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McDonald's
American corporation
McDonald’s, in full McDonald’s Corporation, American fast-
food chain that is one of the largest in the world, known for
its hamburgers. Its headquarters are in Oak Brook, Illinois.

McDonald's: first restaurantThe first McDonald's restaurant opened by

Ray Kroc, later made into a museum in Des Plaines, Illinois, U.S. Tim
Boyle/Getty Images
The North Atlantic Treaty Organization began in medieval times.
The first McDonald’s restaurant was started in 1948 by
brothers Maurice (“Mac”) and Richard McDonald in San
Bernardino, California. They bought appliances for their
small hamburger restaurant from salesman Ray Kroc, who was
intrigued by their need for eight malt and shake mixers. When Kroc
visited the brothers in 1954 to see how a small shop could sell so
many milk shakes, he discovered a simple, efficient format that
permitted the brothers to produce huge quantities of food at low
prices. A basic hamburger cost 15 cents, about half the price charged
by competing restaurants. The self-service counter eliminated the
need for waiters and waitresses; customers received their food quickly
because hamburgers were cooked ahead of time, wrapped, and
warmed under heat lamps.

Ray KrocRay Kroc holding a hamburger while standing in front of a

McDonald's restaurant, undated photograph.AP
Seeing great promise in their restaurant concept, Kroc offered to begin
a franchise program for the McDonald brothers. On April 15, 1955, he
opened the first McDonald’s franchise in Des Plaines, Illinois, and in
the same year launched the McDonald’s Corporation, eventually
buying out the McDonald brothers in 1961. The number of McDonald’s
outlets would top 1,000 before the end of the decade. Boosted by
steady growth, the company’s stock began trading publicly in 1965.

The public face of McDonald’s was created in 1963 with the

introduction of a clown named Ronald McDonald, while the double-
arch “m” symbol became McDonald’s most enduring logo in 1962,
lasting far longer than the tall yellow arches that had once dominated
the earlier restaurant rooftops. Other products and symbols would
define the McDonald’s brand, including the Big Mac (1968), the Egg
McMuffin (1973), Happy Meals (1979), and Chicken McNuggets
(1983).
 McDonald's: Ronald McDonaldRonald McDonald, the mascot of
McDonald's.© Marynaanna/Dreamstime.com
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The chain continued to expand domestically and internationally,

extending to Canada in 1967, reaching a total of 10,000 restaurants by
1988, and operating more than 35,000 outlets in more than 100
countries in the early 21st century. Growth was so swift in the 1990s
that it was said a new McDonald’s opened somewhere in the world
every five hours. It effectively became the most popular family
restaurant, emphasizing affordable food, fun, and flavors that
appealed to children and adults alike.

Marrakech: McDonald'sMcDonald's restaurant, Marrakech, Morocco.©

Michael Hynes
The success of McDonald’s brought increased criticism, much of which
concerned its perceived association with a global increase in obesity.
McDonald’s responded by adding healthy items to its menu, and in
2017 it released McVegan, a plant-based hamburger, which was only
available in certain markets. Two years later it began testing another
vegan hamburger, the P.L.T. During this time McDonald’s also
eliminated supersized portions, and its U.S. and Canadian restaurants
stopped using trans-fat oil in a number of items. Such measures,
however, did little to stem health concerns. In addition, as one of the
world’s largest private employers, McDonald’s faced numerous calls to
increase wages. The term McJob was added to the Merriam-Webster
dictionary to mean “low-paying job.”

McDonald's: strikeFast-food workers demanding an increase in wages

engage in a sit-down strike in front of a McDonald's restaurant in New York
City, 2014.John Taggart—EPA/Alamy
In the late 20th century, McDonald’s moved beyond the hamburger
business by acquiring Chipotle Mexican Grill (1998), Donatos Pizza
(1999), and Boston Market (2000) in the United States, and in the
United Kingdom McDonald’s purchased Aroma Cafe (1999) and an
interest in Pret A Manger (2001), a sandwich restaurant chain.
However, by late 2008 McDonald’s no longer owned or had a stake in
any of those companies, instead concentrating on its own brand.

McDonald’s was active in charitable work. In 1974 it

joined Philadelphia Eagles football player Fred Hill, whose daughter
had been diagnosed with leukemia, in founding the Ronald McDonald
House in Philadelphia. The residence allowed families to live near the
hospital where their children were receiving treatment. By the early
21st century more than 360 such houses existed around the world.
The Ronald McDonald House Charities (established 1987) also
supports various other efforts.

The Editors of Encyclopaedia BritannicaThis article was most recently revised and
updated by Amy Tikkanen, Corrections Manager.
LEARN MORE in these related Britannica articles:

cultural globalization: Food

McDonald’s, KFC (Kentucky Fried Chicken), and Coca-Cola are primary targets of anti-
globalism demonstrators (who are themselves organized into global networks, via the
Internet). McDonald’s has become a symbol of globalism for obvious reasons: on an average
day in 2001, the company served nearly 45 million…


poutine: Mass popularization

McDonald’s catapulted poutine to fast-food fame when it added the dish to Québec store
menus in 1990 before expanding the offering to other Canadian locations. Canadian chain
Harvey’s followed suit in 1992, placing poutine on menus across the country.…

Steve Easterbrook

…accountant best known for reinvigorating McDonald’s Corporation, beginning in March

2015. Easterbrook, a long-time McDonald’s executive, briefly helmed a handful of other fast-
food chains before rising to the position of president and CEO of McDonald’s.…
HISTORY AT YOUR FINGERTIPS
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McDonald's
QUICK FACTS

DATE
 1955 - present
RELATED PEOPLE
 Steve Easterbrook
 Jim Cantalupo
 Den Fujita
 Charlie Bell
 Richard McDonald
AREAS OF INVOLVEMENT
 Hamburger
 Cheeseburger
 Fast food
DID YOU KNOW?
 In 1992, 79-year-old Stella Liebeck won a $2.9 million lawsuit against
McDonald's after spilling hot McDonald's coffee on herself and suffering third-
degree burns.
 In Hong Kong, McDonald's venues have hosted weddings.
 The "McDonaldization" theory, coined by sociologist George Ritzer, describes
how principles of fast-food restaurants pervade global society.
 A McNugget resembling George Washington was sold on eBay for around $8,000
in 2012.
 In 2017, McDonald's net revenue was more than four times greater than
Australia's GDP.

Charlie Bell
AUSTRALIAN BUSINESS EXECUTIVE
 ARTICLE
INFOPRINTCITE
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HomePolitics, Law & GovernmentBusinesspeople & Entrepreneurs
Charlie Bell
Australian business executive
WRITTEN BY
The Editors of Encyclopaedia Britannica
Encyclopaedia Britannica's editors oversee subject areas in which
they have extensive knowledge, whether from years of experience
gained by working on that content or via study for an advanced
degree....
See Article History
Originally published in the Britannica Book of the Year. Presented
as archival content. Learn more.
Alternative Title: Charles H. Bell
Charlie Bell, (Charles H. Bell), Australian business executive
(born Nov. 7, 1960, Sydney, Australia—died Jan. 17, 2005, Sydney),
rocketed up through the ranks of U.S.-based McDonald’s Corp.—
after having started at age 15 by mopping floors part-time in a local
Sydney outlet—to become the fast-food giant’s first non-American
(and youngest-ever at age 43) CEO in April 2004. Within weeks of
his appointment, however, Bell was diagnosed with the cancer that
forced him to step down after only seven months at the company’s
helm.
This article was most recently revised and updated by Karen Sparks, Director and
Editor, Britannica Book of the Year.
LEARN MORE in these related Britannica articles:

Jim Cantalupo

Jim Cantalupo, (James Richard Cantalupo), American businessman (born Nov. 14, 1943,
Oak Park, Ill.—died April 19, 2004, Orlando, Fla.), established the McDonald’s Corp. as
an international presence and revived the slumping fast-food giant during his second term
as the company’s CEO. A graduate of t…

Den Fujita

Den Fujita, Japanese businessman (born 1926, Osaka, Japan—died April 21, 2004,
Tokyo, Japan), was the charismatic founder of McDonald’s Japan, which opened in 1971
and became the largest among all food industries in Japan after only a decade in
operation. Fujita adopted Western business practices a…

Richard McDonald

Richard McDonald, American restaurateur who designed the golden arches logo and the
number-of-hamburgers-sold sign for the fast-food restaurant franchise that he and his
brother started and gave the family name to; after being purchased by Ray Kroc, the
business expanded into a large and well-known…
 HISTORY AT YOUR FINGERTIPS
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Charlie Bell
QUICK FACTS
BORN
November 7, 1960
Sydney, Australia
DIED
January 17, 2005 (aged 44)
Sydney, Australia

Jim Cantalupo
AMERICAN BUSINESSMAN
 ARTICLE
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Jim Cantalupo
American businessman
WRITTEN BY
The Editors of Encyclopaedia Britannica
Encyclopaedia Britannica's editors oversee subject areas in which
they have extensive knowledge, whether from years of experience
gained by working on that content or via study for an advanced
degree....
See Article History
Originally published in the Britannica Book of the Year. Presented
as archival content. Learn more.
Alternative Title: James Richard Cantalupo
Jim Cantalupo, (James Richard Cantalupo), American
businessman (born Nov. 14, 1943, Oak Park, Ill.—died April 19,
2004, Orlando, Fla.), established the McDonald’s Corp. as an
international presence and revived the slumping fast-food giant
during his second term as the company’s CEO. A graduate of
the University of Illinois, he started his career as a CPA for the
accounting firm Arthur Young (later Ernst & Young). While
Cantalupo was there, one of his clients was the McDonald’s Corp,
which soon hired him away; he took over as the firm’s controller in
1974. Cantalupo quickly advanced through the corporate ranks,
with appointments as vice president (1975), senior vice president
(1981), chief of operations for the northeastern U.S. (1985), and
president of McDonald’s International (1987). Under his leadership
the number of restaurants abroad increased enormously, and he
opened the first McDonald’s locations in Russia and China. His
performance earned him the title of president and CEO in 1991.
Cantalupo guided the company through a period of rapid expansion
until his retirement in 2001. His departure coincided with a dip in
company revenues, a wave of restaurant closures, and increased
scrutiny of the negative health aspects of fast food. Cantalupo later
was called out of retirement, and he rejoined McDonald’s as
chairman and CEO on Jan. 1, 2003. Over the next 16 months,
his innovations, including the introduction of healthier menu items,
resulted in a major increase in the company’s stock price.

This article was most recently revised and updated by Karen Sparks, Director and
Editor, Britannica Book of the Year.
LEARN MORE in these related Britannica articles:

Richard McDonald

Richard McDonald, American restaurateur who designed the golden arches logo and the
number-of-hamburgers-sold sign for the fast-food restaurant franchise that he and his
brother started and gave the family name to; after being purchased by Ray Kroc, the
business expanded into a large and well-known…

Den Fujita

Den Fujita, Japanese businessman (born 1926, Osaka, Japan—died April 21, 2004,
Tokyo, Japan), was the charismatic founder of McDonald’s Japan, which opened in 1971
and became the largest among all food industries in Japan after only a decade in
operation. Fujita adopted Western business practices a…

Charlie Bell

Charlie Bell, (Charles H. Bell), Australian business executive (born Nov. 7, 1960,
Sydney, Australia—died Jan. 17, 2005, Sydney), rocketed up through the ranks of U.S.-
 based McDonald’s Corp.—after having started at age 15 by mopping floors part-time in a
local Sydney outlet—to become the f…

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Jim Cantalupo
QUICK FACTS
BORN
November 14, 1943
Oak Park, Illinois
DIED
April 19, 2004 (aged 60)
Orlando, Florida

Steve Easterbrook
ENGLISH-BORN BUSINESS EXECUTIVE AND ACCOUNTANT
 ARTICLE MEDIA
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Steve Easterbrook
English-born business executive and accountant
WRITTEN BY
John P. Rafferty
John P. Rafferty writes about Earth processes and the environment.
He serves currently as the editor of Earth and life sciences—
covering climatology, geology, zoology, and other topics that relate
to the...
LAST UPDATED: Aug 2, 2020 See Article History
Alternative Title: Stephen James Easterbrook
Steve Easterbrook, in full Stephen James Easterbrook,
(born August 6, 1967, Watford, Hertfordshire, England), English-
born business executive and accountant best known for
reinvigorating McDonald’s Corporation, beginning in March 2015.
Easterbrook, a long-time McDonald’s executive, briefly helmed a
handful of other fast-food chains before rising to the position of
president and CEO of McDonald’s.

Easterbrook attended Watford Grammar School for Boys before

receiving an undergraduate degree in natural sciences from St.
Chad’s College, Durham University, where he also played on the
school’s cricket team. He began his career as an accountant at the
auditing and professional services firm Price Waterhouse.

Easterbrook joined McDonald’s in 1993 as a financial reporting

manager in London. He rose to become the executive in charge of
all the McDonald’s restaurants in the company’s southern U.K.
territory. In early 2006 he was given the responsibility of managing
all U.K. operations. Less than a year later, his duties expanded to
the whole of northern Europe (and the territory’s approximately
1,800 restaurants). Easterbrook remained in that position for
almost four years and briefly held several senior executive
positions, but he left the company in 2011 to serve as the chief
executive of the PizzaExpress (2011–12) and Wagamama (2012–13)
restaurant chains. He returned to McDonald’s in 2013 to assume
the position of senior executive vice president and chief brand
officer. From 2008 he also served as a visiting fellow at the Oxford
University Centre for Corporate Reputation.

Easterbrook was installed as the president and CEO of McDonald’s

in March 2015 to replace outgoing CEO Don Thompson. The period
was a critical time for McDonald’s, which in 2014 had faced a 15
percent shortfall in profits and a loss of market share to other fast-
food hamburger chains, such as Five Guys and Shake Shack.
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Easterbrook took steps to increase the efficiency of an organization

that spanned some 36,000 restaurants in more than 100 countries.
His restructuring plan, the largest in the company’s history,
involved, among other things, removing redundant managerial and
store operations positions worldwide. Easterbrook also sought to
renew the company’s collective focus on the needs and desires of
the customer and to better serve the unique requirements of
different corporate territories. In China, where a scandal in 2014
involving tainted meat had tarnished the brand, Easterbrook aimed
to improve the public’s perception of the food being served. He
oversaw the elimination of several menu items and the rollout of
new products, such as customized hamburgers in Australia and in
the U.S., and he brought an even greater emphasis on convenience,
including the expansion of dual-lane drive-throughs at restaurants
and highly profitable all-day breakfast offerings in the U.S.

Many of Easterbrook’s changes produced positive results. The

company’s profit margin rose from 13.62 percent in March 2015 to
more than 25 percent by the close of that year, wiping out the
earlier decline. Success also continued into the following year, with
sales at U.S. establishments rising 5.7 percent during the first part
of 2016. In 2017 the company announced that it would be making
its hamburgers with fresh beef, rather than frozen beef, a move
believed to bring greater appeal to the brand.
McDonald’s announced in November 2019 that Easterbrook had
been fired after it was revealed that he had had an affair with an
employee. Chris Kempczinski, who had served as president of
McDonald’s USA, immediately replaced Easterbrook.

John P. Rafferty
LEARN MORE in these related Britannica articles:

McDonald's

McDonald’s, American fast-food chain that is one of the largest in the world, known for
its hamburgers. Its headquarters are in Oak Brook, Illinois. The first…

cricket
 Cricket, England’s national summer sport, which is now played throughout the world,
particularly in Australia, India, Pakistan, the West Indies, and the British Isles. Cricket is
played…

restaurant

Restaurant, establishment where refreshments or meals may be procured by the public.

The public dining room that came ultimately to be known as the restaurant originated in
France, and the French have continued to make major contributions to the restaurant’s
development.…

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Steve Easterbrook
QUICK FACTS
BORN
August 6, 1967 (age 53)
Watford, England
 Franchising
Franchising
“McDonald’s three-legged stool philosophy attributes the success of McDonald’s to the collaboration
and synergy of the three legs: employees, suppliers and franchisees.”

For over 50 years, McDonald's has been giving opportunities to individuals who share the same
values and vision of serving great tasting quality food fast through franchising. As the top brand in
Entrepreneur’s Franchise 500 in 2018, with more than 90% of its restaurants owned by independent
franchisees, McDonald’s continues to lead in franchising and empower local entrepreneurs all over
the world through their unique model.
In the Philippines, McDonald's opened its doors to franchising to Filipino entrepreneurs in 1985, and
has since expanded its network to over 300 franchised restaurants with more than 100 franchisees,
most of whom have been part of the McDonald's Family for 5 to 15 years. 

What it's all about

A quick look at the industry

The Philippines has seen a tremendous growth in the franchising business over the past decades.
After learning from other international market leaders and developing an ecosystem that allowed
franchising to flourish in the country, what started out as a small, almost non-existent player in the
franchise market has quickly become a leader in both the local and international sphere.

With over 2,000 local and international franchise concepts in the country, the Philippines has become
known as the “Franchise Hub of Asia” and was also among the 2017 top 5 franchise markets in the
world.

On a more local scale, McDonald’s Philippines was recognized by the Philippine Franchise
Association (PFA) for their outstanding work in the franchising sector during the Franchise
Excellence Awards in 2017, bringing home 6 awards: Best CSR Program for Ronald McDonald
House Charities (RMHC) Read to Learn program, Best Overall Marketing Campaign under the Food
category, International Master Franchise Award, Regional Franchisee Awards for Ray Ordoveza
(South Luzon) and Caroline Andrade (Visayas), and National Franchisee Award for Ray Ordoveza.

These achievements serve as motivation for the company to do even better and serve even more
Filipinos every single day. But to do this, we need highly-motivated franchisees to be our partners in
expanding our business.

We are glad you have taken the time to learn more about our franchise opportunities and hope you
will consider joining our family.

Why McDonald's?

Giving you more reasons to say “Love ko ‘to”

McDonald's franchisees, also called Owner Operators, play a major role in the System's success.
Choosing McDonald's means joining the force behind one of the world's most successful and most
loved brands and becoming part of a global network of successful and motivated entrepreneurs.
 
As a McDonald's Philippines Owner Operator, you gain the following advantages:

 World class training to deliver world class service and business success
  Extensive support system to cover all aspects of the business, which includes operations, supply
chain, and marketing support throughout the entire franchise term
 Access to world class suppliers that provide the necessary goods and services that go into great-
tasting food and excellent services that customers enjoy
 100 percent customer awareness of the world's leading fast food restaurant
 A peer network of more than 100 franchisees locally, and the McDonald's network of over
60,000 employees nationwide

McDonald's continues to be recognized as a premier franchising company around the world. The fact
that McDonald's management listens to and collaborates with our Owner Operators has a lot to do
with that success.

Our Owner Operators devote full time and best efforts to their restaurant business. Their focus and
passion is what makes McDonald's the number one quick service restaurant in the world.

Do you have what it takes?

We are inviting partners with significant business experience, have successfully owned or managed
multiple business units/have led multiple departments and have significant financial resources.

McDonald’s Franchise Fast Facts:

Owning a Franchise

 We grant franchise license only to Filipino or former natural born Filipino Citizen
 We award the franchise on a per restaurant basis. We don't offer it on a territorial or
geographical basis.

Site Selection

 Application for the site and the franchise is treated and processed separately and independently
from each other.

Franchise Terms

 The term of the franchise is good for ten (10) years or the term of the lease whichever is shorter.

Ways to Franchise

The required investment cost on the part of the franchisee will depend on the kind of store or site that
will be offered to him by the Company. In relation to this, we basically franchise in three (3) ways: 

 The Company awards franchises for a new site or restaurant.

  The Company awards franchises for an existing restaurant owned and operated by the
Company.
 The Company awards franchises for an existing restaurant owned and operated by a franchisee
who would want to sell his or her McDonald's restaurant.

Cost of Investment

Depending of restaurant size, type, location and features the CAPEX is about $1 million US Dollars
or the Philippine Peso equivalent at the time of construction.  

This covers the following costs:

 Architectural Planning and Global Design Fees

 Building and leasehold improvements and other relevant site works necessary
 Air-conditioning system, kitchen exhaust and stainless fabs
 Point of sale
 Kitchen equipment, seating, signage and décor
 Other furniture and fixtures
 Government mandated requirement

The above costs depend on the following factors for consideration:

 Restaurant type & size

 Suitability of existing building
 Site location whether provincial or within Metro Manila

How many McDonald's restaurants are there in the world? Worldwide,

McDonald's has more than 37,241 restaurants spanning over 123 countries. In
the United States alone, there are 14,146 McDonald's outlets, close to 37% of
the number of outlets worldwide.
OUTLETS BY THE NUMBERS Around the world, McDonald's has more than
37,241 restaurants in over 123 countries. So, this top ten list is by no means
exhaustive. The United States exceeds all other countries by a wide margin with
the most number of McDonald's outlets (14,146), with Japan and China a distant
second (2,975) and third (2,391) respectively.

By region, North America has the most number of McDonald's outlets (87% from
the United States), followed by Asia at 6,926 outlets ( 77% of which are located in
Japan and China), and Europe with 6,232 outlets
( with Germany, France and United Kingdom being the major countries with at
least 1,200 outlets ).
FILIPINO quick-service restaurant customers can expect more McDonald’s concept
stores featuring self-ordering kiosks and cashless transactions by the end of 2019, the
American fast-food chain giant’s master franchise holder in the Philippines has said.

“At the moment, we probably have a hundred NxtGen stores already all over the
Philippines, from La Union to Davao. So we will continue with the expansion of our
NxtGen [outlets],” McDonald’s Philippines Managing Director Margot B. Torres told
reporters in mixed English and Filipino after the signing of a memorandum of
agreement between the City Government of Manila and Golden Arches Development
Corp. (McDonald’s Philippines) on Wednesday at Manila City Hall.

According to her, exactly 101 of the company’s 640 branches nationwide are now
converted to the so-called NxtGen stores. 
“Our customers are really happy with the self-order kiosks because they have control
on their orders. So they need not queue,” the top executive said. “Also included is the
option to use cashless. These cashless payments are already available in 185 of our
stores.” 

McDonald’s Philippines aims to turn this year around 10 percent of its store base into
NxtGen ones to better serve the customers with touch-screen kiosks and counters that
accept credit cards.

“So we will exceed 100 [of such concept outlets when we close 2019],” Torres said of
their store innovation efforts.

Moving forward, the goal is to have a total of over 700 stores across the country, of
which 70 percent will be converted to NxtGen by 2021.

McDonald’s Philippines first opened its outlet in Morayta, Manila, in 1981 under
master franchise holder Dr. George T. Yang.  The company has so far grown to have a
network of more than 640 stores, with nearly 60,000 regular employees. It expects to
have 670 outlets, both regular and NxtGen, by year-end.

In Manila, it already has 45 branches to date, with 2,500 direct hires (80 percent of
them are locals). Five more outlets are set to open in 2020. 

With the firm’s partnership with the City of Manila, it will soon be employing at least
120 alternative workers, of whom 80 are senior citizens and 40 are persons with
disabilities in at least 40 of its owned stores in the country’s capital.

Mcdonald's Franchise Details:

 Industry:Food & Beverage
  Category:Fast food

 Royalty Fee:5 %

 Marketing Fee:5 %

 Franchise Fee:PHP 1,150,000

 Investment Capital:PHP 45m - 60m

 Franchise Terms:10 years

 Area:N/A

 Coverage:Nationwide, International

 Origin:Metro Manila (NCR)

 Outlet:N/A

 Since:1981

Franchise Inclusions or Package

Cost of Investment

Depending of restaurant size, type, location and features the CAPEX is about $1 million US Dollars or the

Philippine Peso equivalent at the time of construction.  

This covers the following costs:

 Architectural Planning and Global Design Fees

 Building and leasehold improvements and other relevant site works necessary

 Air-conditioning system, kitchen exhaust and stainless fabs

 Point of sale

 Kitchen equipment, seating, signage and décor

  Other furniture and fixtures

 Government mandated requirement

 The above costs depend on the following factors for consideration:

 Restaurant type & size

 Suitability of existing building

 Site location whether provincial or within Metro Manila

Franchise Application Process

Ways to Franchise

The required investment cost on the part of the franchisee will depend on the kind of
store or site that will be offered to him by the Company. In relation to this, we
basically franchise in three (3) ways: 

 The Company awards franchises for a new site or restaurant.

 The Company awards franchises for an existing restaurant owned and operated by the
Company.

 The Company awards franchises for an existing restaurant owned and operated by a
franchisee who would want to sell his or her McDonald's restaurant.