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Reason for International Expansion.
Strategies for Expansion.
Process of Expansion.
Right Partner and Team..
To start a food franchise business high start-up costs and pesky royalty fees to be born by the investor. However, an investor can still pursue this high investment because the certainty of profitability is high in the franchise business as compared to the other types of businesses. After all, the brand already holds a significant position in the market. Fast food franchise is something that never goes out of trend and requirement. The working sector has the least amount of time to spend over the homemade food for all three meals. It is time-consuming and also monotonous. It is rather easier to grab a burger or a happy meal from their favourite fast food outlet. It makes their task easier, simpler, and without any hassle adding a little extra taste to their appetite. This not only rejuvenates their taste buds but also helps them feel happier.
Initiating the McDonalds Franchise in the Australian market can prove to be profitable because the brand name certainly holds a monopoly in the burger market. Majority of the population will be reminded of McDonald’s if they want to eat a burger. It has a distinct position in the market concerning the name, establishment and also the popularity.
McDonald’s has been serving its customers since 1948. It is the largest American Fast food chain. The brand got its public image with a Clown in the year in 1963.
The mission of our new Franchise business in the Australian market will be to stand with the legacy created by the brand. It will be our responsibility to abide by all the quality standards and measures set by the McDonalds brand.
The organization will also conduct regular surveys to understand the tastes and preferences of the population to bring about changes in the food style and choices offered to the customers. This will be done to ensure maximum attraction of the customers towards the restaurant.
This initiative would be a quick-service restaurant (QSR). The restriction would be laid over the recipe of making the products but not the taste. The taste would grow better and deeper with each passing day. So, the McDonalds fast-food chain is the richest amongst all other fast food franchises across the globe. Not only this, with attaining greater heights, it has become the second-largest chain of any fast-food franchise in the world. The outlet distributed across the world not only serves the customers but also stands as an important perspective. It distributes across 100 countries in the world and strives for more expansion. The food menu does not remain the same throughout every geographical area. It changes according to the cultural and social demands of the customers. The U.S. market is the major place for distribution with a huge population and demand. Also keeping in mind that is originated from the US. High Growth Markets and Foundational Markets and Corporate ethics and values are to be taken care of. McDonald's diversified cafés are possessed and worked under different structures, including customary establishment, formative permit or associate. The Company is principally a franchisor. Under a regular establishment game plan, the Company claims the land and fabricating or makes sure about a drawn-out rent for the eatery area and the franchisee pays for gear, signs, seating and stylistic layout (Guhathakurta, 2018 p3450).
McDonald's menu incorporates a variety of amazing and delicious range of burgers and sandwiches. They have a special range for breakfast which includes Mc Egg, Mc Veggie, and other hot drinks. Their cheeseburgers, Big Mac, nuggets, paneer, chicken sizzlers burger, potato wraps, are a delicacy. Filet-O-Fish, a few chicken sandwiches, Chicken McNuggets, wraps, French fries, coke, oats, shakes, Mcflurry sweets, desserts, delicate serve cones, pies, soda pops, espresso, McCafe drinks and different refreshments. Likewise, the cafés sell scope of different items during restricted time advancements. McDonald's eateries in the United States and numerous global business sectors offer a full or restricted breakfast menu. They too have a range of scone and bagel sandwiches, with hotcake (Nambisan, 2019 p1472).
Expansion is necessary to reach out to more customers. However, there are greater opportunities while the fast-food franchise grows and evolves when it is received by a larger number of people. Though there are a set number of customers inland, there is always a good hope if the business is expanded and diversified overseas and abroad. The major purpose is to convey the food to as many people as possible. Therefore, it is necessary to connect to more customers for better feedback and greater chances of popularity (Onyusheva, 2020 p10).
The U.S. fragment centres around providing a platform for true request that gives the clients a chance to change their meal and make necessary modifications. The potentially high expansion segment remembers the tasks for the franchise, such as Italy, Korea, Poland, China, Russia and some European countries along with related business sectors. The International Lead markets section remembers the Company's activities for different business sectors, such as Australia, Canada, France, Germany, the United Kingdom and related business sectors. McDonald's High Growth markets are centred on making client fervour through menu, advancements and esteem, and actualizing a computerized system with explicit versatile arrangements and activities. The Foundational markets and a corporate portion is occupied with working eateries and expanding accommodation to clients, including through drive-through and conveyance (Shabbir, 2018 p20).
The fast-food franchise, McDonald’s, strives for 5P’s. They are:
Expansion is important, but some necessary strategies are to be planned for the same. Targets are to be set to meet and signify the needs and requirement of the business. Customer satisfaction is the major goal for the growth and prosperity of any business. Next, the products must be focused over and manufactured in a safe and hygienic place. After all, the customers are to buy the products. Thus, they need it clean and tasty. The new market place has to be identified and fixed. The employees are to be hired for providing improved services. To set the business to a new place, there could be newer offers and meals that could be distributed. This could attract a huge number of customers for better yield resulting in more sale.
Paying more emphasis over the 5P’s would reduce the chances for monetary losses and creating any disturbance in the market value (David et al., 2017 p347).
Expansion reaches greater heights and with that, increased responsibilities and the demand for better supplies pop-up. This allows greater profits for added advantage and popularity (Collinson et al., 2016).
Finding the correct partner for expansion should be the foremost step towards expanding the franchise business. The partner could be trusted and must be ready to go off track in the short as well as a long run for the prosperity of the business. With an understanding and superiorly efficient team the ethical, cultural, social, and physical barriers would be easily tackled. In case of selecting the perfect distributor for the franchise business, it is always advised to go for the largest distributor in town. Large distributor with a higher drive towards the products would result in greater success rates (Cantwell, 2017 p50).
To maintain a safe and healthy environment it is suggested to keep the interior as well as the exterior neat and hygienic. The infrastructure takes a toll over the mood and zeal of the customers who would plan to enjoy their happy meals. The cash counters, the serving tables and booths, bin area, and most importantly the entrance and the exit must be supervised and maintained thoroughly. An apt infrastructure brings positive vibes and organized work system.
An attractive and creative dine-in place could fetch more customers than a shady and dull-looking place. To launch a new franchise overseas it is important to invite customers with a happy and enthusiastic vibe (Cherunilam, 2020).
To expand the franchise business in Australia to India, the government does not need any new registration. Also, there is no obligation in the disclosure agreement. The pre-sale disclosure is between the two parties with their terms and conditions. Although, the complications of not serving and following the terms and agreement would imply in breach.
The selling price of regular products like Mc Egg, Mc Veggie, Mc flurry, Coke, and similar items shall be the same. Although the happy meals and combo would be distributed at a lower price as a discounted launch offer (Lixian, 2018).
The flavours and products ought to be improved and modified to recreate something better and tastier. The menu would be re-set for ensuring better services with improved taste and quality. The taste and product innovation would subject to the location and the natives of that place. Such as, the majority population of India is either vegetarian or vegan. So more vegetarian burgers, wraps, and sandwiches would be available with extra spice.
The innovation shall be checked every week based on the sale and customer feedback. In case of more sale and higher customer ratings, the product would be analysed on three parameters:
International Business refers to expanding trade to a global level. Globalization is the need of the hour, it could generate better revenues and help both the countries to evolve economically. It brings global harmony and peace and thus, the countries build a healthy relationship.
By investing in international business, the product remains to grow and prosper with extended lifespan. With increased marketing, gross revenue also increases.
Franchise business needs to be registered, unlike any licensing business. The support and training are given by the franchiser itself while the territorial rights are given exclusively to the franchisee. This helps in expansion in a lot better way than expanding their own business. It reduces losses and responsibilities. Therefore, there is a lot of scope for the food-franchise business to grow overseas with the mentioned points (Gökşen et al., 2018 p680).
Cantwell, J. (2017). Innovation and international business. Industry and Innovation, 24(1), 41-60.
Cherunilam, F. (2020). International business. PHI Learning Pvt. Ltd..
Collinson, S., Narula, R., & Rugman, A. M. (2016). International business. Pearson.
David, M. E., David, F. R., & David, F. R. (2017). The quantitative strategic planning matrix: a new marketing tool. Journal of strategic Marketing, 25(4), 342-352.
Gökşen, Y., & Karabacak, S. (2018). Marketing Expansion Strategies in Multinational Marketing: The Role of e-Business. In Economy, Finance and Business in Southeastern and Central Europe (pp. 675-688). Springer, Cham.
Guhathakurta, R. (2016). A Brief Note on the International Franchising. IndraStra Global| ISSN, 2381-3652.
Lixian, W., & Huijun, W. (2018). Lean Design of Decision Support System for Power Business Expansion. Automation & Instrumentation, (1), 25.
Nambisan, S., Zahra, S. A., & Luo, Y. (2019). Global platforms and ecosystems: Implications for international business theories. Journal of International Business Studies, 50(9), 1464-1486.
Onyusheva, I. V. (2020). Exploring Foreign Market Entry Strategies as a Way of International Business Expansion. Вестник университета Туран, (1), 9-14.
Shabbir, M. S. (2018). Innovation Strategy of McDonald Business from Historical perspectives. International Journal of Global Business, 11(2), 9-28.
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