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McDonald's in China | Inside China | CNBC International

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McDonald's business have grown in China over the past few years. CNBC goes behind the scenes to find out how McDonald's in China is the same as McDonald's in the US. Subscribe to CNBC International: http://bit.ly/1eiWsDq The golden arches of McDonald's are an iconic symbol in the U.S. and now, China.

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The first McDonalds restaurant to open in China was 1990, and in 1992 McDonalds opened their biggest restaurant in Beijing with 700 seats and 29 cash registers, This began the "westernization" of China. Possible challenges that were faced could have been the loyalty Chinese customers had to authentic Chinese cuisine. However today, there are over 4,000 McDonalds restaurants in China and McDonalds is the 2nd largest fast food chain in China.

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Rio, Rio de Janeiro - State of Rio de Janeiro, Brazil

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Rio, Rio de Janeiro - State of Rio de Janeiro, Brazil

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Rio, Rio de Janeiro - State of Rio de Janeiro, Brazil

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In 1979 McDonalds opened its first restaurant in Brazil and South America, and now has over 600 stores. In Brazil people have a nickname for McDonalds being "Méqui", created in 2019 and has gained so much popularity, that it is referenced in advertisements, store facades, social media, and as a display name on mobile apps.

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Big Mac leaves Russia| Russia opens rebranded McDonald's restaurants | World News | WION

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In 1990 McDonalds Canada president was permitted to open a McDonalds restaurant in Moscow after years of negotiation and planning. When first opened, it was a joint venture 50/50 with Moscow city council food service administration, and because of the weak Russian ruble the food was very expensive. One large challenge that was faced when first expanding was McDonalds had to build plant to acquire and source all the necessary ingredients to stay up to standard. This is due to the policies and lack of freedom within the market (not capitalist). Later after the fall of the Soviet Union, and Russia's slow introduction to more capitalism, it became a lot easier for McDonalds to operate. As of today, there are over 850 McDonalds in Russia.

Daly, J. (1990). The “Big Mak” attack. (McDonald’s in Moscow). Maclean’s (Toronto), 103(7),50–.

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In 1995 McDonalds opened its first restaurant in South Africa, also the first McDonalds in Africa. Today there is over 300 restaurants in South Africa, employing over 12,000 people. In 1994  South Africa Transitioned from a system of apartheid to one of majority rule, with the African National Congress coming to power. This came with many policies to change and opportunities came forward. Ultimately this increased the economic growth and growth in GDP, which allowed for entrepreneurial opportunities, which in further effect was perfect for McDonalds to expand to South Africa.

Mahadea, D., & Kaseeram, I. (2018). Impact of unemployment and income on entrepreneurship in post-apartheid South Africa : 1994–2015. The Southern African Journal of Entrepreneurship and Small Business Management, 10(1), 1–9. https://doi.org/10.4102/ sajesbm.v10i1.115

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The Ronald McDonald House charities was started in 1974 to give parents of sick children in the hospital a place to stay and nice meals with other accommodations, providing comfort and support to families that need it. Today, more than 377 Ronald McDonald House programs operate in 45 different countries around the world, helping more than 10 million families since 1974. Helping struggling families with family-centred care suites McDonalds brand and definitely shines a good light, but it is undetermined wether or not there is a direct return on investment. There are analysis done to see if there is a social return on investment and how this effects the performance of McDonalds in other sectors of the business.

Bellucci, M., Nitti, C., Franchi, S., Testi, E., & Bagnoli, L. (2019). Accounting for social return on investment (SROI): The costs and benefits of family-centred care by the Ronald McDonald House Charities. Social Enterprise Journal, 15(1), 46–75. https://doi.org/10.1108/SEJ-05-2018-0044

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In 1996 McDonalds opened its first restaurant in India, and by adapting to the local consumer market and localizing the business, this allowed them to successfully expand and now there are 316 operating stores around the country. However in 1991 Indian economy fell into a deep crisis, when foreign currency reserves more or less had crashed down to 1 billion, inflation had touch to an annual rate of 17%, fiscal deficit was very high and had become unsound, and foreign investors had lost confidence in Indian economy. it was thought that once the Indian economy was set free from the regime of control, quotas and license, it would in return achieve a high growth rate of GDP. Which led to the Indian government in 1991 to call for complete refurbishing of their economic policies and programs (New Industrial Policy of 1991). This liberalization further allowed for the the foreign investment of U.S corporations one of which being McDonalds.

Dongre, A. P. (2012). Policy changes in the wake of globalization and its impact on Indian industries. Journal of Policy Modeling, 34(3), 476–496. https://doi.org/10.1016/ j.jpolmod.2011.10.004

Nandini, A. S. (2014). McDonald’s Success Story in India. Journal of Contemporary Research in Management, 9(3), 21–.

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In 2016 Kazakhstan became 120th and most recent country to have opened a McDonalds, it was also the first McDonalds in central Asia. Now around 2,000 people are employed at 24 different McDonald locations across the country.

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In 1967 the first McDonalds in Puerto Rico opened its doors, and now there is a little over 100 McDonalds locations. Since Puerto Rico is an U.S territory the ability to open McDonalds was there, however the question of wether it would be successful was more significant. Due to McDonalds franchising and sourcing locally it appealed to the customer base.

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In 1967 Canada became home of the first McDonalds outside the U.S. Today, Canada has more than 1,400 McDonalds restaurants, 85% of which are locally owned and operated by independent entrepreneurs. In total McDonalds employs more than 90,000 people in Canada, however if both direct and indirect employment, McDonalds is responsible for more than 200,000 jobs. The path Ray Kroc chose for McDonalds to expand was for franchisees and to be more independent and for the restaurants to be locally owned and supplied. This was the correct path for McDonalds because it made it easy for the expansion and globalization of the McDonalds corporation.

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San Bernardino, California, United States

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San Bernardino, California, United States

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San Bernardino, California, United States

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In 1940 Richard and Maurice McDonald open McDonalds BBQ restaurant, a typical drive in featuring a large menu and car hop service. Then in 1948 they reopened as a self-service-drive-in restaurant with a reduced menu. They began to franchise the restaurant and in 1954 Ray Kroc became the McDonalds brothers franchising agent. Ray Kroc in 1955 opened the first McDonalds restaurant east of the Mississippi river. McDonalds continued to expand and in 1967 began to globalize. As of today McDonalds is worth 187.84 billion USD and revenues around 23 billion USD a year. McDonalds has 13,341 restaurants in the U.S, with over 40,000 stores globally in over 100 countries, making McDonalds the world leading global food service retailer. McDonalds has over 200,000 employees worldwide and over 2 million people work at McDonalds franchises worldwide. About 93% of McDonalds restaurants are independent franchises, this helped McDonalds grow as a corporation as well as globalize. The "Glocalization" strategy (franchise to local entrepreneurs, source food locally, and appeal to the local consumer market) which is executed perfectly by McDonalds, along with amazing marketing and advertising, has a large impact on McDonalds success.

Crawford, A., Humphries, S. A., & Geddy, M. M. (2015). McDonald’s: A Case Study in Glocalization. Journal of Global Business Issues, 9(1), 11–.

Singireddy, M. (2020). Mcdonald’s: Global Marketing. International Journal of Health and Economic Development, 6(2), 16–27.