1.0 Introduction
In this report I will be talking about the differences between Wagamama, which is an Asian restaurant that offers a Japanese menu, McDonalds which is an American restaurant that predominantly offers burgers and Nando’s which is a South African restaurant that serves Portuguese food and offers mainly chicken with different types of seasonings. They are all major restaurants in the UK and worldwide which offer a diverse menu between them and globally. We will be looking at the range of services they offer that differ between each other, the size of the business, and their organisation and structure to define how each other contribute to the field area they are in which is food and hospitality. We will also be looking at how each business has grown in the international environment by seeing how they adapt to each country with the products they offer to cater for international customers.
2.0 Three Types of Organisations
Wagamama, McDonalds and Nando’s are all Enterprise organisations if you are talking about the all the restaurants globally with all the employees combined but if you are looking at an individual restaurant then they would be classed differently as the businesses have less employees as a single unit. Wagamama and Nando’s would both be classed as small businesses as they have less than 99 employees in each restaurant whereas McDonalds is classed as a large business in terms of the whole organisation globally, however, it could be classed as a small or medium sized business for an individual restaurant as the employees differ between each restaurant depending on the area the business is situated in and how popular it is, for example, a restaurant situated in the city centre or a busy shopping park would have the need for 100+ employees due to high demand and the amount of people that would be around the area, especially at peak times.
All three restaurants are Private Limited Companies (PLC) and they are all profit oriented.
Wagamama has 3 members on their Board of Directors, along with Nando’s who also has 3. McDonalds surpasses that with 7 members on their board of directors.
Wagamama, McDonalds and Nando’s top stakeholders are their employees, customers, investors and then its communities.
All three restaurants originated in different countries and as they became extremely popular, they were able to spread globally.
Wagamama
Wagamama is an Asian restaurant serving Japanese dishes and branding itself as following the process of Kaizen. They first started up in 1992 in Bloomsburg, London, England by founder Alan Yau, who created Chinese restaurants Hakkasan and Yauatacha. At first, it was a place where someone like a worker who was on their break, could come and get served quickly, eat and leave in time to get back to work. As Wagamama became more and more popular it became a more family friendly restaurant and people started spending more time in the restaurants, including booking tables for the likes of birthdays and other special occasions or events.
Wagamama spread throughout the UK, then to a further 21 countries worldwide. They have 130 restaurants in the UK alone with 30 more restaurants split between the other 21 countries, including United Arab Emirates and as far as New Zealand.
In June 2005, the brand was sold by Graphite Capital, who held the majority stake of 77.5% to Lion Capital LLP for £103 million, who then sold it on for and estimated £215 million to Duke Street Capital. In October 2018, Wagamama’s was sold to the owners of Frankie and Benny’s for £357 million.
Wagamama have a mission to help reduce environmental pollution by reducing the amount of plastic that is used in its restaurants and supports LGBT.
Wagamama also released two cookbooks to further extend its brand.
Wagamama has net worth of £5,112,000. Up by 1.79% it continues to rise from previous years, even though it is a small percentage, it shows the business is still thriving.
Figure.1 Wagamama Organisational Structure
Owner
|
Managing Director
|
Board of Directors
| |
Regional Manager Area Manager
\ /
General Manager
|
Assistant General Manager
/ \
(Back of House) Head Chef Floor Manager (Front of House)
| |
Senior Sous Chef Junior Manager
| |
Sous Chef Black Belt (Trainer)
| |
Junior Sous Chef Team Member
|
Black Belt (Trainer)
|
Line Chef
McDonalds
McDonalds originated in America in San Bernardo, California in 1940. The founders, and operators were two brothers by the names of Richard and Maurice McDonald who changed the brand from restaurant to burger stand then later turned it in to a franchise.
They predominantly serve burgers but also have chicken and fish options on their menu and are classed as a fast food establishment offering take-away either instore or from the drive thru and have an indoor dining area.
The Golden Arches logo was introduced in 1953 in Phoenix, Arizona. It has had 7 different logos since 1940.
In 1955, a businessman by the name of Ray Kroc, joined the company as a franchise agent and began to purchase the chain from the brothers.
McDonalds global headquarters is in Chicago as of 2018. Originally, the headquarters was in Oak Brook, Illinois.
McDonalds is the largest restaurant chain in the world with over 36,000 restaurants in 101 countries. They serve over, a staggering 69 million customers a day.
They are very environmentally focused with a mission to send zero waste to the landfill and reduce the carbon footprint.
McDonalds has a net worth of £1,332,438,000. They have had a staggering 27.52% rise from previous years, showing that it is still excelling in the food industry.
Figure.2 McDonald’s Organisational Structure
Nandos
Nando’s first started up in South Africa in 1987, serving Portuguese chicken dishes. It was founded by Robert Brozin and Fernando Duarte.
Robert was an entrepreneur and was introduced to an establishment which served Portuguese chicken with peri peri by Fernando. He then purchased the restaurant and changed the name to Nando’s, after his first-born son.
In 2010 Nando’s was named as one of the worlds top 30 hottest brands by Advertising Age magazine.
Since 2014 the restaurant is owned by Dick Enthovan, a South African businessman. His son, Robert Enthovan, expanded Nando’s to the UK in 1992.
Nando’s mission is to help the homeless by providing free food and drinks. They offer something called a black card which allows 5 people at any one time to dine at any Nando’s for free.
Nando’s has a net worth of £148,500,00. This has had a dropped by 13.81% which is quite a lot considering they are a major brand and is still very sought after.
Figure.3 Nando’s Organisational Structure
Although all three of these companies are worldwide, McDonalds is the only brand that has customized and adapted to the needs and religions of the other countries and has a very diverse menu across the countries which have McDonalds. India does not eat beef due to cultural and religious beliefs, so instead they mainly offer things like chicken, fish and veg, for example, they offer a chicken or veg maharaja mac instead of the traditional big mac which has beef patties, and they offer veg pizza Mcpuff in the children’s menu. Japan offer sesame ebi filet-o sesame buns which comprises of a shrimp cutlet and thousand island sauce, and a Darjeeling tea.
3.0 McDonald’s Organisational Structure
McDonalds has a divisional structure which is split into 3 divisions
- Global Hierarchal Division
- Performance Division
- Function Division
The Global Hierarchal Division oversees all operations across the world, which shows this is corporate control. This means that everyone in the company has someone to answer to, or report to, who is above them, apart from the person at the top of the hierarchy, which in this case is the Chief Executive Officer/ Chief Operations Officer (CEO/COO). All decisions are ultimately that of the CEO/COO.
The performance division is the most distinguished feature of McDonald’s organizational structure. They changed their organisational function in 2015. It consists of U.S markets, High Growth Markets, Foundational Markets and Corporate, and International Lead Markets
Under corporate operations, McDonalds has a supply chain and franchising group, a human resource management group and a legal group. This is what the function division is there for. This allows McDonald’s to carry out and the basic functions in its business.
Having a hierarchy in the divisional structure can ensure support for control of global operations and monitor them. The performance division gives limited flexibility within the company as it generalises strategies within the division, but it also helps the business to use strategies based on similarities in market performance.
4.0 Other types of Organisations
Other than the private sector, which the 3 companies talked about fall under, there is the public, sole trader and voluntary sectors.
The public sector is run and owned by the government and provide services for the citizens of the country. For example, the U.K. have the NHS, which is there to provide medical care for everyone in the U.K, and this is a not for profit organisation as any monies earned go back in to the company to continue to provide its services.
Then there is the sole trader sector, this is usually run by an individual with a few to no employees. The sole trader is solely responsible for this business, they have invested their own money in to this business and have full liability for the company if anything where to happen, for example, any debt they have is down to them to pay, meaning if they don’t have the funds they could lose their home if owned or and items of value to pay the debt.
The voluntary sector is a not for profit sector and mainly comprises of charities, but it also has businesses like credit unions and co-operatives. The voluntary sector is there to fulfil a social purpose in the community unlike the private sector which is all about making a profit.
5.0 Legal Structures
- Limited Liability Company (LLC) – This type of company has limited liability which means the shareholders are only liable to the limit of their investment. The owners are taxed as though they are sole Trader/Proprietor or partners. Each investor receives a percentage of ownership interest and an agreement states what share of profits or losses each member will receive. The agreement will also state the internal arrangements of the business.
- Public Limited Company (PLC) – has a legal requirement to have a minimum of two directors appointed. Before they can become a PLC, they must have shares of at least £50,000. Shares can be traded, and these organisations have high operating costs. PLC’s are a legal entity, in its own right.
- Sole Trader or Sole Proprietor – has unlimited liability which could be an incentive to register to become a Limited Company. This type of company is usually the type a new business will start up as it requires little set up and is simple to operate. They must notify HMRC of their business. As this is not deemed to be a legal entity, the owner of the business is liable for any debts and/or legal actions that are associated with the business, even though they benefit from less regulations and administration requirements.
- Partnership – the business belongs to two or more people who are liable for any debts, taxes or legal proceedings against the business. The taxes are counted a personal income. Each partner can individually hire staff, borrow money and operate the business as they are each an agent of thr business. This type of structure can provide extra financial and managerial benefits and can be quite simple to form.
- Limited Partnership – this is a special arrangement which allows partners to avoid liability with their personal assets. A written agreement is mandatory and they have special income tax rules.
- Corporation – must be registered with Company House. It is a legal entity which in the eyes of the law is separate from its owners. This type of structure limits the owners form personal liability but creates double taxation on any earnings. There is a considerable cost to creating a corporation, although capital can b e raised by selling bonds and stocks. It also allows to employees to benefit from profit-sharing plans and various types of insurance.
6.0 Bibliography
- https://www.google.co.uk/McDonaldsOrganisationalStructure
- https://www.sec.gov/Archives/edgar/data/63908/000006390815000016/mcd-12312014x10k.html
- https://corporate.mcdonalds.com/corpmcd/investors-relations/company-profile.html
- rankly.com Best Organization Location Of All Time | Rankly. [online] Available at:
https://rankly.com/list/best-organization-location-off-all-time - en.wikipedia.org Golden Arches – Wikipedia. [online] Available at: https://en.wikipedia.org/wiki/Golden_Arches
- https://www.mcdonalds.com/us/en-us/about-us/our-history.html
- en.wikipedia.org Ray Kroc – Wikipedia. [online] Available at: https://en.wikipedia.org/wiki/Ray_Kroc
- www.businessinsider.com McDonald’s Headquarters Is Moving To Chicago – Business …. [online] Available at: https://www.businessinsider.com/mcdonalds-hometown-chicago-move-oak-brook-2017-7
- en.wikipedia.org Nando’s – Wikipedia. [online] Available at: https://en.wikipedia.org/wiki/Nando’s
- https://www.nandos.co.uk/our-brand-story/
- https://www.wagamama.com/about-us
- www.revolvy.com List Of Supermarket Chains In Portugal | Revolvy. [online] Available at: https://www.revolvy.com/topic/List of supermarket chains in Portugal
- adage.com Ad Age Insights White Paper: World’s Hottest Brands 2010 …. [online] Available at: https://adage.com/article/global-news/ad-age-insights-white-paper-world-s-hottest-brands-2010/144404/
- www.privacysense.net The Difference Between The Private And Public Sector …. [online] Available at: http://www.privacysense.net/difference-between-private-public-sector/
- johnredwoodsdiary.com Improving Public Services – Johnredwoodsdiary.com. [online] Available at: http://johnredwoodsdiary.com/2018/06/27/improving-public-services/
- https://www.simpleformations.com/types-of-business.htm
- www.wcva.org.uk Wales Voluntary Sector Almanac 2002. [online] Available at: https://www.wcva.org.uk/media/188199/wales_voluntary_sector_almanac_2003_eng.doc
- https://www.theguardian.com/business/2018/oct/30/wagamama-noodle-chain-sold-frankie-and-bennys-owner-restaurant-group
- https://companycheck.co.uk/company/01002769/MCDONALDS-RESTAURANTS-LIMITED/companies-house-data
- https://companycheck.co.uk/company/03237591/WAGAMAMA-GROUP-LIMITED/companies-house-data
- https://companycheck.co.uk/company/07336115/NANDOS-LIMITED/companies-house-data
- https://www.mcdonalds.co.jp
- https://www.mcdonalds.com.hk
- https://www.mcdonaldsindia.com/m/products
- https://www.bloomberg.com/wagamamagrouplimited
- http://ukiahchamber.com/types-of-business-legal-structures/
2018-11-28-1543418507