¶ … count includes cover page, abstract, table contents, list references appendices; place supporting material exceeds word limit appendices.
Ray Kroc's organizational process of 'McDonaldization' and the birth of the American franchise
One of the great ironies of McDonald's is that a company whose name is synonymous with standardization was actually quite a unique invention when it was born in the mind of the great innovator and entrepreneur Ray Kroc. Kroc was so successful at patenting his formula for creating cheap, predictable burgers, fries and milkshakes that his company's golden arches became an icon of Americana. The word McDonaldization has come to refer to the extent to which "the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world," in the words of sociologist George Ritzer (Waters 1998). Rationalization, efficiency, predictability, calculability, and control, according to Ritzer, are the primary values of McDonald's, an organization which introduced the principles of scientific management to the food industry, transplanting them from factories.
Ray Kroc has been called the founding father of fast food and the franchise. However, Kroc was not initially part of the 'food' side of the restaurant industry. He sold restaurant products to cheap 'mom and pop' restaurants, diners, coffee shops, and greasy spoons (Ray Kroc, 2011, PBS). One of his clients were the McDonald brothers, two brothers who had introduced some radical new efficiency techniques into the typical drive-through format at their California burger 'joint.' At first, they had begun their establishment as a typical drive-through. The brothers had grown frustrated by the loss of dishes and silverware, and the high turnover of car hops and cooks. "The McDonalds fired all their car hops in 1948, closed their restaurant, installed a larger grill and reopened three months later with a radically new method of preparing food" (Schlosser 1998). They decided to solve the problems they were experiencing at the restaurant with greater use of standardization, predictability, and control.
Their solution to the loss of silverware was simple. The brothers "eliminated almost two-thirds of the items on the menu. They got rid of every item that had to be eaten with a knife, spoon or fork. The only sandwiches now sold were hamburgers and cheeseburgers" (Schlosser 1998). Paper and plastic dishes replaced real silverware, which also reduced cleaning time. Waiters and waitresses were replaced with cashiers and self-service, reducing the salaries that needed to be paid and rendered the difficulties of finding reliable help (the restaurant industry has always been noted for its high turn-over of employees) less onerous.
The simplicity of the menu also translated into simpler food preparation. Inspired by Henry Ford, the brothers found a way to standardize cooking. "They divided the food preparation into separate tasks performed by different workers. The guiding principles of the factory assembly line were applied to the workings of a commercial kitchen. The new division of labor meant that a worker had to be taught how to perform only one task. Skilled and expensive short-order cooks" were no longer needed (Schlosser 1998). A worker could be completely unskilled and learn how to prepare the burgers in a standardized and predictable fashion.
The principle of rationality is manifested in McDonald-ized food assembly "whereby traditional modes of thinking were being replaced by an ends/means analysis" (Keel 2010). Instead of trying to produce the best-tasting burger, the 'ends' that was the focus of the food assembly line was increasing the organization's profit margin at all costs. Efficiency was also at the core of the model: "Efficiency means the choosing of means to reach a specific end rapidly, with the least amount of cost or effort. The idea of efficiency is specific to the interests of the industry or business, but is typically advertised as a benefit to the customer" in McDonaldization (Keel 2010). However, in an efficient 'McDonald-style' operation, the customer often ends up doing more work to ensure that the organization accrues more value. Labor costs are reduced, and the customer receives a slight discount. At the beginning of the McDonald's operation, the burgers were clearly cheaper than competitor's, but after the operation began to grow to the size it is today, this value is less certain, as many customers come for the predictable taste of the burgers as much as for the value afforded by the Dollar Menu. The assembly at McDonalds is predictable, and so is the product. "Predictability refers to the attempt to structure our environment so that surprise and differentness do not encroach upon our sensibilities. Rational people need to know...
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