McDonalds in the United Kingdom
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Case Details:
Case Code : BSTR339
Case Length : 32 Pages
Period : 1974-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : McDonald's Corporation
Industry : Fast food
Countries : UK
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Overcoming Challenges, Gaining Momentum Contd...
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During the period, McDonald's business in Europe registered a 3.2% rise in sales and its global profits increased by 4% to US$ 979.5 million. It was reported that McDonald's growth in the UK was above the European average in terms of sales as well as customer count.
In the UK, cost-conscious customers flocked to McDonald's restaurants as they offered different menu choices at affordable prices. Commenting on its business in the UK, Steve Easterbrook (Easterbrook), CEO of McDonald's UK, said,
"This marks our twelfth consecutive quarter of growth and has been achieved at a
time when the informal eating out market in the UK was flat."
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The UK was one of the key markets for McDonald's. The fast
food giant entered the country in 1974, at a time when American-style fast food
was not too popular in the country. The British considered McDonald's entry a
part of the American cultural invasion and so McDonald's faced some start-up
problems in the country. During its first year in the UK, McDonald's reported
losses as it failed to attract English customers.
In order to enhance its brand reputation in the UK and to improve sales,
McDonald's focused on four core areas - food, employees, the environment, and
communities. It introduced several new items on the menu, revamped restaurants,
launched community programs, and introduced accredited qualifications and
apprenticeships for its employees in the UK...
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