McDonalds

Although McDonald's first began in California by the McDonald's brothers, Ray Croc has become recognized as the founder of the fast-food giant. The company began with the first concept, as it is known today, in Des Plaines, Illinois in 1955. Croc established McDonald's as a streamlined operation that was characterized by a limited menu that offered primarily hamburgers, french fries, and milk-shakes. Croc was a firm believer that success in the industry was based on service, quality, and cleanliness; and continues to be the core principles that the company is based.

Through the history of the restaurant the menu has been adapted to meet the customer's desires, through the strategic cooperation with the franchisees. The company has shifted from where it began with only a few staple items on its menu, to most recently including chicken, salads, and specialty drinks. Through the strategic focus on the market, the company has traditionally stayed one step ahead of its competition.

Although McDonald's was the leader in the quick-service segment, they were beginning to feel the effects of the cut-throat industry. Margins were diminishing because of higher food prices, increased competition, and a shift in consumer trends. This along with internal issues regarding an over-emphasis on new restaurant