How do suppliers influence McDonald's' production capacity?

Suppliers influence McDonald’s in terms of the company’s production capacity based on the availability of materials. This element of the Five Forces analysis model shows the impact of suppliers on firms and the fast-food restaurant industry environment.

Why does McDonald's have a large percentage of restaurants franchised?

In fact, McDonald’s has found a balance, which made it able to have a large percentage of restaurants franchised, thanks to the fact McDonald’s secures the land or the rental contract of the land, therefore the franchisee, even if an “independent restaurateur” is locked into McDonald’s growth plan.

How do consumers influence McDonald's business performance?

The ease of changing from one restaurant to another (low switching costs) enables consumers to easily influence McDonald’s business performance. In the Five Forces analysis framework, this external factor strengthens the bargaining power of customers relative to the influence of food-service firms on the market.