Analysis of McDonalds

-McOpCo Store at Hillybourne was open from 7.00 am to midnight, 363 days / year. Daily volume peaked at lunch (15% of daily sales between noon and 1.00 pm) while weekly volume peaked on Friday (18 % of weekly sales). The store’s annual volume totaled about $1.1 million in 1980. The average check was $2.24 in June 1980.

-The Store had 61 parking spaces and 106 dining seats inside.

-Most of the customers are high school & college-aged workers.

-Food Flow of McD..

-Store operations

Regular method

1. Customer enter

2. Counterperson greets the customer, accepted the order & uses a suggestive sellup

3. Counterperson put the order into the register. Then use it to confirm, assemble and check the order.

Order sequence:

Cold drinks – soft drinks (7-12 seconds), shakes (5-7 seconds)

Hot drinks – 5 seconds

Sandwiches – Selected from a warming bin

Dessert – Pies & cookies from racks, ice cream desserts from a spout (8-20 seconds)

Fries – Selected from the fry bin

4. Counterperson receives the order and put on a tray

5. Customer was asked for payment and given change

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Drive-Thru

1. Customer came to the drive-thru area

2. Customer selects the order from a screen

3. Counterperson put the order into the register. Then use it to confirm, assemble and check the order.

4. Customer move to counter area to take the order and give the payment

-Sandwich Production

Figure B McDonald’s Sandwiches

Figure C Sandwiches Preparation

After the patties were removed, the grill had to be scraped clean with a heavy scraper (about 15 seconds). Meat sandwich buns was caramelized on their inside surfaces by placing them in contact with extremely hot platens for 55 seconds. The batch sizes are 12 burgers, 6 Macs & 10 quarters.

Elapsed Cooking Time

Burgers QuartersStart 0 0Sear 20 20Turn 60 150Pull 100 270

-Fry and Pie Production

1. Frozen fries were placed in wire basket and stored on a rack to thaw up for up to 2 hours before use.

2. Potatoes were fried in one of three vats for 2 minutes and 5seconds

3. After being drained, the fries were moved into a hopper warmed by heat lamps and stored for up to 7 minutes.

4. Worker bagged fried to order in slow times and for storage on a heated, 20-serving carousel in busy periods.

The apple and cherry pies were fried in one of two vats for six minutes in batches of up to 10. When finished, they were boxed and held up for up to 90 minutes in a warming rack up front. The fish station operator produced the pies.

-The Bin

The employee on the bin managed the flow of products into the sandwich holding bin, calling for production as needed, wrapping the sandwiches, and keeping the bin stock organized and fresh. To keep the sandwiches fresh, the sandwiches were held for no longer than 10 minutes after wrapping.

-Support Activities

Store opening and closing each took about an hour (for setup, clean, restock and so forth).The hillybourne store had 4 freezers. A large walk-in at the back of the lot, a medium size in the kitchen & two small ones by the grill and fish station. All food arrived ready to use.

-Crew

In June 1980, they employed 45 hourly crew members. All were young, most under 20, some 20-25 and a couple over 30 years old and most were women. Crew hiring was done by first assistant manager. The store advertised for help through newspapers, onsite posters, local high school & college job offices. McDonald’s introduced a new crew pay system called Crew Bonus System (CBS). It provided for crew members to receive minimum wage plus a thrice yearly bonus check determined by multiplying actual hours worked during the bonus period by a bonus factor keyed to performance and seniority.

-Management

They had five salaried McOpCo managers. Moreover, they had hired to swing managers. Swings were generally college aged men and women who had performed well as crew members and paid on an hourly basis. Manager were responsible for the running the shift for various activities such as scheduling and ordering, customer relations and for training. Managers were hired and promoted by the operations manager with the approval of the region’s director of operations. The McOpCo career path progressed from trainee through second assistant manager and first assistant manager to store manager.

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