MC DONALD’S

TIMELINE

1937 : McDonald's was started as a drive-in restaurant by two brothers, Richard

and Maurice McDonald in California, US .

1948 : The first McDonald’s restaurant is opened in San Bernardino.

1955 : Ray Kroc, expressed interest in the business, and he finalized a deal for

franchising with the McDonald brothers in 1954 in Des Plaines, Illinois, US.

1959 : Kroc opens 67 new restaurants, bringing the total to 100 franchises.

They begin advertising on billboards.

1961 : In 1961, he bought out the McDonald brothers' share for $2.7 million and

changed the name of the company to McDonald's Corporation2

TIMELINE

1962 : The Speedee logo was replaced by the Golden Arches as the company

logo.

1963 : The 500th McDonald’s was inaugurated & Ronald McDonald is introduced.

1965 : Stock goes of the 10th anniversary of the company

1972 : McDonald’s became a $1 billion corporation. Surpassed the US Army as

the nation’s biggest dispenser of meals.

1979 : Happy Meals are added to the menu.

3

TIMELINE 1990 : The world’s biggest McDonald’s, with seating for 700, is opened in Moscow.

1996 : First restaurant opens in India, at Basant Lok, Vasant Vihar, New Delhi.

McDonald's India is a 50–50 JV partnership between McDonald’s Corporation (U.S.A)

and 2 Indian businessmen :-

Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai) :- West & South

India

Vikram Bakshi (Connaught Plaza Restaurants Private Limited, Delhi) :- North & East

India

2003 : Post their first quarterly loss in over 40 years. New store openings are

reduced from 1,000 the previous year to 360.

4

FACT - FILE

McDonald's serves 1% of the world's population every day.

It currently Employs more than 20,00,000 employees.

McDonald's sells more than 75 burgers every second.

McDonald's' iconic golden arches are recognized by more people than the

cross.

McDonald's is the world's largest distributor of toys, with one included in 20%

of all sales.

Ronald McDonald is the 2nd most recognized public figure after Santa Claus.

MCDONALD’S VISION & MISSION

Vision

• To be the best & leading fast food providers around the globe

Mission

• To be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."

MCDONALD’S VALUES

We place the customer experience at the core of all we do.

We are committed to our people – Employee development.

We operate our business ethically.

We give back to our communities – Charities.

We strive continually to improve.

PRESENT SCENARIO

McDonald's is the world's leading food service retailer.

It has more than 33,000 restaurants across the globe.

It serves more than 67 million customers each day.

It has its presence in 118 countries.

MCDONALD’S INDIA : OUTLET NETWORK

15 years of leadership in food service retailing in India

McDonald's India has a network of over 250 restaurants across the country.

McDonald's India is a leader in the food retail space, serving more than 6.5 lakh customers daily in India.

QSCV MODEL1. Quality :- McDonald's strives to maintain its international quality

standards. Strong supply chain efficiencies promises to deliver freshness right to the customer's plates.

2. Service :- McDonald's motto is to “serve with a smile”. It launched its new “one minute service delivery” to the customer even during rush hours.

3. Cleanliness :- Sticking to a very strict code of decorum and cleanliness, McDonald's ensures that hygiene plays a large role in the way the food is served.

4. Value :- Value for money has always been McDonald’s greatest pride. McDonald's menu gives the tastiest and most affordable food options to customers with range of products starting at just Rs.25

LOGISTICS & SUPPLY CHAIN MANAGEMENT

Mc Donalds infused around Rs. 400 crores in the supply and delivery chain

before setting up their first restaurant in India.

Mc Donalds have around 38 suppliers which are on long term basis

categorized as follows :-

Tier-I and Tier-2 suppliers :-

In Tier-I there are 14 core suppliers-provide processed products , French fries,

potato wedges

In Tier-2 suppliers there are growers and processors who provide lettuce poultry

items vegetable patties

The flow of ingredients are from Tier-2 to Tier-I suppliers who process them.

LOGISTICS & SUPPLY CHAIN MANAGEMENT

4 Distribution Centers (DC) owned by the company :-

Delhi Mumbai Bengaluru & Kolkata

Employees strength of McDonalds India is 9,000 people in total

across the country.

INBOUND LOGISTICS

It is the movement of materials from suppliers and vendors into

production processes and storage facilities.

Based on the demand forecast, Manager orders the distributors on daily

basis.

Distributors store all the raw materials, in its own cold stores and

delivers material to the restaurant.

DC also received the DQMP (Distribution, Quality, and Management

Process) Certification from USA Audit Team.

INBOUND LOGISTICS

There are only two products buns and

Cokes, which are sent directly to the

restaurants.

DCs have full-fledged facilities to pack

locally manufactured products in sachets

such as sugar & tomato ketchup.

SUPPLIERS

A standard McDonald’s burger has

9 different ingredients, which are

sourced, from 38 suppliers across

the country before it reaches the

final consumer.

BEVERAGE SUPPLIERS

Coca Cola is McDonald’s

official beverage partner.

SUPPLIERS OF MCDONALDS INDIA

E-PROCUREMENT McDonalds E-Procurement System is the main reason for their successful

supply chain management.

E-MAC Digital : (Internet procurement site designed for McDonald's

Corporation's 34,000 franchises)

E-MAC Digital Company is E-Procurement website which is jointly owned

by McDonalds and Accel-KKR Internet Co.

It is so efficient that it provides the backbone not only to all the logistics

but the whole McDonalds supply chain management.

It is a procurement hub launched in 2001 that allows all of McDonald's

franchises to buy everything needed as per the demand.

E-PROCUREMENT PROCESS

A McDonald’s franchise restaurant places anorder through E-MAC digital website.

The order is sent to the suppliers. Suppliersorder is processed and managed by thelogistics department.

The logistics department sends the order ofthe products to the franchise restaurants. Itis the responsibility of the E-MAC andlogistics that the products are sent to therestaurant.

All the above, steps are handled andexecuted by the E-MAC digital.

TRANSPORTATION : COLD CHAIN LOGISTICS

McDonald’s was the first to pioneer the establishment of Cold Chain

across India which helps maintain freshness and nutrition in product

A cold chain is a temperature-controlled supply chain.

McDonalds’ entire network supply-chain consists of movement of

goods through a cold chain

The transportation of McDonald’s has been completely outsourced.

Multi-temperature and single temperature trucks transport the fast food

swiftly to the McDonald’s restaurants.

COLD CHAIN LOGISTICS

The company has both cold and dry storage

facilities with capability to store products up to -

25º C

An interesting and innovative feature of this cold

chain is that the same truck can carry products at

different temperature ranging from:

Frozen products at -18ºC to -25ºC

Chilled products from 1ºC - 4ºC

Dry products at Room temperatures

Process Optimization

OUTBOUND LOGISTICS Outbound logistics is the process related to the storage and movement of

products from the end of the production line to the users end.

McDonalds Distribution systems McDonald uses three types of distribution

strategy :

Franchising

Licensing

Joint ventures

When customers enter the restaurant, they go to the counter, give their

order, which they are served within a single minute.

GLOBAL PACKAGING DESIGN SYSTEM

McDonald's has a global package design for

their to-go bags and fountain drink cups.

McDonald’s also offer access to Nutrition

facts with QR code Packaging.

ORDER PROCESSING SYSTEM

Cash & cashless payments

Online Orders :-

Online menu

Delivery fees

Redeeming discounts

Cancellations

McDonald’s Delivery

ORDER PROCESSING SYSTEM

TRANSACTION PROCESSING SYSTEM (TPS)

“POINT OF SALE” SYSTEM

DECISION SUPPORT SYSTEM (DSS)

“MADE FOR YOU” SYSTEM

MCDONALDS INFORMATION SYSTEMS (mis)

MIS

MCDONALD'S COMPETITORS

o Subway

o Kentucky Fried Chicken (KFC)

o Mr. Burger

o Burger King

EXPANSION THROUGH DIVERSIFICATION

3 types of Expansion strategies

:-

Franchising

Licensing

Joint ventures

4 TYPES OF RESTAURANTS :-

Mc Drive

Special theme restaurants

Mc Café

Mc Express

MCDONALD’S MARKET SHARE

30%

25%

15%

10%

5%

15%Market Share

McDonalds KFC Subway

Mr. Burger Burger King Others

McDonalds has surpassed its

competitors by Indianinzing

more than 85% of its menu.

Thinks Global, Acts Regional

RECOMMENDATIONS

McDonald’s business depends entirely upon the timely delivery of fresh and

quality products. The entire model being outsourced they lack control over the

process.

We suggest that some control points need to be setup in the supply chain model

to monitor the smooth functioning of the entire process.

Hygiene facilities in the Kitchen should be improved

Number of employees involved in the supply chain process need to be increased

so that they can properly handle any contingency arising in the SCM model.

THANK-YOU SHRUTI

JHEENAL

SHAILEE

PRIYANKA

PRACHI

RAVI