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>Aren't most McDonalds franchises? his point still stand. https://boxaroundtheworld.com/mcdonalds-supply-chain-management/ https://boxaroundtheworld.com/mcdon
by MangoCoffee 5y ago
>Aren't most McDonalds franchises?
his point still stand.
https://boxaroundtheworld.com/mcdonalds-supply-chain-management/ https://boxaroundtheworld.com/mcdonalds-supply-chain-managem...
"McDonalds is a fine example of how vertical integration can keep costs down and profits up. They grow their own beef through contracted producers, process their own meat, create their own spices and mixes in factories that they contract, grow their own potatoes and other vegetable through contracted producers, transport their goods on their own. McDonalds owns the land that their restaurants are situated on, so they do not have to deal with leases and landlords. They have taken control of their supply chain nicely."
edit: a mom and pop operation can't compete with McDonalds.
McDonalds can increase employees wages thus force others to do the same even if mom and pop doesn't have a vertical integration like McDonalds. by increase wages, it force smaller operators to cut staffs or shut down. McDonalds can keep their competition down.