As Burgers Boom in Russia, Mcdonald's Touts Discipline

As Burgers Boom in Russia,?McDonalds Touts Discipline To maximize a market, kitchen stove rations growth; Trimming wait lines MOSCOW -- At tiffin time on a recent day here, Khamzat Khasbulatov sit down in the instaurations second-busiest McDonalds and watched as dozens of people lie up at its 26 cash registers. I contain too many customers, said Mr. Khasbulatov, chief executive of McDonalds Russia, as workers scrambled to assemble Big Macs and stuff french hot up into red cartons. Of the 118 countries where McDonalds Corp. does business, none can boast more than employment than Russia. On average, each location serves about 850,000 diners annually -- more than twice the store traffic in McDonalds other markets. That has presented the worlds largest restaurant chain with an unusual dilemma. Russia, with its burgeoning middle-class and consumer appetites for all things American, is a jewel in the McDonalds system. But the club is being prudent about expansion here -- due partly to Russias famous bureaucracy and partly to the chains own philosophical shift. hard-hitting growth plans at McDonalds backfired badly in the past. During the 1990s, the company was fixated on adding restaurants throughout the chain -- as many as 2,500 stores a year.

But by 2000, the condition of its existing locations, as comfortably as the appeal of certain menu items, deteriorated. Two years later, the companys flawed expansion strategy was hammering its cabbage and stock price. Aiming then to be better, not just bigger, the oak Brook, Ill., company reined in expansion. In 2003, when McDonalds reported its first-ever quarterly loss, it open a net of 21 new stores -- down from 1,015 in the previous year. New emphasis was placed on better signature products -- like the Big Mac and Chicken McNuggets. Executives too called for an aesthetic overhaul, using more muted colors and release schemes in the stores. The changes helped lift sales and profits, ushering in one of the companys most... If you want to get a full essay, order it on our website: Ordercustompaper.com

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