Table of Contents
First and foremost, I’d like to express my heartfelt gratitude to my subject teacher, Mr. Ratindra Singh, who gave me the wonderful project of Fundamentals of Food and Beverage Service, which required me to conduct detailed research on the comparison of any two currently operating restaurant’s service concepts, restaurant floor plan layout, SWOT analysis, and organization chart analysis, as well as the service sequence of a specific restaurant. He also assists me with the completion of my project. I’m grateful to him for introducing me to so many new things.
I’d also want to express my gratitude to Mid Valley International College for allowing me to convey my concept via this research.
Introduction of McDonalds’:
–McDonalds’ is the fast food company which is originated from America. It was founded by Donald Brothers named Richard and Maurice McDonald in 1940 A.D. At first, McDonalds’ was founded as a small fast food restaurant in San Bernardino, California. They gave the brand name the business as stand of hamburger. After that, this company turned into a franchise with the logo of Golden Arches established in 1953 A.D. In 1955 A.D, Renowned business man known as Ray Kroc joined as a franchise agent of McDonalds’. After joining the company, he proceeded to purchase chain from Richard and Maurice. In June 2018, the company set up their headquarters in Chicago. Before shifting their headquarters to Chicago, the company owns its headquarters in Oak Brook Illinois.
As of 2018, the company became the largest restaurant chain in the world by its revenue. As the company serve millions of customers in a daily basis in more than 100 countries over 37000 + outlets. McDonalds’ is most popular for hamburgers, French fries and cheese burgers. Beside these products, they also features the products such as breakfast items, chicken products, ice-cream desserts, milk-shakes, soft drinks, wraps, and so on. The company has also added salads, fruits, fish, and smoothies into their menu in order to response the replace of taste of consumer and anti-feedback because of the unhealthiness of food produce by the company.
McDonalds’ earned revenue from the Royalties, Rent and Payments made by the franchise. Similarly, the income can also be generated by sales in restaurants which are operated by the company. In 2018 according to some reports, the company makes the record of having highest number of employees as world’s second largest private employment giving company. The company has 1.7 million employees. Moreover, the company gained 9th position in the world in global brand valuation. (McDonald’s, 2021)
Introduction of Burger King:
The Burger King is a multinational chain of fast food restaurants established in America with the main motive to sell hamburger. The headquarters of Burger king locates in Miami Dade County, Florida, USA. The Burger King was established in 1953 AD by Keith J. Kramer and Mathew Burns as Insta Burger King in Jacksonville, Florida. In 1954, the company (Insta Burger King) faces some financial difficulties so the company was purchased by two Miami franchisees James McLamore and David Edgerton and renamed Insta Burger King into Burger King. The Burger King’s menu includes basic offerings of burgers sodas, and French fries to a larger and various sets of products as well as in 1957 the first addition to the menu was ‘whopper’ which is also the signature product of Burger King from 1957.
There are also many products which are introduced by the company but failed to grow up in market. Although the products are failed in market of USA, they became successful in market of foreign countries. The company has also adjusts its menu for territorial taste.
In Dec 31, 2018, the company announced that they successfully launched 17796 outlets in more than 100 nations. In fact, USA holds half of the outlets where 99.7% are owned and operated privately.
The Burger King has utilized a variety of franchising models to grow its business in the past. The way the firm licenses its franchisees varies by area, with certain regional franchises which known as master franchises in charge of selling franchise sub-licenses on behalf of the company. Burger King has had a tumultuous relationship with its franchisees. Occasional spats between the two have resulted in a slew of problems, and in certain cases, the relationship between the firm and its licensees has devolved into precedent-setting court disputes. Burger King’s franchise in Australia Due to a trademark disagreement and a series of legal challenges between the two, Hungry Jack’s is the only franchise that operates under a different name. (Burger King, 2021)
History of McDonalds:
On May 15, 1940, siblings Richard and Maurice McDonald opened the first McDonald’s at 1398 North E Street and West 14th Street in San Bernardino, California, at 34.1255°N 117.2946°W. The Speedee Service System was founded by the brothers in 1948, elaborating on the principles of the modern fast-food restaurant pioneered by their precursor White Castle more than two decades previously. “Speedee,” a chef hat on top of a hamburger, was the original McDonald’s mascot. In 1962, the Golden Arches replaced Speedee as the international mascot. The clown mascot, Ronald McDonald, first appeared in 1965. He appeared in ads geared towards children and teenagers.
On this day, 4 May, 1961, McDonalds’ filed a trademark application in the United States for the name “McDonald’s” with the description “Drive-In Restaurant Services,” which has since been renewed. Under the leadership of Ray Kroc, McDonald’s has registered for a trademark on a new logo an overlapping double-arched “M” symbol from September 13. Prior to the twin arches, McDonald’s utilized a single arch for the design of its buildings. The present “Golden Arches” emblem was not used until November 18, 1968, when the company was given a trademark in the United States. (McDonald’s, 2021)
Fig: Double- Arched “M” symbol.
History of Burger King:
After visiting the McDonalds brothers’ original store location in San Bernardino, California, founders and owners Keith J. Kramer and his wife’s uncles Matthew Burns purchased the rights to two pieces of equipment known as Insta-machines, Insta-Burger King was founded in 1953 in Jacksonville, Florida. One of the pieces of equipment they acquired, an Insta-Broiler oven, served as the cornerstone for their production idea. They made it necessary for all of their franchisees to use this method since it was so beneficial. When the company went bankrupt in 1959, franchisees James McLamore and David R. Edgerton from Miami, Florida, purchased it. They started a corporate reorganization of the company, naming it Burger King at first. They ran the firm as an independent organization for eight years until selling it to the Pillsbury Firm in 1967, developing it to over 250 locations across the United States.
In the late 1970s and early 1980s, Management of Pillsburry attempted many times to reorganize Burger King. Burger King hired Donald N. Smith, a former McDonald’s executive, to assist the business reorganize in 1978. Smith changed corporate business practices at all levels of the organization as part of Operation Phoenix. New standardized restaurant designs, updated franchise agreements, and a larger menu were among the changes made. In 1980, Smith departed Burger King for PepsiCo, just as the company’s profits were starting to fall. (Burger King, 2021)
Fig: Wordmark Used From 1954 to 1957.
Service concept of McDonald’s:
The service notion is the understanding and expectations of the service itself in the minds of stakeholders, investors, employers, and customers. The concept includes an open transformation process that uses suitable application resources to turn inputs into anticipated outputs. Services, in particular, are low-cost acts that result in utility in terms of place, time, psychology, or form. Fast food lunches not only save time, but they also help with mental health. The creation of a service concept may be seen as the culmination of a company’s efforts to build a comprehensive service model.
To enable specialized skills, McDonald’s uses a restricted menu, labor division, assembly line strategy, a homogenous product, and task grasping, all of which are utilized to a practical idea that is hidden from the consumer. McDonald’s is able to deliver exceptional fast food service due to the high quality of its products and the satisfaction of its customers. Since its founding, McDonald’s has had a service concept focused on first-class quality, value, and cleanliness, and it has evolved into a key service emphasis in the company’s marketing efforts. Above all, employees with positive attitudes and a commitment to customer satisfaction help to support the service concept. In this case, McDonald’s restaurants prioritize attracting and employing the best employees while also offering the best working environment.
Every fast food restaurant, whether it is a corporation or a little business, aims to generate a new surge in service operations, all with the goal of adopting and sustaining the brand quality. McDonald’s has various service operations as one of the world’s top and most profitable fast food restaurants. McDonald’s is now implementing service operations focused at providing great experiences for its customers through product, location, pricing, promotion, and people. (Wessh, 2019)
Fig: Service Delivery System of McDonald’s.
Service concept of Burger King:
The Burger king has completely different concepts of food and beverage establishments as compare to McDonald’s. They follow their own strategies and decisions for high performance and productivity. Burger King’s tactics are the outcome of the company’s evolution over time. Burger King’s goal in decision of goods and services strategic decision area of operations management is to set itself apart from rivals’ goods. The firm, for example, provides flame-grilled burgers, which are very uncommon on the market. Burger King’s general strategy and aggressive expansion strategies are both supported by this approach to operations management.
The field of quality management is concerned with meeting the quality requirements of target consumers. Burger King’s operations management conducts product tests to address this problem. Customer input is also collected through the My BK Experience website. In the area of process and capacity design, Burger King’s goal is to create operations management programs that maximize capacity utilization and productivity. For example, the firm keeps a close eye on sales and demand at their restaurants across the world. Burger King’s production facilities modify their operations appropriately.
The major concern of operations management in terms of location is strategically maximizing market reach. Burger King’s approach to this decision-making area is market penetration in concentration on town centers and metropolitan areas. The location of a restaurant is used to evaluate franchise bids. The operations management of Burger King places a premium on efficiency. The company’s kitchen, for example, is designed to be as small as possible in order to conserve space while maximizing worker efficiency. As a result, Burger King uses efficient design and procedures to handle this strategic decision area. Burger King’s supply network spans the globe. The goal in the domain of supply and chain is to ensure that there is always enough supply. The operations management of the corporation’s approach is bringing all supply chain activities under the umbrella of Restaurant Services Inc. RSI. RSI is responsible for supplying Burger King with supplies and ingredients.
The operations management of corporation assesses productivity from a variety of perspectives, including corporate headquarters, regional locations and franchises. The objective is to boost output while lowering expenses. Burger King’s productivity standards include the following:
- Per-restaurant revenue ( productivity of restaurant)
- Per-region revenues (regional market productivity )
- Served meals ( productivity for evaluating the process)
- (Burger King’s corporate productivity) handling of documents per year.(MEYER, 2017)
Organizational Chart for McDonalds:
McDonalds’ corporation operates under a divisional structure. The business organization is separated into components that are given tasks depending on operational requirements in this structure type. Each division is in charge of a distinct operating region or set of strategic goals. One of the goals of this corporate structure is to promote organizational autonomy and flexibility in meeting business demands across various organizational elements and markets. The following aspects of McDonald’s organizational structure are listed in order of importance in impacting food service company operations:
- Organizational structure
- Performance-based divisions
- Function-based groupings (Thompson, 2019)
Organizational Chart for Burger King:
The organizational structure of Burger King is built on a centralized strategy that attempts to build control and improve managerial performance. Following reform, Burger King has seen growth, showing that its present structure is appropriate.
The organizational of structure Burger King is centralized and functional. Restaurant Brands International (RBI) was formed in 2014 by the merger of Burger King and Tim Hortons. During this time, the company’s structure altered. The following are the major aspects of Burger King’s organizational structure today:
- Centralization on a worldwide scale
- Groups by function
- Divisions by geography(Smithson, 2018)
Floor plan layout of McDonalds’:
Almost all of the fast food restaurant will strive to improve its floor plan layout for the benefit of its patrons. The appealing arrangement provides the client a positive impression. The layout of McDonalds’ is depicted in the image above the phrase.
The floor plan layout McDonalds’ restaurant as shown in the above floor plan layout has been separated into two halves. The first section on the left side of the restaurant in suggests and the individuals who choose to sit in a group and the youngsters for party, birthday celebration etc. However, because the left side of the restaurant is solely filled by seats, it does not appear to be a part of the restaurant. As shown as in the layout, the kitchen lies in right corner.
Floor plan layout of Burger King:
As compare to McDonalds’, The Burger King is noted for its fast service, with customers ordering meals and receiving it within minutes. The arrangement of the previously mentioned floor design is very similar to that of Burger King. As we can see, there is an ice cream shop on the right side of the door where we can discover a variety of sweets. The dining room is well-kept, with furnishings in good condition and enough space between them for employees and visitors to walk around easily. We can see the additional family cabin, where we may enjoy various occasions with a huge group of our family. The Burger King is known for its self-service model, in which customers pay their bills and get their meals at a service counter in front of the eating area.
Inside the restaurant, everything is in its right position. Parking facilities must be upgrade, and single tables and chairs must be installed because some visitors will arrive alone. In the eating spaces, round tables should be positioned to allow big parties to dine together.
The method a service is supplied to customers is referred to as the service sequence. The processes comprise the techniques, responsibilities, schedules, mechanisms, activities, and routines used to deliver service to consumers. Here is analysis of service sequence of both McDonalds’ and Burger King below:
- Service sequence of McDonalds’:
- Guests are greeted and made to feel welcome in a kind way.
- The receptionists then verify the visitor reservation, and if the guest has made a reservation, they will be shown to their booked table. If not, personnel will assist guests in selecting the ideal table based on their request or necessity.
- Follow that, guests will be given a fresh towel and supplied fresh water (cold or hot) as needed.
- The staff next delivers the menu (food and beverage) to the guest and, if necessary, explains it.
- To minimize mistakes and misunderstanding, staff will take the visitor’s order and repeat it to the guest.
- The guests will be served beverages first, followed by food.
- When needed, staff will visit or move about the service area to assist the visitor.
- After the main course, clean up the soiled plates and dishes, then show the dessert menu, wait for orders, and serve appropriately.
- Remove any dirty dishes from the table and clean it up.
- Hand out the bill/check to the guest along with a feedback form to learn about their experience with the service.
- If necessary, returned the remaining money to the visitor with a receipt; assisted the client in departing the eating area pleasantly.
- Finally, greet the guests with a cheerful face as appropriate for the moment and invite them to return.
- Service sequence of Burger King:
- Greet the guests and greet them according to the time.
- Guests’ reservations should be checked, and they should be shown to their seats. If not, they should be seated at a comfortable table.
- Ladies should be provided the opportunity to sit first and protect the guest’s belongings.
- Provide a complementary service to the visitor.
- Give the guest a clear and up-to-date menu.
- Take the guest’s order and repeat the process for confirmation to avoid order misplacement.
- Assist the guests with their meals and beverages.
- Maintain vigilance and keep an eye on the activities of the guests, assisting them as needed.
- Guests should be asked if there are any items they would want to order on a regular basis.
- Clear the table of any filthy plates or other unneeded objects.
- Give the guest a dessert menu.
- Remove all items from the guest table except the glass of water and the ashtray.
- Politely place the bill in the check folder at the guest table.
- Make the guest feel at ease before departing and return all of the guest’s belongings.
- Finally, express gratitude to the visitors and invite them to return.
Fig: A short introduction to SWOT Analysis
Here is detailed analysis of Strength, Weakness, Opportunity and Threats of particular fast food restaurants i.e. McDonalds’ and Burger King.
- Main Strengths of McDonalds’:
- Various sources of income:
McDonald’s earns money from a variety of sources, including nations, goods and regions. As a result, unlike some of its competitors, it does not rely solely on one source of revenue.
- Company’s operation span the globe:
The company’s operations are scattered around the globe. This implies that the business isn’t only subject to one currency or economy.
- Company’s menu options are always growing:
Its menu options are always being expanded. New products such as coffees, smoothies, and Angus burgers have been successfully launched by McDonald’s.
- Main Strengths of Burger King:
- Brand Image that is Strong:
Burger King has a strong brand image since it has been around for a long time. They operate on the motto “Have It Your Way.”
- Market penetration is high:
Burger King has a significant market share and is well-established in the fast food industry.
- Product difference is moderate:
Burger King differentiates its goods from those of their competitors in order to gain a competitive advantage and improve sales.
- Comparison of Strengths:
In the fast food industry, McDonald’s and Burger King are both prominent players. McDonalds’ has a 34.3 percent market share, where as Burger King has 15.4 percent.
Both McDonald’s and Burger King have strong brand images, however McDonald’s has a greater yearly income of 28.11 billion dollars compared to Burger King’s 4.05 billion dollars.
- Main Weakness of McDonalds’
- Publicity that is negative
McDonalds’ has long been associated with unhealthy food that is high in fat, carbohydrates, salt, and sugar. The business has been chastised for encouraging unhealthy eating habits, which has resulted in many of its customers becoming obese.
- Employee turnover is high:
The majority of McDonalds’ employments are low-skilled and low-paying. As a result, there is a lot of turnover among employees. Many employees don’t take their jobs seriously or just do them for a short time, resulting in poor performance. Training expenditures are expensive since there is much turnover.
- Main Weakness of Burger King:
- Competition may easily replicate it:
The business model and goods of Burger King are easily copied. Other businesses might copy it, for example, provide comparable grilled burgers.
- A limited range of products:
Burger King’s restricted product offering is a flaw since it inhibits the firm from recruiting customers who want more variety.
- Comparison of Weakness:
Even though their companies are quite similar, McDonalds’ and Burger King have completely distinct shortcomings in terms of their operations.
Because they both serve unhealthy food, both firms will face unfavorable press. McDonalds’ receives more bad publicity as a result of being the more well-known and recognizable brand.
- Main Opportunities of McDonalds’:
- Menus that have been upgraded:
Steve Easterbrooks has huge intentions, including offering premium items at several of his stores. In some regions of the United States, the restaurant has added handmade chicken and sirloin burgers to its menu. The firm is also attempting to enhance its position in the sector of high margin beverages which are caffeinated.
- Expansion Strategies:
McDonalds’ is continuously looking for new methods to grow its market share. While the marketplaces in North America and Europe are largely saturated, less developed countries provide potential. The firm also recently stated that by the end of 2018, it will refranchise 3,500 locations.
- Main Opportunities of Burger King:
- Widening the product mix/diversification:
Burger King has the potential to diversify its product offering by introducing new product lines in order to attract new customers.
- Growth of the market:
Burger King might create additional companies or subsidiaries as part of its market expansion strategy in order to increase revenues while avoiding market risks.
- Enhancement of service quality:
Burger King has the chance to differentiate itself from competitors such as McDonald’s by improving service quality.
- Comparison of Opportunities:
Despite their similar businesses, McDonald’s and Burger King have quite different futures. Burger King, on the other hand, has the opportunity to set itself apart from competitor McDonald’s by increasing service quality.
- Main Threats of McDonalds’:
McDonalds’ is up against fierce competition from international, national, regional, and local food merchants. Service, price, convenience, menu diversity, and product quality are all factors in its competition. Given consumers’ rising desire for quality and natural products, management is trying to improve product quality. McDonalds’ competes largely with Burger King in the hamburger fast food segment. With a 22 percent market share, it still maintains the biggest market share in the entire fast food sector.
- Customers who are more health conscious:
Most of the customers in the United States and the United Kingdom are attempting to eat a healthier diet. McDonalds’ is concerned about the growing popularity of organic items, fresh fruits and vegetables, and things made with all-natural components. Customers aren’t exactly flocking to McDonalds’ for free-range chicken and organic veggies, despite the company’s stringent food quality regulations.
- Main Threats of Burger King:
- Competition is fierce:
When companies like McDonald’s and Wendy’s enter the picture, Burger King confronts fierce competition.
The business concept of the corporation is also easily copied, posing a threat of new entrants following in its footsteps.
- The trend of healthy living is on the rise:
The Burger King’s products have been condemned as unhealthy, putting the healthy living movement at risk.
- Comparison of Threats:
McDonalds’ and Burger King face the same risks, and because the market has a significant number of similar firms, competition for both is fierce. Both companies sell unhealthy foods and so face negative publicity, but both have attempted to add healthier alternatives. (Pretson, 2017)
Fig: McDonald’s Head office.
Fig: Burger King Head Quarter.
The most popular fast food restaurants in the world are McDonald’s and Burger King. Both restaurants have earned a reputation for providing high-quality food and service. Also, both have their unique way of serving food and drinks to customers. Every single work is performed and managed in a professional manner by both restaurants, as they are at the top of their game. Both eateries serve their customers in their own unique style. They had put in a lot of effort to get here, and maintaining the same level for a long period is a difficult task, which they have managed to achieve so far with their amazing performance.
Burger King. (2021, 07 09). Burger King. Retrieved 07 11, 2021, from Burger King Wikipedia: https://en.wikipedia.org/wiki/Burger_King
Burger King. (2021, 07 09). Burger King-wikipedia. Retrieved 07 11, 2021, from Burger King: https://en.wikipedia.org/wiki/Burger_King
McDonald’s. (2021, 07 08). McDonald’s-wikipedia. Retrieved 07 11, 2021, from McDonald’s: https://en.wikipedia.org/wiki/McDonald%27s
McDonald’s. (2021, 07 08). McDonald’s. Retrieved 07 12, 2021, from McDonald’s-Wikipedia: https://en.wikipedia.org/wiki/McDonald%27s
MEYER, P. (2017, Feb 06). Burger King’s Operations Management, 10 Decisions, Productivity. Retrieved 07 12, 2021, from Panmore Institute: http://panmore.com/burger-king-operations-management-10-decisions-productivity
Pretson, O. (2017, Feb 7). McDonald’s V Burger King Swot Analysis. Retrieved 07 12, 2021, from prezi.com: https://prezi.com/0zqs_5-8kvet/mcdonald039s-v-burger-king-swot-analysis/?frame=8b11e9a2013c09f7db4a77301f12a466c5bf3ea6
Smithson, N. (2018, sep 08). Burger King’s Organizational Structure Analysis. Retrieved 07 12, 2021, from Panmore Institute: http://panmore.com/burger-king-organizational-structure-analysis
Thompson, A. (2019, Feb 26). McDonald’s Organizational Structure & Its Characteristics – An Analysis. Retrieved 07 11, 2021, from Panmore Institute: http://panmore.com/mcdonalds-organizational-structure-analysis
Wessh, J. (2019). The Service Concept of McDonald’s. Retrieved 07 12, 2021, from GRIN: https://www.grin.com/document/493809