Abstract
For the last three decades, fast foods have been playing an increasing role not only in every step of the American daily life but also that of the whole world. We can't talk about fast food without thinking about McDonald as it symbolizes the fast food industry. Everyone has tasted it at least once in his life so I have attempted to discover what it is behind its success. This industry began in 1937 in South California where the McDonald's brothers used to sell hotdogs and hamburgers. When they realized that the majority of their earnings came from hamburgers, they closed their restaurant and opened another one initiating a new model of restoration: fast food. It was an instant success. Every person in the USA rushed to see the famous restaurant. The supplier RayKroc was fascinated by the restaurant, and proposed to the brothers to let him franchise the concept. In 1961, the McDonald's brothers sold their rights to Kroc. We now estimate that the brothers' earning would have reached 100 million dollars per year if they hadn't sold their rights. Gradually, a number of McDonald's opened all around The United states. In 1970 this trend became international. In 1972, the ninth McDonald's to open abroad was in launched in France. McDonald's experienced a steady increase in income until the end of the years 1980 and contributed to the globalization of economy. At present, there are 12000 McDonald's in the United States and 30 000 abroad in more than 121 countries. It is estimated that everyday day 5 McDonald's open in the world, on which 4 are abroad. This paper will discuss the strategy that McDonald's pursued to reach such a success, and how the current slowing down may be explained.
