Franchise strategy that worked well for McDonald's!!

In this competitive world, any organization needs to have right strategy first. The strategy should be aligned with the vision and mission of the organization, so that all the elements within the organization can direct their effort towards the same goal. Fast food industry being very competitive, all the companies need to have right strategies in place.

The popular strategy which worked for McDonald's and many other fast foot chains is Franchise system. One of the key reasons why McDonald's could expand worldwide so fast and achieve brand recognition globally is its very efficient Franchise Business model. This model has not only helped McDonald's to expand domestically as well as internationally, but it has also standardized its operation at all places. This has made them to provide same products and same experience to all its customers - no matter which part of the world they are. 

McDonald's Franchise outlet

Today, McDonald's franchise network has reached in more than 100 countries serving 52 million people with more than 30000 franchise restaurants. This had made McDonald's as world's leading food service retailer. 70 percent of the total stores are  owned by independent franchisees. 

McDonald's franchise model has been such a success that if someone thinks of buying any franchise, then McDonald's is the first name to be considered. What differentiates McDonald's franchise model from its competitors is strategy to allow its franchisees to pay just rent rather than buy their premises outright. So, buying its franchise offers a profitable option to have business with many advantages like recession free business, cheap product, non discretionary good, quick food meeting time constraints of customers.

We started this post saying that organization need right strategy to succeed. After analysing McDonald's franchise model, can we say it's right strategy for it? Is it the only strategy that worked for McDonald's? Are there any other factors which complimented this business model?

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