of advertising, along with the addition of limited edition products added to the menu. Examples include Pocahontas and The Lion King. FranchisesThe McDonalds Corporation is the largest worldwide franchised food service organisation. In the 1960s, Ray Kroc franchised restaurants for the low sum of $950, demanding 1.9% of sales. As the success of Kroc and his organisation depended on the prosperity of the franchisees, this mutual interest was a key factor in McDonalds success. In the USA, 87% of restaurants are owned and operated by franchisees. In the UK, this figure lies at just over 20%, with 119 of the 577 restaurants being franchised. It is McDonalds intention that by the end of this year, franchised restaurants will represent over 30% of the total UK business. McDonalds charge franchisees a levy on sales. This levy consists of a service fee of 4%, and a rent charge of 7%. Clearly, an increase in the number of franchised restaurants leads to the direct effect of an increase in McDonalds revenues. McDonalds can also boast that it is the largest retail property owner in the world.Quality, Service, CleanlinessMcDonalds use the finest available products and carefully developed formulae. They also encourage their employees to check products that they prepare or serve. McDonalds believe that cleanliness is a magnet drawing customers to their restaurants (McDonald's Crew Handbook 1996), and therefore aim to ensure that their restaurants are spotless at all times, both inside and out. Quality and cleanliness, however, are wasted without fast, courteous service. McDonalds firmly believe that a smile does as much to bring a customer back as does the best food in the world. McDonalds always reminds its employees that the customer is the most important single factor in their business. They also train their employees to treat everyone, especially the customer, in the way that they would want to be treated themselves. Mystery Dine...
