McDonalds, one of the largest food service companies in the world, and also one of the major players in the UK food retailing industry, officially known as McDonalds Restaurants LTD (UK). The company is wholly owned by the McDonalds Corporation based in the USA, dominating the market via their brand image with quality food, value for money and fast service. In the early 1990's McDonalds, the long-time leader in the fast food wars faced a crossroads situation. Domestically, sales and revenues were flattening as competitors influenced the market. McDonalds encountered new challenges, in addition to its traditional competitors Burger King, Taco Bell & Wendy's.
Going back to the early 1940's, where Ray Kroc was so impressed by 2 brothers, who had opened a burger restaurant that relied on standardised preparation to maintain quality The Speedee Service System. McDonalds used controlled experimentation to maintain the McDonalds experience, simultaneously expanding the menu appeal to a broader range of consumers. E.g. 1976 McDonalds introduced a breakfast menu as a way to more fully utilize the physical plant, then in 1980, rolled out the chicken McNuggets. Despite these innovations, McDonald's tremendous growth could only continue for so long.
McDonalds faced tough and heightening competition on several fronts. Traditional rivals such as Burger King & Taco Bell were eating into margins via promotions and value priority strategies. But McDonalds has always sustained prosperity due to willingness to innovate, even while striving to achieve consistency in the operations of its many outlets e.g. McSalads, chicken McNuggets & McLean Deluxe Sandwich, are examples of how... [continues]
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