mcdonalds information system case study

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Committing to the Core: How McDonald’s Innovated to Survive (and Thrive) During the COVID-19 Pandemic

During the COVID-19 pandemic, McDonald's emerged as the winner in fast casual through digital innovations along their core competencies for their core consumers.

Though the impact of COVID-19 has been felt across the business community, the fast-casual restaurant industry has faced especially high adversity in the face of rapidly changing consumer behavior caused by the pandemic. According to Crunchtime , US fast-casual same store sales dropped to 56% of pre-pandemic levels by April 2020, with social distancing and restrictions on indoor capacity especially hurting fast-casual restaurants whose business models relied more heavily on larger dine-in crowds than its quick service restaurant (QSR) counterparts. 

And though many fast-casual chains quickly adapted to stay afloat during their industry’s most trying time — one in particular not only adapted to the short-term challenges presented by the pandemic, but positioned itself to emerge as the true winner in the post-pandemic future: McDonald’s . Although the pandemic hit McDonald’s hard and prevented customers from dining in most of their restaurants throughout the year, McDonald’s rose to the occasion and managed to deliver its strongest financial performance of the year in Q420 — announcing that it had recovered 99% of Q419 global same store sales, a tremendous feat. 

So how was McDonald’s able to make such a rapid recovery? In the recent Q420 earnings call , CEO Chris Kempczinski attributed McDonald’s success to its new growth strategy encompassing all aspects of McDonald’s business, “ Accelerating the Arches .” Kempczinski explained that at its core, the “Accelerating the Arches” strategy is about “leveraging our competitive advantages,” providing increased value to its current customers and ensuring their continued loyalty. Tactically, this meant significant investment and innovation in what McDonald’s believed to be their key comparative advantages with their core customers — what McDonald’s calls the “three D’s”: digital, drive-thru, and delivery . 

Going into the pandemic, McDonald’s actually found itself well positioned to build on its prior digital innovations to create a user experience well-suited for the constraints posed by the pandemic. McDonald’s recent technology innovations — including the development of the McDonald’s mobile application, acquisition of personalization technology provider Dynamic Yield , Mobile Order and Pay, and self-order kiosks — together have transformed customer experiences in and around their restaurants, giving customers more ways to securely pay and personalize their orders to meet their needs. Digital sales exceeded $10B, or nearly 20% of systemwide sales, in 2020 across the top six markets. 

Such digital innovations paid off tremendously for McDonald’s drive-thru channel. In the Q320 earnings call , Kempczinski highlighted the strategic opportunity of drive-thru for McDonald’s, noting that “a world with less dine-in and more takeout plays to our significant long-time strength in drive-thru…We have the most drive-thrus. We know how to do it best.” Accordingly, as indoor dining took a plunge during the pandemic, McDonald’s made significant drive-thru technology investments (such as dynamic menu boards — leveraging personalization technology from Dynamic Yield) and operational improvements (such as a staffing overall and dramatically cutting menu items to their “core menu”) to ultimately deliver the value their customers cared most about: speed. These innovations enabled McDonald’s to cut 30 seconds from its drive-thru times on average and move “300 million additional cars” through McDonald’s drive-thrus during the pandemic. Such focus on innovations targeting their core customer enabled McDonald’s to recover sales more quickly than anticipated and become one of the few fast casual restaurants to sustain demand for drive-thru .

Pathways to a Just Digital Future

In addition to drive-thru, enabling delivery perhaps not surprisingly became a significant focus for McDonald’s to provide customers with additional safe channels to order food. Ozan mentioned that delivery has “become a meaningful part of our business” very quickly, scaling up its delivery platform and rapidly expanded the number of restaurants to offer delivery to 28,000 of 41,000 global restaurants. The result — delivery sales have more than tripled. 

By focusing innovation on the company’s comparative advantage, the three D’s, McDonald’s was able to create a faster, easier, and better customer experience — even in the face of tremendous change. By improving the customer experience for their core customers, McDonald’s in turn ensured they maintained loyal customers in the face of adversity and successfully recovered sales in a challenging year for the industry. 

McDonald’s will continue to build on the “Accelerating the Arches” strategy and is well positioned to continue seeing gains in the coming years. Recently, McDonald’s unveiled a series of changes that will change how the company’s restaurants interact with customers for years, designed to integrate digital ordering more fully into the McDonald’s ecosystem, increase loyalty through a new rewards program, expand its advantage on drive-thru ordering and double down on delivery. Lucy Brady, McDonald’s chief digital customer engagement, said that “technology has changed our expectations as consumers,” and Kempczinski further said that “the needs of our customers coming through the pandemic are going to be different than they were coming in…the restaurant experience we offer must change to meet those evolving needs.” McDonald’s continues to demonstrate a unique focus to meet those evolving needs of their core consumers, and expect McDonald’s to emerge a winner in the evolving fast casual industry. 

CrunchTime!. 2021.  Restaurant Chain Industry Sales: Tracking US Recovery . [online] Available at: <https://crunchtime.com/blog/restaurant-industry-sales-tracking-us-recovery> [Accessed 10 February 2021].

Hospitality Technology. 2021.  McDonald’s Sees Sustained Demand for Drive-Thru . [online] Available at: <https://hospitalitytech.com/mcdonalds-sees-sustained-demand-drive-thru> [Accessed 10 February 2021].

Hospitality Technology. 2021.  McDonald’s to Acquire Dynamic Yield . [online] Available at: <https://hospitalitytech.com/mcdonalds-acquire-dynamic-yield> [Accessed 10 February 2021].

McDonald’s, 2021. [online] Corporate.mcdonalds.com. Available at: <https://corporate.mcdonalds.com/content/dam/gwscorp/assets/news-articles/2020/November2020/MCDN-ATA-InfoSheet.pdf> [Accessed 10 February 2021].

Meatpoultry.com. 2021.  McDonald’s doubles down on digital, delivery and drive-thru . [online] Available at: <https://www.meatpoultry.com/articles/24456-mcdonalds-doubles-down-on-digital-delivery-and-drive-thru> [Accessed 10 February 2021].

Restaurant Business. 2021.  Inside McDonald’s digitally-focused future . [online] Available at: <https://www.restaurantbusinessonline.com/financing/inside-mcdonalds-digitally-focused-future> [Accessed 10 February 2021].

Transcribers, M., 2021.  McDonald’s Corp (MCD) Q3 2020 Earnings Call Transcript | The Motley Fool . [online] The Motley Fool. Available at: <https://www.fool.com/earnings/call-transcripts/2020/11/09/mcdonalds-corp-mcd-q3-2020-earnings-call-transcrip/> [Accessed 10 February 2021].

Transcribers, M., 2021.  McDonald’s Corp (MCD) Q4 2020 Earnings Call Transcript | The Motley Fool . [online] The Motley Fool. Available at: <https://www.fool.com/earnings/call-transcripts/2021/01/28/mcdonalds-corp-mcd-q4-2020-earnings-call-transcrip/> [Accessed 10 February 2021].

Student comments on Committing to the Core: How McDonald’s Innovated to Survive (and Thrive) During the COVID-19 Pandemic

Would it be fair to say that the automation McDonald’s was bringing in to deal with demands for a better minimum wage helped it deal with the pandemic better? Also, the “Accelerating the Arches” strategy though profitable for McDonald’s will cause more automation, leading to loss of jobs in the future. This could lead to McDonald’s have a public perception issue in the future which might in turn end up negatively impacting their profits.

Hi Vikram — yes this is a great point. I should note there is tremendous risk with the approach McDonald’s is taking. You’re right that the future they’re proposing would fully automate the drive-thru experience (e.g. AI for taking orders and making the food, building conveyor belts to deliver the food to cars). Further, another risk they are facing has to do with franchisees. Similar to our Domino’s case, McDonald’s will mandate the technology changes and charge additional fees. Franchisees were apparently caught off guard with the Accelerating the Arches announcement. It’ll be interesting to see how they adjust given these challenges.

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McDonald's Information System

By: Tasha Kolesnikova

In any corporation, the role of information in decision-making is essential. All effective decisions are made based on timely, accurate, and relevant information. A business lacking relevant information leads to poor planning, low priority of needs, inappropriate decision making, and inappropriate planning of programs, activities. The importance of information for making the right decisions has led to developing a management information system for organizations. The management information system in the decision-making process seeks to build something for the viable and effective use of modern information procedures in modern management practice. To show you how effective an information system can be, we take a look at one of the largest fast-food companies - McDonald's Corporation. For students studying management, economics, gastronomy, this information will be very useful. If you need coursework, dissertation, thesis help in this topic, we will advise on all complex issues.

McDonald's - Company Profile

Information system - what is it, computing tools, technical communication channels, information technology, mcdonald's information system - example essay.

Dick and Mac McDonald decided back in 1940 to found their own small, fast food restaurant, primarily aimed at drivers. The real success for the company came after the publication in 1952 of a note in American Restaurant Magazine. After this release, business people received the first requests to open establishments under their brand. The retail outlets of this brand serve more than 60 million people daily. According to figures published in Food & Wine magazine, $ 9 billion in profits from franchised stores alone made it the richest fast-food chain in the world.

New McDonald's restaurants of the company open almost every day, increasing the income of its founders two or even three times. These are not all the facts that we can tell about McDonald's, the legendary corporation, which until 2010 bore the title of the largest fast-food of our time. What's the McDonald's secret? Mcdonald's uses the best information technology, has created a successful transaction processing system, decision support system, point of sale system, an information system - that's what we'll talk about.

The information system is associated with an optimized process of collecting, processing, storing, and transmitting relevant and necessary information to support all management functions in any company. There are such types of information systems:

• Communication systems or information transmission systems.
• Information storage systems.
• Information processing systems.
• Complex systems that include all or part of the above systems.

From an academic perspective, a management information system and routine decision making are often described as the automation of human decision making, including decision support systems, expert systems, and a management information system (Laudon and Laudon, 2009). Implementing a management information system in an organization ensures that information is correctly conveyed to the appropriate departments and people. It helps to make decisions not only on the internal but also on the external level.

McDonald's Information System: An Overview of All Key Aspects

We will cover four aspects of the McDonald information system:

• Computing tools.
• Technical communication channels.
• Information technology.

All these key points contributed to McDonald's management, business processes, and the fast-food industry. If you are writing a case study or essay, this information is perfect for your research. Remember - if you do not have enough time, inspiration, or knowledge to write papers, feel free to tell us " write my research paper ." We will prepare an article as soon as possible, perfectly formatted and without plagiarism.

McDonald's combines information from different sources in one database. Forms, queries, and reports created in the database allow you to quickly and efficiently update data, obtain a monthly report of expenses, search for relevant data, analyze data, and print reports, charts, and mailing labels.

The management needs to have reliable information about employees, a timely and high-quality supply chain, and pay suppliers for shipped raw materials. Many Mcdonald's service restaurants use Access databases to avoid errors in raw material supply, reduce the chance of lost documentation and become more automated.

The developed database in Access allows you to reduce the time needed to find the necessary information about raw materials, products, suppliers, raw materials supplies, and employees. When new data appears, the manager can enter them into the database and work with them in the shortest possible time.

According to McDonald's top manager, Jack Greenberg, every six seconds saved in servicing the drivers translates into a 1% increase in sales. All fast-food restaurants now measure the speed of service to drivers and use the latest advances in computing and measurement technology to improve this indicator. For example, McDonald's restaurants will shorten the service time by eliminating the delay of drivers at the cashier's window. To do this, the company is experimenting with transponders on the windshield of a car, similar to those used to write off-highway tolls automatically. As McDonald's has shown, people cannot increase speed in the fast-food industry without effort. McDonald's looks for the right performance criteria, monitor them, and then systematically works to improve them, constantly coming up with new ideas and testing them in practice. This approach gives McDonald's a competitive advantage, as the introduction of new computing technologies can improve customer satisfaction.

McDonald's communication channels include face-to-face, media, outdoor information, and public events. So, for example, to attract public and media attention to McDonald's, for many years now managers have been holding a charitable campaign "McHappy Day," the proceeds from which go to the charitable foundation "House of Ronald McDonald." As special guests, the managers invite musicians and actors, Hollywood, politicians. In Japan, McDonald's offers discounts to visitors who participate in the government's emission reduction program. The quality decision was the offer of fashionable youth clothing of its brand in the American market. McDonald's aimed to attract young men and women to its restaurants. T-shirts with Macdonald's logos have become very fashionable and are successfully sold at a fairly high price of $ 55.

Dynamic Yield's information technology has helped the American foodservice chain adapt its service to changing consumer preferences. McDonald's has improved the Drive-Thru ("McDrive") electronic menu offerings to automatically select content to display on screens based on several factors. For example, on a hot day, the system advises buying a soft drink or ice cream. Leaders did not leave the ordinary self-ordering system without AI either. Thanks to smart algorithms, terminals can recommend dishes to consumers depending on the choice already made, the workload of the restaurant's kitchen, the time of day, which simplifies the decision-making process.

Perhaps in the course of studying the article, you are confused about the flow of information. Therefore, we have put together a sample essay on the McDonald's information system. Based on our ideas, you can create a successful essay. However, if you have any difficulties, you can always arrange a custom paper and use the help of experts.

Topic: The Role Of The Information System In The Existence Of McDonald's

The use of the information system in modern business is essential for all organizations. Applying various methods and techniques can improve business operational efficiency and help develop a new system that can create a competitive advantage. To prove my idea, I will research the world-famous McDonald's corporation's information system and functional areas.

Previously, McDonald's focused its business functions on competition and did not use technology tools. However, over time, the development of systems related to TPS, MIS, and IT has led to a change in the entire operational practice of the enterprise. To increase the efficiency of sales, the company focuses on the use of information systems. According to McDonald's CEO Chris Kempczinski: "The more technology you use, the better your operational efficiency.

McDonald's organizations use today's information systems such as TPS, MIS, Executive Information Systems. Transaction Processing Systems (TPS) are used when hamburgers are ordered from suppliers. The system records the names, addresses, and quantities ordered in its system. Recording all this information helps inefficient inventory management and provides proof of transactions that have taken place.

The impact of using MIS is related to the management of the system. If the MIS application in the system is effective, its marketing, financial, and production operations are automatically improved. This shows that McDonald's has gained its effectiveness through the application. MIS has made it easier to track and monitor transactions. The system defines the relationship between managers and staff. This collaboration is used to achieve the goals that the organization has set for itself. Made for you system: this is a system that uses state-of-the-art technology to manage systems. This system is very efficient and helpful. Using this system, when placing an order, the image immediately appears on the monitors of the kitchen staff.

POS system: this system is also called a point system. McDonald's is a busy restaurant, and it uses a POS system for that. With this system, the data on the placed order is transmitted instantly. This allows the cashier to evaluate the payments that he should receive. Kitchen managers are also instantly aware of incoming orders.

Using the information system benefits McDonald's in many ways. This enables them to improve business processes and operations. Therefore, to gain a competitive advantage, enterprises must use all resources and continue to innovate in systems to maintain excessive competition from competitors.

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McDonald's Information System: 4 Important Aspects of Success

As a prominent player in the fast food industry, McDonald's has successfully implemented an efficient and effective information system to facilitate its operations and stay ahead of the competition. In this article, we will delve into the four essential aspects that contribute to McDonald's information system and ultimately lead to their success.

1. Technology-Driven Ordering System

One of the key elements of McDonald's information system is their state-of-the-art technology-driven ordering system. The use of advanced touchscreen kiosks and mobile applications enables customers to place their orders seamlessly, reducing waiting times and enhancing overall customer satisfaction. With the integration of real-time data processing and inventory management, McDonald's can efficiently track and fulfill customer orders while optimizing their supply chain.

The technology-driven ordering system also allows McDonald's to collect valuable customer data, including order preferences and purchase behavior, which they can leverage for targeted marketing campaigns and menu innovation. This data-driven approach ensures that McDonald's remains attuned to evolving customer trends and demands.

2. Robust Supply Chain Management

Behind the scenes, McDonald's information system heavily relies on strong supply chain management. Leveraging sophisticated inventory management software and logistics optimization algorithms, McDonald's ensures a smooth flow of ingredients and packaging materials from suppliers to restaurants worldwide.

Through the use of data analytics and predictive modeling, McDonald's accurately forecasts demand at each of their locations, enabling them to align their procurement and production processes accordingly. This proactive approach minimizes waste, maximizes efficiency, and guarantees fresh ingredients for their customers. By maintaining a reliable and agile supply chain, McDonald's can meet the demands of their vast customer base while minimizing operational costs.

3. Integrated CRM and Loyalty Programs

McDonald's stands out in the fast food industry for its adept utilization of customer relationship management (CRM) and loyalty programs. Their integrated CRM system collects and analyzes customer data, allowing them to personalize marketing efforts, create targeted promotions, and enhance customer experiences.

Through their widely-popular loyalty programs, such as the McDonald's App or Happy Meal toys, McDonald's encourages repeat business and cultivates a loyal customer base. By tracking customer preferences and purchase history, they can tailor rewards, discounts, and offers to individual customers, fostering a sense of connection and ensuring customer satisfaction.

4. Data-Driven Decision-Making Process

At the core of McDonald's information system success lies their commitment to data-driven decision-making. By harnessing the power of data analytics and business intelligence tools, McDonald's can gather insights about consumer preferences, industry trends, and operational efficiency.

These data-driven insights guide strategic decision-making processes, including menu innovation, promotional campaigns, and operational improvements. The ability to analyze and interpret data in real-time allows McDonald's to adapt swiftly to changing market dynamics, continuously meeting and exceeding customer expectations.

The Knowledge Nest: Empowering the Community with Insightful Content

At The Knowledge Nest, we aim to empower individuals with valuable information across various industries, including community and society. Our comprehensive coverage of topics like McDonald's information system sheds light on the key aspects that drive success in businesses like McDonald's.

By providing in-depth analysis and detailed insights, we strive to help readers understand the intricacies of information systems and their impact on organizations' overall performance. Our dedication to producing high-quality content ensures that our readers stay informed and well-prepared in this rapidly evolving digital era.

• Accurate, well-researched content
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• A platform for knowledge-sharing and learning

Join us at The Knowledge Nest as we explore diverse topics, unlock valuable information, and empower individuals with the knowledge they need to succeed in their personal and professional endeavors.

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Data analytics services case study

Mcdonald’s optimizes food delivery performance with data analytics, overview: as food delivery surges, mcdonald’s improves operations ahead of the curve.

McDonald’s, the leading global food service retailer, partnered with Wavicle Data Solutions to optimize the performance of its third-party food delivery providers in 40 markets across five continents. McDonald’s needed to measure and track the performance of its growing third-party food delivery function and its effect on the business to ensure: sufficient inventory for popular menu items, adequate staffing, on-time deliveries, and ongoing customer satisfaction. Without these assurances, the company was concerned about losing control of revenue and consumer brand loyalty. An intelligence solution was critical for financial success in a highly competitive market.

Solution: Disparate data transforms into valuable visualized metrics

Wavicle implemented a data model and process to load source data from multiple third-party food delivery partners into a single Amazon Redshift cloud data warehouse, transforming disparate data into valuable operational intelligence.

On-demand customizable reports gave McDonald’s management insight into sales, delivery, customer feedback, and fees, with the ability to “slice and dice” these metrics by restaurant location, food delivery partner, date range, and time of day. With access to visualized metrics, they could continuously measure and improve food delivery operations.

Outcome: Serving up the right food delivery analytics

This solution provides McDonald’s operators with key analytics at a macro-level, giving them the ability to dive into details, resolve specific issues, and optimize food delivery performance. Since implementation, McDonald’s has increased total food delivery orders, which now exceed more than ten percent of sales in locations that offer delivery. Additionally, the average dollar value per transaction is significantly higher for food delivery vs. non-food delivery. They now attribute food delivery as a key driver of global growth.

This solution combines existing corporate data such as point of sale (POS) with third-party food delivery data to track, measure, and visualize key metrics:

Sales metrics by channel (in-store, drive-thru, and food delivery)

• Total sales: in dollars, number of orders, percent by channel
• Average check size: in dollars, number of items by channel
• Refunded items, based on customer complaints: in dollars, number of orders by channel
• Uptime by restaurant location: hours per day each location accepted food delivery orders

Food Delivery metrics

• Average route time (length of time for the driver to arrive at the restaurant)
• Average restaurant wait time (length of time driver waits at the restaurant to receive the order)
• Average fulfillment time (length of time for the driver to deliver to the customer after leaving the restaurant)

Customer analytics

• Total sales in dollars, number of orders (new customers vs. existing food delivery provider customers)
• Market basket analysis to understand what items are selling the most via food delivery, vs. differences from in-store purchase behavior
• Customer satisfaction scores and feedback by food delivery order (delivered via food delivery apps)

Fees metrics

• Fees paid by restaurants to food delivery providers
• Fees paid by customers to food delivery providers
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The Metaverse And Digital Transformation At McDonald’s

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The famous golden arches are recognized worldwide not only as an icon of fast food, but also of technological transformation. McDonald’s – the world’s largest restaurant chain - has been an early pioneer of tech-driven innovation, from the drive-thru to self-service kiosks. Today it’s forging a path for fast food into the metaverse and beyond.

To kickstart its most recent digital surge, the company incubated its own Digital Information Team back in 2014, which has since grown from just three to over 130 members. Their task was to deploy technology in order to overcome challenges around restaurant dining, drive-thru service, and home (or anywhere else) delivery.

In order to achieve these aims, it is deploying a number of innovative artificial intelligence (AI), analytics, and internet of things (IoT) use cases. It is also investing heavily in reskilling staff away from jobs that can be easily automated, such as taking orders, and towards areas of the business where they will get to use their uniquely human abilities.

Efficient Ordering

McDonald’s started serving customers at drive-thru windows in 1976, and by the early 1980s, this high-speed, low-friction selling channel accounted for 50 percent of its sales. During the pandemic, this increased to around 70 percent. Today, it’s still a highly popular way for customers to get hold of their beloved burgers and fries, and, along with delivery, enabled the company to keep its revenue relatively stable even through the pandemic.

In 2019, it acquired Israeli AI startup Dynamic Yield for a reported $300 million, with the aim of building its technology into every aspect of its customer-facing operations. The same year, it also acquired another AI startup, Apprente, specializing in voice technology.

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Since then, McDonald's MCD has implemented AI-driven voice recognition ordering systems at some of its restaurants, which use synthetic human voices and natural language processing algorithms to take orders. It says that this has enabled it to shave almost a minute from the total time it takes for the average customer to receive their order. In 2021, McDonald’s was able to sell the technology it had developed for automated voice-based ordering systems to IBM IBM , creating more revenue for the restaurant giant.

Another initiative involved using image recognition algorithms to scan number plates and predict what customers were likely to order based on previous occasions that vehicles had visited.

Inside its restaurants, it has also experimented with dynamic menu boards that use AI to tailor the items on offer in real-time, based on time of day, weather, popular orders of the moment, and how busy the restaurant happens to be. Former CEO Steve Easterbrook told investors that this technology has successfully led to larger average order sizes across its restaurants.

Of course, today, a lot of the buzz in the fast-food industry is around app-based ordering. Like most global chains, McDonald’s has an app that (depending on where you are in the world) can be used to order food through any of its distribution channels – restaurant, delivery, or takeaway. The app uses prediction and recommendation algorithms to decide what customers are most likely to want to buy and place them prominently on the screen. These recommendations are based on previous orders, global, national, and local trends, and the weather. The app also allows McDonald's to gather a lot of data about who its customers are and how they spend their time and money (with the customers’ permission). This allows the restaurant chain to further tailor its products and services to meet their needs.

McDonald's In The Metaverse

Metaverse is the term used to describe “next level” virtual platforms where users will interact with each other – and with brands like McDonald's – in immersive, persistent environments. Many global brands are seeing it as the next big thing in both marketing and customer experience, and McDonald's is no exception.

The chain has filed patent applications indicating that it is in the process of developing "virtual restaurants." As we are spending more and more of our time online, McDonald’s is betting that just as teenagers like to meet and hang out in burger restaurants today, tomorrow, they will log into virtual reality (VR) equivalents where they can talk to friends in entertaining environments, as well as order food and drink deliveries to their homes.

It also plans to sell virtual goods – this might take the form of branded clothing and other items that can be used to decorate avatars or customers’ virtual homes in the metaverse.

And its patent applications reveal that it is also interested in developing NFTs that would allow digital items it creates for the metaverse to be unique, limited edition, or one-of-a-kind, indicating that it may be interested in creating collectibles or personalized promotional items. It has already created and launched one such NFT, celebrating the return of the much-loved McRib to its menu in November 2021 – a sandwich that itself became an internet meme !

Supply Chain

A third area where McDonald's is rolling out AI and other fourth industrial revolution technologies is driving efficiencies within its own internal operations and supply chain.

Easterbrook, who was credited with launching the digital transformation initiative, said that the ultimate aim was to connect all of the AI, data, and analytics systems in order to create an end-to-end intelligent business.

He said “As you start to link the predictive nature of customer demand all the way through your stock levels in the restaurant and kitchen, you can flex it back down through the supply chain.”

This will allow the company to more accurately predict widespread trends in consumer behavior – such as the growing demand for meat-free or healthier menu options – as well as the impact of global issues such as the ongoing disruption to food distribution caused by the Covid-19 pandemic or Russia's invasion of Ukraine.

To stay on top of the latest business and tech trends, make sure to subscribe to my newsletter and have a look at my new book Business Trends in Practice .

You can also follow me on Twitter , LinkedIn , and YouTube . And don’t forget to check out my website .

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How McDonald's Became The Benchmark For Fast Food

Table of contents.

The McDonald brothers developed a system to make it all happen. Yet we know them for Ray Kroc, who created one of the world's largest chains of restaurants, real estate and toy retailers, while 'outmaneuvering' the founders. 

Although McDonald's has not been the largest fast-food chain in the world since 2011, it is still the best-known brand. Even in Israel's Negev Desert, 100 kilometers from the nearest city, there is a restaurant, because franchising has given the company such a huge boost worldwide. 

A few key facts about McDonald’s:

• The Kellogg Company was founded in 1940. 
• McDonald’s and its franchise partners employ more than 200,000 people globally.
• McDonald’s reported $8.1 billion in sales by corporate-owned restaurants and $10.7 billion by franchise partners .
• The gross profit in 2020 was $4.7 billion .
• Global comparable sales decreased 7.7% in 2020 , mainly due to the COVID-19 pandemic.
• McDonald’s spent over $100 million on the international markets to boost marketing in hope of recovery. 
• McDonald's operates more than 39,198 restaurants in more than 100 countries around the world .

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You Don’t Sell Burgers! It’s A Real-Estate Business! 

The first burgers.

Richard (Dick) and Maurice (Mac) McDonald opened their first diner together, a hot dog stands in Monrovia, California, in 1937. Later, in 1940, they moved to nearby San Bernardino and opened McDonald's Bar-B-Que. Over time, the eatery became more popular and profitable, but the brothers realized they could cut a lot of costs if they rethought their concept. They developed a series of revolutionary ideas and strategic measures that proved to be closely linked: reducing the range of products, preparing ingredients properly, keeping potatoes warm with an infrared lamp, and building a kitchen where food could be prepared more quickly. They also encourage people to take their orders and target families rather than young people.

In 1948, the McDonald brothers closed a well-established restaurant and reopened it a few months later with a slimmed-down menu - and by then under the McDonald's name. They realized that most of their income came from selling burgers, so they reduced the selection to almost nothing. (To give you the full picture, the fries and milkshakes were replaced with French fries and patties for a short time.)

Effectiveness above all

Kitchen work was sped up by having only two things to bake. Washing up was also kept to a minimum, as the food was served in disposable packaging. In 1952, the restaurant was closed again for several months to remodel the kitchen so that food could be served more quickly and efficiently than before. The new kitchen and associated system allowed all orders to be filled in as little as half a minute. Since the operation was supported by the "fast system," it's not hard to guess where the term "fast food" came from.

McDonald's goal at the time was to get people to store there, but not to eat there, but to take something there. This was achieved not only by the packaging of the products but also by the fact that there was no built-in canteen in the first restaurant; if you did not want to take what you bought home with you, you could either eat your lunch in your car or sit on a bench nearby. For a while, they also experimented with serving drinks in cone-shaped cups that customers could not put down, which encouraged them to eat faster.

Thanks to this incredibly efficient and fast operation, they were able to sell burgers for 15 cents - about half the price of other places. The fast service, consistent quality, and low price amply compensated customers for the inconvenience. Soon, the McDonald brothers wanted to open more restaurants, but they were not nearly as successful as their first location. The reason was simple: they could not be everywhere; they could only be personally responsible for quality assurance at the first restaurant. At the same time, the oldest McDonald's still in operation today opened in Downey, California.

The arrival of Ray Kroc

The brothers realized that they did not necessarily have to open new locations themselves to expand, but that others would do it for them. So in 1948, they began to reform their business model and set up a franchise system. By 1954, they had sold the royalties from 21 franchises. 

1954 marked a turning point in the McDonald brothers' lives. To further speed up service, they ordered a new type of mixer that could ensure the preparation of multiple servings at once. The order put them in contact with Ray Kroc, a travel agent. Kroc was amazed at how efficiently the restaurant operated. He wanted to get into the business and eventually convinced the brothers to make him their franchise representative. From then on, he was in charge of who and where they could open new restaurants.

The new buildings were now built the way the McDonald brothers envisioned their dream restaurant. A clean, red and white exterior with a neon yellow golden arch on either side of the building attracts potential clients (aka bypassers) to the restaurant. The juxtaposition of these two golden arches became the familiar Meki logo, which also forms an "M," a reference to the initials of their name. It took on a similar look to today's image after Ray Kroc became the owner, or rather founder, of the company.

In 1955, Kroc founded the forerunner of today's McDonald's Corporation (McDonald's System, Inc.) and opened its first new restaurant. The first was followed by the second, the third, and within a year, the 18th. Kroc was entitled to 1.9% of gross sales for each of these restaurants, but under his agreement with the brothers, they were entitled to 0.5%. He could barely cover his expenses with the remaining amount. Then he met Harry Sonnenborn, who gave him a new perspective: McDonald's was in fact a huge real estate business.

Turn of events

Sonnenborn encouraged Kroc to buy the land on which he wanted to build restaurants and then lease it to operators. Kroc listened to him and took the biggest step toward owning the entire chain. This way, he received a steady stream of income and did not have to give any of it to the McDonald brothers. The latter, of course, was not happy about this situation. Everything in the restaurants had to continue to be done the way the brothers wanted, although Kroc tried to introduce several innovations. Finally, in 1961, Kroc bought out the brothers for $2.7 million. To raise this sum, he had to take out loans, 14 million of which he was later able to repay.

Years of rapid expansion

As part of the agreement, the brothers would continue to own the restaurant in San Bernardino, but they had to change the name because Kroc already owned the naming rights to McDonald's. So they continued to run the restaurant under the name "The Big M," but Kroc was upset that he could not have it. Soon after, he opened a Meki just around the corner from the M, which allowed the McDonald brothers to close the location in a few years. They probably regretted the deal for life, because, with their 0.5% share at the time, it would have guaranteed them $15 million a year until the late 1970s, while their heirs would have received $305 million in 2012. And Kroc probably got a good deal on that loan.

By 1965, the company was operating more than 700 restaurants. That year, they went public. McDonald's stock started at $22 a share, but within a week the price had risen to $49. By the end of the decade, they had 1,500 restaurants worldwide and has started at Sonnenborn's suggestion, they continued to own the land on which the Meccas operated. Now they are looking for new land with fairly high standards: it should be about 4,600 m2, with the possibility of building on 370 m2, and located on the corner of at least one, but preferably two, busy roads.

Also in 1965, the then very limited offer was expanded: the Filet-O-Fish sandwich was added to the national menu. The fish burger was invented to give Catholic customers a choice during Lent. In 1968, the Big Mac, the iconic double-decker burger, was introduced. The Egg Muffin was introduced in 1975, the Happy Meal in 1979, and Chicken McNuggets in 1983. Of these, the Happy Meal is perhaps the most interesting, as it has made McDonald's one of the largest toy sellers in the world: 1.5 billion toys are sold each year thanks to the Happy Meal.

Ray Kroc never stopped working for McDonald's until he died on January 14, 1984. To this day, McDonald's provides its customers with great-tasting, affordable food, franchisees and crew members with job opportunities, and suppliers with reliable ingredients and products.

Key takeaways

Successful market penetration does not always require a complete upheaval of the rules of the sector. The McDonald brothers did not invent any truly new dishes, but they did let awareness guide the design of their restaurants. So the number-one success factor for McDonald's is professional design and process management.

The second success factor is sales behavior. While other restaurants were slower to offer their products, the excellent policies encouraged employees to sell customers as many extras as possible. Even today, "go big" accounts for a significant portion of restaurant profits (industry rumors say 40%). 

The third approach is the real estate-based approach. The franchising system that Ray Kroc perfected is still used today, and we know from the annual report that the company makes more revenue from franchisees than it can generate itself.

The McDonald’s Products

Core products.

McDonald's core products include burgers, which typically consist of a slice of beef, cheese, and sauce sandwiched between two halves of a bun - in all combinations and sizes. The smallest product is the standard burger, while the largest is the Big Mac. The sandwiches are available with chicken and fish, as well as localized versions in many countries around the world.

Core products include French fries, which also come in a variety of sizes. In addition, the Happy Meal menu specifically for children, as well as shakes and soft drinks, continue to be an integral part of fast food restaurant menus in almost all countries. According to market research , an average McDonald’s menu includes around 145 items. 

Seasonal products

National holidays, Halloween, Christmas, or even Easter - whatever the occasion, McDonald's introduces new seasonal products every month in every country around the world. Some are country- or region-specific (for example, the foie gras sandwiches are made specifically for the European audience), but most products are available in other countries after a limited local testing period. 

Typically, a traditional product, such as a standard burger, is enhanced with additional ingredients (e.g., spices, additional meat, or a special design) to reflect the seasonal event.

Localized products

McDonald’s has achieved this global success through maximizing localization techniques and appealing to local audiences. The company manages the menus to fit culturally and socially accepted norms; tailoring their traditional Big Mac meals to suit a local audience with specific requirements.

• Argentina: McFiesta burgers are available at McDonald's restaurants in Argentina, which are quarter pounders with mayo instead of ketchup. There are typical US sides here like French fries and Coca-Cola. Consider getting ice cream in an Oreo cone for dessert.
• France: Typically, you'd find the McBaguette combo at Mcdonald's in France - a sandwich that is topped with two hash browns and includes breaded chicken, ham, and cheese. The 'Le McWrap' and the 'Le Menu Happy Meal' are also available. Try their apricot and lime macarons for dessert, or their cherry tomatoes as a side dish.
• Hungary: In Hungary, specialized seasonal menus are very common, both in terms of ingredients and appearance. This is also facilitated by the fact that, since 2019, Hungarian McDonald's restaurants have been managed by a centralized, Hungarian-owned company, while the American McDonald's company provides only the brand and franchise rights. Foie gras is a regular item on Hungarian menus, as is "Dotted McFlurry" (a cottage cheese-based ice cream) made in cooperation with a very popular local dairy supplier. ‍
• India: McDonald's has created the Maharaja Mac by substituting chicken patties for the traditional beef patties in its Big Macs. In India, cows are regarded as sacred animals, thus the reasoning behind this change. Indians also enjoy the Vegetable Pizza McPuff, a unique side dish. However, fries and Coca-Cola are just as popular here as they are everywhere else.

• Middle East: Specifically for Middle East dining, Mcdonald's has created the McArabia Pita, which is served with beef or chicken patties (pork is not allowed in the predominantly Muslim diet), onions, and tahini sauce. 
• New Zealand: Despite being removed from the permanent McDonald's menu in New Zealand, the 'Georgie Pie' is still available in some restaurants. With fries and frozen Coke, a square pie topped with steak and cheese is served.
• Sweden: Scandinavian countries tend to favor healthy diets, especially vegetarian food. McDonald's capitalizes on localization with its vegetarian McBean Patty. Served in a bun with lettuce, tomato, and sauce, it has cannellini and kidney beans, onions, green peppers, and carrots.
• Thailand: There is a Samurai Pork Burger on Thailand's national McDonald's menu, which is a pork patty dipped in teriyaki sauce with lettuce, onions, tomato, and mayonnaise. Besides the usual apple pie, you'll also find corn and pineapple pies that aren't available anywhere else.

Partnerships with other companies

• Coca-Cola: The story of McDonald's and Coca-Cola began in 1955 when the fast-food restaurant was looking for a soft drink supplier. The partnership has continued ever since, with Coca-Cola selling not only soda but also other products to the restaurant chain.
• Oreo: Oreo is a worldwide popular dessert brand that mainly produces biscuits. The filled biscuits have become so popular that McDonald's has become a major supplier of Oreo to Mondelez International. In most countries, the biscuit pieces are served with ice cream, but in 2019, McDonald's China team tested the market with a burger with spam and Oreo biscuits . (It was not a global hit.)
• Beyond Meat: The trend toward vegetarian diets is spreading like wildfire around the world, and McDonald's is no stranger to it. According to the BBC , the McPlant burger will be available in British and Irish outlets as early as next year. The beef patty, made with pea protein, is available in 10 restaurants in Coventry, England, in the first round since the end of September, and then throughout the United Kingdom next year. The product's main ingredient is made for McDonald's by Beyond Meat, a publicly-traded startup.
• Local suppliers: Whether we're talking about the US or any other country in the world, one of McDonald's main and most forward-thinking efforts is to source its ingredients from local suppliers. To ensure that the fish, meat, or burger bun is always made to the same standard, McDonald's applies incredibly strict and centralized guidelines. 

Healthy or not healthy?

The restaurant chain has made great strides in the area of healthy eating in recent years: think supply chain with only local suppliers or the introduction of gluten-free, lactose-free, and vegetarian options. The calorie content of a hamburger today is much lower than that of a burger from 1980. In addition, the McDonald's team places great emphasis on healthy living - and they are trying to recruit new colleagues who will promote this corporate image. But that's just one side of the big picture.

A very interesting post came to light in 2008 when Karen Hanrahan revealed a shocking picture. Out of curiosity, she had set aside a McDonald's burger she bought in 1996 to see how quickly it would disintegrate (since there were theories about "plastic" foods in the past). After 12 years, the burger looked exactly like the one she had just bought, except it had shrunk a bit.

Although this is not part of the company's strategy, the following sources have been criticized the company:

• Jamie Oliver and his legal battle against the company
• Super Size Me , a movie in which the protagonist eats only McDonald’s products 
• In 1986, Greenpeace distributed flyers against obesity, naming McDonald’s among the ones responsible.
• There are also a lot of myths (most of them already busted) around the company’s procedures and products.

The product portfolio is the company's strength, so it's no wonder McDonald's is constantly improving and perfecting its recipes. Although the company has yet to build its healthy food image, its fast service and delicious, robust flavors win over millions of customers every month. 

The range includes flagship products available in all restaurants (except were banned for religious or legal reasons). These include traditional burgers, fries, and cola.

The company also diversifies its menu with seasonal and localized items. In the latter category, offerings vary from country to country and region to region, usually in partnership with local businesses and brands.

Franchise System

What is a franchise system.

Franchising has spread throughout the world not as a separate form of business, but as a special kind of business.

Franchising is a form of business based on close cooperation in which the franchisor or the owner of the system sells a complex system that has been carefully designed professionally and commercially in every respect and successfully tested in a market environment. The system is handed over to the franchisee with full training, branding, and ongoing support and supervision. Franchisors operate the franchise system to the specifications of the transferor, in the agreed territory, for a fee, for a fixed period.

McDonald’s Franchise Costs & Requirements

When purchasing an existing restaurant or a new restaurant, an initial down payment of 40% is required. Down payments must be made from non-borrowed personal resources, such as:

• cash on hand
• vested profit sharing
• business or real estate equity

The down payment amount will vary depending on the total cost of the restaurant. McDonald's generally requires $500,000 of non-borrowed personal resources before considering a new franchise partner. With less cash available, most opportunities to participate in the program are limited and depending on the transaction's specifics, financial requirements may be much higher. Additional or multi-restaurant opportunities may be more available to those with additional funds.

Franchise financing

To purchase a McDonald's restaurant, the buyer must pay a down payment of at least 25% cash. It is possible to finance the remainder of the purchase price for a period of up to seven years. Although McDonald's does not offer funding the project, McDonald's Owners/Operators benefit from established relationships with many national lenders.

Franchise - Ongoing Fees

• Service fee: Currently, a service fee of 4.0% of monthly sales is based on the restaurant's sales performance. 
• Rent: Rent that is based on a percentage of sales monthly.

Other costs of setting up a new franchise

Costs usually range from $1,2 million to $2,2 million. Most of the costs are related to the construction of the restaurant, such as building and interior design, but the franchisee also pays for equipment, furniture, and kitchen appliances.

General franchising strategy in 2021

McDonald's restaurants provide quality food and beverages in 119 countries, which are franchised and operated by the company. At year-end 2020, McDonald's will have 39,198 restaurants, of which 36,521 are franchised, or 93 percent.

McDonald's franchise restaurants fall into one of the following categories: conventional franchises, development licenses, and affiliates. Optimal ownership structures for restaurants, trading areas, and markets (countries) depend on a variety of factors, including financial resources and entrepreneurial abilities, as well as legal and regulatory frameworks in key areas such as property ownership and franchising. McDonald's business relationship with independent franchisees is governed by standards and policies, which are of fundamental importance to the company's performance as well as its brand protection.

McDonald's franchise partners are not financial investors, but committed partners who not only put up the capital to open a restaurant, but are also willing to participate in the day-to-day operations and running of the restaurant. They know all the ins and outs of the business, but they also reinforce the McDonald's brand through their involvement in the local community.

The potential partner does not have to have a suitable location, as the location of the restaurants is always determined by the company and handed over to the franchisee.

The Company’s Old/New Strategies

Accelerating the Arches is the Company's new growth strategy for 2020. As the leading global omnichannel restaurant brand, McDonald's Strategy encompasses all aspects of the company's business as well as updated values and new growth pillars that leverage the company's competitive advantage.

Growth Pillars

• Marketing: Investing in new, culturally relevant marketing approaches to effectively communicate the brand's story, food, and purpose. Customers will be provided with more personal services through enhanced digital capabilities. 
• Products: Focusing on serving delicious burgers, chicken, and coffee. Chicken and beef will be the company's primary focus as they represent the largest growth opportunities. McCafe’s brand, experience, value, and quality will be leveraged by the markets to drive long-term growth for McDonald's.
• Digital, Delivery, and Drive-Thru: McDonald's plans to accelerate technology innovation to meet the needs of customers as they interact with the company.
• Digital Experience: Known as "MyMcDonald's", the new digital experience platform will transform the company's digital offerings across drive-thru, takeaway, delivery, curbside pickup, and dine-in options. Through the digital tools available on the platform, customers will receive tailored offers, will be able to enroll in a new loyalty program, and will have the option to order and receive McDonald's food using their preferred channel. 
• Delivery expansion: McDonald's has expanded its delivery service to nearly 30,000 restaurants in the last three years and plans to expand further.
• The increasing importance of Drive-Thru: More than 25,000 restaurants globally have drive-thrus, including nearly 95% of the over 13,000 in the U.S. This channel has gained in importance since the COVID-19 outbreak, and leadership expects that it will play an even greater role as customers demand more flexibility and choice. In the U.S. and International Operated Markets, the vast majority of new restaurants will have a drive-thru. In addition to automated order taking, the Company plans to test a drive-thru express pick-up lane for customers with digital orders and a restaurant concept that offers drive-thru, delivery, and takeaway only for customers to enjoy a faster and more convenient experience.

For decades, McDonald's sales efforts focused on the cash register and drive-thru. One of the strongest elements of this was the introduction of the "Go Large" theme. By sizing and pricing the products, even those who had no real need chose the largest product, believing it to be the best and most appropriate offering. 

Today, in addition to physical sales, digital sales have become a priority. An app developed by the company not only speeds up the ordering process but also offers additional discounts that can further increase the cart value per customer.

With the introduction of home delivery, McDonald's has begun working with several partners including UberEats, FoodPanda, and Wolt. For a long time, these online marketplaces did not offer fast food products like McDonald's, but they have now become serious players in the market. The company's offering is particularly strong when it comes to speed: on average, food is delivered in 15-20 minutes, compared to 50-80 minutes for a traditional restaurant.

There are several cornerstones of the company's marketing strategy that have contributed greatly to McDonald's success:

• The Ronald McDonald figure: An owner of a McDonald's franchise introduced Ronald McDonald in 1967. To appeal to children, franchise partners decided to use a clown icon as an advertising tool. 96% of American children knew the name Ronald McDonald by 1973. Ronald McDonald is the second most recognizable fictional character among US schoolchildren, behind Santa Claus.

• The McDonald’s logo: There's no doubt that McDonald's golden arches are one of the most recognizable logos in the world. It was created in 1940. During the '60s, McDonald's decided to simplify their logo and focus on branding the company. A brilliant move was choosing the golden arches as the logo for the fast-food restaurant. The McDonald's logo looks very much like two golden-brown French fries bent into a letter M, and this is one of the most effective design features of the logo. McDonald’s is advertising one of its most popular menu items without viewers even noticing it.

• “Para PaPa Paaaa… I’m lovin’ it”: McDonald's has been using this jingle for a very long time. McDonald's jingle highlights a positive dining experience. The musical theme makes the diners feel at home during their meals there, as well as conveys how friendly and helpful the staff is.
• Promotion campaigns: Television advertising has become a favorite field for all fast-food restaurants with the proliferation of TVs. To this day, McDonald's is a loyal advertiser on channels aimed at children and their parents. Its campaigns focus on delicious food, fun, natural ingredients, and health. 

The company is one of the biggest innovators in the food industry and is credited with inventing or perfecting the following:

• McDonald's put in place order-taking kiosks in 2015, making it one of the first fast-food chains to do so. A touchscreen machine located near the front of restaurants lets customers place their orders without the need for a cashier.
• The introduction of specialty coffee at McDonald's changed McDonald's from a fast-food restaurant to something more. McDonald's introduced its specialty coffee line in mid-2007.
• The company separated a part of larger restaurants and re-branded it as McCaffes, a place where customers can buy coffee and desserts. Now it competes with Starbucks for coffee-lovers.
• McDonald's was one of the first fast-food chains to organize even the smallest details of its operations in a manual. This manual is still being improved today.

The 2020 growth plan contained nothing new compared to the path taken a year earlier. The key elements were digital customer access, which was a key driver of the company's continued growth during the COVID epidemic.

Sales and marketing go hand in hand at McDonald's: over the past 80-plus years, the techniques used have been perfected, all aimed at getting customers to buy. Advertising builds on this image of cheap and healthy food.

Final Thoughts And Key Takeaways

Growth by the numbers.

McDonald's has seen steady growth since its founding. Because of the relative cheapness of its products, it is a truly crisis-proof company, which even COVID could not bring to its knees - unlike millions of small catering businesses.

The company has emerged from the crisis as a winner, thanks in particular to digital developments, drive-thru, and the spread of home delivery.

Key takeaways from the McDonald’s story:

• Real estate business: The McDonald's business model has evolved from a restaurant to a complex system in a relatively short period, with some revenue coming from franchise fees, some from land leases, and some from food sales. 
• Thoughtful processes: While other restaurants are constantly experimenting with food, McDonald's has focused on improving its production technologies from the beginning. In addition to innovative machinery, internal processes have also been organized to ensure that products reach customers as quickly and consistently as possible.
• Franchise system: Behind the amazingly dynamic growth of McDonald's has been a well-constructed franchise system, the foundations of which were laid by the McDonald brothers, but perfected by Ray Kroc. 
• Core, seasonal and localized products: The main feature of the company's product range is that it is extremely consistent, as we can also get fries and cola in the farthest corners of the world. At the same time, local companies, at their discretion, can launch the menu with seasonal and localized products, enabling them to engage their customers even more.
• Strong marketing: Mcdonald’s has consciously built up the dining experience - regardless of whether we’re eating a hamburger in the car, in a restaurant, or at home. The logo, the iconic clown figure, the company’s theme song, the packaging, the internal design, and many other elements add up to become an unforgettable experience.
• Home delivery: Delivery was the largest innovational step from McDonald’s for decades, and partnering with food delivery startups, like UberEats or Wolt helped the company not only to survive the pandemic but get in shape for rapid growth.

Consumer opinion on McDonald's is certainly divided: some say it's plastic, others say it has grown up to meet consumer expectations. As a publicly-traded company, the owner of the golden arch has no choice but to march forward, pioneering innovation as it has throughout its history. What does the future hold for the company? An even broader product range, a stronger home, and digital experience - and, investors expect, continued revenue growth.

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Computer Science > Information Retrieval

Title: tc-rag:turing-complete rag's case study on medical llm systems.

Abstract: In the pursuit of enhancing domain-specific Large Language Models (LLMs), Retrieval-Augmented Generation (RAG) emerges as a promising solution to mitigate issues such as hallucinations, outdated knowledge, and limited expertise in highly specialized queries. However, existing approaches to RAG fall short by neglecting system state variables, which are crucial for ensuring adaptive control, retrieval halting, and system convergence. In this paper, we introduce the TC-RAG through rigorous proof, a novel framework that addresses these challenges by incorporating a Turing Complete System to manage state variables, thereby enabling more efficient and accurate knowledge retrieval. By leveraging a memory stack system with adaptive retrieval, reasoning, and planning capabilities, TC-RAG not only ensures the controlled halting of retrieval processes but also mitigates the accumulation of erroneous knowledge via Push and Pop actions. In the case study of the medical domain, our extensive experiments on real-world healthcare datasets demonstrate the superiority of TC-RAG over existing methods in accuracy by over 7.20\%. Our dataset and code have been available at https://https://github.com/Artessay/SAMA.git.

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https://educationhub.blog.gov.uk/2024/08/20/gcse-results-day-2024-number-grading-system/

GCSE results day 2024: Everything you need to know including the number grading system

Thousands of students across the country will soon be finding out their GCSE results and thinking about the next steps in their education.   

Here we explain everything you need to know about the big day, from when results day is, to the current 9-1 grading scale, to what your options are if your results aren’t what you’re expecting.  

When is GCSE results day 2024?  

GCSE results day will be taking place on Thursday the 22 August.     

The results will be made available to schools on Wednesday and available to pick up from your school by 8am on Thursday morning.  

Schools will issue their own instructions on how and when to collect your results.   

When did we change to a number grading scale?  

The shift to the numerical grading system was introduced in England in 2017 firstly in English language, English literature, and maths.  

By 2020 all subjects were shifted to number grades. This means anyone with GCSE results from 2017-2020 will have a combination of both letters and numbers.  

The numerical grading system was to signal more challenging GCSEs and to better differentiate between students’ abilities - particularly at higher grades between the A *-C grades. There only used to be 4 grades between A* and C, now with the numerical grading scale there are 6.  

What do the number grades mean?  

The grades are ranked from 1, the lowest, to 9, the highest.  

The grades don’t exactly translate, but the two grading scales meet at three points as illustrated below.  

The bottom of grade 7 is aligned with the bottom of grade A, while the bottom of grade 4 is aligned to the bottom of grade C.    

Meanwhile, the bottom of grade 1 is aligned to the bottom of grade G.  

What to do if your results weren’t what you were expecting?  

If your results weren’t what you were expecting, firstly don’t panic. You have options.  

First things first, speak to your school or college – they could be flexible on entry requirements if you’ve just missed your grades.   

They’ll also be able to give you the best tailored advice on whether re-sitting while studying for your next qualifications is a possibility.   

If you’re really unhappy with your results you can enter to resit all GCSE subjects in summer 2025. You can also take autumn exams in GCSE English language and maths.  

Speak to your sixth form or college to decide when it’s the best time for you to resit a GCSE exam.  

Look for other courses with different grade requirements     

Entry requirements vary depending on the college and course. Ask your school for advice, and call your college or another one in your area to see if there’s a space on a course you’re interested in.    

Consider an apprenticeship    

Apprenticeships combine a practical training job with study too. They’re open to you if you’re 16 or over, living in England, and not in full time education.  

As an apprentice you’ll be a paid employee, have the opportunity to work alongside experienced staff, gain job-specific skills, and get time set aside for training and study related to your role.   

You can find out more about how to apply here .  

Talk to a National Careers Service (NCS) adviser    

The National Career Service is a free resource that can help you with your career planning. Give them a call to discuss potential routes into higher education, further education, or the workplace.   

Whatever your results, if you want to find out more about all your education and training options, as well as get practical advice about your exam results, visit the  National Careers Service page  and Skills for Careers to explore your study and work choices.   

You may also be interested in:

• Results day 2024: What's next after picking up your A level, T level and VTQ results?
• When is results day 2024? GCSEs, A levels, T Levels and VTQs

Tags: GCSE grade equivalent , gcse number grades , GCSE results , gcse results day 2024 , gsce grades old and new , new gcse grades

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