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Mcdonald'S Corporation: A Brief History

McDonald's opened its first restaurant in the Philippines in 1981 through a franchise agreement with George Yang. Yang had first contacted McDonald's in 1974 expressing interest in the Philippine franchise, but they declined as the Philippines was not yet a priority market. Yang persisted for years, even working in a Hong Kong McDonald's, to prove the Philippines' potential. In 1980, McDonald's executives returned and awarded Yang the franchise. He opened the first location in Manila. Since then, McDonald's has expanded across the Philippines and become a leading fast food chain with over 500 restaurants nationwide. It aims to be the first choice for Filipino families through quality food and service.

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0% found this document useful (0 votes)
324 views

Mcdonald'S Corporation: A Brief History

McDonald's opened its first restaurant in the Philippines in 1981 through a franchise agreement with George Yang. Yang had first contacted McDonald's in 1974 expressing interest in the Philippine franchise, but they declined as the Philippines was not yet a priority market. Yang persisted for years, even working in a Hong Kong McDonald's, to prove the Philippines' potential. In 1980, McDonald's executives returned and awarded Yang the franchise. He opened the first location in Manila. Since then, McDonald's has expanded across the Philippines and become a leading fast food chain with over 500 restaurants nationwide. It aims to be the first choice for Filipino families through quality food and service.

Uploaded by

MC Aberca
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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McDonalds Corporation

McDonald's is the world's second largest chain of fast food


restaurants, serving around 68 million customers daily in 119
countries across 36,538 outlets.

A Brief History
Started in the US in 1940, the company began as a barbecue restaurant
operated by Richard and Maurice McDonald at 1398 North E Street at West
14th Street in San Bernardino, California. It was a typical drive-in of its era,
where drivers parked their cars and carhops came to take their orders.
Although many drive-in restaurants were established before, McDonalds
became a success. Many Californians were delighted the way McDonalds
serves their customers getting the full menu and servers without leaving
their respective cars.
After World War II, many people, especially Americans, demanded a good
life which involves speed in all things. That is the very reason why
McDonald brothers had to temporarily close their successful drive-in
restaurants for alterations. They remodelled their kitchen based on Henry
Fords assembly line to speed things up. They speed up servers by designing
new equipment such as bigger grills and condiment dispensers to make the
hamburgers the very same way. Also, the car hop service was replaced with
self-service drive-in restaurant. As a result of this revolution, McDonalds cut
their serving time from twenty minutes to just thirty seconds. The menu is
also reduced to nine items: hamburger, cheeseburger, three soft drink
flavors in one 12-ounce size, milk, coffee, potato chips, and a slice of pie. By
1949, McDonalds replaced the potato chips with French fries.
The original mascot of McDonald's was a man with a chef's hat on top of a
hamburger-shaped head whose name was "Speedee". By 1967, Speedee was
eventually replaced with Ronald McDonald when the company first filed a
U.S. trademark on a clown-shaped man having puffed-out costume legs.
The McDonalds sold their first franchise license to Neil Fox in 1952 for a onetime fee of $1,000. Once the "Speedy Service System" restaurant design was
completed, the brothers anticipated no further connection with the
operation, receiving no revenues from the store, and exercising no control.
They expected Fox to call his store "Fox's". But the brothers were surprised
when Fox informed them that he wants to call his restaurant McDonalds.
On April 15, 1955, Ray Kroc opened his first McDonalds restaurant in Illinois
not knowing that it is already the ninth franchise of McDonalds. Before Kroc
to start business he had to buy the competing franchise in Chicago for
$25,000 which left him almost broke out.
He kept his restaurant

meticulously clean and efficient. Kroc used his first restaurant as a showcase
for selling more McDonalds franchises across the country.
In 1961, Ray Kroc purchased the shares of the McDonald brothers for
$2,700,000 making him the sole owner of the McDonalds System Inc.
By April of 1965, McDonalds became the first ever fast food company to go
public. Stocks were initially issued at $22 per share. Stock price rose to $49
per share just weeks later after McDonalds went into public. By the end of
1960s, McDonalds became the largest food supplier across the country.
The first international franchise was opened in 1967 in Canada, and was
followed by another in Puerto Rico later that year.

Vision Statement
Our overall vision is for McDonalds to become a modern, progressive
burger company delivering a contemporary customer experience. Modern is
about getting the brand to where we need to be today and progressive is
about doing what it takes to be the McDonalds our customers will expect
tomorrow. To realize this commitment, we are focused on delivering great
tasting, high-quality food to our customers and providing a world-class
experience that makes them feel welcome and valued.

Mission Statement
Our mission is to be our customers favorite place and way to eat & drink.
Were dedicated to being a great place for our people to work; to being a
strong, positive presence in your community; and to delivering the quality,
service, cleanliness and value our customers have come to expect from the
Golden Arches a symbol thats trusted around the world.

McDonalds journey to the Philippines


It was in 1981 when George T. Yang opened the first-ever McDonalds
restaurant in the Philippines.
The success of the jewelry business of Georges wife inspired him to start
something, this time on a much larger scale. As a wide reader he had come
across news and trend reports on a growing American fast-food chain called

McDonalds, a company whose premium on high-quality fast-food products


and service were being extolled in business reviews in many other countries.
And so he wrote the McDonalds headquarters and expressed interest in the
Philippine franchise. But in 1974, the Philippines was, as George puts it,
very far from their radar and they returned his letter, declining his offer.
They were not ready to come to the Philippines.
Although the Philippines did not have as flourishing a quick-service
restaurant industry as it does now, it was Georges contention that the
environment at that time was ripe for it. In the years prior there had been a
number of American restaurant franchises brought into the country that were
well received. It was no secret that the Philippines, given its four-decade
history as American-occupied territory, was still, to a large extent, a fan of
American culture and its prime exports music and movies, fashion and
technology, food and beverages.
Rather than wait for the Americans to acknowledge the Philippines. George
Yang decided to take charge of their education and elected to bring the
Philippines growth to their attention sending them clippings of economic
news, so that they would realize that the Philippines was ready for this
business. And he did just that for the next two years.
In 1976, a team of McDonalds executives from the mother company in
Oakbrook, Illinois arrived in Manila to explore business possibilities, and to
assess several candidates for a master franchise. Anyone looking for proof of
progress and vibrancy in Manila was sure to find it in electric proportions that
year for instance, as host of the 1976 International Monetary Fund
conference, the citys skyline changed drastically with the rise of 14 new
hotels slated to accommodate hundreds of dignitaries from around the world.
In the period of deliberations that was to last four years, George Yang refused
to let the brief encounter in less than favorable circumstances with the
McDonalds team dampen his determination to win the franchise.
So determined was he that he took the initiative to learn the business during
the long wait. He contacted a friend, Daniel Lee, a Hong Kong-based
businessman who held the McDonalds franchise in what was then still British
territory, and enlisted as a McDonalds crewmember.
The year was 1980, and the self-assigned mission was to work at the
McDonalds branch on Granville Road in Hong Kongs Kowloon district.

George, eager to learn the system from top to bottom, worked the whole
circuit for much longer hours, mopping floors, wiping kitchen counters,
flipping burgers, and ringing up the cash registers.
News of Georges stint in Hong Kong reached Oakbrook, where McDonalds
executives wondered what he was up to.
In late 1980 six years after he first made contact with McDonalds
headquarters, four years after he first met with the American executives in
Manila, and just months after voluntary immersion in one of the fast-food
giants Hong Kong outlets the Americans returned to Manila and met with
him again, this time to deliver the good news: he was being awarded the
franchise.
The first-ever McDonalds restaurant in the Philippines opened in 1981 and
still stands on its original location in Morayta, Manila.
McDonalds brings its food and convenience closer to every Filipino as it
opens its first stores in Visayas and Mindanao. It was in 1992 when
McDonalds restaurants were put-up in the cities of Cebu and Cagayan De
Oro.
In order to achieve its vision of Una Sa Pamilyang Pinoy, McDonalds
Philippines knew it had to become a 100% Filipino-owned company. Since
2005, McDonalds Philippines remains all-Filipino.
Today, McDonalds has grown to become one of the countrys leading fast
food chains with more than 500 restaurants nationwide.

MISSION:
To serve the Filipino community by providing great-tasting food and the most
relevant customer delight experience

VISION: Una Sa Pamilyang Pinoy

First to respond to the fast changing needs of the Filipino family.


First choice when it comes to food and dining experience.
First mention as the ideal employer and socially responsible company.

First to respond to the changing lifestyle of the Filipino family.

Political and Economic Situation (1972-1981)


There was further unrest, and in the middle of the disorder on September 21,
1972, Marcos issued Proclamation No. 1081, effectively installing martial law
in the Philippines, a declaration that suspended civil rights and imposed
military rule in the country.
President Marcos formally lifted Martial Law on January 17 1981.
Period of Economic Growth (1970-1979)
The decade of the 1970s started off with a major economic crisis. The
Philippines faced its first debt crisis accompanied by a balance of payments
deterioration which started in 1968. These problems eventually brought
about a 50 percent devaluation of the peso and double digit inflation never
before experienced in Philippine history.
During the first half of the 197Os, GDP grew by approximately 5 percent. The
moderate growth performance was a result of the export promotion strategy
adopted by the Marcos government which got its boost from the flow of
foreign investment into the country. At the same time, however, there was
accelerated inflation caused mainly by the devaluation and the first oil price
hike. Inflation was further fuelled by expansionary monetary and fiscal
policies. It was also during this period in 1972 that martial law was declared.
There was a quick turnaround in the economys performance during the
1975-1979 period. The Philippines then attained an average growth rate of
6.2 percent which was largely a result of the very high growth in the
industrial sector, particularly in the manufacturing (8.48 percent) and
construction (20.72 percent) subsectors.
During this period, industrial development was largely based on a
protectionist incentive structure under the import substitution program and
massive support from public investment in infrastructure and energy. A
supply-led external finance boom followed, financed largely by low interest,
short-term foreign loans mainly from commercial creditors. By 1979, the
external debt stood at $13.35 M almost tripling from $4.9 M in 1975. The
ratio of external debt to GNP reached 45.18 percent in 1979 from 25.52
percent in 1974.
During this period, industrial development was largely based on a
protectionist incentive structure under the import substitution program and
massive support from public investment in infrastructure and energy. A

supply-led external finance boom followed, financed largely by low interest,


short-term foreign loans mainly from commercial creditors. By 1979, the
external debt stood at $13.35 M almost tripling from $4.9 M in 1975. The
ratio of external debt to GNP reached 45.18 percent in 1979 from 25.52
percent in 1974.
The plummeting commodity prices (especially of sugar) in 1974 could well
have been a blessing in disguise since it provided further incentive for the
economy to shift to non-traditional manufactured exports. Overall, exports
grew at an average rate of 12.4 percent annually between 1975 and 1979.
Although achieving partial success, the export diversification strategy of the
Marcos government, which centered on garments and electronics, had a
fundamental shortcoming in that they were highly import dependent for their
intermediate inputs. This, coupled with the high import content of the nontradables where most investments had been channelled, resulted in an even
higher growth for imports surpassing the record high growth of exports in
1974. As a result, the country faced a trade deficit with levels averaging
$616.7 M for the 1970s.
In addition to the deteriorating terms of trade, double-digit inflation rates
dominated the 1970s. It started off at 14.85 percent in 1970 peaking at
34.16 percent in 1974 during the oil crisis. With a relatively high growth
during the 1975-1979 period, inflation was trimmed down to single-digit
levels averaging at 8.31 percent from 1975-1978 until 1979 when it shot up
to 16.5 1 percent.
In sum, the country experienced rapid economic growth during the 1970s.
This was accompanied, however, by a development strategy that produced
severe distortions in the pattern of incentives and in the existing markets
(World Bank, 1991b). The growth pattern emphasized capital-intensive,
import-substitution activities and discouraged agricultural and export
development. Moreover, the economy became heavily dependent on
imports, foreign capital and foreign loans. As a result, the high growth of the
1970s has been associated with declining real wages and growing levels of
poverty and unemployment.
Early Period of Structural Adjustment (1980-1982)
Given the evolving market distortions and structural rigidities created in the
197Os, the economy did not adjust well to the severe external shocks of the
post-1979 period. These included the high oil prices (after the second oil
price hike), the steep increase in the world interest rates, the declining
export prices, the recession in industrialized countries and the additional
short-term loan supply shock.

In addition, there was an internal shock resulting from the previous periods
external finance boom and the financial crisis which arose from the excessive
financial leverage of public and private firms in 198 1. The governments
attempt to selectively bail out favored and distressed firms led to a severe
loss of private investment and massive private capital outflows.
In 1980, the Philippine economy began to experience the main symptoms of
an economic crisis, namely:
-

Declining growth rates.


Deteriorating terms of trade.
Rising inflation.
Growing Balance of Payments deficit.
Accumulating large external debt.

In particular, the economy slowed down during the period 1980-l 982 to an
average growth of 3.57 percent. Real GNP growth rate dropped from 4.62
percent in 1980 to 2.84 percent in 1982. There was also a decline in net
factor income from abroad as real GDP growth fell from 5.15 percent in 1980
to 3.62 percent in 1982.
During that year, a stand-by arrangement with the International Monetary
Fund (IMF) and the first Structural Adjustment Loan (SAL I) amounting to
$200 million were obtained by the Philippine government. As a result, several
measures were adopted to move the Philippine economy towards a more
market-oriented one. These included:
-

Liberalization of interest rates to reflect market conditions.


Lowering of tariff levels from an average of 43 percent to 28 percent.
Removal of many trade restrictions.
Removal of price controls on agricultural output and inputs.
Elimination of direct government investment in capital intensive
industries.
Adoption of a market-oriented exchange rate

Launched in 1981, the restructuring of the trade sector started with the
implementation of the tariff reform program. This was to be completed with
the lifting of quantitative restrictions (QRs) on imports and the abolition of all
export taxes except on logs. It also called for the reduction of tariff rates
from a maximum of 100 percent to only a peak of 50 percent and a floor rate
of 10 percent by 1985.
The period 1980-1982 was crucial to the financial sector as well. Together
with the implementation of trade reforms was the adoption of the financial
liberalization policy. One particular feature was an offshoot of a joint IMFWorld Bank Report on the financial sector of the economy that introduced a

new type of banking called universal banking or unibanks for short. The
unibanks were allowed to perform both investment and banking functions.
Interest rate 10 liberalization which began in 1981 was completed in 1983
with the lifting of the ceilings on interest rates on short-term loans.
In 1981, the financial system was shaken by the fleeing of a rich financial
tycoon leaving millions of dollars in debt in various Philippine banks. This
generated panic among money market investors and depositors and led to
massive withdrawals. The financial panic eventually brought many
investment houses, off-shore banking units and commercial banks into
trouble.
From the point of view of the World Bank, however, this early period of
structural adjustment was characterized mainly by a gradual removal of
major controls and distortions affecting factor and commodity prices. While
progress was not always smooth, nor without some temporary back-tracking,
the incentive structure was laid as the basis for a better pattern of growth.
The Crisis Period (1983-1985)
The Philippine economy reached a crisis situation in 1983. Although GNP and
exports were rapidly expanding during the 197Os, the underlying structural
weaknesses in the economy persisted, such as:
-

Manufacturing expansion largely occurred in highly protected sectors.


The incentive system was not conducive to a broad-based export
expansion.
Increased government participation in productive activities.
Increased government reliance on external sources of finance with
external debt increasing from 5 billion in 1975 to 24 billion in 1982.

The assassination of Senator Benign0 Aquino (a key leader of the opposition)


in August 1983 hastened the slide of the economy into recession. The
imminent political and economic unrest finally erupted along with the
stoppage of medium and long-term loans in 1983.
A major balance of payments crisis thus emerged during this period with the
fall in the terms of trade and the contraction of available external financing.
Growing import requirements were not met with higher export receipts.
Growing fiscal deficits persisted. Following the Aquino assassination, the
external debt problem came into the open as commercial lenders refused to
roll over short-term credits or extend new loans. External debt rose to $28.4
M in 1983 from $24.5 M in 1982. The capital flight that followed the political
crisis further exacerbated the balance of payments problem.

The government was thus forced to declare a moratorium on its debt


payments and agreed to undertake an IMF-World Bank stabilization program.
In 1983, the Philippines received its second SAL amounting to $302.3 million
as well as its second stand-by arrangement with the 11 IMF, to be followed a
year later by an agricultural sector loan of $150 million and a third standby
arrangement. The main instruments for stabilization included drastic cuts in
public expenditures and restrictive monetary policies. In addition, there was
a devaluation of the peso and a sharp increase in interest rates.
The economy began to contract with a decline in GNP of 8.7 percent and 7.1
percent in 1984 and 1985, respectively. The hardest hit was the industrial
sector which decelerated at 11.5 percent and 15.8 percent in 1984 and
1985, respectively. Real per capita GDP dipped to $562 in 1985 from $877 in
1980. The growth of money supply (M3) went down to 7.8 and 9.9 percent in
1984, and 1985, respectively, from around 20 percent in 1982. Government
expenditures which were heavily cut, were offset to some extent by
increased transfers to poorly performing public enterprises. This period gave
way to a shattered political regime as its supporters broke-apart due to the
economic recession, which particularly affected the manufacturing industry.
The crisis also caused a series of devaluations from 1983- 1985. To further
discourage imports and arrest capital flight, the peso was devalued three
times between June 1983 and June 1984. This series of devaluations, along
with contractionary fiscal policies, helped boost export growth.
Although the country had a trade deficit during the 1982-1984 period, the
gap narrowed from $2,646 M in 1982 to $679 M in 1984. The narrowing of
the trade gap was largely the result of immediate policy responses of the
government. Contrary to World Bank recommendations, stringent foreign
exchange restrictions and wide ranging import controls were adopted. These
included the creation of a foreign pool for priority import payments by
requiring banks to sell 100 percent of their foreign exchange receipts to the
Central Bank and the setting up of priorities in the allocation of foreign
exchange.
Deceleration in the growth of imports began in 1982 and peaked at 18.9
percent in 1984, with import of capital goods having the largest contraction
at 32.3 percent. On the other hand, total exports grew in 1984 at 7.7
percent. This can be attributed to the 25.3 percent growth in the exports of
non-traditional manufactures. The level of growth in exports more than offset
the degree of deceleration in imports, and the trade balance, although still in
deficit, grew to a record high of 72.6 percent in 1984.
In 1984, a high interest rate policy was officially instituted to check exchange
rate movements and bring back private savings from abroad. This mainly

affected the production costs as the inflation rate accelerated from about 10
percent in 1982 to 50.35 percent and 23.1 percent in 1984 and 1985,
respectively.
The recession was especially hard on the poor. A World Bank study showed
that 59 percent of Filipino families lived below poverty levels in 1985. This,
as the World Bank Country Economic Memorandum indicates, was due to
increasing underemployment, inflation and overvaluation of the exchange
rate. If the adjustment had been undertaken before, and if the stabilization
had been done through a greater reliance on the exchange rate and supply
enhancing 12 policies, the income of the poor could have been sheltered
from this drop in production activity. The impact of such adjustment on the
poor could have been minimized if there was an accompanying set of social
safety net measures to mitigate the impact, and if the drop in government
expenditures had been accompanied by a drastic change in the composition
of public expenditures. The latter were largely benefitting higher income
groups because of the type of social services and investment projects in
which the government was involved.
In sum, the negative macroeconomic developments for 1983-85 were as
follows:
-

Decline in GNP of 6.8 percent in 1984 and 3.8 percent in 1985.


Total investment also dropped from 27.1 percent of GNP to 16.5
percent in 1985 with public investment down to 3.6 percent from 7.7
percent and private investment down by 6.8 percent of GNP.
Inflation surged from 10 percent in 1983 to 50 percent in 1984.
Real interest rates went up from 7 percent in 1982 to 21 percent in
1985.
External debt rose by 8 percent of GNP.
Increase in poverty due to the sharp increase in underemployment and
a decline in real GDP to 1975 levels.

Period of Economic Recovery (1986-1989)


During 1986-89, the economy recovered across a broad front.
-

GDP grew steadily.


Consumption and investment grew.
Inflation was controlled at an average of 4.5 percent over 1986-88.
Current account deficit and the fiscal deficit were reduced to earlier
levels.
The bulk of debt repayments was postponed to 1992 and about $1.6
billion of the debt was retired, which led to a reduction of the external
debt by about 17 percent of GNP.

Moreover, poverty was reduced from 59 percent to 49 percent of all


households.

Demand-led economic recovery characterized the 19861989 period. With the


toppling of the Marcos regime, confidence was slowly setting in. From an
average decline in GNP of 4.7 percent for the previous period, the economy
recovered to a 5.1 percent growth in 1986-1990. From 1986 to 1989, real per
capita GDP had inched its way to $613 in 1989 from $523 in 1986. However,
in 1990, it dipped to $587 mainly because of the combined effects of low
growth in 1990 (2 percent) and the steep devaluation of the official exchange
rate.
The recovery and its consolidation was attributed by the World Bank to
sound economic management and a bold series of reforms undertaken by
the government. These included:
-

Tight fiscal policies which increased taxes and reduced government


expenditures.
Tight monetary policy which limited growth of money supply.
Responsible external debt management initiatives in the form of
commercial and Paris Club rescheduling and debt-equity swaps.

These achievements were considered by the World Bank to be impressive;


among the indebted countries, the adjustment performance of the
Philippines ranks near the top. Its growth has been relatively high and stable
compared to Argentina, Brazil, and Mexico. Its fiscal adjustment has been
deeper and more consistent, its inflation lower and less volatile, and its
external debt reduction faster.
Interestingly however, Filipino economic analysts attributed the economic
recovery to a short-term expansion of consumption, fed by current
government spending and to a lesser extent, real private income growth with
increasing wages and very low inflation (0.8 percent in 1986 and 3.8 percent
in 1987). Recovery was supported by the euphoria of a new administration,
the restoration of business confidence, and increasing support of bilateral
and multilateral donors.
In addition, a favorable external economic environment helped boost imports
and industrial growth as world prices for crude oil fell in late 1987, coconut
prices recovered, and the U.S. sugar quota to the Philippines was increased
in 1986. However, by 1988 the economy had reached its full capacity and
supply bottlenecks emerged. The inflation rate rose from 3.8 percent in 1987
to 12.7 percent in 1990.

Segmentation

McDonalds segmentation, targeting and positioning is one of the integral


components of its marketing strategy. Segmentation involves dividing
population into groups according to certain characteristics, whereas
targeting implies choosing specific groups identified as a result of
segmentation to sell products. Positioning refers to the selection of the
marketing mix the most suitable for the target customer segment.
McDonalds uses adaptive type of product positioning and accordingly, the
company is engaged in periodical re-positioning of products and services
according to changes in the segment.
The following table illustrates McDonalds segmentation:
Type of
segmentatio
n

Geographic

Segmentation
criteria

McDonalds target segment

Region

Domestic/international

Density

Urban/rural

Age

8 45

Gender

Males & Females


Bachelor Stage: young, single people not living at home

Demographic

Life-cycle stage

Newly Married Couples: young, no children


Full Nest II: youngest child six or over

Behavioral

Income

Low and middle

Occupation

Students, employees, professionals

Degree of loyalty

Hard core loyals and Switchers

Benefits sought

Cost benefits, time efficiency

Personality

Easygoing & careless

User status

Potential and regular fast food eaters

Social class

Lower, working and middle classes

Lifestyle

McDonalds targets Resigned, Struggler and Mainstreamer individuals


according to Cross Cultural Consumer Characterization developed by
Young & Rubican

Psychographic

Target Market
McDonald's marketing targets everyone and does not have a selected
audience. The company claims that their restaurants offer meals for children,
a place to relax with free Wi-Fi for adults, and a quick breakfast for those in a
hurry in the morning.
The company employs different marketing strategies during different
seasons of the year. They are constantly investigating what their customers
enjoy, how their lives are changing and what they can offer them as a result,
in order to better maintain their business.
Customers are not all the same. Market research identifies different types of
customers. For example:

These examples represent just a few of McDonalds possible customer


profiles. Each has different reasons for coming to McDonalds.

Products
After World War II, many people, especially Americans, demanded a good
life which involves speed in all things. That is the very reason why
McDonald brothers had to temporarily close their successful drive-in
restaurants for alterations. Their menu was reduced to nine items:
hamburger, cheeseburger, soft drinks, milk, coffee, potato chips, and a slice
of pie. By 1949, McDonalds replaced the potato chips with French fries.
McDonalds regularly develop new products. It started to diversify its menu
during 1960s. Franchisees became their first menu innovators. A franchisee
in a Catholic community, for example, came up with the idea of a meatless
sandwich during Friday. Thus, he created the fillet-o-fish sandwich. Also, the
famous Big Mac was developed by a franchisee in Pittsburgh, who was trying
to compete with Burger Kings Big Whopper. Big Mac made it to McDonalds
menu in 1968. The apple pie was developed by a franchisee in Knoxville.
It was in 1970, when Jim Delligatti, a franchisee from Pittsburgh who also
created the Big Mac, started experimenting on breakfast items. He was
looking for a way to bring more business to his restaurant during the morning
hours. Opening at 7:00 A.M. (instead of the usual 11:00 A.M.), Delligatti
started selling coffee, doughnuts and sweet rolls - adding pancakes and
sausage to the menu a year later. Even with limited selections by 1971,
Delligatti was already doing 5 percent of his business during breakfast.
In the late 1971, Jim Peterson decided to franchise a McDonalds restaurant.
He also saw the breakfast opportunity that Delligatti have seen. Peterson
started to develop a new breakfast item which could have be eaten by hand.
He, then, combined a slice of cheese with a hot egg. Since poaching eggs
didnt fit into the McDonalds assembly line process, he started to develop a
new creative cooking utensil a cluster of six rings that was placed on the
grill to form the eggs in the shape of an English muffin. When he combined
egg, muffin, and a bacon, he created a new breakfast product which was the
Egg McMuffin. By 1976, McDonald's had perfected the breakfast menu,
elevating its brand above the competitors, which didn't introduce commercial
breakfast items until the mid-1980s.
McDonalds still considers local tastes and preferences in developing its
menu. In Indonesia, McDonalds offers McRice because their market
demands that some of their staple food be present at every meal. Take also
for instance the McBeer. It is sold in parts of Europe and Asia as beer is both
culturally accepted and a part of their restaurant experience. USA has even

undergone a little bit of differentiation. In New England, McDonalds offers its


customers the McLobster.
Today, McDonalds serves the world some of its favorite food like the Big
Mac, Big n' Tasty, Quarter Pounder with Cheese, Cheeseburger, French Fries,
Egg McMuffin, Apple Pie and Sundae.
As for McDonalds in the Philippines, George Yang saw the need for the brand
to introduce products that would adapt a more Filipino flavor. He fervently
lobbied with McDonalds Corporation to be allowed to offer local products
that cater to the unique Filipino palette. The Philippines is in fact the only
country in the world to serve McSpaghetti. As a result of Yangs efforts, local
food products like Chicken McDo, Burger McDo, McSpaghetti and Longganisa
with Rice (popular breakfast meal) were introduced and have truly become
customer favorites.

Services
More than great tasting food, McDonalds Philippines offers world-class
services that cater to the changing lifestyles of its customers. With 24-hour
restaurants and delivery services, via McDelivery, Drive-Thru and Dessert
Centers, McDonalds Philippines ensures convenience for its customers,
anytime, anywhere.
It was in 2005 when McDonalds first introduced its 24-hour restaurants and
all-day McDelivery service to the industry. At any time, customers can dial
86-2-36 or log-on to mcdelivery.com.ph to get their McDonalds favorites.
And then in 2014, McDonald's expanded its McDelivery service to mobile
through the McDo PH App, downloadable FREE at the App Store and Google
Play Store.

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