McDonald’s Raising the Bar McDonald’s Raising the Bar of Successof Success

By By Dennis NaberDennis Naber

McDonald’s HistoryMcDonald’s History

Leading food service Leading food service organization in the organization in the worldworld

Started out as a small Started out as a small drive through in 1948drive through in 1948

Founded by two Founded by two brothers Dick and brothers Dick and Mac McDonaldMac McDonald

Raymond Kroc the Raymond Kroc the “true founder” of “true founder” of McDonald’sMcDonald’s

More HistoryMore History Kroc was interested Kroc was interested

in multimixers which in multimixers which are like today’s are like today’s milkshakemilkshake

The McDonald The McDonald brothers were brothers were running 8 mixers in running 8 mixers in their “hamburger their “hamburger joint”joint”

Kroc saw a niche in Kroc saw a niche in the market and the market and encouraged brothers encouraged brothers to expandto expand

In 1961 Kroc In 1961 Kroc bought out the bought out the brothersbrothers

By the late 60’s By the late 60’s McDonald’s McDonald’s expanded outside of expanded outside of the United Statesthe United States

In 1994 there were In 1994 there were 23,000 McDonald’s 23,000 McDonald’s restaurants in 110 restaurants in 110 countriescountries

Hamburger UniversityHamburger University Created to ensure the Created to ensure the

professionalism is professionalism is taught to each of its taught to each of its managersmanagers

Seven Campuses all Seven Campuses all around the worldaround the world

Course material is Course material is available in 28 different available in 28 different languageslanguages

Designed for restaurant Designed for restaurant managers, prospective managers, prospective owners/operators, owners/operators, established owners and established owners and regional mid-managersregional mid-managers

Hamburger UniversityHamburger University Help develop general Help develop general

management skillsmanagement skills Strong on people Strong on people

practices and leadership, practices and leadership, specialized skills needed specialized skills needed to operate safe, to operate safe, customer-friendly and customer-friendly and cost effective restaurantscost effective restaurants

Only restaurant to have Only restaurant to have credentials with the credentials with the American Council of American Council of Education (ACE)Education (ACE)

Can receive college Can receive college credits towards a 2 or 4 credits towards a 2 or 4 year degree with credits year degree with credits from HUfrom HU

Employment Employment Opportunities Opportunities

First level of Employment: Crew/Crew Trainer, must have First level of Employment: Crew/Crew Trainer, must have Certificate II in Retail OperationsCertificate II in Retail Operations

Second Level of Employment: Crew Chief/Area Coordinator, Second Level of Employment: Crew Chief/Area Coordinator, must have a Certificate III in Retail Supervisionmust have a Certificate III in Retail Supervision

Third Level of Employment: Shift Assistant, must have a Third Level of Employment: Shift Assistant, must have a Certificate III in Retail SupervisionCertificate III in Retail Supervision

Fourth Level of Employment: Trainee/Swing/Part-time Fourth Level of Employment: Trainee/Swing/Part-time Manager, must have a Certificate Level III in Retail Manager, must have a Certificate Level III in Retail SupervisionSupervision

Fifth Level of Employment: Second Assistant, must have a Fifth Level of Employment: Second Assistant, must have a Certificate IV in Retail ManagementCertificate IV in Retail Management

Sixth Level of Employment: First Assistant, must have a Sixth Level of Employment: First Assistant, must have a Diploma of Retail ManagementDiploma of Retail Management

Seventh Level of Employment: Restaurant Manager, must Seventh Level of Employment: Restaurant Manager, must have an Advanced Diploma of Managementhave an Advanced Diploma of Management

Beyond: Any level within the corporation outside of the Beyond: Any level within the corporation outside of the restaurant restaurant

Key Employee Points within Key Employee Points within the Performance the Performance

ExpectationsExpectations Strives to delight Strives to delight

customerscustomers Takes initiative Takes initiative

and ownershipand ownership Consistently Consistently

follows standardsfollows standards Demonstrates and Demonstrates and

promotes promotes teamworkteamwork

Responsible Corporate Responsible Corporate StewardshipStewardship

We always keep the customer in mindWe always keep the customer in mind We seek opportunity for leadership in We seek opportunity for leadership in

our industry where we believe we can our industry where we believe we can make a significant differencemake a significant difference

We seek to learn from expertsWe seek to learn from experts We seek ongoing improvementWe seek ongoing improvement We seek to continually collaborate, We seek to continually collaborate,

whether with our owner/operators whether with our owner/operators and suppliers or outside organizationsand suppliers or outside organizations

Employment SatisfactionEmployment Satisfaction Prides itself in high Prides itself in high

employee satisfaction.employee satisfaction. ““We view We view

compensation as the compensation as the total value of the total value of the wages, incentive wages, incentive payments and benefits payments and benefits an employee receive by an employee receive by virtue of his/her under virtue of his/her under the Arches (Corporate the Arches (Corporate Responsibility Responsibility Report).”Report).”

Employment Employment CompensationCompensation

McDonald’s training program strives McDonald’s training program strives for success in all of its employeesfor success in all of its employees

““Rewarding outstanding work and Rewarding outstanding work and providing competitive compensation providing competitive compensation packages extend to restaurant packages extend to restaurant employees at all levels”employees at all levels”

Along with having a great pay scale Along with having a great pay scale and compensation plan, employees are and compensation plan, employees are also considered for health care servicesalso considered for health care services

Employment Employment CompensationCompensation

Within the U.S. employees at the Within the U.S. employees at the managerial have a few different options managerial have a few different options of different health care services of different health care services

When crew member become eligible they When crew member become eligible they also have a choice of health care also have a choice of health care insurance plansinsurance plans

Annual benefits vary according to how Annual benefits vary according to how the employee contributes and the number the employee contributes and the number of members within the family that are of members within the family that are covered covered

Goals and Mission Goals and Mission StatementStatement

““McDonald’s mission is to be our McDonald’s mission is to be our customer’s favorite place and way to customer’s favorite place and way to eat-with inspired people who delight eat-with inspired people who delight each customer with unmatched each customer with unmatched quality, service, cleanliness and quality, service, cleanliness and value every time.”value every time.”

GoalsGoals Add choice to our menu, particularly new choices Add choice to our menu, particularly new choices

for kids and more fruit and vegetable itemsfor kids and more fruit and vegetable items Increase employee awareness of balanced, active Increase employee awareness of balanced, active

lifestyles through education and training lifestyles through education and training programs on food quality, nutrition and fitnessprograms on food quality, nutrition and fitness

Explore new ways to deliver nutrition and Explore new ways to deliver nutrition and balanced, active lifestyle information to our balanced, active lifestyle information to our customerscustomers

Champion programs that bring fun, practical Champion programs that bring fun, practical physical activity options to people’s everyday physical activity options to people’s everyday lives-focusing particularly on walkinglives-focusing particularly on walking

Demonstrate leadership in our marketing and Demonstrate leadership in our marketing and communications practices with our customerscommunications practices with our customers

ConclusionConclusion McDonald’s has McDonald’s has

changed and developed changed and developed over time into a over time into a powerful franchise.powerful franchise.

Has major impacts on Has major impacts on the community and the the community and the people within that people within that communitycommunity

Great employee Great employee relations and the relations and the company does its best company does its best to maintain employee to maintain employee satisfactionsatisfaction