Persistence and People

By: Mr. Kenneth S. Yang, President and CEO of Golden Arches Development Corporation (McDonald's)

At 15 years old, I began working for McDonald’s as a crew member. I fondly remember opening the doors and greeting hungry customers as they entered the store. This was my first experience in customer service. After graduating from college, I went back to McDonald’s, this time as a restaurant manager. I learned the intricacies of daily store operations – from inventory, food preparation, crew management and everything else in between. And yes, that included dealing with all kinds of customers. Not surprisingly, the most important lesson that I learned working as a crew member and restaurant manager was that this business is all about people. We serve food to millions of people each day but how that delicious cheeseburger ends up in the customer’s mouth is not by an individual’s effort alone, but that of a chain of people. Every burger served at every McDonald’s store is the result of a long process that starts from the farm and ends with the fork. There is a cohesive chain of people all linked and working together towards one goal: to get that delicious cheeseburger to the customer when he wants it. Understanding how this human supply chain works, I believe, is essential to making any business work.

And let's face it, making the food business, or any other business work given today's economic crisis is a challenge now, more than ever. But instead of cowering in fear, we need to face our difficulties head on. For us in the service business, this means continuously serving with a smile. For managers and business owners, this means keeping a positive disposition and a strategic mindset. Many people have gone up to me to ask the same question, "How is McDonald’s coping with the global financial crisis?" My answer has always been the same. "We go back to the basics – the fundamentals."

With almost 30 years of doing business in the Philippines, we have gone through the economic rollercoaster ride. In some years, we did remarkably well. Other years, we did okay and of course, there were not so good years. But despite the unpredictable outcomes, we always reverted back to two things: persistence and people.

Persistence means never giving up; it means looking adversity square in the eye and as the young people say it today, “bring it on”. When we talk about people, we refer to our franchisees or business partners, our trusted suppliers and of course, our hardworking and dedicated crew. These three solid pillars of the McDonald’s business have withstood time and difficulty and remain the source of our strength. As McDonald’s founder Ray Kroc always said: “None of us is as good as all of us; you are in business for yourself but not by yourself.” McDonald’s forged trust-based relationships with these people, anchoring the relationship on a shared vision and a common goal: to provide customers value for money using McDonald’s brand of quality and service. Persistence at McDonald’s means an obsession with quality, service, cleanliness and value.

We believe in investing in people especially during these times. Investing in people is perhaps the best way to tighten a company’s belt. Maximizing the potential of every employee, training them and encouraging them to be the best in their field increases a company’s efficiencies without shortchanging anyone in the process, especially our customers. The causal effect of it is that employees are able to use resources more effectively and their productivity improves. Same holds true for our suppliers and franchisees. We challenge our suppliers to raise the bar by adhering to world class quality standards. We consult and strategize with our franchisees regularly on the best way to improve the restaurants.

Another way of investing in people is through achieving a deeper understanding of what customers want. We strive to be flexible, adjustable and able to adapt to changes. Knowing what they want goes beyond any numerical data but knowing what they really need and expect from you. Customers nowadays are looking for things that provide value for their hard earned money. The operative word is value. In McDonald’s, value goes beyond great tasting food at affordable prices. Value is the over-all, total customer experience that we want to provide -- clean and spotless restaurants, friendly and efficient crew, a fun and light atmosphere where everyone can enjoy. I believe that this holds true especially during times like this. We invest in all these people because of a shared commitment we have to achieve ultimate customer satisfaction.

Our goal is to continue this tried and tested formula of persistence and people. We see McDonald’s growing steadily in the country in the next few years. We see ourselves expanding the business without compromising the quality of our food and our service. We want our customers to think of McDonald’s first in terms of value. This task may seem daunting but with our suppliers, franchisees and crew, we can meet and exceed all expectations.