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MCDONALD’S AND THE 60-SECOND RULE - A SERVICE FAILURE?

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Essay / Research Paper Abstract

This 4-page paper examines the difficulties that McDonald's franchisees face in living up to corporate standards. Bibliography lists 3 sources.

Page Count:

4 pages (~225 words per page)

File: AS43_MTmcdofran.rtf

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Unformatted sample text from the term paper:

overweight people. McDonalds is also known for standardization and quick service. The goal, ultimately, is to make its restaurants, the speediest, and most consistent, restaurants in the industry. But the question we ask ourselves here whether restrictions from McDonalds corporate headquarters ends up hampering the success of franchisees that buy into the system. Can McDonalds head office, on the other hand, use the various rules and regulations to cut a franchisee loose if headquarters perceives the franchisee isnt working with the system? In pursuing an exhaustive research of the literature concerning McDonalds standardization and franchisees, we didnt find much related to 60-second rules and whether franchisees can hold up to them. We did find, however, a great deal of information about how aspects such as standardization of prices and menus across the board have hurt the franchises. For example, Advertising Age reported in 2008 that the "under-a-buck" value menus that were advertised in response to a failing economy (and the attempt to boost sales), has ended up hurting operators (Bryson, 2008). Though the value menu ended up increasing foot traffic, consumers buying the cheap items end up costing the restaurants rather than making money for them (Bryson, 2008). In some cases, during 2008, McDonalds franchisees in New York State ended up taking double cheeseburgers off the menu because skyrocketing beef prices ended up making them too costly to serve (Bryson, 2008). Another problem, notes one former McDonalds franchisee, is that the "value" products tend to cannibalize the other products on the menu (Bryson, 2008). The result is that while unit sales are on the rise, revenues are not (Bryson, 2008). Though ...

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