Location
Introduction
What are the characteristics of the locations the business tends to choose?
McDonald’s is one of the most recognizable and revered corporate logos in the world. With approximately 33000 locations in the world, McDonald’s has managed to attract people owing to its convenience, competitive prices, product families, and familiarity in identifying the restaurant’s location conveniently. Since its establishment in 1955, the company has always had particular requirements for its location.
McDonald is keen on the location of its stores in that it contributes significantly to its potential success. The ideal site for a McDonald restaurant is 500,000 square feet – although the company has constructed units with larger and smaller sizes. The restaurant chooses a corner location that provides options to put signs that are visible from major streets, such as a site near a major intersection that has traffic signals (Lundy & Moritz, 2005). The site should have sufficient parking space and must be applicable to local parking standards.
McDonald’s restaurants are also characterized by visibility, mostly in areas with high traffic. Increasing visibility acts like free advertising to the restaurant. It is often located in locations with ample parking space to increase convenience. The place must be secure to increase user safety and confidence. McDonald’s is keen on its space in that it avoids setting up in locations where previous restaurants have failed to avoid being associated with bad services, lackluster ambiance, or poor foods.
What are some of the driving factors for the selection of this specific type of location?
McDonald’s choice of location is often facilitated by the need to provide its customers with easy accessibility and convenience. The company as built quality restaurants in different neighborhoods, including malls, airports, colleges, and tollways, in a bid to increase convenience and add value to its customers. According to 2019, McDonald’s restaurants may be clustered together in a bid to compete for the best locations in the market. The particular choice of location increases traffic due to safety, convenience, accessibility, and visibility, which increases traffic into the restaurant.
What are some of the challenges in selecting this specific type of location?
In its effect on achieving its desired location, McDonald’s often faces a few challenges that could affect its location objectives. Although the choice is exceptional, the restaurant’s greatest challenge in the selection of location is increased competition from competitor restaurants. For instance, the company’s choice of location may be affected by its competitors, such as Burger King and Chipotle that may desire to set up their businesses in similar locations (Khatibi, Thiagarajan, & Ismail, 2003). Since the location is desirable by most restaurants that want to increase traffic, the rent may be increased, which makes it difficult for the company to achieve its aspired profit margin. The company may increase the cost of its products in order to meet the profit margin, an aspect that could cause it to lose business to its competitors that offer cheaper quality products.