If I were to ask you to name a fast food chain, the name ‘McDonald’s’ would have been the first to pop up in many of our minds. The iconic happy meals, brown paper bags and of course the infamous clown, Ronald McDonald, all bring about a sense of comfort and familiarity in many hearts around the world. McDonald’s is a brand many of us love and trust, and it is also one of the biggest fast food chains in the world. According to McDonald’s Corporation, they have over 38000 locations in over 100 countries worldwide. Furthermore, according to the Statista Research Department, the fast food chain generated a total revenue of 25.92 billion US dollars in 2024 alone. Yes, that’s right, billion, with a ‘b’. So how did this global giant come to be? And how exactly did McDonald’s become so popular?
Have you ever watched the movie “The Founder”? Although some parts of the story were tweaked for entertainment purposes, the movie showcases how Ray Kroc (Michael Keaton) was impressed by McDonald’s “Speedee Service System”. The system focuses on speed and efficiency and this is a key factor to their popularity as everyone wants to get a cheeseburger in their hands as fast as possible right?
Back in 1954, when Ray Kroc first visited a McDonald’s, the McDonald brothers were content with just a few locations but Kroc saw the worldwide potential the brand could hold, so he brought the plan to franchise. Franchising is when someone runs their own business while using another company’s brand, products and system. This is how McDonald’s grew from a restaurant in the U.S. to 38,000+ locations worldwide. Ray Kroc opened McDonald’s first franchise in 1955 in Des Plaines, Illinois, which would prove to be the first to many. McDonald’s keeps about 82% of all their franchise-generated revenue as opposed to 16% of their company-owned restaurant revenue. In 2024, the company generated a total revenue of 15.6 billion U.S. Dollars from franchised restaurants worldwide.
Another key contributor to their popularity is that when they expanded, McDonald’s didn’t just copy-paste the U.S. menu, they adapted and created dishes that were customised to the local tastes and preferences. For example, in Indonesia there are ‘Burger Rendang Ayam’ and ‘Burger Balado Spesial’, whereas in Japan there are ‘Teriyaki McBurger’ and ‘Shrimp Filet-O’. In India, where it is not uncommon for someone to not eat pork or beef, McDonald’s adjusted their menu to provide vegetarian or chicken options. By doing so, they gain trust and respect from the citizens. Providing dishes that fit local taste buds also help make it seem more familiar to customers, making them more likely to try it.
There are many more factors that contribute to the worldwide success McDonald’s has achieved. As always, don’t hesitate to contact us at pennies&thoughts if you have any insights on the topic or have any feedback to share. Until the next article!
