer pack we save our Rs. 91. The aim is to use prices to maximize profit
margins and sales volume. And in the Second picture The McDonald’s Combo Meal priced at just
Rs. 59/- includes a burger or a snack from McAlooTikki, McEgg, Pizza McPuff, Regular Fries,
along with a select beverage.

MERCHANDISE PLANNING

McDonald’s places considerable emphasis on developing a food items which customers want. However,
customers’ requirements change over time. In order to meet these changes, McDonald’s has introduced new
products and phased out old ones and will continue to do so.
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McDonald's takes great care to Serve Quality, Great-Tasting Menu Items for their customers each and
every time they visit the restaurants. The McDonald's encourage a customers with food allergies or special
dietary needs.

Varieties of products offered by Retail Store McDonald’s

When it comes to product, the McDonalds’ menu is at the core of their global successes. Their product
strategy embodies the ideals of global localization. For the company, global localization is implemented by
offering their key domestic product options across every market, while adapting specific product/menu
offerings for different markets.

As explained earlier Product mix deals with the dimensions of product line, quality and design of the
product, its packaging etc.

Product line of McDonalds includes or number of products offered by McDonalds can be classified as:

Vegetarian products Desserts

Non vegetarian products Snacks

Beverages Cappuccino

All this shows the wide product range of McDonald’s. Besides that the quality of McDonald’s according to
the general findings, is consistent throughout the life of the product. The main reasons behind its consistent
and best quality are:

Vegetables: McDonald’s use responsibly grown ingredients from the McDonald’s community of farmers.

Potatoes: McDonald’s world-famous French Fries are produced only from the best quality potatoes. These
potatoes are cut, blanched and processed on state-of-the-art processing lines to ensure maximum retention of
nutrients. French Fries are cooked at the plant and their restaurants in 100% vegetable cooking oil.

Chicken: The chicken patties are made from high quality boned breast and leg meat and are covered in a
specially seasoned, lightly battered coating. They are shaped in uniform sizes to ensure consistency in
weight and value.

Cheese & Dairy Products: All dairy products including cheese have a role to play in a balanced diet
because they contain a wide variety of essential nutrients such as protein, calcium, fat soluble, phosphorus,
etc.

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Buns: McDonald’s uses buns made from locally grown wheat flour. They are baked locally and delivered
fresh, several times each week to McDonald’s restaurants.

Cooking oil: All preparations are done in 100 % refined vegetable oils at restaurants and plants.

MSG (Mono Sodium Glutamate): McDonald’s products do not contain any added MSG.

Food Freshness: McDonald’s customers always receive the hot & freshly made food.

As we see in the above chart the McDonald’s offers a variety of products to their customers. McDonald’s
also offers Happy Meal, Combo Meal and Dollar Menu to the customers. Now will understand the Product
development of McDonald’s:

 Permanent Product Strategy: McDonald's features several products on their menu that are
permanent and do not change. Examples of this include their basic hamburger and cheeseburger, the
Big Mac and the Quarter Pounder. After the initial development, these items remain on the menu for
extended periods of time without undergoing significant changes. This strategy ensures that there is
always something familiar for consumers on the menu.
 Temporary Product Strategy: For instance, The McRib, is a product that is offered only
seasonally. The Big Ocean burger is an example of a burger that was developed as a temporary
product, offered only for a few months in 2007. The purpose of this product development strategy
is to give customers something new to experience on each visit and to experiment with new
items that may become permanent.
 Local Product Development Strategy: As McDonald's has expanded internationally, it has created
several products to meet consumer demand in the local markets.

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  Local Adaptation Strategy: In an adaptation strategy they take a product and modify it to fit local
tastes. In India, for instance, the Big Mac has been modified into the Maharaja Mac which contains
no beef, in keeping with local diets. In Greece, the Big Mac has been adapted to use a pita bread
instead of a bun.

 McDonald’s has its own Online Clothing Store on Website which offers a variety of
merchandising:

McDonald’s offers their customers permanent place online called the Golden Arches Unlimited, an online
shop that celebrates its brand with themed-merchandise specifically designed for McDonald’s fans. It’s
the chain’s first-ever permanent e-commerce shop. The initial line-up is a winter collection that includes
a holiday sweater emblazoned with the chain’s signature golden arches, a Happy Meal t-shirt, a sesame
seed zip foodie and more, along with various themed- accessories such as hair ties, umbrellas, journals
and tote bags.

Since the 1980s, McDonald’s has partnered with multiple fashion brands and retailers and beginning in
2017 the McDonald’s launched a limited-time-only line of merchandise via the McDelivery Collection.
There are more than 20 branded items available on Golden Arches Unlimited, including tumblers, t-shirts,
socks, tote bags, and journals. McDonald’s has been ingrained in the fabric of culture for years, and
there's a long history of fans wearing our brand with pride. We can buy the McDonald’s clothing items on
the official website of McDonald’s (https://goldenarchesunlimited.com/) and also on the online sites such
as Amazon, EBay and adidas. McDonald’s Golden Arches Unlimited website includes following clothing
and accessories items names:

Big Mac Sandwich Bag McDonald's Hair Ties Sesame Seed Socks

Playing Cards McDonald's Holiday Sweater Sesame Seed Umbrella

Golden Arches Stainless Steel McDonald's Meal Pin Set Sesame Seed Zip Foodie
Tumbler
McDonald's Winter Beanie World Famous Fries Lounge
Happy Meal Pop Socket Set
Mickey D's Nickname T-Shirt
Happy Meal Toddler T-Shirt World Famous Fries Socks
Sesame Seed Ornament
Happy Meal T-Shirt World Famous Fries Tote Bag
Sesame Seed Pop Socket
McDonald’s Slippers

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 McDonalds’ Menu

McDonald’s knows that items on its menu will vary in popularity. Their ability to generate profits will vary
at different points in their cycle. In India McDonalds has a diversified product range focusing more on the
vegetarian products as moa

McDonald’s menu is recognized world over for its affordability. A McDonald’s store gets an average of
3,000 walk-ins every day in each of its 165 restaurants in India. Earlier attempts by McDonald’s to do so
included adding breakfast to its menu and breakfast was on its menu globally, it was on launched on a trial
basis in India. However, McDonald’s had a ‘snack joint’ tag in India. To overcome this McDonald’s added a
lunch and dinner menu.

The McDonald’s “think global, act local” Product Strategy is introduced in 2002. This McDonald’s
standardization strategy as offering major menu items with similar tastes across different global
markets. This “Think Global” portion of their product strategy allows the company's overall key offerings
to stay consistent across a variety of heterogeneous markets, while developing unique a taste and a world-
renowned brand.

McDonald’s: “think global, act local”- marketing mix. For example,

With so many outlets all over the world, they recognize that there are cultural differences in different
regions, leading to varying food preferences.

 In Israel where the Big Mac was to be served without cheese according to kosher requirements that
states that meat and dairy products must be separated.

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  For example, in India, where there is a larger proportion of people who do not eat beef or meat in
general, there are more chicken, fish, and vegetarian options. In India, they serve vegetable
McNuggets and a mutton-based Maharaja Mac (Big Mac).
 Whereas specific macro-factors play an important role in McDonald’s customizing their menu
items, differing customer needs and wants are another reasons why the company adapts their menu
offerings. For example, Germany where beer is sold in restaurants or in Italy where cold pasta
dishes are available.
 McDonald’s offers variety of options to their customers such as breakfast, burgers, fries, chicken &
sandwiches, snacks & sides, desserts & shakes, salads, and drinks. For instance, Double Quarter
Pounder with Cheese, Hamburger, Cheeseburger, Double Cheeseburger, Vanilla Shake, Vanilla
Cone, Hot Fudge Sundae, Kiddie Cone, Hot Caramel Sundae, Strawberry Sundae, Baked Apple Pie,
McCafe Chocolate Shake, McCafe, and McCafe Frappe Mocha are some of the products offered by
McDonald’s. In beverages, Coca Cola is the primary supplier of McDonalds. It also sells hot
chocolates and other juices. It adopts the product as per the local taste preference and cultural
identity.

Store Design and Layout

A retail store layout (whether physical or digital) is the strategic use of space to influence the customer
experience. How customers interact with your merchandise affects their purchase behaviour. A good layout
is a matter of customer satisfaction. McDonald‘s has a different layouts all over its stores. McDonald's
require the largest average floor space at 4,500 square feet. McDonald‘s restaurants have an appealing
interior design and a comfortable place to eat in. Some of the McDonald‘s restaurant has a parking &
playground facility.

McDonald’s follows “Experience of the Future” retail design concept is seeing customers interact with the
store in new ways as new ideas such as touch-screen ordering, customisable burgers and table service are
introduced. McDonald’s designed the store to enhance the quality of everything the customers see, touch,
hear, smell and taste. The huge arches, the octagonal structure, glass partitions between kitchen & delivery
areas and so on. They gave particular attention to ‘Aroma’ as it plays a vital role in the store experience. The
premises were kept clean. The employees were trained to interact friendly with their customers.

Elements of McDonald’s Exterior Design:

Restaurant Building & Design

McDonald’s Steel buildings tend to create an impression of strength whereas glass tends to create an
altogether different impression, usually of a more modern store. McDonald’s is moving from cafeteria-
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style building to a variety of more modern and unique design options. McDonald’s building formats
also includes wood-framed buildings.

McDonald sets its premises in proper manner to handle any number of customers easily. The building
design is standard worldwide but it may be have some difference in size or in exterior according to the
location. It enables them to save time, satisfy their customers, comfortable environment for both employees
and customers.

McDonalds are changing a lot of their store colours to green. Green elicits the feelings of nature, natural and
environmentally friendly. It’s no longer about rushing in for a quick bite to eat. We can relax, get
comfortable, linger over a coffee. It’s not surprising big brands understand the importance of colour,
Branding colours can be that strong only the colour is needed for the brand to be identified.

Signs

McDonald maintains the outlooks, by its signs and layout same everywhere in the world which has directly
improved the sale of the company. As it has an attractive layout and eye catching sign boards. For instance,
McDonald’s

Washroom

 The McDonald’s washroom is regularly sanitized. McDonald’s follows 3- Sink Sanitization Process-
wash, clean and sanitize.
 All McDonald’s restaurants are using DVS No-Touch Flush valves & Taps. The McDonald’s has
been working to improve their environmental credentials in recent years and as well as aiming to
reduce or to minimising the amount of water their restaurants use.
 DVS no-touch intelligent taps were an ideal choice for McDonald’s washrooms. DVS taps are fitted
with a 5 litre flow reducing aerator (ECA approved) on the spout to control the follow of water and
taps only run when the hands are placed under the spout, limiting the water use to the precise time
required preventing the taps being left running by customers.

Elements of McDonald’s Interior Design:

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 Cleanliness

McDonald’s make efforts to keep high standards of hygiene & cleanliness, in and around the restaurant. They
made sure that employee’s attire also would reflect hygiene and cleanliness. They motivated employees to
adhere to the hygienic standards all the time. The customers were allowed to view the kitchen and the
supporting areas where the food is prepared & processed.

Lighting & Psychological Pain

In McDonald lighting represent an important role in reducing the cost of its operations. McDonald uses
fluorescent low consumption lighting in the kitchen. Tests revealed that each restaurant saves 11,000kWh of
electricity each year.

McDonald's interior involves attractive pictures and other promotional photos throughout the restaurants and
the McDonald's lower Priced value strategy helps to reduce the psychological pain that comes from spending
money.

Wireless Charging Points

The store design also integrates tablets for general web browsing and wireless charging points for customers
to charge their own mobile phones. McDonald's offer free wireless charging for people in its restaurants.
The company has a deal with wireless charging firm Air charge to bring the chargers to 50 restaurants. In
all, 600 of the charging points will be installed, all using the Qi standard.

Music/ Air Conditioner/

Tables & Chairs/ Window

In Jakarta & Indonesia McDonald’s is positioned as an upscale dining location. Unlike the usual tables and
chairs seen at domestic and in Indonesia stores have six-inch-high tables fashioned with floor mats that
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customers eat on a typical mode of eating in the country. In adapting this, McDonald’s is able to better serve
that market by adapting physical elements to suit the cultural norms of Indonesia. In China, the company
has adapted to this cultural norm by offering softer colours and cushioned seats. To control the climatic
conditions inside the store during summer and winter McDonald’s has setup a various Ceiling Cassette Air
Conditioners in all their restaurant.

McDonald’s plays an Ambient music which help to make a dining experience even better. McDonald’s
Restaurant sound systems not be overly loud or make it harder for patrons to talk or relax. McDonald’s
sound systems are at a level where it augments the dining experience. Properly placed speakers with the
right volume levels in McDonald’s helps customers to relax. Some of the McDonald’s restaurant building
has a glass window. For instance if we are sitting near window will enjoy the external view while eating our
food. During summer soundproof glass windows keep the interiors cool by reflecting the sun’s heat away.

McDonald’s always ensuring proper circulation and movement of the restaurant staff as well as the
customers in the restaurant. All McDonald’s store has an enough space between tables. This helps
McDonald’s avoid any potential conflict between a customer leaving the table and a waiter carrying a tray.
Also the Customers often avoid sitting near the kitchen or the bathroom as these areas are prone to
disturbance, so by considering this factor McDonald’s always do the systematic sitting arrangements for
their customers.

Dining area/ Furniture/ Wall Colours

Another way that McDonald’s adapts their physical appearance is by making their stores more attractive in
countries where this is extremely important and necessary to entice customers to enter. At the McDonald’s
store located in New Zealand30, customers can enjoy a McDonald’s cafe called “The Corner,” where diners
can enjoy unique menu offerings, while soaking in the feeling that they are not in fact at a typical
McDonald’s but in fact they are eating in an actual street side cafe. McDonald’s has a comfort sitting
arrangements which includes diverse tables & chairs, sofa, lather pouf table, cafe chairs, designer chairs

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etc. Different areas offer different seating options that accommodate both families and people who want to
sit alone. Every McDonald’s store has a different combination of bold wall colours. McDonald’s wall
graphics are simple and unobtrusive, keeping with the idea of subtlety. McDonald’s restaurant also includes
a waiting room area that is where customers can wait till they receive their order; it includes comfortable
chairs or sofa where customers can seat comfortably.

Menu Board /Counters/Payment Counter

At McDonald’s, the menu board is digital. Only about 10% to 15% of the menu display is devoted to the
traditional items like Big Macs and McNuggets, Bettye found, while about 30% of the space is given over to
the newer and pricier “Signature” items. This is a simple but effective way to get customers to give more
consideration to those items. Since, 2015 McDonald’s to acquire Dynamic Yield will use decision
technology to increase personalization and improve customer experience. McDonald’s Menu Boards are
more eyes pleasing than the regular paper menus and McDonald’s setup the digital menu board’s backside or
beside of the counter so customers can instantly place their order at the counter by seeing menu items on
board. Aimed at enhancing the customer experience at the time of ordering, the company is geared to create
a great sensory experience using vivid imagery and captivating high definition visuals of its great tasting
menu items, making it easier for customers to select their favourite items quickly.

Every McDonald’s store has 3 Splitting/sections of ordering, waiting and collecting. Where customers can
easily order and do the payment and also customers who have ordered their food via app or kiosk system
they can collect their parcel from collect counter.

McDonald Kitchen Layout

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McDonald’s has a very specific type of kitchen layout in all their restaurants. McDonald’s layout gives an
easy access to the staff to serves the customers in a quick way. In the kitchen department:

 McDonald’s has selected high efficiency fryers which take minimum time to fry the chips.
Operations manager has assigned the task to different staff members according to their ability.
 McDonald get most of the things in ready to serve form from its main headquarter which decrease
the cost of producing the food and it also help the McDonald to keep the quality same all over its
stores. Staff in McDonald only has to put the food in oil and it gets ready to serve. It also helps the
McDonald to save lot of storage cost and space in kitchen.
 The Equipments in a kitchen were placed in such a way that the number of steps involved in
performing the task would be reduced. And McDonald’s optimized the space well and provides more
ventilation system in the kitchen.
 McDonald’s restaurant kitchen includes enough space between the different workstations. Which
means all the vegetarian food items and Non-vegetarian items were kept separately on different
platforms or sections.

Hygiene practices being followed by McDonald's Inside & Outside of the store:

 All kitchen staff handles food with gloves that are changed every few hours & all food trays are
sanitized after every use. Tray mats are changed after every use.
 The crew washes their hands every hour for 20 seconds with antimicrobial hand wash.
 The tables are sanitized after every use.
 Separate colour-coded cleaning cloths are used to handle veg and non-veg food.
 Separate mops are used for the restaurant lobby and the kitchen and the cleaning mops are washed in
running hot water to ensure complete sanitization.
 A regular 'PH' test is done to ensure the strength of the sanitizer and ‘A Clean as you go’ process is
followed to ensure cleanliness across all touch-points.

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  Credit Cards machines, Table Trackers, Self-Dispensing Coke Machine panel is being sanitized
regularly.
 All other customers touch points like Self-Ordering Kiosk or SOK screen, door handles, handrails
are also being sanitized regularly.

Customer Relationship Management

The customers for Mc Donald’s are from the kids to the older persons. For all the customers visiting Mc
Donald’s, the environment seems to be the same with the consistent services as in any other part of the
world. McDonald’s uses its various apps & websites to communicate with customers, keep them engaged
with the happenings in the company and indulge in interesting conversations with them. McDonald's was
highly successful in staying connected with its customers through various systems.

The McDonald brand has differentiated itself from competitors not just through the creation of a culture that
emphasizes and delivers these values can propel an organization beyond customer satisfaction to the type of
loyalty that can drive business. From the following will understand the customer relationship management of
McDonald’s.

CONSUMER COMPLAINTS

McDonald’s hopes that if anything does not meet customers satisfaction, customers will tell the counter
person and counter person (he/she) will replace it or try to solve the problem. If they can’t, they, or the
customer should take the issue to the manager on duty to resolve, etc. The owner/operators phone number is
generally listed on a sticker on the drive-through window or somewhere in the store or on the official site of
McDonald’s, because counter person also wants a chance to make customers happy. If customers haven’t
found satisfaction at that level, the regional office wants to hear from counter person, and will do everything
in their power to make customer happy. In the US, McDonald’s also put a web address on the receipt
where customers get free coupons just for reporting customer satisfaction feedback for that particular visit.

On the official website of McDonald’s there is a one column stated as Contact Us, where customers can
easily file a complaints or restaurant feedback or mobile app feedback related to the McDonald’s restaurant.
When we click on any option will get one form on the screen which states that, Have some restaurant
feedback about your recent McDonald’s visit? Tell us what you loved, or file a complaint in the form
below so we can make your experience better next time. All feedback is emailed out in a report to all
managers of McDonald’s. Most of the time the reviews are good but when a bad review is left, if a specific
employee is found responsible then they are coached, so McDonald’s just end up posting a notice in the
crew room about the incident. So if customers can leave names or descriptions of who is working at the
time it really helps McDonald’s to solve the issue so it doesn't happen again.
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McDonald’s also has many Customer Care Numbers, McDonald’s Enquiry number, Helpline or
Complaint Numbers. McDonald’s has its huge Contact Numbers according to the customers/different
areas. A McDonald’s Helpline number can be used when we want our queries resolved over a call for a
quick response or McDonald’s toll free number is the one where we can get our complaints addressed
absolutely free of cost. McDonald’s also solves the queries or gives a reply to the customers on social media
or on twitter.

Information

 Nutrition:

The nutrition information on the McDonald's website is derived from testing conducted in
accredited laboratories, published resources or from information provided from McDonald's
suppliers. All nutrition information is based on average values for ingredients and is rounded in
accordance with current U.S. FDA NLEA regulations. McDonald's also have a website where we can
ask questions and McDonald's will respond. It’s called, Our Food, Your Questions. The
McDonald's Menu also contains detail information such as Ingredients & Allergens, nutrition
summary and nutrition calculator etc. of each food item.

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 QR Codes:

McDonald's introduced new package designs on all carryout bags and fountain beverage cups with
QR codes. As a company that has provided nutrition information for more than 30 years to its
customers, the new packaging is designed to communicate brand stories in an engaging and modern
way. A blend of text, illustrations, and a QR code will deliver interesting facts about the brand
and make nutrition information easily accessible from mobile devices.

 Farm to Restaurant:

McDonald’s is the largest purchaser of beef, coffee, potatoes, vegetables etc globally and they
directly buy from farmers ensuring the quality. They never outsourced procurement process.
They train in-house people to handle it. McDonald’s contribute a lot to the welfare of farmers
through education, technical knowledge and financial support. This helped them to build trust and
forge a long-term relationship with farmers. McDonald’s work closely with many suppliers to support
economically viable farming and to help improve access to knowledge, tools and best practice
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 farming methods that lead to positive social, economic and environmental benefits. McDonald’s
partners with a global network of suppliers and farmers to provide quality ingredients and packaging
materials. McDonald’s uses the fresh ingredients while preparing the food which is come from its
farmer suppliers. McDonald’s website provides all the Sourcing information about Antibiotic Use,
Animal Health & Welfare, Farming Communities, Sustainable Agriculture & Bee, potato apple
lettuce, dairy, coffee etc.

Other Activities

 Happy Meal:

Since 1979, McDonald’s have been working with the Alliance for a Healthier Generation a third-
party nonprofits organization. They developed these new goals in collaboration with Healthier
Generation, focusing on kids and families. McDonald’s aim to offer balanced meals that provide a
variety of options from recommended food groups, using simpler, quality ingredients so parents can
feel good about McDonald’s Happy Meal menu. A Happy Meal is a meal made by McDonald's, and
aimed at children.

 They come in a cardboard box, containing a main meal, usually a hamburger, cheeseburger,
or McNuggets, french fries a small drink and a toy. Sometimes the toy ties in with a movie release.
So to attract children McDonalds has Happy Meal with which toys ranging from hot wheels to various
Walt Disney characters are given (the latest in 2021 the toys of the movie Raya & The Last
Dragon). For this, they have a tie-up with Walt Disney. This strategy is aimed at making McDonald’s
a fun to eat.

 McDonald's also offers exciting selection of interactive eBooks plus games and augmented reality
in customers own Kids app, the Happy Meal App. McDonald's Kids can get creative with
McDonald's collection of fun filled colouring sheets.
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 Party & Play Place:

McDonald's be it in-store or at a venue of customer choice (with take away party package). For
in-store party package McDonald's party professionals will take care of all the planning, décor, food
and games so customers can just relax and revel in fun. Customers can easily book their party
package at the store. A minimum booking of 15 guests is required & booking arrangements need to
be made at least 2 weeks before the party date. The standard package party will last for about 1½
hours.

 All McDonald's party packages includes:

 Choice of Happy Meals

 Party invitation cards
 Party hats
 An exclusive present for the birthday celebrant
 Gifts for invited guests
 Game prizes
 A Party Chaperone to host the party and organise games (not applicable for takeaway parties)

Party Invitation Cards will be handed to each birthday celebrant to invite his or her friends. All
invitees will receive gifts, a Happy Meal of their choice, as well as prizes to win from games. To top
it off, a specially made birthday cake (optional) and an exclusive gift awaits the birthday celebrant.

Mumbai is labelled as one of the best cities for Celebrations and rightly so. The city offers an
abundance of Kids Birthday Party Venues including McDonald’s in all the areas like Thane(Lake
City Mall), Dadar West(McDonald's, Star Mall), Kandivali East (McDonald's, Growel Mall ),
Ghatkopar (R City Mall), McDonald's, Goregaon West etc.

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 McDonald's Play place is an indoor or outdoor playground for children ages 3-9 and is located
inside most McDonald's restaurants around the world. Also the indoor McDonald's Play Places have
new modern touch screen kid’s games but the new modern touch screen games are only for the
indoor McDonald's Play Places and also children can play arcade games, air hockey etc. This
strategy is aimed at making McDonald’s a fun place to eat. This also helps McDonald’s to attract the
young urban families wanting to spend some quality time while their children have fun at the outlet.
Besides that, children will not easily get bored when they just sit and eat as they can have fun at the
playgrounds in the restaurants while their parents have some time to spend together.

 Offers & Discounts:

 Cellfire: McDonald's is using mobile coupons in parts of the western United States timed with the
launch of its new iced coffee beverage. The promotion, enabled by Cellfire, offers consumers free ice
coffee when they use mobile coupons at participating McDonald's locations. Participation is simple.
Consumers download the Cellfire application to their mobile phone to receive the free iced coffee
offer and future promotions at participating McDonald's restaurants. Its application-based service
automatically delivers coupons directly to consumers based on their geographic footprint. So,
Cellfire users are given a unique redemption code that is shown at the time of the transaction.
Consumers click on the coupon they want to use and show it to the sales clerk for redemption.
 Offers & Schemes: McDonald's always introduces various deals/offers on various
occasions/festivals or celebrating various international days. McDonald's offers such as, we can get
our favourite burger/ice-cream for free on almost every order (Coupon codes applicable on online
orders placed after 11 am), Get Free McVeggie/Mcspicy Burger on orders above Rs 199 on your
First Order etc. In 2019 McDonald’s Corporation when, for the first time in history, the iconic golden
arches were flipped from an "M" to a "W" to honour International Women's Day on March 8.
McDonald's also celebrates International Burger Day, National Drive-Thru Day with Twitter
Campaign, Republic Day, Family Day, Festival of Christmas/Diwali/Holi/Rakshabandhan etc. by
providing huge discounts, offers, cash back, coupon codes etc. to the customers.

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 Discount for seniors: Most McDonald's locations provide senior citizens and people over age 55
with discounted coffee and beverages. McDonald's franchises are independently owned and operated,
so participation and senior discount offers can vary from store to store.
 Discount for Teacher & Students: McDonald’s is always looking to thank teachers for all their
hard work during an unusual year with free baked goods and coffee. With a school I.D., teachers
can get a free apple fritter, blueberry muffin or cinnamon roll, complete with a hot coffee of any
size. McDonald’s also offers discounts to the students. To use McDonalds student deal, all you
need to do is show your ID or a valid Student ID to the cashier when you order any extra value meal.
 McDonald's restaurants have been thanking teachers, doctors and other frontline workers
throughout the COVID pandemic.

 Retaining Loyal Customers:

McDonald’s gives certain level of satisfaction, fun as well as happiness each time they dine at
McDonald’s as it offers better ambience, hygienic environment and also great services. Free Wi-Fi
with high speed connectivity to internet is provided to customers for them to access to internet to do
business and entertainment when they are dining. Every McDonald’s outlets have Drive-Thru to make
customers who want to take away more convenient and fast. Besides that, quick delivery to
households is provided with a little charge.

 McDonald's branch managers do not wait until the customer complain because many customers
will not complain so, McDonald's managers approach the customers and ask them about their
experience and whether they have any comments. In McDonald's the managers and front line
employees meet weekly and discuss the customer’s comments and recommendations to reach the
best resolution.

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 RETAIL MANAGEMENT OF McDonald's DURING COVID- 19 SITUATIONS

Employees Training through Digitally

McDonald's India Is Training 10,000 Managers and Frontline Crew Digitally. For a Strong Comeback
McDonald's Restaurants introduced E-learning modules, Quizzes, Master classes and creative Sessions
for its employees across restaurants in India.

In October 2019, McDonald’s partnered with Retail Association’s Skill Council of India (RASCI) to
launch an undergraduate course in retail operations. The nationwide lockdown due to Corona virus has
impacted the hospitality industry the most. However, McDonald's Restaurants operated by Westlife
Development in India, is putting this time to good use and training its employees digitally.

Retail Operations through Digitally

Post the COVID-19 induced lockdowns, McDonald’s has performed strongly on the back of its convenience
channels of McDelivery, Drive-thru and best in class hygiene and safety measures. Even as several
companies struggle to stay afloat during the corona virus pandemic, Westlife Development Limited, which
runs McDonald’s restaurants in West and South India, is an company announcing Double Digit-
Revenue Growth in the year ending March.

The same was strongly driven by online food delivery of McDonald’s products. McDelivery charted a
phenomenal trajectory and emerged as one of the most critical growth drivers for the company. McDonald’s
had recently tied up with online food aggregators such as Swiggy and Zomato to deliver its food items to
customers doorsteps.

 McDonald's India- North and East has introduced the ‘Global 'Safety+’ programme that includes
nearly 50 plus process changes in the restaurant operations. Safety+ is a Global system of enhanced
hygiene and safety practices.
 Ordering food online is becoming the preferred means of enjoying restaurant food. This feature has
been introduced as an additional precautionary measure to ensure the safety of both the customers
and the delivery staff.

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 PROMOTIONAL MANAGEMENT

 As the countries faces a task ensuring people stay indoors and avoid social contact, quick service
restaurant chain McDonald's launched its global social media campaign in India, Splitting the
Letter M in its logo. First launched in Brazil, the India campaign aims to convey and promote the
message of social distancing as the novel corona virus continues to tighten its grip over the country.
The McDonald's Brazil pulled apart its iconic golden arches in a picture posted to its Facebook page.
The ad agency explained that despite the Temporary Separation between Its Customers and the
Company.
 McDonald's India partnered with Salaam Bombay Foundation and launched an outreach
campaign to distribute safe and hygienic food across various slums in Mumbai. McDonald’s has
already distributed over 1700 meals in close to 10 BMC wards, which Salaam Bombay has
delivered through various NGOs across Mumbai. The brand is also ensuring that all social distancing
and sanitation practices are being followed strictly while distributing these meals.
 In another campaign, #RonaldSays, spread a very important message that is follow social distancing
and wear a mask to keep yourself and everyone around you safe. In an innovative activation by brand
McDonald’s, the iconic Ronald McDonald statues will now be seen sporting masks across all
outlets to encourage more and more people to adopt safe practices to prevent spread of the pandemic.

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 STORE MANAGEMENT

The McDonald’s has maintained separate kitchens, equipments, utensils, and cleaning cloths for veg and
non-veg food right from the start of its operations in India. After a six-month-long COVID-19 led lockdown
on restaurants, Westlife Development, the company that owns and operates McDonald’s restaurants in West
and South India is all set to Reopen Its Doors for customers in Maharashtra. This Golden Guarantee platform
by McDonald’s India West and South encapsulates 42 top-notch safety and hygiene processes that the
company has added to their already world-class practices.

 These new processes ensure that the food is prepared and served without being touched by bare
hands. They also ensure contactless operations, frequent sanitization, social distancing and usage of

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 all required protective gears across dine-in, delivery and take-out channels, thus making sure that
both employees and customers remain safe, every step of the way.
 McDonald’s restaurant for Dine-In:
 Mandatory temperature checks will be conducted for all customers and employees at the entrance.
 There will be alternate table and chair seating arrangement to ensure social distancing among
customers in the dining area.
 Employees will always be seen wearing protective gear like masks and gloves. Food will be prepared
and served without being touched by bare hands.
 Kitchen equipments and tables will be sanitized every four hours and providing hand sanitizer in
dining rooms in most of our markets.
 Delivery riders will be seen standing ay designated markings while waiting to collect the order.
 There will be a special line with markings for customers who come to collect their takeaway orders.
 Promoting a timed hand washing system to ensure employees wash their hands with approved soap
for at least 20 seconds and every hour at minimum.
 Increasing the frequency of cleanliness and sanitization/disinfecting of high-touch surfaces such as
counters, door handles and kiosks.

CUSTOMERS RELATAIONSHIP MANAGEMNET AT STORE

McDonald's employees have been supporting their communities with everything from hot meals to messages
of hope during the Covid-19 crisis. The restaurant delivered free of cost meals to security forces as a token
of gratitude towards their relentless contribution to society in such trying times. With health care workers,
police officers and fire fighters working to protect and save lives during the corona virus pandemic,
McDonald's is saying thanks by providing a "Thank You Meal" in appreciation of their service. Thank
You Meals will be available through May 5. The meals will feature a choice of sandwiches, sides and drinks
from a separate menu. The Thank You Meal includes:

Breakfast: A choice of an Egg McMuffin, Chicken McGriddles or a Bacon, Egg and Cheese Biscuit. All
options come with any size soft drink, tea or hot coffee and a Hash Brown.

Lunch and Dinner: A choice of a Double Cheeseburger, 6-Piece Chicken McNuggets or a Filet-O-Fish will
be offered. All options come with any size soft drink, tea or hot coffee and small fries.

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 Taking care of Customers: Employees work in zones at 1.5 meters apart and where necessary with
Plexiglas partitions. To keep a safe distance, the employee brings orders to customers using trolley
and employees takes a steps back , so that customers can safely take our order from the trolley. Also
the seats are safe distance from each other or are separated by Plexiglas and cleaned after each use.

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 CHAPTER 5

FINDINGS & CONCLUSION

FINDINGS

 McDonald’s is constantly gives focus always on the customers and creating that unique bond.

 McDonald’s uses its Digital Retailing tools in a way that their competitors don’t.

 McDonald’s has invested a huge amount of money on creating a technology board which has help
the McDonald’s to adopt new and new technologies in its operations with time.

 McDonald’s menus look different all over the world.

 McDonald’s was the first to have touch-screen computers at the front counter.

 McDonald’s restaurants are available in urban as well as rural markets and they have unique and
creative layouts over worldwide.

 McDonalds’ offers products in the same packages in diverse countries and the consistency of these
products attract many loyal customers.

 They value sustainable food and packaging.

CONCLUSION

It was really a very great experience to study global foodservice retailer McDonald’s. After going into all its
aspects that is Merchandising, store operations, technology etc. we can conclude that the company is
excellent on all the fronts. McDonald is a very well established organization. The success of the McDonald
is completely based on the the people behaviour of specific country, on their culture, buying power and
social issue. McDonald has paid special attention on the location of the business, it’s interior and exterior
outlook and types of technologies it going to use to get the maximum production at short time. The most

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important thing which it focused on was the quality and the market forces which directly affect the business.
Also emphasising on environment betterment such as all the packaging within distribution centres, both
cardboard and plastics, is collected and recycled, also recycling is done from office stationary to
warehousing packaging. All the vehicles used for transportation run on diesel that contains five percent bio-
diesel. The reduction of waste provides a win/win/win situation for McDonald's, its customers and wider
society.

McDonald’s chain of restaurants can be said to adhere to a lean approach to operations management given
the changes that the franchise has had to implement over the years to improve efficiency. In order to achieve
their core values which are quality, customer satisfaction, and timely services, they have had to improve
many aspects of their production system. The areas include inventory keeping, preparation methods, and
cashier automation. Computerization has played a big part in ensuring that the lean approach
implementations have become sustainable and implementable. They focus on wastage elimination as such
cement.

Through its comprehensive range of products it touches the lives of all consumers, in all age groups, across
all social boundaries. McDonalds’ constantly innovate its products based on the changing tastes &
preferences of its customers. And McDonald’s use all natural ingredients and supreme quality with
maximum quantity of products to their customers. McDonald’s is also known for giving back to the
community through the Ronald McDonald House Charities, college scholarships, fundraisers and mentorship
programs. McDonald’s, like so many other philanthropic businesses, have realized that giving back is
just good for business.

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 CHAPTER 6

SUGGESTIONS

1. The McDonald’s should be to continue expanding the company’s presence across geographies and to
exploit more the opportunities that exist in existing and potential segments.

2. The McDonald’s company should continue to invest in brand building, manufacturing and human
capital in order to maintain and improve the existing robust growth path.

3. Apply and adhere to consistent and homogeneous service standards and guidlines between all
branches, the customers should get the same service at any of the branches.

4. McDonald’s should work on adding gluten free items in menu.

5. Print out the menu into readable broacher size menus, so that customers can check the menu items
without having to stack into crowds around the counter.

6. Make sure to be consistent on all the different communication channels and deliver the same details
and information about new products and services.

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 CHAPTER 7

BIBLIOGRAPHY & WEBLIOGRAPHY

Books:

Retail Management fourth revised edition by Vipul Prakashan.

Retail Management Strategic Approach: Barry R Berman

Retail Marketing: Vinra Publication

Newspapers:

Business Standards

Name of Article: McDonald's India to operate 24/7 for contactless McDelivery in Mumbai. (April 9,
2021)

Name of Article: McDonald's India ties up with Zomato for delivery in North and East region. (January
15, 2020)
Name of Article: McDonald's does a first in India, converts used cooking oil into biodiesel. (July 23,
2018)

The Economics Times

Name of Article: McDonald's flips its iconic 'M' logo to 'W' on International Women's Day. (March 8,
2018)

Food & Beverage News (FnBnews.com)

Name of Article: McDonald’s launches breakfast menu at outlets across North, East India. (December
13, 2019)
Name of Article: McDonald’s starts McDelivery and Drive-Thru services in North & East India. (May
28, 2020)

Websites:
https://academicjournals.org/journal/AJMM/article-full-text-pdf/8B2BB2161179
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https://blog.grandrapidschair.com/fast-food-interior-design-through-the-years-mcdonalds

https://www.ukessays.com/essays/international-business/very-popular-fast-food-business.php

https://www.mcdonalds.com/us/en-us.html

https://www.businessinsider.com/mcdonalds-history-timeline-2016-10?IR=T

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