McDonald’s Brief Overview

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Business Finance

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Week 5 and worth 230 points

For a hospitality business to be successful, the management team must have a strong purchasing process which includes both selection and procurement. This process must be well-established in order to control costs and deliver the best possible product / service for its target customers.

For this assignment, you will choose one (1) major restaurant chain from the list below that uses central commissary and develop a new purchasing process for a single restaurant unit. You will use this restaurant chain as a framework (i.e., the menu, average restaurant size, and management / employee organizational structure) for developing a new purchasing process. Note: You must create your own purchasing process for a single restaurant unit based on the concepts you have learned in the course. Do NOT just report on the restaurant chain’s current purchasing process.

List of U.S. resturaunt chains, select one (1):

  1. McDonald’s
  2. Starbucks
  3. Subway
  4. Wendy’s
  5. Burger King
  6. Taco Bell
  7. Dunkin’ Donuts
  8. Pizza Hut
  9. Chick-fil-A
  10. Sonic

Write a four to six (4-6) page paper in which you:

  1. Choose one (1) major restaurant chain and provide a brief overview including:
    1. a history of the chain
    2. the type of cuisine(s) and theme
    3. the number of restaurants
    4. the average restaurant size (seating capacity) and layout (both front and back of the house layouts)
    5. the standardized menu (both food and beverage)
  2. Describe the restaurant chain’s central commissary including the products it supplies and it doesn’t supply, and analyze how the central commissary benefits a single restaurant unit.
  3. Select at least three (3) purchasing technologies from the following list: inventory-tracking, storage management, product ordering, product identification, and bar-code reader. Explain how those you have chosen will be used to optimize the purchasing process for this restaurant chain.
  4. Explain how the new purchasing process for this restaurant unit follows and abides by the five (5) major purchasing objectives. Provide a rationale for each objective.
  5. Use at least three (3) quality references. Note: Wikipedia and similar Websites do not quality as academic resources.

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Explanation & Answer

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Running head: MCDONALD’S

1

McDonald’s
Name
Course
Professor
Date

MCDONALD’S

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McDonald’s

Brief overview
McDonald’s Inc.is one of the most successful and influential players in the country’s
hospitality industry. Founded in 1955, the business was the brainchild of Ray Kroc, who
bought the restaurant from the two original owners who purchased the business from brothers
Dick and Mac McDonald. He was impressed by their sense of effectiveness and efficiency,
especially in the realms of service delivery as well as their cleanliness, and sought to build a
franchise based on the qualities mentioned above. When he came up with the idea of the
franchise, he found to maintain a particular taste and quality of product and as such embarked
on a mission to ensure the fact that the taste and quality of their foodstuff were consistent and
similar in all their branches.
In its 38,699 outlets worldwide, the conglomerate focuses on its flagship programs,
being the burgers, fries, and beverages. The organization has insisted on having these
products and selling them throughout their stores present within 120 countries worldwide
(Schmid & Gombert, 2018). The organization decided on an operational model that envisions
a restaurant model that seeks to seat at least 120 customers at a go, with the larger restaurants
seating up to 300 guests. The selling point that the restaurant chain banks on revolves around
its ability to produce the same quality and taste of food throughout all its franchises, which
were operated the same way all the branches prospered. In essence, the organization had to
go the extent of creating a segment in the Hamburger University that trained the prospective
employees of the company on their respective practices. Apart from focusing on the product
that the company offers, the organization looks into the service and service delivery drives
that see the maintenance ...


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