Tuesday, February 10, 2009

The 3 Rules: Service, Quality and Price

My marketing prof who was also an MBA and successful business owner ( a bar) told me once that ALL BUSINESSES are rated on these three criteria:

1. Service
2. Quality
3. Price

The good can only do 2 well. The best do all 3 right.

He mentioned that McDonalds was one of the few that can do all three well.

Let me explain. Compared to other fast-food restaurants and even table restaurants, their service is provided quickly and courteously. I have seen more apathetic waiters and waitresses then I have ever seen bad cashiers at McDonalds. They can make a huge lunch lineup disappear in a matter of minutes. Their food is cheap and their quality is high. They are pros at what they do.

About the quality. I use to remember as a kid that people would spread rumors about what's in the meat.

"It's made of dark horse meat"

Even worse,

"They put worms in the hamburgers"

Well, after reading Fast Food Nation, the facts disprove all the fiction. They only use triple-A meat, in fact, they single-handily pushed the American cattle industry to increase their quality standards. (AAA-grade facility)

Not only that, but the food preparation is visible, unlike in a restaurant, where you have no idea what the chef is doing behind the scenes. Ever heard of anyone get stomach illness due to McDonalds? I haven't, but that's not the case for others restaurants.

They even support the cattle ranches of local countries, such as in Canada, they only purchase Canadian beef.

Heck, even their ads are creative:

Okay, so you may think I have a bias for McDonalds, but it's not cause of its food. I am biased because this company executes like a well-oiled machine. There were many hamburger makers in the 50's, but it was through the genius of Ray Croc who brought the idea of "manufacturing" hamburgers as if it were an assembly-line. Fifty years later, McDonald's is a 60 billion dollar company.

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