Franchise Focus
invest in their career development, whether by working their way up through the business or investing their time and money committing to the McDonald’s franchisee training programme.
Jeanette Roe
Backing the brand
McDonald’s and its franchisees are working together to build success
INVESTMENT LEVEL: £85,000* E
ver since McDonald’s came to the UK in 1974, the concept of the ‘three-legged stool’ was established as the foundation of its business model. Suppliers,
franchisees and company employees make up the three legs. It is this culture of partnership and collaboration that has become a competitive advantage for both the brand and the McDonald’s business operation. McDonald’s works with franchisees to shape and grow its franchises as well as the company as a whole; creating a truly modern and progressive brand. Franchisees start with a nine to twelve- month intensive training period and go on to feed into the wider brand strategy and overall direction of the business. Along with this collaborative way of working, one of the major advantages of owning a franchise with McDonald’s is its trusted and proven business model. Investing in a tried-and-tested model reduces the risk for franchisees while giving them the freedom to own and run their own businesses. With guidance from the brand, they decide where to make the investments
and McDonald’s provides the logistical framework to make these things happen.
“There is no limit to how far or how fast you can develop your career”
That being said, being a McDonald’s franchisee isn’t for everyone. In return for the opportunity to operate as part of the world’s leading burger chain, McDonald’s expects franchisees to dedicate themselves to the business entirely, putting in a considerable amount of hard work along with a significant financial investment. This expectation is reflected in McDonald’s franchisee agreements, which are for a standard 20-year term – underpinning the long-term commitment and brand loyalty that McDonald’s values. The dedication and long- term vision held by McDonald’s franchisees and employees is what contributes to the consistency and high quality found across the brand, regardless of which restaurant a customer visits. Franchisees continually
The level of commitment that McDonald’s expects from its franchisees means that they are not allowed to have outside business interests. However, although McDonald’s only franchise one restaurant at a time, if a franchisee attains consistently high standards then McDonald’s will consider selling them additional restaurants. One such franchisee is Jeanette Roe. Jeanette joined McDonald’s in 1981 as a graduate trainee manager in Derby’s busy city-centre restaurant, St Peters Street. She spent the next nine months working her way up the company before being promoted to business manager of the new Nottingham city centre restaurant in 1982. Eventually, Jeanette became national head of training, customer service and operations at head office before she decided to become a franchisee herself. “I wanted to become a franchisee because I had seen first-hand the integral role that McDonald’s franchisees play in the success of the brand,” says Jeanette. “Working with the McDonald’s brand there is no limit to how far or how fast you can develop your career. Success is rewarded and the right tools are in place to help franchisees succeed – it is a truly collaborative partnership.”
Jeanette bought her first franchise in 2001 and today owns a total of four restaurants. In fact, with the purchase of Broughton Parc this year, she now owns every McDonald’s restaurant in Chester. McDonald’s has a unique structure.
The robust partnership between supplier, company and franchisee has seen the franchised portion of McDonald’s restaurant estate grow to over 65 per cent. This is a figure that the company is looking to grow. Unlike franchisees in many other organisations, McDonald’s franchisees are strongly rooted in their communities. Jeanette says: “McDonald’s encourages its franchisees to place themselves at the heart of the communities in which they operate and really get to know their customers. I’ve no doubt that this not only helps make and keep the brand locally relevant but is a key ingredient in both franchise and brand success.” n
*As a guide, the cost of a restaurant typically ranges from £125,000 to £325,000. You will need to provide at least 25 per cent of the value as unencumbered funds, the remaining 75 per cent can be funded through a bank loan with favourable funding terms.
MCDONALD’S
October 2013 |
Businessfranchise.com | 91 WEBSITE:
www.mcdonalds.co.uk/franchising
Investment: £50k-£100k
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