Factor Affecting to McDonald’s Restaurants in USA.pdf

Understanding the locations of McDonald's restaurants in the USA involves analyzing key factors such as demographics, infrastructure, and competition. McDonald's strategically places its outlets in areas with high population density, diverse age groups, and significant traffic flow. Proximity to highways, urban centers, and commercial hubs also plays a crucial role. Additionally, competition analysis helps McDonald's identify optimal locations where they can maximize market share while ensuring accessibility to target customers.

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