6 Business Lessons from McDonald's to Feed Your Mind
Behind the success of McDonald's, the globally renowned fast-food brand with over 35,000 locations in 119 countries, lies not luck or coincidence, but a systematic foundation of business concepts that many might not expect.
Looking back at the origins of McDonald's, the story of its brand development is intense, filled with suspense and resolution, to the point that it has been adapted into a film titled The Founder. The complexity of the story is worth following, but here I will summarize the essence of McDonald's beginnings, which started with two brothers from the McDonald family, Dick and Mac, in 1940. They began with a food stand in San Bernardino, California, USA. Their restaurant quickly gained popularity, focusing on just a few items: hamburgers, french fries, and milkshakes. However, their service, known as the 'Speedee Service System,' captivated customers with its efficiency.
Nevertheless, the key figure who transformed McDonald's into the most successful fast-food network in the world for over 70 years is not the McDonald brothers, but Ray Kroc, who joined the business later. His key strategy was to implement a franchise business model, encompassing management systems, product production, sales, and customer service.
Here are 6 lessons that Ray Kroc, the 'King of Hamburgers' or 'Father of Fast Food,' didn't explicitly state, but that growing business owners can learn from his mindset and brand management approach to achieve success in the McDonald's way.
1. Maintain Standards One of the key strengths that makes customers around the world feel secure when entering a restaurant with the familiar yellow 'M' logo is the consistent quality of food and experience. This vision was passed down by Ray Kroc, who established Hamburger University in Illinois as a training center for McDonald's staff, ensuring that no matter which location customers visit, they receive the same quality and standards in production, service, cleanliness, and more. To this day, this training system remains in place, and maintaining brand standards is something every business should prioritize, as research has proven that training systems to establish standards within organizations not only guarantee product quality and brand management but also enhance work efficiency.
2. Establish a Brand Identity in Customers' Minds McDonald's is one of the few brands that has created a strong mental image in customers' minds. Just seeing the logo's colors, the 'M' shape, or the slogan 'I’m Lovin' It' evokes memories. Importantly, McDonald's excels at creating shared experiences between customers and the brand, making them reminisce about their childhood every time they visit. This is a crucial reason why, despite many knowing that fast food isn't the healthiest choice, the emotional connection to the brand makes it hard to resist visiting and enjoying the familiar taste of signature items like french fries. This strength in nostalgia is a key factor that keeps McDonald's customers loyal.
3. Be Willing to Take Risks Even though McDonald's is over 70 years old, it isn't afraid to step out of its comfort zone to create differentiation. A clear example is its introduction of breakfast menus in recent years to offer new choices to customers. However, the path hasn't always been smooth; taking risks means there are ups and downs. Fans of McDonald's know that the brand has had its share of flops, such as the McLobster or McPizza. But failure is just an obstacle; the important thing is to keep moving forward.
4. Adapt to Consumer Trends Building on the previous point, McDonald's must adapt to keep up with consumer trends. For instance, it has modified some menu items to be healthier in response to the growing health trend and has also introduced specific items tailored to local tastes in different countries.
5. Utilize Cross-Selling Techniques Instead of closing sales in the traditional way that makes customers uncomfortable, McDonald's is known for being a pioneer in cross-selling, offering additional products beyond what customers typically order. Rather than pushing products onto customers, McDonald's waits for customers to place their desired order before suggesting items that provide the best value. This not only enhances customer satisfaction but also boosts sales.
6. Manage People Effectively Did you know that 40% of McDonald's senior employees started as hourly workers? McDonald's does not allow itself to be just a stepping stone for talented individuals but chooses to provide opportunities and nurture promising employees. The benefit is that the organization gains skilled individuals who understand the business deeply, reduces turnover rates, and fosters a unified spirit among employees to drive the organization forward.
All of these are simple techniques that can be applied to any business, whether it is a franchise or not.