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Operation and Supply Chain Management (OSCM) is a fundamental aspect that underpins the success of businesses, providing them with a competitive advantage in their respective industries. OSCM aims to establish and maintain a system that efficiently manages the flow of raw materials into finished products for consumer consumption (Chase, 2006). In the fast food industry, this process plays a central role in maintaining competitive pricing and delivering on customer expectations. This essay will explore the operational and supply chain management strategies of two national fast food chains, McDonald's and Whataburger, shedding light on their respective approaches and customer expectations.
McDonald's, a global fast food giant, prioritizes efficiency and cost savings in its operational and supply chain management. The company's mission is succinctly stated as "to be our customers' favorite place and way to eat" (McDonald’s, 2012). To achieve this, McDonald's emphasizes the reduction of unit costs per item and the creation of a customer flow process that maximizes the volume of units sold.
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This strategy enables McDonald's to maintain its renowned dollar menu items and low prices, appealing to a broad customer base.
McDonald's production process is highly standardized, ensuring consistency across all its outlets. The restaurant leverages sophisticated technology and prepackaged, pre-cut produce to streamline preparation times. Additionally, each shift adheres to a set of cleaning tasks to maintain food prep areas and uphold safety standards (McDonald’s, 2012). Employee training at McDonald's includes comprehensive instruction on customer service and the food preparation process, ensuring uniformity and efficiency throughout the organization.
Whataburger, on the other hand, distinguishes itself by prioritizing freshness and customization in its operations. The company's mission remains unchanged since its inception: "to serve a burger so big that it took two hands to hold and so good that with one bite customers would say, 'What a burger!'" (Whataburger, 2012). Whataburger places a strong emphasis on creating a unique and personalized dining experience for its customers.
While Whataburger utilizes the latest technology to enhance its operations, it retains a deep commitment to individualized customer service and made-to-order food. Unlike McDonald's, Whataburger's primary focus is not on a dollar menu but on delivering substantial, customized burgers that cater to the unique preferences of each customer. This emphasis on quality and personalization sets Whataburger apart in the fast food industry.
Understanding customer expectations is crucial for both McDonald's and Whataburger to effectively manage their operations and supply chains. While both chains aim to provide a satisfying dining experience, the nature of customer expectations differs between the two.
Customers at McDonald's primarily expect speedy service and affordable prices. McDonald's has a well-known value menu featuring items priced at one dollar, available throughout all meal times. Whether customers utilize the drive-through or dine inside, they anticipate quick delivery of their meals. Speed and convenience are paramount for McDonald's patrons.
Whataburger customers, on the other hand, have different expectations. While prompt service is still essential, the core experience revolves around receiving a substantial, made-to-order burger. Whataburger customers value the quality and taste of their burgers above all else. The experience of enjoying a large, customized burger made to their specifications takes precedence over a dollar menu or rapid service.
McDonald's utilizes a system with multiple cashiers who take orders face-to-face and enter them into computerized cash registers. These orders are then transmitted electronically to screens in the food preparation area, distinguishing between in-store and drive-through orders. Once an order is completed, the cashier clears it, and the customer receives their food. In contrast, Whataburger also employs electronic screens in the food prep area to receive order information from counter cashiers. Each order is assigned a number, and customers are given a corresponding number to place on their table. Notably, Whataburger has an intermediate server who delivers finished orders to dine-in patrons, offering condiments for their meals.
McDonald's hamburgers are made from frozen patties to ensure uniform size and appearance. The patties are cooked in batches and placed in temperature-controlled warmer bins, each equipped with a timer to adhere to OSHA standards (McDonald’s, 2012). During peak periods, a predetermined quantity of burgers is prepared and prepackaged in advance, then stored on a temperature-regulated delivery rack. In contrast, Whataburger never cooks hamburgers until they are ordered. Their burgers are crafted from 100% American beef that has never been frozen (Whataburger, 2012).
Since McDonald's often prepares burgers in advance, special orders are identified through verbal communication and noted in the computerized order entry system via the cash register. Special stickers are applied to the exterior of burger wrappings to distinguish them as customized orders. At Whataburger, all orders are treated as special orders, as customers are asked about their specific preferences when ordering. Whataburger even accommodates phone orders in advance for large groups, having the orders ready upon the group's arrival.
McDonald's uses frozen patties for its hamburgers to ensure consistency in size and appearance (McDonald’s, 2012). These patties are cooked in batches and placed in temperature-controlled bins with timers to maintain compliance with OSHA standards. During peak hours, a set quantity of burgers is prepared, prepackaged, and stored on a temperature-regulated delivery rack. In contrast, Whataburger's hamburgers are cooked on a grill, with the bun toasted alongside the patty.
At McDonald's, patties are retrieved from the warmer bins and assembled according to standard procedures for each type of burger or customer order. Vegetables are pre-cut, and the assembly process is swift. The total time required to prepare a McDonald's hamburger, from freezer to customer, is approximately a minute and a half (McDonald’s, 2012). Whataburger, on the other hand, assembles burgers upon receiving the order. All vegetables are sourced fresh and chopped frequently throughout all shifts. The cook places the cooked meat on the grilled bun, and the assembler adds the vegetables before promptly delivering the food to the server for dine-in orders.
McDonald’s previously used a microwave oven to heat cheeseburgers, but this practice was discontinued about three years ago. Instead, they employ a customized pie heater specifically designed for heating fried Cherry and Apple pies (McDonald’s, 2012). Whataburger, in contrast, does not use microwaves in their food preparation process.
McDonald’s cooks French fries in batches based on expected volume, adhering to the guideline that 80% of customers will order a large size fry. The French fries take 2.5 minutes to cook, requiring efficient processing to match the demand for hamburgers (McDonald’s, 2012). McDonald's offers self-service soda fountains in their dining areas, while their drive-through system incorporates an automated drink dispenser to expedite service.
Whataburger, on the other hand, prepares fresh batches of French fries in small fryers to ensure quality and taste. Importantly, they avoid frying fries in the same oil as fish or meat products. For soft drinks, Whataburger provides self-service options inside the restaurant. For drive-through orders, cashiers prepare drinks and add lids before handing them to customers.
The effectiveness and efficiency of operations and supply chain management processes differ between McDonald's and Whataburger due to their distinct approaches and customer expectations.
McDonald's: McDonald's excels in delivering speedy service and maintaining affordable prices. The organization measures success primarily based on the time it takes to fulfill food orders. However, the main focus is on speed and convenience rather than exceptional quality.
Whataburger: Whataburger's operational processes prioritize delivering large, high-quality burgers made to order. While this may result in slightly slower service, the end product justifies the wait. Whataburger's commitment to quality sets it apart in the industry.
Both McDonald's and Whataburger have fine-tuned their operations to cater to their target audiences effectively. However, there is always room for improvement:
McDonald's: To further enhance customer satisfaction, McDonald's could consider refining its automated drink dispenser system to prevent residual flavors from affecting different drinks. Ensuring that each beverage maintains its intended taste would contribute to a more consistent dining experience.
Whataburger: While Whataburger prioritizes quality and customization, it could explore options to expedite service during peak hours without compromising the quality of its burgers. Additional staffing during busy periods may help reduce waiting times.
Operations and supply chain management are integral components of every successful business, regardless of its size or industry. Effective systems for managing the flow of materials and products to consumers are essential for achieving organizational goals and maintaining profitability. McDonald's and Whataburger serve as prime examples of how distinct approaches to operations and supply chain management can align with different customer expectations to thrive in the competitive fast food industry. Whether prioritizing speed or quality, these organizations demonstrate that understanding and meeting customer needs is paramount to success.
Operations and Supply Chain Management in the Fast Food Industry. (2017, Apr 05). Retrieved from https://studymoose.com/fast-food-feast-mcdonalds-versus-whataburger-essay
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