Also introduced in 1973, the Egg McMuffin was developed by franchisee Herb Peterson. In 1983 the company introduced Chicken McNuggets, bite-sized fried chicken morsels accompanied by dipping sauces. Within a few months, McDonald's ranked as the world's second largest retailer of chicken. Filet-O-Fish, another famous sandwich, was developed by franchisee Lou Groen. Moreover, McDonald's has attempted to accommodate increasing customer demand for healthier food. In 1986 McDonald's began offering nutritional information about the items on its menu. The company also began to offer lighter entrees, such as salads and frozen yogurt. (Website of McDonald's).
Promotion.
McDonald's restaurant, which offer toy promotions and often feature playgrounds, are especially popular with children. During the 1960s, McDonald's began aggressive advertising and marketing campaigns. In 1962 the company adopted the golden arches as its trademark. Ronald McDonald, the familiar clown that serves as McDonald's mascot, was introduced in 1963. Also, the company launched its highly successful "You deserve a break today" advertising campaign in 1970. In 1996 McDonald's signed a 10-year agreement with The Walt Disney Company. Under the terms of the agreement, McDonald's would operate restaurants at Disney theme parks, and Disney would promote its films through McDonald's . (From the textbook).
Franchising .
In business, the term franchise refers to the exclusive right given to someone to market a company's goods or service in a particular area. In return for a specified fee and usually a share of the profit, the franchiser provides the product, the name, and sometimes the physical plant and the advertising. .
McDonald's is a very good example of franchised business. In 1955, Kroc established a franchising company known as McDonald's Systems, Inc. and opened a second McDonald's restaurant in Des Plaines, Illinois after getting the permission to sell McDonald's franchises from the McDonald brothers.
