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Using Extract A, assess two likely reasons why US fast food companies such as McDonald's choose to locate restaurants in the UK - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Question 1
Using Extract A, assess two likely reasons why US fast food companies such as McDonald's choose to locate restaurants in the UK. Extract A Benefits of McDonald’s t... show full transcript
Worked Solution & Example Answer:Using Extract A, assess two likely reasons why US fast food companies such as McDonald's choose to locate restaurants in the UK - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Step 1
Likely reason one: Boosting Revenues
Answer
One significant reason for McDonald’s choice to locate in the UK is the potential to boost revenues. With over 1,250 restaurants, they have the opportunity to attract a larger customer base. This increased market presence could help leverage the existing consumer interest in fast food, leading to greater sales and profitability.
Step 2
Likely reason two: Availability of Skilled Entrepreneurs
Answer
Another critical factor is the availability of local entrepreneurs in the UK. The franchise model relies on individuals who possess the right skills and entrepreneurial qualities to successfully manage restaurants. This local expertise can enhance operational efficiency and contribute to higher profits, as franchisees are better positioned to adapt to local market preferences.