The McDonald’s Process

“From the beginning, McDonald’s has built a system of quality, service and cleanliness (QSC) into every aspect of our business – from our suppliers to our restaurants. We take food safety and quality very seriously at McDonald’s. Which is why our quality and safety requirements – which meet or exceed USDA standards – are among the strictest in the restaurant industry.”

– McDonald’s Corporations

McDonald’s is one of the world’s largest fast-food chains. It is their mission to produce quality and consistency in all of their firms whether it may remain in the United States or Hong Kong; the food process all still remains the same. The only noticeable variety is the special dishes at certain locations, catering to its local culture. Despite the slight menu differences, the processes of their main marketing items remain identical.

ImageNo matter what country you’re in, after a long night, coffee is always the answer. McDonald’s is said to serve as competition to Starbucks Coffee. Their main coffee supplier is Gaviña Gourmet Coffee. It was approximately 25 years ago when Gaviña was asked to create the perfect blend of coffee for McDonald’s. He went traveling the globe, and found that the best beans are found in the soils of Central and South America. After his quest for the perfect beans, he created McDonald’s famous gourmet Premium Roast. Coffee is part of Gaviña’s family’s business and their dedication remains to McDonald’s. The family does not grow their own beans, but they have their select suppliers who grow the best beans. Representatives of the family business must perform a sensory test, taste and smell, from each load that is delivered. If it passes the test, the beans are then cleaned and split into the facility where it is either grounded or packaged whole. After being tested and packaged, the beans are sent out to its customers where there are strict instructions on handling the beans in order to maintain quality control. McDonald’s employees are informed on the storing and brewing procedures of the beans.

Different from the coffee, McDonald’s signature hamburgers and French fries are prepared differently. They are mass-produced due to its high demand. The beef and potatoes are processed in the different factories from various suppliers. After cleaned and processed, additional artificial and natural flavors are added to the meat to assure a consistent taste among all meats. Once the processing and flavoring are complete, the meat is then packaged and frozen ready to be delivered to the nearest McDonald’s. To further explain the dishes’ specific process, two videos describing each process in detail is embedded in the pictures.

*click the pictures to view videos 

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The first video is a behind the scenes production of Lopez Foods, who are one of McDonald’s biggest beef suppliers. The meat is gathered from local farms and then processed at Lopez’s factory. The workers must undergo sanitization procedures before entering, for example, washing their boots. The meat is then processed and while being processed is being taste tested by the hour. Also, going through a machine that can detect which patties do not make the cut.  If the patties are approved, it is packaged and sent to a distribution center where it can then be delivered to McDonald’s. After this process is completed numerous times, the machines are broken down and meticulously cleaned and later inspected by a member of the USDA.

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The second video explains the production of the all time favorite, French fries. The potatoes are harvested from local farms on a daily basis where they are then transported to a processing plant. They are washed and then peeled where the can pushed through a machine to be cut. After being cut, the potatoes are moved into a blancher to remove the natural sugars to prevent color variation, and a solution is added to the fries to produce a consistent coat and color. The next step is the drying process where the potatoes can be removed of any excess moisture, so it can be then moved along to the fryer for 45-60 seconds. After the pruned, dried, and fried, they are then processed and frozen ready to be delivered to the nearest McDonald’s.

The next time you drink a coffee, dive into a hamburger, or salt your french fries, think twice about where it comes from. Who would’ve guessed that your premium roast coffee was made from beans that were hand selected, or that you’re experience of signature taste of the double cheeseburger is the same of another human being in a completely different country. The McDonald’s experiences is the same no matter where you travel.

Works Cited

Madarang, Charisma. “Watch How McDonald’s Makes Their Fries.” FoodBeast. 21 10 2012: n. page. Print. <http://foodbeast.com/2012/10/21/watch-how-mcdonalds-makes-their-fries/&gt;.

http://www.McDonalds.com

Mills, Michelle J. “Coffee maker Michael Gavina shares his famil’ys secrets to creating premium grinds for more than a century.” Los Angeles Daily News. 25 02 2013: n. page. Print. <http://www.dailynews.com/lifestyle/20130226/coffee-maker-michael-gavina-shares-his-familys-secrets-to-creating-premium-grinds-for-more-than-a-century&gt;.

Economists Makes an Order at McDonald’s

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McDonald’s helpseconomists and the average person better understand the economy. For example, economists use the Big Mac Index to study the various exchange rates around the world.

Screen Shot 2012-05-01 at 11.19.07 AMEconomists also use McDonald’s to see the trend in wages and prices. In each franchise, the workers all perform almost identical tasks and are shipped similar ingredients to be prepared according to international protocol. Therefore, the comparison at an international level is what economists would consider “apples-to-apples.”  A Princeton scholar by the name of Orley C. Ashenfelter discovered a way to track wage growth and purchasing power worldwide by using the price of Big Macs. Ashenfelter calculated the number of Big Macs one’s hourly salary permitted. With these statistics, Ashenfelter could reveal who was getting richer, rich, or nothing at all.  As a result of Ashenfelter’s experiment, Big Macs and McWages, he could explain three of the most pivotal concepts in the international economy: the rise of the West, the rise of the rest, and the Great Recession.

Along with tracking the economy, McDonald’s can demonstrate how products in the economy are made – supply chains.

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 According to McDonalds.com, McDonald’s has one of the most complex supply chains dealing with direct and indirect suppliers. Along with supply chains, economists can use McDonald’s to explain supply and demand. The more hamburgers and chicken nuggets the consumers demand, the more McDonald’s will have to supply.

As a big supplier, many consumers believe McDonald’s is a monopoly, but that is not the case. Economists could use McDonald’s as an archetype of an oligopoly and how it is different from a monopoly corporation. Monopolies are corporations that produce a good that only they can make; however, one can see that McDonald’s and Burger King basically sell the same items on the menu, but they compete in different ways such as advertising. Corporations in an oligopoly market must be aware of their competitors because their business are influenced by other corporation’s actions.

McDonald’s is a great tool to help economists to understand the economy. It is also an easier and more relatable subject to attempt to assist the average Joe understand the complicated economy.

Ray Kroc, The Entrepreneur

 

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Ray Albert Kroc was born on October 5, 1902 in Oak Park, Illinois. In 1917, at the age of 15, Kroc lied about his age and served in the military as a Red Cross Ambulance Driver during World War I.  After the war, he ventured out and experienced various careers such as a pianist, DJ, and a small job for a room and board at a restaurant. Kroc later became a milkshake machine salesman. He sold milkshake machines that made five milkshakes at a time. Little did he know, his milkshake machines would make him a billion dollar success. 

A family-owned restaurant in San Bernardino, California inquired to Kroc about purchasing a few mixers, enough mixers to spark an idea in Kroc’s mind – franchising. Kroc had later offered the McDonald’s brothers the opportunity to franchise their restaurant; he even offered to be their franchising agent. The brothers agreed. In 1955, Kroc bought the exclusive rights to the McDonald’s Corporation, and then bought the rights to the McDonald’s name. Kroc’s ultimate goal for the McDonald’s Franchise was to create a restaurant-chain system that would have consistent high quality food and identical preparation methods in each franchise. He wanted to serve food that tasted the same no matter what state or city you were in. 

However, Kroc did not achieve this success alone. He created the slogan, “In business for yourself, but not by yourself.” He based his franchises on a 3-legged stool: McDonald’s Corporation, the franchisees, and the suppliers. Kroc maintained a strong connection with both the suppliers and franchisees. Ray Kroc was a very hard worker; he committed his life to his worldwide company. Unfortunately, on January 14, 1984, Ray Albert Kroc passed away from heart failure at age 81. Although his physical being is gone, his spirit still lives on in the McDonald’s restaurants around the world. 

Ray Kroc is a great entrepreneur because he took an enormous risk by investing money into franchises across the country. He did not know that this restaurant would be so loved by everyone, but he risked it anyway. Kroc is also a great entrepreneur because he was always trying to improve the company and make it bigger and more successful, even if it meant spending a few extra dollars to check their supplies or possibly upgrade. One of the biggest reasons I think he is a great entrepreneur is because he encourages others to take a risk and be an entrepreneur. He always tried to create revenue for not only himself, but the people that helped him reach his fame and fortune. 

Works Cited

“Raymond Albert Kroc.” 2013. The Biography Channel website. Sep 06 2013, 05:07 http://www.biography.com/people/ray-kroc-9369349.

“The Ray Kroc Story.” 2013. The McDonald’s website. Sep 06 2013. http://www.mcdonalds.com/us/en/our_story/our_history/the_ray_kroc_story.html.