4P--Profitability

1) What is the start up cost for the McDonald’s?

Most franchisees enter the system by purchasing an existing restaurant, either from McDonald's or from a McDonald's franchisee. A very small number of new operators enter the system by purchasing a new restaurant. The costs stated below are only estimates and may change without prior notice.

*New restaurant

The costs for starting an entirely new McDonald's restaurant can be anything between RM2.0 million to RM4.5 million. The costs also depend on the restaurant size and type, its location, style of decor and landscaping.

Initial Costs

(A)	USD 22,500 Franchise fee paid upon or prior to the commencement of the franchise.
(B)	RM50,000 Interest-free security deposit for the faithful performance of the franchise, refundable upon the expiration of the franchise.
(C)	RM200,000 - RM250,000 Pre-opening expenses - Staff training and salaries, stock trading, living expenses while training and other normal start-up costs.
(D)	RM1.7 million - RM2.5 million Approximate cost of kitchen equipment, signage, seating, decor and landscaping paid to individual suppliers.
(E)	RM800,000 to RM3 million [depending on store type (Drive Thru, Mall, Oil Alliance or Shop Front)] Approximate cost of all civil works, ventilation system and renovations to the premises paid to individual contractors Paid by Golden Arches Restaurants Sdn Bhd.
(F)	Other Miscellaneous Costs Stamp duty (paid to the government) is assessed on necessary documentation and is paid by the franchisee in addition to the working capital required. Ongoing Fees (Monthly) A Royalty Fee, which is a system fee, is based on a percentage of the restaurant's gross sales, which is currently at 5%. If you prepare to rent the store, it is depending on store type, location and performance – may vary between 13% to 20%.  *Existing restaurant For an existing McDonald’s restaurant you will usually buy it over based on the restaurant's market value. In addition, the franchise fee and security deposit aforementioned will also be payable.

4P--Process/ Business format

1) What are your next marketing strategies or service and how do you expand the franchise business?

I am pleased to announce that for Selangor and Kuala Lumpur customers, from 2 August 2012 we are ready to take your order online service. You can feel free to check out the new McDelivery Online website.

2)  Any promotion is coming?

McDonald’s Malaysia is having its Buka Puasa McValue Dinner Promotion now. The buka Puasa with McValue Dinner got 18 great choices like the McChicken & Double Cheeseburger. Each from only RM5.95, complete with a medium soft drink and French Fries.

3) What is the time slot for the promotion?

 It is 6pm – 9 pm, everyday.

4) In what way you manage the franchise?

There are few important guidelines. First of all, customer satisfaction is crucial, we ensure our staffs treat each customer like a valued guest, and present orders as quickly as possible. Apart from it, our staffs are well-trained on food safety matters. In fact, food safety training is part of our restaurant management modules. We ensure that the staffs wash their hands at appropriate times and before putting on disposable gloves to return to work. We place great importance on restaurant cleanliness, the front counter must always be clean and organised. The same goes for the kitchen, where our food is prepared.

5) How many McDonald’s franchisees in Malaysia?

McDonald’s Malaysia has 194 restaurants located nationwide, serving 10 million customers each month and expanding at a rate of 15-20 restaurants annually.

6) How about McDonald’s franchise company in Malaysia? What’s new?

McDonald's has always been a franchising company and has relied on its franchisees to play a major role in its success. In Malaysia, we also want to share this success with locals and we want to extend this opportunity to any suitable Malaysians interested in becoming our franchisees.

What is the milestone of McDonald’s in Malaysia?

December 1980:  McDonald's was first brought to Malaysia by YBhg Tan Sri Vincent Tan.

29 April 1982: The first McDonald's restaurant in Malaysia was opened at Jalan Bukit Bintang, Kuala Lumpur.

29 October 1984: The first McDonald's restaurant opened outside of the Klang Valley was in Holiday Plaza, Johor Bahru.
1987:  McDonald's main supplier, MacFood Services (M) Sdn Bhd commenced operations.

7 March 1987:  McEgg was first introduced in Malaysia.

 2 November 1987:  Ayam Goreng was first introduced in Malaysia.

May 1988:  Mohamed Shah bin Tan Sri Abdul Kadir, former Managing Director and Joint Venture Partner of McDonald's Malaysia, joined the McDonald's family.

19 December 1988:  McDonald's Malaysia's first Drive-Thru restaurant was opened at Jalan Pahang, Kuala Lumpur.

15 February 1990:  Ronald McDonald Children's Charities Fund of Malaysia (RMCC), McDonald's charity arm was established.

16 September 1992:  McDonald's Buns supplier, HaviFoods Sdn Bhd, started operations.

 15 December 1992:  The first McDonald's restaurant in Brunei was opened.

1993:  The Beef Prosperity Burger was developed in Malaysia and first introduced.

20 January 1993: The first McDonald's restaurant on the Borneo Island was opened.

20 January 1993: McDonald's first franchised restaurant was opened in Sibu.

28 March 1994:  McDonald's Delivery Service was first introduced.

 1 July 1994:  McDonald's Value Meal was brought into the Malaysian market.

1995:  The first McDonald's Hot Kiosk was opened in Kota Bharu. Besides of that, McDonald's received the Class A award from the Kuala Lumpur City Council.

February 1995: McDonald's is the first Quick Service Restaurant to obtain Halal certification.

19 August 1995: McDonald's Malaysia opened its 50th restaurant at One Utama shopping complex.

August 1996: The highest McDonald's in the world opened at KL Tower.

22 March 1997:  The RMCC scholarship programme for underprivileged children called the "RMCC Tunas Wawasan" was launched.

July 1997: McDonald's Malaysia opened its 100th restaurant at Sunway Pyramid shopping complex.

1998 McDonald's McSaver meals was introduced for the first time.

19 December 1998: McDonald's first highway restaurant, Awan Besar was opened.

21 June 1999: RMCC opened its first Ronald McDonald House in Malaysia. In July 1999, a new brand promise, "We're out to make you smile" was put forward in celebration of the new millennium.

July 1999 McDonald's Customer Care Representative was introduced.

29 April 2000: The first McDonald's Cold Kiosk was opened at Megamall Kuantan.

20 January 2001:  McDonald's is the first Quick Service Restaurant to form an alliance with an oil company when it opened at Mobil, Seremban Highway.

28 September 2003: Launch of the "i'm lovin'it" campaign to revitalize the McDonald's brand.

2004: First McDonald's employee was sent to the athlete's village in Athens, Greece in conjunction with the 2004 Olympic Games. In the July , he annual Olympic Day Run was introduced to mark McDonald's worldwide partnership with the International Olympic Council.

20 November 2004:  McDonald's introduced the "Give A Gift Of Smile" campaign to assist Malaysian children born with Cleft Lip and Palate to undergo corrective surgery.

April 2006:  Recognition by the Malaysia Book of Records for the Largest Participation for a Drive-Thru Challenge.

June 2006: Open Doors programme was introduced where customers were allowed to witness first-hand the Food Quality and Safety practices at McDonald's . The first Malaysian child, Kevin Khoo was chosen as a Player Escort at the 2006 FIFA World Cup Germany under the McDonald's Player Escort Programme.

January 2007: Winner of the BrandLaureate Award for Food & Beverage, Quick Service Restaurant category.

April 2007: McDonald's celebrates its 25th Anniversary in Malaysia.    

4P-- Product / Service

1) How do you increase and maintain the good reputation of McDonald’s?

Our actions and decisions reflect tremendously on our values, which are a set of guidelines that we strongly believe in. They become our day-to-day basis on how we should operate, sincerely and responsibly.

2) Can you simply describe about it so that I can understand your method of success?

Firstly, we place the customer experience at the core of all we do. Our customers are the reason for our existence. We demonstrate our appreciation by providing them with high quality food and superior service, in a clean, welcoming environment, at great value. Our  goal is outstanding QSC&V for each customer every time. Secondly, we operate our business ethically. Sound ethics is good business. At McDonald’s, we hold ourselves and conduct our business to the highest possible standards of fairness, honesty and integrity. We are individually accountable and collectively responsible.

3) What do you think your customer is need?

Due to recession, people eat out less and at home more frequently. And when they eat out, they eat at cheaper places. McDonald's is affordable, efficient, pervasive, and convenient that it was a viable alternative to casual restaurants. We also offer new products and bargains from time to time to give people more reasons head to our store throughout the day.

4)  Do you think that McDonald’s is still a growing market in modern time?

Of course it is. McDonald's has always been a franchising organisation in most parts of the world. Let say in Australia, McDonald’s have about 70% of their restaurants franchised. And we plan to grow the franchising aspect of our business in Malaysia progressively.

5)  What is the background of the company and its performance record?

McDonald's has been a franchising company since 1955 and has relied on its franchisees to play a major role in the system's success. McDonald's remains committed to franchising as a predominant way of doing business. Today, the McDonald's franchise is the leading global foodservice retailer with more than 30,000 restaurants, located in more than 100 countries.

Franchise International Malaysia 2012 exhibition

I have visit and interview the booth of McDonald's at PWTC.

Let me introduce this franchise......

McDonald's at Pandan Mewah