"BURGO" MODEL AS A TOOL OF CALCULATING PROFITS IN McDONALD'S FAST-FOOD RESTAURANTS
"BURGO" MODEL AS A TOOL OF CALCULATING PROFITS IN McDONALD'S FAST-FOOD RESTAURANTS

Author(s): Ladislav Bárta, Wadim Strielkowski
Subject(s): Economy
Published by: Univerzitni servis s.r.o.
Keywords: demand and supply chains; profit; earnings; fast-food industry; McDonald's

Summary/Abstract: This article aims at calculating profits in McDonald’s chain fast-food restaurants in the Czech Republic. Using “Burgo” model developed by McDonald’s in order to analyze the division of costs in various fast-food restaurants, we are attempting to examine the validity of one of the main motivations of franchisor for providing a licence - the expectation of increased efficiency of the branch., since part of its restaurants is run by the company itself and part is owned and run by the franchisees and these two groups can be easily compared. The data about the operation of its restaurants, partly owned by company itself and partly by franchisees, was a ground for a comparative analysis which was carried out subsequently. The results of this study verify the assumption, that franchisees are generally able to achieve better efficiency of the operation of the branch than managers in position of casual employees. Furthermore, there was not found any evidence that would indicate that the pressure on lowering the expenses negatively influences the quality of the provided service.

  • Issue Year: 2013
  • Issue No: 1
  • Page Range: 40-49
  • Page Count: 9
  • Language: English