How McDonald’s Gets Its Produce

How McDonald’s Gets Its Produce

McDonald’s is a fast-food company in America which was founded in 1955. According to Hufford, Austen (2016), it established its headquarters in Chicago in June 2018, from Oak Brook, Illinois. This cooperation is a franchise, it is available in most countries all over the world. The BBC UK (2021) recognizes the cooperation as a multinational company because it operates in more than one country. It makes its money through franchising contracts, rent, and royalties. Magazine, BrandZ (2020), stated that Mcdonald’s has the ninth highest global brand valuation.

The Mcdonald's menu consists of hamburgers,

The Mcdonald’s menu consists of hamburgers, French fries, chicken, sandwiches, cupcakes, coffee, ice cream, smoothies, drinks, and desserts. Recently, McDonald’s has introduced salads and fruit to balance the amount of unhealthy food sold. Their restaurants have a sit-in area, but people also choose to buy the food as takeaways. To purchase at McDonald’s, customers can drive-thru or buy at the counter inside the restaurant. Sometimes, people can order the food online so that it can be delivered at home.

How McDonald's Gets Its Produce

This cooperation does not manufacture its products, they buy different products from different places. The restaurant’s contract with their suppliers provides an amount of produce that the restaurants then pay for. Some products which are supplied include meat, poultry, fish, and bakery supplies. They also provide them with dairy products such as yogurt, milk, or cheese. Since there are franchisees globally, this means that they have many product suppliers. For products such as meat or dairy products, a franchisee can contract with a farmer to make them their supplier.

Suppliers are contracted based on the good or services which is produced or provided. According to Rekha Khandelwal, CFA (2020), some suppliers include Tyson Foods, Lopez Foods, 100 Circle Farm, Gavina Gourmet Coffee, and Hildebrandt Farms. In the US, Lopez Foods supplies beef used to make patties, 100 Circle Farms supplies potatoes for the French fries, Hildebrandt Farms supplies milk, Dirk Giannini produces lettuce, and Kenny Longaker is a fish supplier. According to McDonald’s USA (2017), meat and fish are produced by Keystone Foods, Gavina Gourmet Coffee produces coffee, and Mike Dietrich provides them with apples.

Franchisees of McDonald’s have many suppliers internationally, all depending on what is farmed or produced. This company has diverse menus internationally. In each country, it may be influenced by religion or geography. It sells food which people in that area are most familiar with.