The Bad Boys of Business: McDonald's

By Nico Carbellano Sep 03, 2009 9:45 am
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“If they were drowning to death, I would put a hose in their mouth.”
-- Ray Kroc, founder of McDonald's, on his business rivals

Forty-seven million customers per day. Thirty-six thousand restaurants in 119 countries. One and a half million employees. There are economies of scale, and then there's McDonald's (MCD).

The world's most familiar brand, its Golden Arches are a symbol more instantly recognizable than the Christian cross. But the behemoth has taken more than its share of hits in recent years: First there was Eric Schlosser's Fast Food Nation, an anti-fast-food polemic that was promptly made into a movie starring such acting titans as Bruce Willis, Kris Kristofferson, and Avril Lavigne. Then Morgan Spurlock released Super-Size Me, a documentary that made eating at Mickey D’s look like a singularly delicious form of slow-motion suicide. Not to mention a slew of lawsuits – and the storms of bad press that invariably accompanies them. (McDonald's did not respond to our requests for comment.)

But you don't get to be the number-one brand in the world by being a pushover. Ray Kroc, the company's founder, who died in 1984, ruled the company with an iron fist – and his doctrine of centralized control of a global business persists to the present day. His mantra, QSC&V (which stands for quality, service, cleanliness, and value) is still the McDonald's watchword – though, according to journalist Konrad Yakabuski, a new element has also been added: a U, for uniformity. Customers – whether in Paris, Moscow, or Yorba Linda, California – can expect the same food, at the same speed, from people who say the same things.

But how to ensure such soothing uniformity? The Bible, of course.

The McDonald's Bible – as employees call its formidable operations and training manual -- was first drafted in 1958, and was just 75 pages long; it's now 10 times that length, and weighs in at a super-sized four pounds. The book has even spawned its own institution of higher learning, a place devoted solely to divining and imparting its mysteries: the august Hamburger University, in Oak Brook, Illinois. If the McDonald's training manual is a sort of Bible, HU is its Vatican.

Anyone who wants to manage an American McDonald's franchise must attain their Bachelor's in Hamburgerology (a field scandalously overlooked by most Ivy League schools, but recognized as a sort of quasi-degree by the US government) before they can take the helm. While there, students are encouraged to wear company colors – say, a bright yellow tie emblazoned with the words “I'm Lovin' It,” or a necklace made up of a tasteful string of twinkling golden arches – and to always remember to smile.

Since the training manual covers everything from the thickness of the pickle slices to the circumference of the cups to the width of the french fries (0.28 inches, and not a hundredth of an inch more or less), Hamburgerology is no mean science – particularly because McDonald's employs a crack squad of french-fry examiners (and pickle examiners, and so on) who go undercover into McDonald's outlets worldwide to make sure that all is as the corporation intended.

As Ray Kroc was fond of reminding his employees, "None of us is as good as all of us." (That slogan can still be found on staff bulletin boards across the United States, to caution employees against getting too uppity.) After all, this is the guy who barred women from becoming McDonald's employees until 1968 – but only on the condition that they be “kind of flat-chested,” so as to keep from distracting the customers from the fries.

Perhaps that's why the company has always done everything in its power to keep its employees from unionizing: It's difficult, if not impossible, to maintain that degree of control in the face of organized labor. When employees do attempt to organize (a not-unheard-of occurrence, given the wages), McDonald's dispatches a “flying squad” of anti-union negotiators to the franchise in question. The squad gently steers their wayward flock back onto the path of virtue by reminding them of how lucky they are to be a part of the “McFamily.”

Of course, employees do occasionally succeed in unionizing, as the did at one McDonald's, in St. Hubert, Quebec – but the location was promptly closed by corporate immediately thereafter.

But the company's labor practices are entirely in keeping with Ray Kroc's legacy. In 1972, Kroc gave one of the few political donations of his career: $250,000 to Nixon's reelection campaign. The reason: a piece of legislation called “the McDonald's bill,” which would allow employers – particularly the booming fast-food industry – to pay their teenage employees 20% less than the federally mandated minimum wage. Which meant that the kids in the paper hats got $1.28 an hour, rather than the princely sum of $1.60 that minimum wagers made.

It makes sense, therefore, that Kroc habitually dismissed journalists who dared to call fast food an industry by saying, “Look, it is ridiculous to call this an industry. This is rat eat rat, dog eat dog. I'll kill 'em, and I'm going to kill 'em before they kill me. You're talking about the American way of survival of the fittest.”

This ethos has for the most part served McDonald's well – it does have a nice Darwinian ring to it. But the company's appetite for hand-to-hand combat also caused what was perhaps its greatest public-relations debacle ever: the McLibel case.

For four years, between 1986 and 1990, some rabble-rousers with London Greenpeace had been giving out inflammatory pamphlets about the House of Ronald; along the cover read the words “McDollars, McGreedy, McCancer, McMurder, McProfits, McGarbage.” (That “Mc” prefix having apparently proved irresistible.) Its title: “What's Wrong with McDonald's? Everything they don't want you to know.”

Inside, it accused McDonald's of “promoting Third World poverty, selling unhealthy food, exploiting workers and children, torturing animals, and destroying the Amazon rainforest,” among a slew of other offenses.

Rather than ignoring the ragged five-member band of English whale-huggers, McDonald's decided to sue them for libel, on the grounds that all the allegations were false. Which was a big mistake, as it turned out: In his 800-page judgment, Justice Rodger Bell found that, while some of the pamphlet's claims were indeed false, many were true – McDonald's did “exploit” children through its advertising tactics, did serve dangerously unhealthy food, did pay workers unjustly low wages, did bust union activities worldwide, and did turn a blind eye to animal cruelty perpetrated by many of its suppliers.

A scathing judgment, by any measure – and not just because it eclipsed the McBible in length.

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(20)
2009-09-04 00:11:26
The Bad Guys
I always thought the bad guys were the ones that forced you to do things that you don't choose to do willingly, or take things from you that everyone else agrees belong to you. You know, like the government does when people like you complain about the Ray Kroc's of the world.

I don't call that bad. If parents want to feed their children garbage, and workers want to keep working when they earn a pittance, I think letting them makes you one of the good guys. Oops, is my love for liberty showing?
2009-09-04 07:19:14
McDonalds Then Now
When you walk into a McD's today, expect to have your food cold, mushed and the story dirty. You may also expect to have been given food that is not what your ordered, half put together or not cooked all the way, Thats the food. Now for the Crew,voice's of the Crew, B--- get your --- out here,yelling from the back to the front of the store at each other and friends that have come in to have free food or sell drugs. Crew member at counter may look at you and walk away, have body art,hugh earrings and face rings, and that is the males. Females may take a while to ring up your order with fingernails that are 4 inches long. Most of the time you need to repeat repeat repeat your order, tell them how much it is and give them only that amount, they have no idea how to make change. and then if your lucky, you will get someone else's order and have the cost of the food be given back to you..Oh and the big part, be sure you have the Hour it will take to order and wait for your food. Yep Change, I worked for McDonals. 1978-1988, crew member, hair in hairnet,no makeup, no jewerly and no long fingernails, We did 25,000 pr lunch rush, customer ordered and was given order with a smile and a Thank you in less then 2 minutes. Store you could eat off the floor, Bathrooms that were clean and safe to use. Families that laughed and had lunch after movies or shopping, Birthday Parties that were something we as crew people often had done for us,Yep and I made the going wage 1.60 per hour, 20 hours a week and I was a working Mom. Had a raise once a year,5 cents and hour, Danced that Manager all over the store. I became Holly the Holiday Clown because of my work at McDonalds. Have lead a very good life because of my working there in the 70's to 80's. Walk into a store at least once a week to order, to check it out and to have my food throw at me and in turn have me stop the Crewmember look them in the eyes, smile and say "We Love to See You Smile." sometimes it comes back with a smile, most of the time a snort of distain. Most of the stores don't do 25,000 for the day, most would not have a crew of people that could handle doing 25,000 for a lunch rush or families in on a Friday night in droves. Yep Change ain't it F------ get.
2009-09-04 09:18:26
McDonalds Then Now
I agree, on some parts that is. You see, I work there now. However, I do not fit your description. I just recently graduated from a private high school as Valedictorian of my class and McDonalds was the only place in this crazy market that would give me a job. I need the money for college, but I'd rather make it by doing something else, anything else, than working there now. I'm a cashier and let me tell you, verbal abuse comes from both ends. People are more demandind now than then. The customers have stereotyped all employees to be unhygenic, uneducated, and a breed of overall losers where that definitely isn't always the case. On the other side, the managers, while sometimes friendly, seem to hold this same stereotyping ideal in their mind when dealing with fellow employees. I'm so excited to be leaving for college in a couple weeks to escape the madness, I'm extatic! Perhaps the worst part of this experience, besides the minimum wage and the overall disrespect I get despite being a fellow human being, is the fact that the schedule is erratic! I don't know if it was like this then, but now they schedule a person a week in advance for any day they see fit, at any time. This whole summer I've yet to be able to schedule anything without having it rudely interrupted by a deceptively inflexible work schedule. In closing, I would just like to add that my experience really frightens me when it comes to the state of the world and America. What happened to the American Dream where a person could work at a minimum-wage job and work their way up with respect and dignity? What happened to the world that people are so short-patienced, so misunderstanding, that they feel it's right to yell and curse at people just trying to earn a minimum wage to get along in this world? I started out as a smiling, innocent, teenage girl. I'm still fairly innocent, but I'm no longer smiling and I'm definitely no longer naive when it comes to people who treat others like scum.
2009-09-04 09:27:55
mcdonalds
Ray has been dead for quite a few years
his wife however lives and gives millions away in San Diego ca. mcdonalds
employs many people who need a second income....on and on about the good things but the artical is about the early years?
2009-09-04 11:29:44
MexDonalds
I travel all over the world and have eaten at McDonalds.In central Texas their business language has become spanish, and the non-spanish employees/customers don't understand what is being said behind their back.I've attemped to get this corrected.I have been told by McD HR that it infringes on their rights.HR must mean hispanic rights for all these green card holders.
2009-09-04 11:44:13
FYI Norman Paul, Joan Kroc died in 2003 but you're correct in stating that their foundations give away millions to charity each year.
2009-09-04 11:52:35
I happen to work for McDonald's, and have for 6 years now. McDonald's is a first class company dedicated to the training and growth of it's employees. I can't understand how someone can manipulate that into a bad thing. McDonald's has a training program unparallel to any other in the business. They really care about their employees. They also care about the customers. McDonald's stives to achieve excellent customer service. Granted, things happen. Of course someone is going to end up getting an incorrect sandwich/item every now and then. But every customer? I think not. McDonald's would not be where they are today if that were the case.
2009-09-04 13:32:29
McDonalds
i work there now as well, and the article is right. They pay managers who are not McCultured nearly nothing, just barely above minimum wage. An employee said something sexualand offensive to me and they refused to fire him and infact didn't even suspend him instead they turned the tables on me. They have made working there hostile and uncomfortable. since i have been there I have been acosted, had food thrown at me, been publicly humiliated by my boss, and now this. They do feed on the the fact that jobs are hard to come by. I am curently seeking counsel.
2009-09-04 14:05:28
management training
I gave 16 years of service as a manager in various levels in both the corporate stores and franchise stores. I saw good and bad in both. I went to HU in Illinois and was there the day Mr. Kroc died. it was an emotional time for all McD employees that year. it generally takes 3 to 4 years of training to become a store manager, first learning the basics of food preparation and managing people. then the trainee is involved in the knowledge of the stores small equipment, more people skills training and then the whole physical plant and more people skills training. Managers learn hiring, counseling and scheduling of employees. it is a great opportunity for people with no more than a high school diploma to achieve a semblance of success running a multimillion dollar revenue operation, all with great owner and corporate oversight. We are rather proud of the consistency/uniformity of the product. We struggled for years with the "have it your way" guys and then realized we needed to focus more on what the customer wants. I still don't think they will put two filet o fish patties on a BIg Mac bun with Big Mac sauce and still sell it for the price of a big mac and call it a Big Mac.
I have been gone for 13 years and I have seen many great changes come to McD's in the physical plant, flow of production and product changes and options. You only get fat at McDonalds if you choose to.
I have always believed that hiring at low or minimum wage with little chance for advancement is a tactic used to control labor cost and infact encourage turnover. McDonalds offers great training to people who have little or none and the employees usually leverage that training to go on to better jobs in other companies or businesses. Iused that 16 years to put myself through school
2009-09-05 11:04:35
MexDonalds
Wow, You are a McBiggot
2009-09-05 11:53:11
McDonald's
I find the author of this article to be misinformed and biased against corporte business. I have never in my 19 years with McDonald's (even at HU) heard the Operations Manual refered to as the "McBible" and I find the reference , as a believer in the Bible, extremely offensive. Yes, the operations manual is large. It is dedicated in teaching every employee to serve a quality product in a manner that will encourage the customer back for repeat business. It offers training so that each restuarant and owner operator can successfully manage inventory and people in a productive manner. Because after all, it is a business with the ultimate goal of making a profit. If that is not the goal, than what's the point? I am all for a company that has allowed me to make a living and not put my children in daycare. I'm for a company that emphasizes a work ethic in teenagers. I'm all for a company that provides health insurance for all employees who want it. I'm all for a company that is willing to take the time to teach you how to do your job and encourage you to do better every day. Mind you. Each restaurant is different and every manager is different. But more importatntly, you will only reap what you sow.
2009-10-14 11:11:37
MCNASTY!
Who cares if you work there and how they treat employees-if employees are unhappy they can quit! The real disaster at MCNASTY is that the food is discusting! Any of you that have ever read what is really made in the food would never eat there again! They are poisoning each and every one of you that eat there every single time-wake up and do not ever defend this company!
2009-10-14 12:54:32
MexDonalds
I think that is totally not right! Texas is in the USA, where we speak english, not spanish! If people want to get green cards to be here and stay here, then they need to learn how to speak engilsh or at least how to order what they want from McD's!
2009-10-14 13:25:55
McPeople
Lots of people like to pile on and hate the big guy. McDonalds is a huge American success, therefore it must be inherintly evil. As bad as Microsoft, the other US company that many ought to be sentenced to death in the court of public opinion.
McDonalds is cheap, clean, and fast. Anywhere. There is much to be said for quality.

2009-10-15 04:35:13
I can't believe that any company in America can get away with forcing people to eat and work in their establishment against their will! What an evil corporation to have over 1.4 billion slaves!
2009-10-15 04:51:50
McDonalds Then Now
VIRGINIA PARKEY,

If you hate McDonalds so much, why don't you try to escape from the slavery? I have never seen any armed men guarding the employees from escaping out a side door or walking straight out of the front door. Are there snipers outside? How is this evil company able to keep you there against your will? I love McDonalds fries and regular hamburgers, I think all of the employees that I have seen are doing a fine job. I have no complaints other than I wish the Big Mac tasted like a Whopper! LOL.
2009-10-15 05:00:44
The Bad Guys
If people eat at McDonalds, the terrorists win! Maybe all of the employees that are disgruntled about the low pay should consider joining the military. Then they can complain about having low pay and bullets buzzing around them. Even with Obama as President, this is still a free country (for now). People can choose to work there & choose to eat there (for now). The government has not seized control of all business' yet and forced people into performing specific jobs (yet). So what is up with all the crybaby complaining? Unless you work in a McDonalds in Iraq or Afghanistan or somewhere else where bullets are flying, you have a relatively safe job that you should appreciate, people throughout the world and many from our own military wishes they had it so nice.
2009-10-15 05:20:21
McDonalds
Gerogina Liso,

Are you serious? Ever heard of HR? Human Resources at corporate can handle your problems if you are telling the truth. The idea that they sexually harassed you, threw food at you, publicly humiliated you, accosted (with 2 C's) and you never so much as called corporate HQ? I hope you know if they get violent with you and try to shoot you or cause any physical harm to you that you need to call the cops. The number is 9-1-1. BTW, most restaurants' have security cameras whose video could turn your case into a slam dunk if they actually recorded any of the alleged atrocities.
2009-10-15 06:34:44
MexDonalds
I think that all McDonalds employees should learn a brand new language. We will call in McDonlish. They should only be allowed to speak this language to customers, that way, all English speaking & Spanish speaking Americans will both, equally, not be able to communicate with the employees.
2009-10-15 06:39:15
MCNASTY!
"Any of you that have ever read what is really made in the food would never eat there again!"

Yeah. I read somewhere that the hamburgers were from dead cows and that before the french fries became french fries, they were covered in dirt and called "potatoes". Disgusting!
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