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Objectives Of The Different Operating Model Of Mcdonalds

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McDonalds Objectives of McDonalds McDonald’s is the world leading global food service retailer, which operates- owned and franchised restaurants serving locally relevant menu of foods and drinks at affordable prices. It has a total of 36.258 restaurants in 119 countries.The following graph shows the different operating model of McDonalds. The company believes that owning and operating restaurants contributes to be perceived as a credible franchisor and provide to the personnel a venue for operations training experience. Additionally, in these restaurants is possible to further develop and improve operating standards, marketing and pricing strategies that will benefit all the chain. Under the franchise model, the company owns the real estate while franchisee bears the equipment, signs, seating and décor expenses. It believes that this combination enables it to achieve best performance in the industry. Revenue stream of franchise model comes from rent payment and royalties based on a percent of sales. There is also a developmental licensee agreement where licensees provide the capital for all investment needed, including real estate lease. In this model, the company doesn’t invest any capital but revenue stream comes from the royalty and fees for the opening new restaurant. Lastly, the company holds equity investment in foreign affiliated markets, where it receives royalty based on sales. The largest market for such case is Japan. The strength of company’s alignment with its

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