McDonald’s in Norway
Team 4
Robert Jameson, Becky Tibbenham,
Charlotte Jorgensen, Matthew Byler

McDonald’s
 World’s largest chain of hamburger restaurants
 Serve 58 million people in 119 countries daily
 31,000+ locations worldwide
 1.5 million employees (2008)
 Annual revenue of $22.6 Billion
 QSC&V (Quality, Service, Cleanliness & Value)

McDonald’s History
 1940s: Began by brothers Richard and Maurice McDonald in
San Bernardino, California
 1948: "Speedee Service System” established the principles of the modern fast-food restaurant
 Current corporation’s Founding
 April 15, 1955
 Franchised restaurant by Ray Kroc - in Des Plaines, Illinois
 Ninth McDonald's restaurant overall
 Kroc later purchased McDonald brothers’ equity
 He led its worldwide expansion
 1965: Company listed on the public stock markets

McDonald’s History
 May 4, 1961: McDonald's first filed for a U.S. trademark on the name “McDonald’s”
 September 13, 1961: Filed a logo trademark on an overlapping, double arched "M" symbol

McDonald’s History
 Kroc noted for aggressive business practices, so the
McDonald brothers left the fast food industry
 McDonald brothers and Kroc feuded over control of the business, as documented in their autobiographies
 McDonald brothers’ original restaurant now a monument
 International symbol of globalization
 Because of its expansion into many international markets, symbol of globalization and the spread of American way of life
 Its prominence has made it a topic of public debate about obesity, corporate ethics, and consumer responsibility

McDonald’s in Norway
 Entered Norway in 1983 (the 31 st country)
 Currently 69 total stores
 Last year’s revenue: more than One Billion Kroner ($200-
250 million)

McDonald’s in Norway
 “The restaurants stretching from
Kristiansand in
Vest-Agder, to
Steinkjer in Nord-
Trondelag”

 Very different architecture, so location of stores not always where
American’s expect

McDonald’s in Norway:
Restaurant Structure
 Franchising System
 Primary system when expanding abroad
 About 80% of McDonald's restaurants overall operate by franchisees, and 85% of restaurants in Norway are franchised
 They believe franchising a key reason for success because they can influence their own work but also use resources, pulling from McDonald's system's experience, network and expertise in operations and development
 Locally-owned better for environment
 Allows for local customization of menu

McDonald’s in Norway:
Product Distribution
 Control every stage of to ensure product consistency
 Same distribution systems that distribute products to individual restaurants
 But McDonald’s purchases more from local suppliers that meet certain specifications
 Norwegian government ensures only approved, high quality food is used (More on this later)

McDonald’s in Norway:
Quality Assurance
 Stays in close contact with customers’ tastes and needs, despite rapid global expansion.
 Through quality assurance centers located throughout
Europe (similar to those located throughout America)
 Aims to provide 100% satisfaction
 Provide training for employees at “Hamburger
Universities” (similar to those in America)
 Promises same basic menu
 Promises same quality, service, cleanliness and value (QSC&V)

McDonald’s in Norway:
Quality Assurance
 Partnership to work across EU  links 29 countries together
(similar to different states in the USA with transfers, etc)
 Employees from more than 70 countries
 Must be at least 16 years old
 Can be full-time or part-time
 McDonald's is one of the biggest employers for youth:
Most of their 2000+ employees are between 16 and 25 years old and working part time in conjunction with school
 2008: Voted fourth best workplace among large companies

McDonald’s in Norway:
Hamburger University
 Same program worldwide
 Managers go here to learn how to own and operate a
McDonald’s restaurant
 Learn how to maintain QSC&V
 All products, kitchen layouts, and procedures are strictly controlled and essentially the same worldwide
 If restaurants cannot maintain QSC&V they are closed, even if highly profitable

McDonald’s in Norway:
Hamburger University
 Comprehensive Training & Leadership Development:
“With so many career opportunities, it is important that we have equal opportunities for training. This is one of the reasons for the high satisfaction among McDonald's employees.”
 All employees given the opportunity to further educate themselves by learning new tasks

McDonald’s in Norway:
Employee Training
 McDonald's education prepares people for the challenges that come with increased responsibility
 Advancement in the career ladder is very easy
 Five-level Career Ladder
 Restaurant Staff (crew)
 Assistant Shift Leader
 Shift Leader
 Assistant Restaurant Manager
 Restaurant Manager

McDonald’s in Norway:
Employee Training
 Continuing education consists of practical and theoretical exercises, courses and exams.
 Separate, modern training center in Oslo’s main office
 By following the course programs, employees qualify for the next step on the career ladder
 Also cross-border cooperation on training and continuing education

McDonald’s in Norway:
Employee Wages
 McDonald’s follows restaurant industry guidelines, paying wages equivalent to others in the industry.
 Company policy is to follow the Norwegian Working Environment
 As per union, all employees receive a salary adjustment every year on April 1
 Salary rates:
 Depends on seniority and evening/weekend work
 Ages 16-17: 88.68 to 98.68 per hour ($14.63 to 16.28)
 Ages 18-20: 113.68 to 134.99 per hour ($18.76 to 22.76)
 Age 20+: Starting salary of $134.99 ($22.76+)

McDonald’s in Norway: The
Menu
 80% of their food comes from Norway
 Gluten Free (only country for McDonalds)
 June 13, 2007: Tested Salmon Wrap

McDonald’s in Norway: The
Menu
 Burgers are similar
 Norway has most expensive Big Mac in the world (2008)
 Norway very health conscious
 Food has to be approved by Norwegian government: guaranteed high quality & manufactured in sustainable way
 “Our standards often exceed national food safety standards, so our guests will be assured of optimal products and meals when they are in the restaurant.”

McDonald’s in Norway: The
Menu
 Meal for Two:
1 Filet O’Fish
1 Big Mac
1 Cheeseburger
2 French Fries
1 Smoothie
1 Diet Coke
$31.50

McDonald’s in Norway:
The Experience
 Very similar to America: Drive Thru, Happy Meals, and
Similar Food (mostly)
 For Norwegians drive-thrus are not common
 McDrive
 Official Website: “Many of our restaurants are drive-thru restaurants.”
 Very Comprehensive Birthday Party Packages
 Environmentally Friendly

McDonald’s in Norway:
The Experience
 “We want to give something back to the communities where we operate. Local franchisees often support local clubs and associations to help in their local environment.
At national level we have established the Ronald
McDonald Children’s Fund, an independent foundation that works to raise money for chronically ill children.”

McDonald’s in Norway: Marketing
 Employ same competitive strategy in Norway as in U.S.
 Be first in your market
 Establish your rand as rapidly as possible
 Advertise heavily
 This strategy has helped McDonald’s succeed in Norway over other fast food competitors
 However, they have had to adjust advertising campaigns to be more classy and sophisticated

McDonald’s in Norway: Marketing
• Above is an advertisement for a burger in Norway
• McDonald’s has changed brand identity in Europe to appeal to a more sophisticated population
• European operations posted a 2010 second quarter gain of 5.2 % (compared to America’s 3.7%)

McDonald’s in Norway:
Difficulties
 Advertisement for
McAfrika burger
 Norway one of world’s richest countries
 Bad timing: Africa’s worst hunger catastrophe
 Solution: Donate percentage of profits to African Charities

Interviews
 Coming Soon!