McDonald’s economic footprint in Europe

business-analytics||116competition-regulation-and-business||0public-policy||0
Sector:Business analytics | Competition, Regulation and Business | Public Policy
Client:N/A
Published: November, 2011
Document type:Report 
Tagged: impact assessment modelling quantitative analysis EC/EEA

This report examines McDonald’s economic footprint in Europe in terms of contribution to GDP growth, raw material sourcing, job creation and business opportunities via its franchising model. The analysis shows that McDonald’s continued to grow throughout the recession of 2007-09 and its growth has consistently exceeded EU GDP growth as well as the growth of the European hotels and restaurants sector as a whole. McDonald’s made an estimated contribution of € 9.5 billion to EU GDP in 2010. The salaries and wages paid by McDonald’s are partly reinvested in the regional/local economy and have an estimated total indirect impact of € 7.6 billion in the EU in 2010.

A detailed analysis of McDonald’s supply chain shows that the company sources 97% of its agricultural raw materials from Europe and that it supports its suppliers through long-term commitments. For example, its largest suppliers have been supplying the company for 31 years on average. The report also shows that McDonald’s employs approximately 294,000 people in the EU, accounting for 0.14% of total employment in the EU and 3.2% of employment in the accommodation and food service sector. Approximately 60,000 new jobs were created by the company between 2007 and 2010.