A Brief History and Its Influence Regarding

the Status of Philippines in the Economic Globalization.

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 TABLE OF CONTENTS

No

Introduction ………………………………………………………………………… 1

History of McDonald’s…………………………………………………………….. 2

Map of International Connection ……………………………………………….. 5

Major Country Leaders …………………………………………………………… 6

McDonald’s in the Philippines ………………………………………………….. 7

McDonald’s and its Effects in the

Philippine Economy ………………………………………………………………. 7

Conclusion …………………………………………………………………………. 9

Citation/References ………………………………………………………………. 10

Researcher’s Profile ……………………………………………………………… 11

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 INTRODUCTION

Who doesn’t love food, right? For the past years, we humans, have continued to
strive for food production as much and as quick as possible. That’s why fast-food chains
began to emerge in the world of production. In a fast-food industry, production process
has the greatest importance. It helps in reducing cost, reduce delivery time, help
increase the revenues and at the same time strive for continuous improvement.
McDonald's cultivates business partnerships with local suppliers who not only supply
them with items of the best standard and quality, but also with best quality products and
standard.

McDonald's is a well-known fast-food chain. McDonald's business transcends

majority of the world, making it one of the most well-known franchises. McDonald's
provides a variety of food choices and provides a variety of toys for youngsters. The
whole menu is reasonably priced and excellent. McDonald's fast-food outlets, for
example, provide reasonable rates, delectable meals, and effective advertising. But how
does this world-renowned company earned its wide range of dominion? Let’s take a
look at its history.

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 HISTORY OF MCDONALD’S

The McDonald Brothers

It all started when the two brothers Maurice and Richard McDonald, also known
as Dick and Mac, relocated to California in search of chances that they couldn’t find in
New England. After failing in the film industry, they found success in organizing a drive-
in eatery. In 1940, Dick and Mac McDonald open McDonald's Bar-B-Q restaurant on
Fourteenth and E streets in San Bernardino, California. It is a typical drive-in featuring a
large menu and car hop service, but the McDonald brothers eventually shut down their
restaurant for three months for alterations.

(The McDonald brothers in front of the not yet opened first McDonald's,
November 1948, San Bernadino, CA)

In December of 1948, it reopens as a self-service drive-in restaurant. The menu

is reduced to nine items: hamburger, cheeseburger, soft drinks, milk, coffee, potato
chips, and a slice of pie, with a staple menu of 15 cents hamburger. The brothers sold
14 franchises of which 10 became operating restaurants not including their original
location in San Bernardino.

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Ray Kroc

In 1954, they met Ray Kroc, who happened to be a salesman and was there for a
delivery of Multimixer he’s selling for a restaurant of the said place. Kroc was amazed
by how their business was running smoothly. They produced a limited menu,
concentrating on just a few items–burgers, fries and beverages–which allowed them to
focus on quality and quick service. Kroc spotted a potential when Dick and Mac were
seeking for a new franchising agent.

He established McDonald's System, Inc., a forerunner of the McDonald's

Corporation, in 1955. He also established the first McDonald’s in Mississippi River on
the same year. Six years later, he purchased the exclusive rights to the McDonald's
trademark and operating system. McDonald's had produced its 100 millionth hamburger
by 1958.

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The Legacy

In 1956, Fred Turner, future McDonald's Chairman, was hired to work as a

counter man for the Des Plaines McDonald's. He soon became the head of McDonald's
Operations defining the quality, service and cleanliness that continued to this day. In
1961, Hamburger University opened in the basement of the Elk Grove Village, Illinois,
McDonald's restaurant. The graduates receive Bachelor of Hamburgerology degrees.
Then in 1965, the Filet-O-Fish sandwich was the first item added to the national menu,
created by Lou Groen, McDonald's Cincinnati franchisee to help build volume in the
predominately Roman Catholic community in which his store was located. The Big Mac,
developed by Owner/Operator Jim Delligatti of Pittsburgh, is added to the national menu
in 1968. 1973, the Quarter Pounder and the Quarter Pounder with Cheese are added to
the menu. The first Ronald McDonald House, in 1974, opens in Philadelphia,
Pennsylvania. In 1973, Fred Hill, a football player with the Philadelphia Eagles, had the
need for such a facility at Children's Hospital in Philadelphia, where his child was being
treated for leukemia. Hill’s dilemma led to the first Ronald McDonald House. It was
1975, when the Egg McMuffin, created by Owner/Operator Herb Peterson of Santa
Barbara, California is added to the national menu. 1983, when chicken McNuggets are
introduced into all domestic U.S. restaurants.

Ray Kroc, then died on January 14, 1984. On January 31, 1990, the first
McDonald’s restaurant in Moscow opens which was located in Pushkin Square, more
than 30,000 customers were served on opening day. In 1993, the world’s first McCafé
opens in Melbourne, Victoria Australia. 1995 McFlurry Desserts, invented by Ron
McLellan, are added to McDonald’s Canada menu. McDonald’s published its first ever
Social Responsibility Report on April 15, 2002. McDonald’s first global ad campaign,
“I'm Lovin’ It” is launched in Munich, Germany on September 2, 2003. McDonald’s USA
launched All Day Breakfast in 2015. Global McDelivery Day is celebrated on July 26,
2017 to support the global launch of McDelivery with UberEATS and in 2020
McDonald’s opens its first net zero-designed restaurant at Walt Disney World Resort,
which creates enough renewable energy on-site to cover 100% of its energy needs on a
net annual basis.

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Map of International Connection

McDonald’s is undoubtedly the world’s leading quick service restaurant with over
39 thousand locations in over 120 markets. Not only is the chain wide-spread it was by
far the most valuable fast-food brand in the world in 2020, with an estimated brand
value of approximately 129.32 billion U.S. dollars. The only food service company that
came close was coffeehouse chain Starbucks, its brand value amounting to the much
smaller sum of approximately 47.75 billion U.S. dollars. Not only has McDonald’s made
a name for itself in the fast-food industry–but on an intersectoral level as well. In 2020, it
was ranked ninth among other leading global brands such as Apple, Amazon and
Facebook. Top ranked, and therefore most valuable, was Amazon which recorded a
brand value of nearly 416 billion U.S. dollars. American-based fast food restaurant chain
McDonald’s has become one of the symbolic institutions of globalization. The company
is now active in around 120+ countries and runs more than 39,000 outlets around the
world. If seen as an icon of globalization, then the distribution of restaurants also is an
indicator for the underlying global inequalities: Europe and North America dominate the
global picture, while especially China has grown considerably ever since in 1990 the
first outlet opened. Seven countries have seen the company disappear from their
market again (Barbados, Bermuda, Iceland, Iran, Jamaica, and Macedonia).

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Major Country Leaders

McDonalds have grown and continuously expanding its franchise towards the
global food chain industry and reached every country in the world. In order to continue
the expanding business, McDonalds have identified it major country-leaders and they
are arrange orderly starting from the top country. Based from survey and published at
the thoughco.com and statista.com, as of January, 2020 McDonalds have
38,000+ franchise restaurants over 100 locations and reached 39,198 franchise
restaurants by the end of year 2021.

According to www.verdict.co.uk, top countries are as follows: United States of

America, Japan, China, Germany, Canada, France, United Kingdom, Australia,
Brazil, Russia, Italy, Philippines, Spain, South Korea, and Poland. Among these
countries, the United States of America is considered as top country for it is the home-
based of the McDonalds and also served as the main office for the operation of the
chain business of McDonalds. With 14,000+outlets in the US, McDonald’s domestic
market is by a long way it’s biggest, followed by Japan and China.

However, McDonald’s has only opened a net 24 additional stores in the US since
2010, with most of its growth coming from elsewhere in the world. However, in Japan
408 McDonald’s locations have closed between 2010 and 2017, due to a number of
food scandals in 2014 and 2015, which knocked trust in the brand. Ignoring the Virgin
Islands, outlet density is strongest within mature markets, led by the US, Canada, and
Australia.

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McDonald's in the Philippines

Countries such as Philippines have seen the newest McDonald’s openings over
the past seven years. According to verdict.co.uk, the Philippines was considered one of
the McDonalds’ fastest growing markets since 2010, with more than 250+ outlets the
time it was started to reached the country. McDonald’s ended 2020 with 655 stores in
the country, down from 669 branches at the start of the year. According to statista.com,
in 2019, the revenue of McDonald's Philippines amounted to approximately 32 billion
Philippine pesos. The company's revenue has shown a year-to-year growth over the
past years. This shows that the Philippines is one the country that supports the
international interconnectedness among McDonalds sites and Philippines serves as one
of the crucial and vital point in the map of interconnectedness.

McDonald's and its Effects on Global Economic Activity

McDonald's is now the largest contributor when it comes to the fast-food

industry's market share. It created about 450,705 jobs per year only including the US.
The restaurant provides food for people in 119 countries. On a daily basis, McDonald's
serves about 62 million people which equals to be greater than the population of Great
Britain. In 2012, the restaurant made about 24 billion in revenue placing them as the
90th largest economy in the world.

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 McDonald's worldwide revenue has risen significantly as the company has grown
worldwide. From the early stages of just reaching the edge of one billion US dollars in
total sales, the total worldwide revenue in December 2014 was 27.44 billion USD (US
dollars) and reached one of its highest peaks in 2013 with a worldwide revenue of 28.11
billion USD and it's currently growing at a tremendous pace and in a variety of ways,
including culture, charity, and franchises. McDonald's also positively affects the
economy by supporting local programs and charitable causes. Due to a deep love for
children, McDonalds created The Ronald McDonald House Charities that has
successfully helped many sick children.

McDonald's and its Effects in the Philippine Economy

According to McDonald's Philippines President and Chief Executive Officer

Kenneth Yang, McDonald's opening more new restaurants provide a huge opportunity
in generating new jobs and provides world-class training for thousands of young
Filipinos. Through this, many Filipinos were given a chance to have a job even without a
degree and also provides scholarships. It has over 570 stores and almost 60,000
regular employees.

More than employment generation, McDonald’s also aided in youth development

through programs of its charity of choice, Ronald McDonald House Charities (RMHC).
At the end of 2019, Ronald McDonald House Charities now has a total of 34 Ronald
McDonald Bahay Bulilit Learning Centers all over the country, opening 3 new centers in
Imus, Cavite, Lapu Lapu, Cebu and Davao City, in partnership with DSWD and LGU.

For 2020, RMHC sets its sights to open 5 more Ronald McDonald Bahay Bulilit
Learning Centers as part of its 25th anniversary across the country with 1 each in Metro
Manila, North Luzon, South Luzon, Visayas and Mindanao.

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 Conclusion

McDonald's has been able to keep on top of the fast-food service sector while
offering excellent service and quick meal deliveries in today 's high-tech culture. It's not
an easy effort to maintain on top of food economy and consumers' ever-changing
tastes, which is why I am quite amazed by how the company has managed to flourish
over time. McDonald's will be facing some challenging problems, particularly in such
times. Establishing its main elements, such as the uncompromising focus on
consistency and quality, while cautiously trying out new ideas, will be crucial to its
continued success. McDonald's will certainly be around for plenty more years to come.

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 Citation/References

https://www.worldatlas.com

https://corporate.mcdonalds.com

https://www.thestreet.com/markets/history-of-mcdonalds-15128096

https://www.statista.com

https://www.mcdonalds.com.ph/opportunities/franchising

https://nhdbbt.weebly.com

https://businessmirror.com.ph

Photos

Reddit

Google Images

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 RESEARCHER’S PROFILE

CLARIZ SHEIRA DIGUINON MAGCUHA

Benedicto, Jaro, Iloilo City
Contact No. 09296783387
E-mail Address: clarizsheiramagcuha@gmail.com

PERSONAL INFORMATION

AGE: 21 years old SEX: Female

BIRTHDATE: December 5, 1999 CIVIL STATUS: Single
BIRTH PLACE: Malay, Aklan CITIZENSHIP: Filipino
RELIGION: Iglesia Ni Cristo

EDUCATIONAL ATTAINMENT

COLLEGE: Aklan State University

Banga, Aklan
Bachelor of Arts in English S.Y. 2020 - 2021

SECONDARY: Unidos National High School

Unidos, Nabas, Aklan
S.Y. 2017 - 2018

Primary: Unidos Elementary School

Unidos, Nabas, Aklan
S.Y. 2011 - 2012

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