McDonald’s success thrives on adapting to consumer demands…
But the franchise chain’s success also rests on another key component, which at first glance might seem contrary to franchising principles – continual innovation and adaptation to market conditions.
First started as a simple hamburger, french fries and milkshake restaurant, McDonalds franchise operation experimented and expanded its menu to cater to changing tastes and consumer demand.
In 1963, McDonalds introduced the “Filet-of-Fish” sandwich in the Cincinnati area for Catholics who did not eat meat on Friday. This was the first new offering added to the standard menu and went national the following year.
It is interesting to note that many of the new products added to McDonald’s menu over the decades were developed by franchisees.
For instance, the “Big Mac” introduced in 1968 was the brainchild of Jim Delligatti, one of the earliest McDonalds Systems franchisees. The “Egg McMuffin” was developed in 1973 by McDonald’s franchisee Herb Peterson. A Canadian franchisee invented The McFlurry in 1997.
In 2005, another adaptation to the times and consumer demand was the provision of WiFi with Nintendo in select locations; and delivery service in Singapore, where customers can phone in their order and have it delivered 24 hours a day, seven days a week. The company has also departed from its standard free-standing units, and installed quick service kiosks in busy places, like malls and airports.
McDonalds franchise business has not only survived but thrived through boom times and recessions and has successfully reacted to consumer trends. It was one of the first franchise restaurants to post nutritional information about its menu, and now offers salads and other healthy options in recent years ...