Analyze Geographical Distribution and Factor Affecting to McDonald’s Restaurants in USA
- August 5, 2024
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Introduction
McDonald’s Corporation is an America-based multinational food chain service that was founded in the year 1940 by Richard and Maurice McDonald through the establishment of a restaurant in San Bernardino, California. Originally, many were just small eateries selling hamburgers, and then they developed into franchises. The uniform of familiar Golden Arches was introduced in 1953 in Phoenix, Arizona. Two brothers, Richard McDonald and Maurice McDonald, formed Frozen Fast Food in May 1940. In 1955, Ray Kroc, a businessman, joined as a franchise agent, and in 1961, he purchased the enterprise from the McDonald brothers. Formerly situated in Oak Brook, Illinois, it relocated to Chicago in June 2018.
It is not just a food chain but corporate real estate as it controls about seventy percent of the restaurant properties and forty-five percent of the ground on which these properties sit, assets that are rented out to franchisees. McDonald’s is the world’s biggest takeover food chain restaurant, supplying hamburgers to over 69 million clients daily through 40,200 restaurants in 117 countries and territories in 2021. It specializes in hamburgers, cheeseburgers, and French fries, but the limited list also has preparations from chicken, fish, fruits, and salads. Their main products that are much relished are the French fries and the Big Mac. McDonald’s collects revenue, mostly from franchisees, which includes rent, royalties, and fees, followed by sales from its directly operated restaurants. It is the second-largest private employer in the world, with 1.7 million employees, ranking as the second largest company, only behind Walmart, which has 2. 3 million employees. In 2022, McDonald’s will be number six in global brand value.
According to McDonald’s official website, the company launched the Velocity Growth Plan in March 2017 because it was moving quickly in a clear direction. The company’s main goal is to grow the business and create value for all stakeholders by serving more customers more often. It was mainly focused on giving customers what they wanted: hot, delicious food served quickly, with great overall value and experience. Velocity leverages its competitive advantages, such as our unmatched global scale, iconic brand, and strong local market presence. They aim to capitalize on these strengths to meet rising customer expectations.
The key pillars of their growth strategy are to retain, regain, and convert customers. Retaining involves keeping their current customers by strengthening breakfast and family occasions. Regain means winning back lost customers by improving food quality, convenience, and value. Convert focuses on turning casual customers into loyal ones with coffee and snacks.
According to McDonald’s official records, there will be 13,529 McDonald’s outlets in the United States by March 12, 2024. More than half of McDonald’s restaurants are in the United States, and a third of those are in California, with 1221 outlets. This means that McDonald’s franchises 9% of them exist in California.
McDonald’s has fixed outlets in 54 states and territories of America, totaling 13,529. These restaurants are located in 5,045 different cities, which means that McDonald’s exists in almost every region of the country.
Overall, the average rating of McDonald’s restaurants is 3. 46, which means that there is a moderate level of customer satisfaction on average. Generally, an average rating of McDonald’s restaurants serves as a benchmark of the quality and service consumers will receive in various McDonald’s restaurants across the country.
State / Territory | Number of restaurants | Population | Population per restaurant |
California | 1,221 (9%) | 39.51M | 32.36K |
Texas | 1,165 (9%) | 29.00M | 24.89K |
Florida | 870 (6%) | 21.48M | 24.69K |
Illinois | 641 (5%) | 12.67M | 19.77K |
Ohio | 611 (5%) | 11.69M | 19.13K |
New York | 573 (4%) | 19.45M | 33.95K |
Michigan | 524 (4%) | 9.99M | 19.06K |
Pennsylvania | 473 (3%) | 12.80M | 27.07K |
North Carolina | 469 (3%) | 10.49M | 22.36K |
Georgia | 445 (3%) | 10.62M | 23.86K |
McDonald’s has more restaurants in California than in any other state in the U.S., totaling 1221 outlets, which is 9% of the total restaurants in the U.S. California is a heterogeneous and populous country with a population of 39. 51 million, indicating that McDonald’s has one restaurant for every 32,360 residents in the state. This high density is because such areas are densely populated, many tourists visit the state, and a diverse population prefers fast food.
Texas has a large territory and population, and it has 1,165 McDonald’s, which is 9 percent of all restaurants. With a population of 29 million people, there is one McDonald’s restaurant for every 24,890 residents. This population of outlets is plausible as the state includes both large cities and suburbs. In general, the economy is remarkable, and fast food is culturally popular.
Florida currently has 870 McDonald’s outlets, which is 6% of all McDonald’s U.S. outlets. Its population is 21. There are fifty restaurants for 48 million people, and each restaurant is located in a community with a population of 24,690 individuals. Florida has a high number of tourist attractions, many retirees, and a diversified population, attributes that have made McDonald’s expand its outlets within the state.
Illinois, home to Chicago, one of the largest cities in the U.S., has 641 McDonald’s restaurants, comprising 5% of the national total. With 12.67 million people, the state has a ratio of one McDonald’s restaurant per 19,770 residents. Combining a dense urban center and a strong suburban population ensures a steady demand for quick-service restaurants like McDonald’s.
Ohio is represented by 611 restaurants, and it is included in 5% of all the McDonald’s restaurants in the USA. The state has a population of 11. 69 million can be translated to an average that there is a McDonald’s outlet for every 19,130 residents. Population density and its distribution, as well as the large number of colleges and universities in Ohio, indicates the need for convenient services to eat.
New York, for instance, has 573 McDonald’s outlets and forms only 4% of the country’s McDonald’s restaurants. Serving a population of 19. 45 million people, the state has one McDonald’s for every 33,950 people. The density of McDonald’s restaurants is affected by the fast-paced life in New York City and the relatively high traffic of tourists. In addition to the population numbers, the population density of the state influences the proportion of restaurants to people in the state.
In Michigan, there are 524 McDonald’s fast-food establishments; they also account for 4% of all the McDonald’s in the U. S population; 9. 99 million; hence, it is believed that for every 19,060 people, there is at least a McDonald’s in the state. The largest concentration of McDonald’s is in Michigan, which has a large metropolitan area and vast tracts of farm country, which speaks volumes about the state’s economic base, mirrored by the many McDonald’s outlets here.
Concerning franchises, Pennsylvania has 473 McDonald’s restaurants, which contribute to 3 percent of the overall number. The population of this area is 12. 8 million, meaning that for people of 8 million, one McDonald’s exists for every 27070 people. This is mainly the case due to the population of historical cities that neighbor the towns, the neighboring suburban communities, and a large number of students.
North Carolina features 469 McDonald’s restaurants, representing 3% of the national population. With 10.49 million residents, the state has one McDonald’s restaurant per 22,360 people. North Carolina’s growing urban centers, combined with a substantial number of universities and tourist attractions, sustain the high number of McDonald’s locations.
The state of Georgia delivers 445 McDonald’s restaurants, making up 3 percent of the total. With a population of 10. 63 million, there is one McDonald’s franchise for every 23, 860 individuals. McDonald’s target market consists of the states within the South region, especially Georgia, where the diverse economy comprises significant cities such as Atlanta and numerous suburban areas that demand fast food.
States and Territories without any McDonalds Restaurants
The U.S. Virgin Islands and American Samoa are the only two states and territories in the United States without McDonald’s restaurants.
| City | State / Territory | Number of Locations |
|---|---|---|
| Houston | Texas | 126 |
| Chicago | Illinois | 105 |
| San Antonio | Texas | 78 |
| Las Vegas | Nevada | 73 |
| Los Angeles | California | 63 |
| Phoenix | Arizona | 60 |
| Dallas | Texas | 56 |
| Miami | Florida | 56 |
| Orlando | Florida | 54 |
| Brooklyn | New York | 48 |
Several cities in the United States stand out for having the highest number of McDonald’s restaurants. Houston, Texas, tops the list with 126 locations, reflecting the city’s large population and widespread urban sprawl. Chicago, Illinois, follows closely with 105 McDonald’s, supported by its dense urban environment and high demand for quick dining options. San Antonio, Texas, ranks third with 78 locations, highlighting the city’s rapid growth and popularity of fast food.
With its bustling tourist activity, Las Vegas, Nevada, has 73 McDonald’s restaurants catering to residents and visitors. Los Angeles, California, a sprawling metropolis, has 63 locations, serving a diverse and vast population. Phoenix, Arizona, boasts 60 McDonald’s, which is indicative of its growing population and suburban spread. Dallas, Texas, and Miami, Florida, each have 56 McDonald’s restaurants, underscoring their status as major urban centers with significant demand for fast food. Orlando, Florida, has 54 locations, which benefits from its status as a major tourist destination, while Brooklyn, New York, has 48 McDonald’s, serving its densely populated neighborhoods. These cities reflect the widespread popularity and accessibility of McDonald’s across various regions in the United States.
The following factors provide explanation on the distribution of McDonald’s restaurants in the United States of America. By understanding these factors, one can explain why McDonalds is located in some states and cities more than others while not found at all in other states or cities. Therefore, by offering its restaurants locations that can meet demand, McDonald’s guarantees that it can satisfy its clientele and continue being a preeminent fast-food company.
From the information, it is clear that clusters of restaurants are located in urban centers or densely populated regions, as is typical of McDonalds outlets as well. This is needed especially in working environments, that is, in the densely populated areas where time is required to prepare foods. As is the case with C Church Street or any other areas where business premises are situated and thousands of pedestrians pass by daily , this makes it easy for McDonalds to sell its products.
This is because McDonald’s restaurants are situated mainly in zones that attract tourists or that experience high human traffic, for instance airports, railway stations, and along the highways. They, therefore, provide for the needs of the travellers who are in search of familiar and easy to prepare commodities. Cities that have a high traffic flow such as Orlando and Las Vegas that record a traffic of more than a million people per year will always have many McDonald’s to satisfy the tourists’ needs as well as the local population.
The particular position of McDonald’s restaurants depends on the intensity of economic flows and consumers’ demand. Furthermore, it is anticipated that countries in which growth domains such as per capita consumption, and other similar parameters – are higher will have the potential to sustain more McDonald’s outlets. Therefore, McDonald’s outlet density will be high in markets where the population consumes fast food because of their dietary practices and rates of living.
This implies that cultural inclination towards fast food affects the number of McDonald’s shops in a given region. Thus, where people frequently purchase fast food, McDonald’s will open more outlets. This factor also looks at the eating habits of the clients as well as the presence of other rivals within the market space. The density of McDonald’s outlets in the regions is also expected to be higher in the areas where fast foods are considered a regular part of the diet.
The accessibility of the land and the price they offer in relation to the opening of new stores greatly influence McDonald’s. This is because some big cities are likely to have relatively fewer restaurants serving the above-stated reasons due to the high costs of acquiring or leasing property. On the other hand, the regions characterized by a slower pace of property leasing are likely to have more McDonald’s outlets.
The current outlet running of this fast food chain is that most of its restaurants are franchises. The local entrepreneurial propensity to consume and the financial capacity to pay for a McDonald’s franchise also limit the density of the outlets in a region. The countries or states with more franchises possess a high level of MBA entrepreneurism and legal environment.
Adaptability, or rather a high site attractiveness, is essential for McDonald’s restaurant sites. Locations with good road access, public transport, and parking space tend to be most preferred by McDonald’s. This ensures that customers can access the restaurant either by car, bus, or walking.
Subsidiaries in areas where the population is expanding, particularly the youthful demography, tend to have more McDonald’s outlets. McDonald’s core customer groups include the youths and families with kids, and localities with growing youth and child populations translate to business opportunities for new outlets.
Another relevant factor is the issue of competitors, which is also reflected in McDonald’s distribution. McDonald’s always ensures that it has many outlets in areas where customers have many options because this reduces the impact of diminished market visibility by competitors. The strengths and weaknesses of competitors guide McDonald’s in deciding whether and where to increase its exposure.
McDonald’s also observes the visibility of its brand and the overall marketing prospects of a site during its selection. New restaurants should be established in areas with high traffic, including intersections, malls, and major roads. This ensures that most people are aware of the restaurants and will be attracted to patronize them.
| Store | Store vs Competitors | Competitors | Number of Locations | Number of States | Number of Cities |
|---|---|---|---|---|---|
| McDonald's | McDonald's vs Impossible Foods | Impossible Foods | 56,801 ( +43,272 locations than McDonalds ) | 52 ( -2 states than McDonalds ) | 5,392 ( +347 cities than McDonalds ) |
| McDonald's | McDonald's vs Beyond Meat | Beyond Meat | 41,722 ( +28,193 locations than McDonalds ) | 51 ( -3 states than McDonalds ) | 5,544 ( +499 cities than McDonalds ) |
| McDonald's | McDonald's vs Subway | Subway | 20,603 ( +7,073 locations than McDonalds ) | 54 ( Same as McDonalds) | 6,220 ( +1,171 cities than McDonalds ) |
| McDonald's | McDonald's vs Mary's Gone Crackers | Mary's Gone Crackers | 18,278 ( +4,748 locations than McDonalds ) | 53 ( -1 states than McDonalds ) | 4,103 ( -946 cities than McDonalds ) |
| McDonald's | McDonald's vs Starbucks | Starbucks | 16,621 ( +3,092 locations than McDonalds ) | 52 ( -2 states than McDonalds ) | 3,663 ( -1,382 cities than McDonalds ) |
| McDonald's | McDonald's vs Brewers Association | Brewers Association | 12,860 ( -669 locations than McDonalds ) | 55 ( +1 states than McDonalds ) | 4,094 ( -951 cities than McDonalds ) |
| McDonald's | McDonald's vs Hunt Brothers Pizza | Hunt Brothers Pizza | 9,703 ( -3,826 locations than McDonalds ) | 36 ( -18 states than McDonalds ) | 4,356 ( -689 cities than McDonalds ) |
| McDonald's | McDonald's vs Dunkin' Donuts | Dunkin' Donuts | 9,571 ( -3,959 locations than McDonalds ) | 45 ( -9 states than McDonalds ) | 3,246 ( -1,803 cities than McDonalds ) |
Identifiable characteristics like population growth, tourism, economic characteristics, and cultural tendencies determine McDonald’s restaurant location. Larger cities and places with a high volume of through traffic are likely to boast more McDonald’s outlets because people require quick and easily accessible meals. Moreover, real estate conditions, consumer demand, and the entrepreneurial environment also determine McDonald’s location.
More to the point, the company has put into practice a Velocity Growth Plan that was initiated in 2017 to show its seriousness in broadening the customer base as well as improving the way customers are served. With customer retention, regain, and conversion, McDonald’s is ready to meet the increased expectations and remain one of the reference fast-food chains. The examination of the distribution of McDonald’s restaurants allows an understanding of the critical factors for the growth of the company and the use of the appropriate strategies for the competition in the industry.
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