The Demand for Big Macs
Presenters:FawadShayanJaffar
FAWAD
Introduction
Founded in the United States in 1940
Opened by brothers Richard and Maurice McDonald
McDonald's is the world's largest chain of hamburger fast food restaurants
Serving around 68 million customers daily in 119 countries
It has more than 36000 outlets
According to BBC: McDonald's is the world's second largest private employer with 1.9 million employees
Hamburgers
Cheese Burgers
French Fries
Breakfast Items
Soft Drinks
Milkshakes
Desserts
Products
Desserts Soft Drinks Milkshakes Breakfast
HamburgerCheese Burger
French Fries
Wendy’s
Burger King
KFC
Taco Bell
Subway
McDonald’s Competitors
Burger King Wendy’s
KFCTaco BellSubway
McDonald’s Initial Success
In 1965: McDonald's Corporation went public
Common shares were offered at $22.50 per share
By the end of the first day's trading the price had shot up to $30
In 1969 : McDonald's sold its five billionth hamburgers
By 1969: McDonald's restaurants had reached all 50 states of US
SHAYAN
McDonald’s Initial Success (Contd…)
In 1968 McDonald's opened its 1,000th restaurant
In 1972 the company passed $1 billion in annual sales
By 1976, McDonald's had served 20 billion hamburgers
By 1976, McDonald's sales exceeded $3 billion
Reasons for Decreased Demand of McDonalds in US
Increasing Prices at McDonalds
Concern Over Cholesterols and Calories
Primary Fast Food Consumers (15-29) shrunk from 27.5 to 22.5%
Increased competition from other fast food restaurants
Obesity Concerns in US
Tackling the Challenges
Cutting the Prices Introduced a value menu with small hamburgers for 59 cents
French Fries and Soft Drink combination price was made half off
Concern over Cholesterol and Calories Replace Ice Cream with Low fat Yogurt
Substituted vegetable oil for Beef tallow
Brain muffins and cereals were introduced in
Breakfast
Introduced McLean Deluxe, a new reduced fat Hamburger
Introduction of New Items
1995: Introduced McPizza
1996: Arc Deluxe
1999: “Made for you” freshly cooked meals
All of these efforts failed to increase sales
Tackling the Challenges (Contd…)
Arch Deluxe McPizza
“Made for You”
JAFFAR
McDonald’s Globalization
McDonald’s rapidly expanded abroad when it was losing at Home
Less Competition
Much room for Growth
McDonald’s Global Position
Opening restaurant at a rate of 4 to 5 times fast as in US
Earning more than 60% Profits abroad
McDonalds has Predicted that it will have 50,000 restaurants by the end of the decade
Reinvention Phase
Since 2003, sales were again increased
Closed more than 700 restaurants (mostly in the United States and Japan)
The elimination of 600 jobs
Elimination of $853 million different Charges
“Super Sized” fries and drinks were eliminated
New menu items were introduced: Chicken wraps, Premium Coffee, Apple slices, Premium Salads
In 2006, became the first fast food company to put nutritional Labels on its products
In 2007, new cooking oils were replaced
Reinvention Phase (Contd…)
Premium Coffee Chicken Wraps
Apple Slices Premium Salads
Thank You!!!!!