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In modern society, such a resource as time is precious. Relying on this factor, fast food restaurants have gained tremendous popularity, some of which have gained global success in many countries. The study of strategies and the local contributions they have made is of interest to researchers, as it can provide important insight on how to run a business properly. Thus, this work will consider two of the most famous American fast foods, such as McDonald’s and KFC (Kentucky Fried Chicken). The main objective of the scientific work will be a comparative assessment of both global companies on the development and functioning strategies in the United States and other countries.
First of all, it is worth considering what contribution both companies have made to the fast food restaurant industry. Hence, McDonald’s is the first organization that comes to mind at the mention of fast food. Despite the large number of new establishments that have the same fame, the institution was opened in 1948 by brothers Dick and Mac McDonald (Singireddy 17). Initially, the fast burger cooking service gradually gained popularity and set a high bar for other companies. McDonald’s still has a solid customer base and boasts a high percentage of its customers’ loyalty. The organization’s sales account for sixty percent of the entire market only in the United States of America (Top Chain Restaurants Worldwide para. 5). It is difficult to spoil this kind of reputation even with the most severe problems that the organization has faced throughout its long career.
On the other hand, it is worth noting that KFC or Kentucky Fried Chicken, although slightly behind in popularity, is not inferior to its competitor. Founded by Harland Sanders in 1952, the fast food restaurant focused more on dishes; the main ingredient was uniquely seasoned chicken. This is one of the differences between the company and McDonald’s, which presents a large number of choices regarding the components of the products. KFC, like its competitor, had a fairly significant contribution to the development of the fast food market, but it is still in the next place, after the Dick and Mac McDonald restaurant.
Next, the strategies that companies use to promote their products must be considered. Furthermore, regarding McDonald’s, the basis of this policy is the emphasis on advertising campaigns. The same can be noted in the KFC strategy, which shows that companies use approximately the same development plan in the fast food market. Moreover, both organizations apply various discounts and promotions, which also help to attract a large number of consumers. In addition, initially, McDonald’s and KFC applied a policy of low prices for their products, which attracted the attention of individuals, even of the lowest classes, and increased the profit of restaurants.
The next aspect to consider is how companies deal with problems, challenges, and criticisms. Sources note that McDonald’s, in the course of its history, has faced such barriers as “lack of poor infrastructure and storage, vegetarian population, political issues” (Tilwani et al. 752). Nevertheless, the business “is widely accepted because of its affordable price, quality standards and adhering to the cultural aspects of the nation” (Tilwani et al. 752). To this day, the company is subjected to quite a lot of criticism, which is an integral part of the functioning of such a large global company. Among the main points is the promotion of an unhealthy lifestyle, cruelty to animals, and negative impact on the environment.
Solving this kind of problem, which is related to the ethical side of business functioning, is of particular importance for preserving the reputation of restaurants and consumer loyalty. Henceforth despite the fact that both organizations are taking steps to become more flexible in relation to changing conditions, they face the problem of poor management. This is due to the fact that due to a large number of franchises, companies cannot fully regulate their activities and correctly respond to criticism by applying the necessary measures. Thus, McDonald’s and KFC are aware of which issues the public is particularly unhappy with; however, incorrectly formed management and other problems related to supplies, personnel, and functioning do not allow them to respond to criticism.
In addition, an additional problem that many employees of both McDonald’s and KFC restaurants can complain about is a small salary. Despite the fact that many people can get enough reasonable wage, it is considered as insufficient to maintain an appropriate lifestyle. Research showed that “based on 2016–20 hourly wage rates of McDonald’s basic crew, in 25% of instances of minimum wage increases, restaurants keep constant their wage premium above the increasing minimum wage” (Ashenfelter and Jurajda 182). These data show the opposite and state that wages in fast food restaurants follow a positive trend and are growing. It is worth noting that KFC often experiences less criticism in this area. In many restaurants of this business, employees receive hourly wages higher than the staff of other competitors in the market. This factor distinguishes KFC from McDonald’s and gives it an advantage.
Despite these kinds of issues regarding the functioning of fast food restaurants, McDonald’s manages to maintain its competitive advantage in relation to KFC. This is due to several indicators that need to be considered in order to gain a better understanding of why it remains at the top. Therefore one of them is the introduction of innovative technologies, for example, in the process of creating an order (Singireddy 16). It is worth noting that this aspect is also present in KFC; however, McDonald’s often manages to be the first to apply innovations in its activities. Moreover, among the advantages of the company that help it to lead the market, it is possible to highlight the ability to close the shortcomings and the strengths of the business. Thus, as already mentioned, McDonald’s is facing and continues to face criticism and problems. At the same time, this has a relatively small effect on its success since it still retains its popularity.
The fast food industry has a serious, in many cases negative, contribution to such aspects as local food cultures, diets, and health in the United States and around the world. At the present stage of the development of this industry, an increasing number of establishments are opening in the United States and other countries, which poses a significant risk for individuals. Sources emphasize that “excessive access to fast-food restaurants is thought to be a risk factor for childhood obesity by encouraging healthy dietary behaviors while encouraging the exposure to unhealthy food” (Jia et al. 1). Thus, McDonald’s and KFC are equally responsible for increasing the level of obesity among the population and reducing the degree of adherence to healthy eating habits. This change occurred due to the fact that for many individuals, it is easier to order and receive their food in a short time and at a small price than to spend time buying and preparing healthier alternatives from the store.
On the other hand, there is an opinion that the development and distribution of fast food restaurants have some advantages for society. One of the outstanding ones is the provision of jobs for the population, especially in regions and countries where this factor is a severe economic problem. Moreover, McDonald’s showed how to properly form teamwork to achieve the goals set by the business. Thus, it spends a sufficiently large amount of time and resources on studying its staff and creates such conditions to avoid layoffs and professional burnout.
In conclusion, this work aimed to review and evaluate the work of two giants of the fast food restaurant industry, McDonald’s and KFC. This study examined sources that provided valuable information about both businesses and their strategies and policies. Both institutions have left a significant contribution both to the entire sphere and to society. However, this influence is more of a negative nature, which is also expressed in such general ethical problems of restaurants as cruelty to animals, environmental pollution, and management problems at the global level. McDonald’s, due to its competitive advantage, remains a leader in the fast food industry, despite criticism. Therefore, it was determined that both companies have approximately the same operating strategies, but KFC significantly loses to McDonald’s. Conducting this kind of analysis of the functioning of global fast food companies helps to realize the importance of proper and structured management to avoid problems and criticism.
Works Cited
Akcam, Bahadir K. “Improving Order Processes with Information Technology: McDonald’s Case.” Journal of Information Technology Teaching Cases, vol. 10, no. 2, 2020, pp. 102-107.
Ashenfelter, Orley, and Štěpán Jurajda. “Minimum Wages, Wages, and Price Pass-Through: The Case of McDonald’s Restaurants.” Journal of Labor Economics, vol. 40, no. 1, 2022, pp. 179-201.
Jia, Peng, et al. “Fast-Food Restaurant, Unhealthy Eating, and Childhood Obesity: A Systematic Review and Meta-Analysis.” Obesity Reviews, vol. 22, 2019.
Singireddy, Mallikarjun. “Mcdonald’s: Global Marketing.” International Journal of Health and Economic Development, vol. 6, no. 2, 2020, pp. 16-27.
Tilwani, Shikha, et al. “A Study of the Challenges Faced by McDonald’s while Entering the Market of India.” International Journal of Creative Research Thought, vol. 8, no. 4, 2020, pp. 745-754.
“Top Chain Restaurants Worldwide.”Restaurant Engine, no date.
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