1. Vice President U.S. Restaurant Operations
McDonald’s USA
Bob Marshall
Vice President
U.S. Restaurant Operations
Good Morning! I am honored to be here today to talk to you about McDonald’s and our dedication to menu quality. A little background on me….
Entire career, 38 years in the food business
14 years – Jewel Food Stores
24 years – McDonald’s
Passion for food
McDonald’s background
9 years – supply chain (W/Lynal Root, father of MCD supply chain)
15 years in Operations (W/Fred Turner, Father of MCD
Career Highlights – headed the team that developed the current MCD operating system – Made for You……….first major overhaul since Ray Kroc and Fred Turner too it over from the McDonald’s brothers in 1955.

2. Our dedication to consistency and quality isn’t a new concept- it has been a part of our fabric for over 50 years.
The vision that Ray Kroc had for all of his restaurants was that every single restaurant would deliver the same consistency and quality no matter if you were dining in our very first Des Plaines, Illinois restaurant or somewhere else- this was part of the original vision.
So, you think about McDonald’s, what do you think of?
Consistency
Good value
Good food
QSC&V
That is what Ray and Fred built the business on- it’s the same as today, but a little trickier!

3. 1957: The Menu Hamburgers: 15 cents Cheeseburgers: 19 cents
Triple Thick Milkshakes: 20 cents
French Fries: 10 cents
Carbonated Soft Drinks 10 or 15 cents
½ pint milk: 10 cents
Coffee: 10 cents
Hot Chocolate (winter only): 12 cents
This was our menu in 1957….
Hamburgers: 15 cents
Cheeseburgers: 19 cents
Triple Thick Milkshakes: 20 cents
French Fries: 10 cents
Carbonated Soft Drinks: 10 or 15 cents
½ pint milk: 10 cents
Coffee: 10 cents
Hot Chocolate (winter only): 12 cents

4. A Vision
One of our famous sayings at McDonald’s is 50 Years On A Handshake. And even in these times of approved suppliers and contracts, we still have the trust and commitment with our suppliers that we had 50 years ago.
Not only is this important in the realm of continuous supply (‘thou shall not run out’), but with quality. With close to 14,000 restaurants and the menu that our customers want and expect from us, we have to know how much and where our supply is at any given time.
But Ray didn’t know when he first started that his vision would extend to nearly 14,000 restaurants. In fact, in the early sixties, when trying to impress some investors, he said, “…Some day, there will be 1,000 McDonald’s.” Which, to Ray, was a lofty goal. But what he didn’t realize is that the processes that he put into place with regard to quality and consistency in the early days of the business could be one of the main reasons that McDonald’s could expand over the years as it has.
At McDonald’s, the way that we determine what we are going to offer customers is a System-wide process. So, it’s not just up to marketing or business research, but we account for all aspects of the customer experience like:
Where are we getting ingredients from?
Is what we are delivering what the customer expects to receive?
How will the restaurants prepare and serve it so that it is easy and consistently delicious?
It starts with the basics..
<Advance Slide>

5. Shopping List 14 million buns 10 million pounds of potatoes
2 million pounds of beef
1.5 million pounds of chicken
660,000 pounds of cheese
350,000 pounds of lettuce
The quality of the raw ingredients is key. When we are developing a new menu item or evaluating an existing menu item, we start with sourcing the products and examining all of the components that would go into the menu item.
The shopping list has changed somewhat since Every day we serve:
14 million buns
10 million pounds of potatoes
2 million pounds of beef
1.5 million pounds of chicken (we sell more chicken than Chik-Fil-A, Church’s and Popeye’s combined!)
660,000 pounds of cheese
350,000 pounds of lettuce
and the list goes on.

6. McDonald’s Around The World
Show worldwide map with McDonald’s countries identified, discuss 31,000 locations in 118 countries. Keeping it supplied and consistent is kind of tricky .
Focus today is on the US business, over 14,000 locations, with over 2400 owner operators!

7. How We Do It: Consistency
Three P’s :
Product
Process
People
PSo how do we do it?
As in 1955, it begins with an incredible attention to detail! In McDonald’s culture, no one is ever satisfied. Original O and T was 70 pages today it’s over It means that every detail is accounted for! Our restaurants are all reviewed and graded several times on an annual basis. Some announced visits and some unannounced.
Two purposes, to make sure people understand our values and to make sure they are executing our values. Protecting the value of our brand is of utmost importance!
The three P’s of consistency:
Product
Process
People
Product:
Identification of the “Gold Standard” What does a perfect burger taste like?
Very specific sensory description of every product.
Products may only be changed, when they move our profile closer to the gold standard. Sometimes exceptions are made IE) No TFA oil but a secondary process begins on how to continue moving closer to the standard. The work never stops!

8. How We Do It: Supply We are not price buyers
One of the most stringent supply chain standards in the world
Maintain relationships with suppliers for years
We are not price buyers, we will not alter our products to save money if they move the profile away from the gold standard.
All changes, large or small go through very stringent consumer testing, Central location testing, pre and post store testing, constant monitoring of consumer 800 number feedback.
From the supply side, we don’t change suppliers very often!
Our suppliers know our requirements for quality and deliver it!
We monitor it with periodic plan visits and announced and unannounced product cuttings
We maintain purchasing managers and directors in the field as our eyes and mouths in the field!
Along with consistency, Lynal Root’s first commandment was “Thou shall not run out” With restaurants in the US that is a tall order and a topic for a future presentation!

9. How We Do It: Operations
In terms of process, our operating system is the key to consistency. Out equipment and procedures are the backbone to consistent product.
From the equipment standpoint, we engineer consistency into our equipment.
Show the clips and describe their role in consistency
Discuss the operating system and the basic pathways of product, communications and people. All streamlined with product moving in the same direction from the back to the front. Like an auto assembly line!

10. How We Do It: People People: part of our Plan To Win
State of the art training:
Hamburger University
McDonald’s Connection
Field Services
More!
People- the real backbone of our system.
Nothing is left to chance. Documentation of our system is detailed and complete. There is only one right way!
Our training system is very rigorous. And goes all the way from orientation to our advanced management classes at the Fred Turner learning center we call Hamburger University.
We are proud of the fact that over 30 credit hours of transferable college credit hours can be earned at Hamburger U!

11. Food Improvement Team U.S. and Abroad
Focus on Core Menu Improvement as indicated by Customer Satisfaction data
Team Includes:
Owner/Operators
Suppliers
Company Employees
So once all this is done, we don’t stop looking.
Worldwide Food Improvement teams continue to find ways to improve.
US team 20 Owner Operators, company people, key suppliers and our Chief Food Officer, Fred Turner meet 6 times a year to discuss ways to make our food better and more consistent.
Largely consumer driven, top 10 each year.

12. Menu Evolution: Parfait

13. In a nutshell, We are a food company and food is very important to us
In a nutshell, We are a food company and food is very important to us. Thanks for your time!