McDonaldization-Notes.pdf

📄 Ritzer: “An Introduction to McDonaldization” George Ritzer (1993); with re-published editions in 2000s onwards. AN INTRODUCTION TO McDONALDIZATION I. Introduction 1. Ray Kroc (1902-1984); Genius behind Franchising of McDonald’s Restaurants a. Couldn’t anticipate large impact of his creation McDo is basis of one of most influential dev’ts in contemp. society Influence extends beyond origin (USA) & in fast-food. business (F-F) Influenced large undertakings & way of life of large portion of world McDo has rebounded from well-publicized econ. difficulties Impact likely to acceleratingly expand in early 21st cen. b. Not a book about McDo or fast-food; but about McDonaldization Devoted to McDo & the industry as a key role Served as paradigm for wide-ranging process (McDo’n) [McDo’n] the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world. Shown every sign of inexorable process Sweeping through seemingly impervious institutions (e.g. religion) And regions (e.g. EU, FRA) of the world 2. Success of McDo is Apparent a. 2008 Statistics: Revenue: $23.5B; Operating Income: $6.4B Expanded its offerings of >500 McCafé locations in GER; >1000 in EU b. McDo’s first operation (1955); now (2008) with 31,967 Restaurants Computer visualization compiling all McDo locations Impossible to get 107 miles from a McDo “McFarthest Spot” is in Northwestern South Dokota Martin Plimmer: ‘There are McDo’s everywhere” c. In 2007, McDo begins competition with Starbucks Offering its own line of specialty coffees 2009: Commitment of $100M to advertising new expresso drinks Declaration of a “Coffee War” d. McDo also employing 21st cen. Technologies to retain its superior position 10K US locations have WiFi; in JPN >10M customers have “promotional e-mails” (”more efficient than trad. coupons”) Est. online community for crew members (’StationM’) Has blogs & comm. tools to share work experiences Remodeling, high-tech., drive-thru, big-screen TV, video games, exercise bikes to restos. 3. McDo & McDo’n most obv. Influence on resto. industry (RI) & specifically Franchises Ritzer: “An Introduction to McDonaldization” 1 a. Int’l Franchise Association 767,483 small franchised businesses in US (late ‘06) Annual sale of $1.5T & Employed >18M Rapidly growing, >80% (prev. 57% in ‘06) of McDos are franchises Notes thats Starbucks refuses to franchise its operations In McDo 08’ Annual Report: “Locally-owned…core of competitive adv.” b. In RI, McDo’s Model is Adopted Budget-minded burger franchises (i.e., Burger King & Wendy’s) Or low-priced fast-food businesses In ‘08: “Yum! Brands, Inc.” operated 36,292 restos. in 110 countries Pizza Hut, KFC, Taco Bell, A&W Root Beet, Long John Silver franchises Had more outlets than McDo but total sales ($9.8B [’06’]) not as high Subway (31,949 outlets, 91 countries) also fast-growing fast-food Claims to be largest resto. chain in USA Cleveland, Ohio market full of Subway restos. One opened inside Jewish Community Center c. McDo’s Model Extends to Casual Dining Upscale, higher-priced chain restos. with fuller menus E.g. Outback, Chili’s, Olive Garden, Cheesecake Factory, Red Lobster Case of Morton’s steakhouse modeling after McDo Meal at Morton’s conforms to same dictates of uniformity, cost control & portion regulations seen in Am. fast-food chains Chief Executive also owned Wendy’s outlets which helped in venues Offered boardrooms with standardized features HD TV broadcast, WiFi, and other state-of-the-art tech. By ‘08: 80 steakhouses (doesn’t franchise), annual rev. of $354.5M d. Other Businesses Adapting Principles of Fast-Food Industry Toys “R” Us wants to be the “McDo” of toys Yet declining, unable to compete with McDonaldized Wal-Mart Kidsports Fun & Fitness Club → “McDo” of kids fun & fitness Gap, Jiffy Lube, AAMCO, Barnes & Noble, Home Depot, etc. Curves (chain of women’s fitness center) founded 1995 By ‘09, had 10K in 50 states & 70 countries “1 Curves for every 2 McDos in the US” Opened 6K in less than 1 decade, McDo took 25 & Subway 26 yrs. e. Can View most phenomena as affected in/directly by McDo’s model (& McDo’n) Text messaging, multitasking, mobile iPhones, FB, YT, eBay, Craigslist, online dating, Viagra, virtual vacations, extreme sports f. McDo’s Success in the Int’l Arena >43% of Restos. outside USA (mid-80s only 25%) 233 of 280 new restos. (’06) are overseas Over half of revenue comes from overseas operations Now found in 118 nations, 58M customers a day, leading in JPN Ritzer: “An Introduction to McDonaldization” 2 China prefers chicken > beef (KFC more than McDo) McDo plans to open more in Russia & Eastern EU GB remains ‘fast-food capital of EU’ Israel is “McDonaldized” with shopping malls and its stores inside g. Highly McDo’zed firms outside F-F indus. also successful globally Wal-Mart = largest retailer (>2M employees, >$401B sales, 4.2K US stores) Has >3600 stores in 15 markets worldwide h. Other Nations Developed Own Variants on McDo Chain Canada: Coffee shop chain Tim Hortons (merged w/ Wendy’s) CAN’s largest food service provider, twice as many McDo’s there 62% of CAN’s coffee business, Starbucks behind with just 7% Paris: F-F Croissanteries—French Bread has been McDo’zed India: Nirula (mutton burgers); Japan: Mos Burger Beirut: ‘84 opened Juicy Burger (’McDo of Arab World) ‘03 invasion of Iraq → clones of McDo (MaDonal, Matbax, etc.) i. McDo’n Coming Full Circle Other McDo’zed Insts. begun to export to USA ‘09: Body Shop (GB comestics); US copied with Bath & Body Works Pre A Manger (also GB) now in NYC, HK, & TOK Pollo Campero (Guatemala), Jollibee (PH) Pollo is sig. as it invades US (home of F-F) by foreign chain j. IKEA (Sweden-based; Dutch-owned) Home Furnishings Company 22.7B Euros in Business (’09); 660M people, 303 stores, 37 countries Purchases of its Catalog 2nd largest number of printed copies in world—just after Bible Website features 9.5K products & 450M visitors (’08) Another int’l chain = H&M Clothing (1947; 1738 stores; 30 countries) Inditex Group AKA Zara (Spain) overtook H&M k. Shows Spatial & Temporal Expansion of McDo & other McDo’zed Businesses McDo shifts focus from adding locations → adding hours to existing locales Squeezing more profit Now offering breakfast unlike before (while Starbucks is unsuccesful) Trends towards 24/7 Basis 1% (’02) → 40% (’09) of stores operate 24/7; 80% now open by 5AM Time is like space, no barrier to spread of McDo & McDo’n II. McDonald as a Global Icon 1. Has come to Occupy Central Place in US Pop. Culture not just Business a. Opening of new McDo can be important social event Big city & national newspapers avidly cover dev’ts in F-F business F-F restos. play symbolic roles in TV programs & movies SNL, Coming to America, Falling Down, Sleeper, Tin Men, Scotland, PA Fast Food Nation, The Day the Earth Stood Still b. McDo—Symbol of Am. Culture—seen in plans made to raze Ray Kroc’s 1st McDo Ritzer: “An Introduction to McDonaldization” 3 Hundreds of letters sent to McDo HQ (”please don’t tear it down!”) Was then rebuilt & turned into a museum “McDonald’s…is really part of Americana” Not just Americans; Case of Moscow & Other Countries Pizza Hut for Brazil, KFC for Malaysia → the want to be associated with “being American/America” c. In Some Ways McDo is more important than US itself E.g. of former US Amb. to Israel officiating 1st McDo in Jerusalem Kid thinking he was ambassador from McDo 2. Two Indices of Sig. of McDo & McDo’n a. (1) Annual “Big Mac Index” (’burgernomics’) published by Economist Shows purchasing power of diff. currencies based on local price ($) of Big Mac Big Mac used as uniform commodity sold in diff. nations US ($3.57), CHN ($1.83), SWITZ ($5.98), NOR ($6.15) Roughly indicates where cost of living is high or low + Which currencies are undervalued (China) & overvalued (Switz.) Measured econ. disparity; compared Labor Time required for Ave. Worker to earn enough to purchase Big Mac Least = 12 mins. in Chicago, but Nairobi = 160 mins. b. (2) Thomas Friedman’s Golden Arches Theory of Conflict Prevention Implies path → world peace is through int’l expansion of McDo Proved wrong by NATO bombing of Serbia (1999) 3. McDo throughout world has become Sacred Institution a. Indoor shopping malls as modern “cathedrals of consumption” Where people practice their “consumer religion” Similar central element of McDo → Walt Disney World “middle-class hajj, compulsory visit to sunbaked holy city” b. McDo achieved its position because of how many consumers Virtually all Americans passed through on innumerable occasions Many bombarded by commercials showing ‘virtues’ of McDo Tailored to variety of audiences & change as chain has new foods, contests, product tie-ins Every present commercials + people can’t drive w/o seeing a McDo Embedded McDo deeply in popular consciousness McDo appeals to people in many ways Restos. depicted as “spick-and-span”, food as “fresh & nutritious” Employees as young & eager, managers gentle & caring Dining exp. as fun-filled & purchases as donations to charities (e.g. Ronald McDonald Houses for sick children) III. THE LONG ARM OF McDonaldization 1. McDo strives to extend reach w/in & beyond American Society a. “Our Goal: To totally dominate the quick service restaurant industry worldwide” McDo not just a leader, but to dominate Originally began as phenomenon of suburbs & medium-sized towns Ritzer: “An Introduction to McDonaldization” 4 Later moved to smaller towns & sophisticated big cities Can find F-F outlets in NY Times Square & Champs-Elysées, etc. b. Rapid expansion of small, satellite, express/remote outlets In areas that can’t support full-scale F-F restaurants Small storefronts in large cities & nontraditional settings e.g. Museums, dept. stores, service stations, schools, etc. Typically offer limited menu & need larger outlets for food prep. & storage Issue of Placement of a McDo in new federal courthouse in Boston Other striking sites: Grand Canyon, Petronas Towers, Ski-through (Sweden), Shewsbury (England), etc. c. Dominating strips that surround & even moved into many college campuses 1st campus F-F opened in University of Cincinnati (1973) College cafeterias now look like shopping mall food courts Campus food service = multi-billion-a-year business “Branded partners”, Marriott supplies food to colleges & universities Approval by admin. → F-F in position of more influence to younger gen. d. F-F now available at many convenient rest stops along the road Post-”refuel” likely to end up in another comm. with same density & F-Fs Increasingly available in hotels, railway stations, airports, etc. e. Other Sectors of Society High schools, trade schools, school cafes. offer brand-name F-Fs “Kids today live in a world where f-f has become a way of life” For them to eat…must provide familiar items Altering of menus & procedures to make f-f readily available Healthier food (apples, yoghurt, etc.) are not consumed anymore F-Fs tend to cluster w/in walking distance of schools Attempt to hook school-age children to F-F “A for Cheeseburger” (get an A, get a free cheeseburger) Links “success in school” with “McDonald’s” Toy versions of McDo food marketed to children Increasing child’s interest in eating the real food Military also pressed to offer F-F in Bases & Ships US gen. hospitals & children’s hospitals While none in private homes, meals resemble what’s available in F-F outlets Frozen, Microwaveable, Prepared Foods similar to F-F restaurants Cookbooks that show “genuine” F-F made at home + Home delivery (e.g. Pizza by Domino’s) 2. Expansion as “Vertical McDonaldization” a. Demands of F-F Industry forced industries to service it to McDonaldize To satisfy insatiable demands → Leads to increase in production All food farming & processes have “McDonaldize” their operations b. Setbacks & Problems Arising from this Meat & Poultry more prone to diseases Ritzer: “An Introduction to McDonaldization” 5 Small producers driven out of business Many forces to work low-paid and/or dangerous jobs Swift & Armour replaced by large anonymous corporations While some profited enormously from Vertical McDo’n, more are forced to marginal econ. existence 3. McDo’s Powerful Model made Businesses acquire Nicknames with “Mc.” a. E.g. McDentists, McDoctors, etc. Drive-in clinics; quick & efficient minor dental & medical problems McChild (care centers), McStables (racehorse), McPaper (newspaper) b. Case of We Be Sushi (explaining why it isn’t named “McSushi”) Received letter from McDo that McSushi would dilute McDo’s image McDo’n so powerful, its derivatives exert their own powerful influence E.g. Success of USA TODAY → many newspapers adopt shorter stories Journalistic enterprises like NY Times & Washington had changes Stories usually start & end on the same page Cutting back of impt. details, context, etc. Light news & color graphics → newspaper becomes entertainment c. Just like all sectors, Sex has been McDonaldized Movie Sleeper, Porn site RedTube (mimics YT interface) Encounters in Craigslist provides centralized interface Variety of devices (”Teledildonics”), 3Feel Pornographic center known as “McDonald’s of sex” Cleanliness & compliance with law No aspect of people’s lives is immune to McDo’n Pharmaceuticals McDonaldizing sex (i.e., Viagra & Cialis) Drugs also working fast, lasting long (e.g. MDMA/Ecstasy) d. Other affected by the ‘long arm’ of McDo’n Mountain climbing (guidebook & climbing route reliance) Criminal Justice System (police profiling, “3 strikes & you’re out”) Family (TV shows, quick fixes to problems in book) Schools & policies that McDo’ze them Losing weight & McDo’n of the body Internet (site of McDo’n & deMcDo’n), Farms & Supersizing Religion & McDo’n of religious creeds, McJobs Politics (”drive-through democracy”) IV. THE DIMENSIONS OF McDonaldization What makes the McDo Model Irresistible? Eating F-F at McDo certainly become a “sign” of being part of contemp. lifestyle “Magic/Enchantment” associated with food & settings Focus on 4 Dimensions as heart of success of the model & of McDo’n Offers consumers, workers, managers → efficiency, calculability, predictability, control 1. EFFICIENCY Def’n: Optimum method for getting from one point to another Consumers: Drive-through & best available way to fill their hunger Ritzer: “An Introduction to McDonaldization” 6 Workers: McDo’zed systems efficiently follow steps in predesigned process Efficient method for satisfying other needs Other Inst. emulate in offering similar efficiency Exercising, lubricating cars, completing income tax forms 2. CALCULABILITY Def’n: Quantitative aspects of products sold & services offered Products Sold: Portion size, cost; Services (time it takes to get product) In McDo’zed systems quantity is equivalent to quality A lot of something/quick delivery means it must be good Contemp. Am. Culture: “As a culture, tend to believe ‘bigger is better’” Can quantify & feel they get a lot of food for a nominal sum of money E.g. McDo’s “Dollar Menu” Doesn’t take into account high profit margin of F-F chains shows that owners (not consumers) get best deal Calculate how much time it takes to drive to McDo, be served food, eat, return Often conclude trip to F-F takes less time than eating at home This supports home-delivery franchises (e.g. Domino’s) & fast fashion Emphasis on ‘saving time’ Some McDo’zed inst. combine emphasis on (a) time & (b) money Promising pizza in 30 mins or it’s free for e.g. Emphasize also QUANTI over QUALI aspects of their workers Quality of work is allowed to vary a little Workers focus on how quickly tasks can be accomplished Situation similar to customer, workers expected work a lot quickly with little pay 3. PREDICTABILITY Def’n: Assurance that prod/serv. will be the same over time and in all locales E.g. An egg McMuffin in NYC will be identical to that in Chicago & LAX E.g. Those eaten next week/year will be same as those eaten today Consumers take great comfort that there will be no surprises Success of McDo model shows many prefer a world of few surprises Considering McDo is a product of culture which honors individualism Workers of McDo’zed system also behaves in predictable ways Follow corporate rules & dictates of managers, what they say is predictable 4. CONTROL Def’n: Exerted over the people who enter the world of McDonald’s Lines, limited menus, few options, uncomfortable seats → pushes diners to eat quickly & leave Drive-through window invites diners to leave before they eat Workers in McDo’zed orgs. also controlled to high degree More blatantly & directly compared to customers Trained to do limited number of tasks in precise way they are told Control reinforced by tech. used & how org. is set up Managers & inspectors deployed to workers Ritzer: “An Introduction to McDonaldization” 7 V. A CRITIQUE OF McDonaldization: The Irrationality of Rationality 1. McDo’n Offers Powerful Advantages a. The 4 Dimensions through Nonhuman Tech. Nonhuman Tech: Tech. that controls people rather than controlled by them Basic component of rational system & powerful advantages of the system BUT Rational system spawns irrationalities Downside of McDo’n = “Irrationality of Rationality” Paradoxically can be seen as the 5th Dimension of McDo’n b. Criticism applies to all facets of McDo’ing world Opening of Euro Disney → “will bombard France with uprooted creations” F-F model spends billions detailing the benefits of their system But Critics of the system have Few outlets for their ideas No one sponsors commercials that warn children the dangers of F-F c. Legit Ques. arises: Is it animated by romanticization of past, an impossible desire to return to a world that no longer exists? Some critics base critiques on nostalgia of a slower life w/ more surprises Where ppl. are better off (econ.) & freer, dealing with humans not robot Tend to over exaggerate (+) aspects of world without McDo And forget liabilities associated with earlier eras Anecdote of Havana, Cuba Pizzeria Few would prefer this over a fast & diverse Pizza Hut Critics who revere the past forget we aren’t returning to such world More F-F restos. beginning to appear in Havana Increase in population, tech. change, pace of life → impossible to return Hard to return to home-cook meals, trad. resto. dinners, high-qual. food, meals with surprises, restos. by chefs free creative expression 2. More Valid to Critique McDo’n from POV of a Conceivable Future Unrestrained by McDo’zed constraints Using tech. advances made possible → Potential to be more thoughtful, skillful, creative, well-rounded If world was less McDo’zed, ppl. better able to live up to their human potential Must look at McDo’n system as (a) enabling & (b) constraining Enable us to do many things we couldn’t do in the past But also keep us from doing things we otherwise would do McDo’n = double-edged phenomenon VI. Illustrating the Dimensions of McDonaldization: THE CASE OF IKEA 1. IKEA’s Popularity stems from what is offers in furniture & Swedish designs a. Low prices, Trendy Furniture Large & devoted clientele throughout the world And it fits the dimensions of McDo’n Great anticipation over opening of the 1st IKEA is any location b. IKEA is a Global Phenomenon (now in 37 Countries) Sells its signature products & more adapted to local tastes/interests Ritzer: “An Introduction to McDonaldization” 8 2. In Comparison to the 5 Dimensions a. Efficiency: IKEA Offers One-Stop Furn. Shopping with Wide range of Products “No waiting for one’s purchases” Huge warehouse in each store, virtually everything is in stock Much of eff. stems from fact that customers expected to do work Relatively few IKEAs in an area unlike McDo Customers spend many hours driving (”IKEA Road Trip”) On Entry: Customers expected to take a map to guide them Purposely “maze-like” to get “lost” & spend more as they wander No employees to guide them only arrows for following Expected to grab pencil & order form to write down item numbers Yellow shopping bag picked up for smaller ones Few employees & little in the way of help If they eat → expected to clean their tables Most furniture sold is unassembled, expected to load most into own car Can rent truck/transport (high cost) To get catalog → must sign up online b. Calculability: Heart of IKEA; Idea that what is offered is at very low price One can get a lot of furn. at bargain prices “Feel they are getting value for their money” Low price generally = inferior quality Relatively case that IKEA products fall apart in short order Emphasis on huge size of its stores (~300k sq. ft.) Leads the one to think there will be a lot offered & is affordable c. Predictability: Large parking, children play area, mass inexpensive furn. Exit via warehouse, checkout counters, boxes for take-home, etc. d. Control: IKEA is highly controlled environment Maze-like structure forces one to traverse the entire place Forcing to see all that is being offered Taking a diff. IKEA-set path one becomes lost & disoriented Seems as if only way out is via checkout counter to pay e. Irrationalities: Variety seen in association with rationality of IKEA Notably the poor quality of most of its products May seems easy to assemble, many think of it as “impossible-to-assemble” + often long hours to get to an IKEA, wander, go home, assemble… VII. The ADVANTAGES of McDonaldization 1. Despite Irrationalities, McDo & Systems succeeded for good, solid reasons Knowledgeable People Support the McDo Business Model Econ. Columnist Robert Samuelson Confesses to “openly worshipping McDo” “Greatest resto. chain in history” McDo offers many programs that benefit society Ronald McDonald Houses Ritzer: “An Introduction to McDonaldization” 9 Permits parents to stay with children undergoing: serious medical treatment; OJT; employees & schooling; hire & train handicapped McMaster prog. for Seniors; hiring minorities; Social Responsibility prog. for envi. & animal welfare 2. McDo’n moved dramatically because it has led to positive changes Wider goods & services available to larger portion of population Availability depends less on time/geographic location Now can text, e-mail, online purchase, anytime, anywhere Ability to acquire what they want/need instantaneously & more conveniently Goods & Serv. more uniform quality; sometimes better-qual. More economical alternatives to high-price customized goods available People can afford things (e.g. IKEA) they couldn’t before Fast, efficient goods available to popu. that is working long hours Offer of Comfort by McDo’zed system (stable, familiar, safe envi.) Quantification → consumers can more easily compare competing products Certain prods. are safer in carefully regulated & controlled system All more likely to be treated similarly no matter race, sex/orientation, social class Organizational & Tech. innovations more quickly & easily diffused Via networks of identical operators Most popular prods. of one culture = more easily disseminated to others VIII. What Isn’t McDonaldized? Providing a sense of McDo’n & Range of the Phenomena Is McDo’n equivalent of modernity? Is all contemporary McDo’zed? At least 3 Aspects of Contemp. Society largely Escaped the Process (1) Traceable to Earlier, “premodern” age (e.g. Mom-and-Pop Grocery Store) (2) New businesses as a reaction against McDonaldization Bed-and-breakfast hotels > McDo’zed Holiday Inn/Motel 6s Room is private home, personalized attention, home-made breakfast (3) Move Toward a new, “postmodern” age “Modern” high-rise housing proj. make way → smaller, more livable comms. While McDo’n is Ubiquitous, there is more to contemp. world than McDo’n Very impt. social process but far from being the only process that transforms McDo’n is not an all-or-nothing process There are degrees of McDo’n F-F restos. = heavily; Universities = moderate; Mom-&-Pop = slightly Hard to think of phenomena yet local enterprises (Fiji/Cuba) may be untouched IX. A Look Ahead While there is some evidence of DeMcDo’n it is far from enough to conclude that McDo’n is at an end Leads us rather to a more nuanced sense of the McDo’n process THE DeMcDONALDIZATION OF SOCIETY? I. Introduction Focus on McDo’n as increasingly omnipresent process In US, World, F-F, Food Industry, Aspects of Social World Family, Religion, Criminal Justice, etc. Ritzer: “An Introduction to McDonaldization” 10 Now a critical look at the “grand narrative” of progressive McDo’n Examine counter-trends & if moving → DeMcDo’n 3 Sections to Analyze (i) Potpourri of changes that suggest DeMcDo’n is possible (ii) Rise of SB & if SB’n threatens to replace McDo’n → DeMcDo’n (iii) Internet & Analysis of eBay & eBay’n (Web 1.0 → Web 2.0) II. A Potpourri of Factors 1. Worrisome Trend from McDo’s POV are Worldwide Efforts opposing them a. Opposition in Operations, Practices, & Food Coalition of groups that are convinced that McDo is a major contributor to: Envi. Degradation, Obesity, health-related problems Evils of Capitalism, Poor working conditions, faltering unionization Neglected children, global threat of homogenization & Americanization McDo is vulnerable to opposition at various levels May be in danger of becoming paradigm that is bad in the world b. Diff. Threat stems from difficulty any Corp. has to stay top (1) Internal Problems & (2) External Competition Profit decline, falling stock prices, lack of managerial creativity Franchise system; many have experienced serious difficulties McDo works hard to maintain franchises but may suffer in that model 2. Another Potential Threat: “Sneakerization” As we enter ‘postindustrial’ era which disdains the kinds of standardization Which is against “one-size-fits-all” products—the heart of McDo Beginning to see more ‘customization’ True customization is not amenable to McDo’n Sneaker’n is more akin to niche marketing Runners, walkers, aerobic, etc. But result is not true customization Sneakers are not made-to-measure Watches, TVs, etc. are manufactured by the same companies Sneakerization does not reflect trends → DeMcDo’n Nike mass-produces amenable to McDo’zed production Including its marketing & distribution & sales Future direction for McDo’n involves application to products sold in smaller quantities 3. Similar Argument: “Mass Customization” Dell building computer to customer specifications Planters offering diff. nuts to Wal-Mart or 711 Logosftwear.com customized clothes, will print what you give them Process is less McDo’zed than mass-prod. of the same T-Shirt like Nike Mass-prod. is more efficient → greater predictability More of it; more amenable to quantification Relies on non-human technology instead of customized production Yet, logosoftwear is still more McDo’zed than trad. methods Ritzer: “An Introduction to McDonaldization” 11 Therefore, degrees of McDo’n; but not representing deMcDo’n While one can see its decline, there is little evidence of McDo’n decelerating III. STARBUCKIZATION Whether SB is sufficient that SB’n is in replacing McDo’n → DeMcDo’n & Rationalization? Or if it is sufficiently different that it deserved distinctive label SB created image that it was “cutting edge” Prioritizes SB & implies McDo no longer occupies this position If SB is cutting-edge in F-F then it should be the model for process, not McDo “Starbucks is the new McDonald’s” Indicators of SB’s Ascendancy (as was the case for McDo) (a) Businesses now owe their existence to SB & seek to emulate it in many ways (b) SB clones emerged globally (logo, aprons, coffee size, etc.) (c) Economist Idea of “Tall Latte Index” in comparing prices like Big Mac (d) Pastor saw satellite locations of megachurches like franchises “It’s kind of like going to SB. You know the product you’re going to get.” (e) There is a book seeking to delineate “leadership principles” of SB’s success Communicate this to aspiring businesspeople who see SB as a model 1. What Has Starbucks Added to, or Removed From, the McDonald’s Model? a. Most Obv. Advance is to move away from mediocre quality of McDo’s fare & Move towards the McDo’n higher-qual. products esp. its coffee Mid-level & High-level chains are doing the same E.g. Red Lobster, Olive Garden, Morton’s No question prior to SB, the quality of Am. coffee was dismal Spearheading widespread trend in US → appreciation & consump. of higher-qual. coffee McDo also with its expansion of McCafes rapidly & globally Done in GB (664 SBs)—where coffee before SB was bad-quality Succeeds in countries with history of poor coffee & no strong coffee culture E.g. JPN now having 800 shops But major challenge to succeed in societies w/ already high-qual. coffee & have higher-qual. than SB famous for their coffee culture E.g. Italy, France, Turkey b. SB’s most impt. innov. was soften McDo’s hard-edged approach & image Instead of stiff & unwelcoming seats, SB is defined by overstuffed armchairs & sofas + convenient tables & chairs Schultz seeks to distance SB from McDo-style F-F Associate it with Ray Oldenburg’s more homey “third place” “Business of human connection & humanity, create communities in 3rd place bet. home & work” Several Characteristics with SB as a third place: (i) “A taste of romance” of coffee from far-off places in routine day (ii) “An affordable luxury” Coffee is expensive but many may treat themselves/occasionally (iii) “An oasis”—small escape from the hectic world But has drive-through & to-go coffee & VIA instant coffee Ritzer: “An Introduction to McDonaldization” 12 But beverages stimulate & increasingly part of the hectic (iv) “Casual Interaction”; social life available at SB Except vast majority that get coffee in line or drive-thru windows c. SB as 3rd Place is Amplified by Encouraging Customers to come with laptops Laptops, connect to Internet, use Wi-Fi connection (for a fee usually) Can also use newspapers, books, CDs & stay as long as they want But Schultz recognizes SB is “not yet the ideal Third Place” Lack of adequate seating & few who choose to stay & communicate Whereas, McDo focused on dangers of people staying too long Affected by exp. of now-defunct chains like Automat (cafeterias) Hurt by street people who stayed long without buying anything Hard to finds seats + unappealing appearance of people sitting McDo created hard-edge making customers feel unwelcome Garish colors, uncomfortable seats, absence of amenities Now altering designs of restos. to reduce some harsh characteristics + expansion of McCafes in convergence of McDo & SB More general message from McDo = “Customers is less than Welcome” They may come & buy but expected to eat it fast & get out ASAP Or “Don’t enter the restaurant!” Use the drive-thru → buy & leave immediately The ideal McDo customer has become one who never sets foot in the restaurant d. SB works hard to create the opposite image—Customers are welcome But this is more image than reality Wifi may be offered, but it is costly (’the meter is running’) Overwhelmed with ppl. but small number of tables & seats/sofas Vast majority picks up coffee & leaves (80% are “to-go” customers) SB customers thus behave like McDo customers John Simmons: Vast majority make no conversations/social interaction There is no pressure to be sociable Diff. bet. McDo & SB is more appearance than reality Starbucks' major innovation has been in the realm of theatrics. Not just about coffee but “providing” a great experience with coffee Create a stage, unpaid actors (customers that stay) → illusion Those who can’t be part, enjoy “watching” the performance Being the audience as they line up for coffee & leave Sometimes even imagining to be part of this show Created new way McDo invented—use customers as unpaid workers (prosumers) McDo: Line up → Bring food to table → Clean up SB: Same + Adding desired milk/sugar to coffee Staying to drink their coffee in the shop → unpaid actor/worker “Actors” = Casual drinkers, ppl. needing place to meet/part-time office, etc. SB says they “encourage” it & can since only few interesting in staying SB presents itself as kind, gentle, & caring corporation Ritzer: “An Introduction to McDonaldization” 13 First they tell us (mission statement, public relations) Schultz’s self-serving book about “care” for employees Provision of seemingly generous benefits → ‘lower turnover’ Public concern for coffee growers, Interest in Fair-trade Coffee Unlike McDo often accused of exploiting land of farmers Growing Evidence this is more Myth than Reality; Public Relations SB does not treat its employees & commitment to fair-trade is minimal Rarely offers fair-trade varieties & doesn’t brew it on-demand Commitment to small coffee farmers is more myth e. Critics see Similarities bet. SB & McDo & “Wal-Martization” of society Small local coffee shops oppose SB like many who oppose McDo Wal-Mart All are part of the same general process Schultz resists against association with Wal-Mart (very defensive) 2. Should the Concept of ‘Starbuckization’ Replace ‘McDonaldization’? a. Answer is Clear & Resounding—NO! McDo was the “pioneer” in F-F inudstry Brought process of rationalization to customers → consump. SB fits & operates with principles of McDo’n b. SB and the 5 Dimensions (i) Efficient: Customers line up, pay, use cream/sugar, then leave Drive-thru offers same level of efficiency (same with McDo) Brewing & serving coffee is more efficient in SB than McDo New instant coffee (VIA) allows eff. prep. of coffee at home/office (ii) Predictable: Logo, shops, counters, menu, coffee, aprons Preparation, cream/sugar stand, types of milk, other products Shelves of goods (coffeemakers, mugs, books, CDs, etc.) All sold and seen in each locale (iii) Calculable: There is no small SB coffee No pretense of low cost, but clear emphasis on quantity of coffee sizes The smallest is a “large!” + venti & grandes (’taller than tall’) # of espresso “shots” one can get & (high) prices of drinks & sizes SB succeeds in getting people to pay high prices Calling SB → “Fourbucks” & positions in high end of market (iv) Controlled by nonhuman technology Creative baristas replaced by automatic espresso makers 3. The Irrationality of Rationality at Starbucks a. SB has most, if not all, the irrationalities of McDo Homogenization, Disenchantment, Dehumanization + Higher Prices Customers pay extraordinary amount; high profit margins; huge markup Venti may cost $2+ but only need 10¢ to make Exploitation of worker & exploitation of consumers via unpaid labor + markups & price inflation SB expansion means buying huge quantity of beans w/ uninterrupted flow Negative side: Can’t always get the best beans Ritzer: “An Introduction to McDonaldization” 14 But of little interest to SB given enormous reqs. Claim to sell high-qual. coffee is in fact mediocrity b. SB may decline Franchising but embraces Joint Ventures & Licensing Contradicts Schultz’s claim of franchising as a “forbidden word” Yet gave Host Marriott license to operate SB shops in airports Over 1/3 of SBs in USA are licensed than run by SB Many more licensed & joint ventures overseas Joint ventures & licenses occupy the middlemen position SB may even have less control now than if they franchised Licensed SB at author’s university; bad quality & poor service Fear of ‘losing control’ become a reality at expense of rush to expand Failures of licenses rebound SB & tarnish its image Hence why McDo went to franchise direction for better control c. Problem of Homogenization seen in statement on rapid growth of SB in China “Our stores are a mirror image of Madison Park or Pike Place” In Taiwan, fear of SB playing major role in disappearance of distinctive tea shops & tea culture Considerable uniformity to coffee shops worldwide SB grown sensitive & more variability in store designs & local envis. But each shop is, must be, unmistakably SB SB opened a “stealth Starbucks” in Seattle Another issue is nutritional value of many products Frappucino-type drinks have same calories as a McDo milkshake There is policy to not market to children, but the “starter drinks” attract + Type of music promoted placing them in a context of coffee d. What McDo did was to “Infantilize” Food Created circus-like atmosphere (e.g. playgrounds) Using clowns & other characters to lure children + parents along Plays to needs of children (finger foods) + basic & limited tastes + Toys given away & tie-ins to movies like Disney Infantilization, early success, but failed strategy for adult customers They were drawn to other chains like BK Tried making Ronald McDonald more adult in ads but also failed Application to Starbucks? SB is oriented to adults & adult-oriented range of coffees Appeal to youth of high-priced exotic coffee = source of success Many drinks are sweet, flavored, etc. SB = “coffee for those who don't really like coffee.” SB infantilized coffee to broaden market for its products e. Summary: SB is a phenomenal success but built on McDo’s pioneering model SB better seen as another McDo’n example rather than new model McDo’n now seen in coffee shops SB’n is by no means an indication of DeMcDo’n IV. The Internet and DeMcDonaldization Ritzer: “An Introduction to McDonaldization” 15 2 Interrelated Aspects of Internet to be discussed (1) Discuss whether eBayization (& not SB’n) replacing McDo’n → DeMcDo’n (2) Look at transition from Web 1.0 → Web 2.0 (subsumes eBay) Discuss if process of DeMcDo’n is involved in this transformation 1. eBayization a. Elif Izberk-Bilgin & Aaron Ahuvia strong challenge to McDo’n Thesis Argues ‘McDo’n’ is to capture reality of material, Fordist world of consump. But doesn’t well-describe contemporary realities Changes like post-Fordist prod. techniques, fragmented consumers & tastes, growing desire for individualized prods. & servs. eBay’n proposed as paradigm for new world, esp. relates to consump. eBay’n applies to Internet & consumption Likely that consump. will occur increasingly in the Internet b. eBay’n has 3 Basic Dimensions (i) Variety: As opposed to limited offerings of McDo’zed F-F restos. (ii) Unpredictability: As opposed to Predictability of McDo’n systems (iii) Market-mediated Control: Rather than centralized control of McDo McDo’zed systems designed to limit, eliminate variety & seek better control Yet eBay’n characs. are superficial & can find McDo’n still underlying it It is McDo’n basic struc. that eBay makes the 3 dimensions possible c. Limitations of the Thesis: eBay “can boggle even a jaded mind” Neglect to analyze structure of eBay that makes variety possible Variety that makes consumer to handle enormous diversity eBay not unique in this; some McDo’zed too have this McDo’zed struc. of shopping malls that make possible sale of prods. E.g Indoor malls have “dumbbell” structure (ends in Dept. Store) Makes shoppers make way to the dept. stores Variety & passes by other specialty stores → more variety E.g. Wal-Mart’s corporate struc. & efficient BTS operations Can sell & millions can buy vast array of products May be more difficult to visualize McDo’zed structure on eBay But the structure is the database & interface on the site Variety attracts buyers & wouldn’t be possible w/o McDo’zed architecture of the database & website bringing efficient search space W/o McDo’zed struc. to classify & access & order → would be chaotic There is unpred. on eBay but made possible by highly McDo’zed structure Rational models of predictab. often make possible greatest surprises Highly unusual & unique products found on eBay if not for McDo’n eBay gives same space to all items & doesn’t promote one over other Each item is searchable in same layout Unpred. is made tolerable by frame & struc. of pred. that surround it d. Limited elements of Unpred. “Enchant” a McDo’zed disenchanted system McDo’zed systems often conceal their rationalized core Ritzer: “An Introduction to McDonaldization” 16 Make it more acceptable by surrounding with magic & enchantment Seeminly unpred. on eEbay has similar functions Unpredictable offerings, price, bargain prices Magic service obscures McDo’n as heart of eBay = more tolerable e. Market-mediated control is alternative to strategy of centralized control eBay scheme = “harness & ride cacophony of billions” Shift direct control from centralized bureaucracy to market “Harness” calls for meaning of market mediation in eBay Whole point of market is that it is a “free market” eBay limits in ways to mitigate potential costs & promote more transactions User’s responsibility to decide if to buy & sell eBay seeks to reduce fears of the risks → User Rating System Gives buyers numbers to judge reliability of seller & risks Standardized process in filing strikes/complaints against users Constitutes interference in free market of eBay But offer predictability in seemingly unpredictable world 2. eBayizing McDonaldization? a. Examine eBay from basic dimensions of McDo’n eBay a publicly traded company, chief goal is profit To maximize profit → enterprise must be efficient Must examine context in which it operates Means of achieving max. profit may appear diff. acc. to context eBay’s means to profitability requires listing as many entries on database Making sales more likely & attracting attention & payments from users Must appeal to as many potential entry-makers & searchers Make them register & spend a lot of time interacting w/ database Make process of entry → sale easy & low in risk Encourages entry of items & buying of items Operates in diff. material context but McDo does many similar things Bilgin & Ahuvia define eBay as unpredictable because of surprise factor but Pocess surrounding entry & sale is highly predictable Appearance of each entry, what is listed in “box”, all are the same Filters are the same (e.g. size, color, style, brand, condition) “Power-Seller” listed at top of search results Paying a fee after 100 transactions of $3000+ worth of sales 98% rating Power Seller program promises predictable eBay sellers b. In terms of Calculability; eBay allows buyers access to extra larger # of items Seller pays insertion fee for listing of item & final value when sold Value calculating tool - ave. price, full price range, etc. Items, descriptors, users all coded by algorithm Sellers encouraged to create effective listings Focus is max. quantity of items listed & sold & number of users Ritzer: “An Introduction to McDonaldization” 17 c. In terms of Control; eBay powering interactions in formally rationalized system This system being centralized control—an essential element Basic concept: The “global yard sale” (getting a bargain = enchanting) Only made possible because of this rationalized system It can embrace & encompass unpredictability & variety Within efficient, calculable, predictable & central controlled framework 3. Web 1.0 and 2.0 a. Differentiating W1.0 & W2.0 W1.0 = Internet existing before dot.com bubble burst (1990s) W2.0 = Internet’s 2nd decade (2000s) Contrasts also in connectivity speed where W2.0 is relatively faster But the 2 are seen as temporally overlapping phenomenon Both always & continue to coexist “It’s the explosion of user-generated content that defines W2.0 & differentiates it from the provider-generated content of W1.0.” W2.0 = bottom-up system controlled largely by its users W1.0 is centrally by providers & is top-down W1.0 holds Web sites of past, haven’t taken advantage of user-gen. content Users find people & businesses via framework of the sites They dictate the content & users’ browsing b. Tempting to Offer a “Grand Narrative” of Shift from W1.0 → W2.0 Far too simplistic. Recognized degree of users producing content isn’t dichotomous It represents continuum, heading to the “end” of 1.0-2.0 spectrum Some user-gen. exist in W1.0 sites & some top-down exists in W2.0 “Cyber-libertarian” ideology of W2.0 was present since beginning Aim to keeping internet free & open Internet was conceived as revolutionary, even utopian Bringing great increase in freedom to those involved Internet has NOT fully resisted corporate structures, hierarchies & control But corporate entities begin to control & make sites that structure & limit ways in usage by users These ideals saw bursting of W1.0 bubble as opportunity for “creative destruction” Destruction of W1.0 as necessary prereq. to emergence of W2.0 Attempt to actualize libertarian project online Fueled by failure of internet to produce expected profits & Power of new high-speed tech. enabling online interactions Internet being fast, accessible, always on = more useable Opens door to new kinds of richly social & humanized online exps. c. W2.0 accords less power to creators of these systems & more to the users W1.0 allows reading, browsing, consuming online content 2.0 further allows writing & producing such content Permits increased ability to network with other socially E.g. Implosion of consumer & producer on 2.0 → prosumer Ritzer: “An Introduction to McDonaldization” 18 2.0, users produce that which they consume (e.g. FB) Interactive character & user-gen. content Sites are now more humanized & more fluid than more static 1.0 sites Major examples of 2.0 & centrality of user-gen. on them Wikipedia, social networking websites, Second Life, Blog sites, eBay & Craigslist, YT & media sharing sites, TV, Linux, Amazon, Yelp, etc. Many diff. ways to describe nature of change to describe what is new in 2.0 Populist notion that many minds are better than one “Wisdom of the crowds” View emphasizing productivity & originality of mass self-expression Breaking down barriers & structures online (”flattened world”) d. Web 1.0 was & is Highly McDo’zed Its sites are constructed in one-size-fits-all model From POV of those that control or work on them Making them highly efficient to create & maintain Also highly eff. from user POV Created & designed with efficiency in mind Enhanced by predictability of websites (more or less identical) Ubiquity of Yahoo or AOL serve(d) to eliminate inefficiencies Major source of unpredictability of McDo’zed systems (human behavior) Largely eliminated from websites & relative to W2.0 Once site created, can remain in place indefinitely Enhances predictability from creator & user Calculability is no problem Those in control of sites can easily monitor use & calculate variables E.g. # of users & how sites are used Users can compare available sites to assess which uses time more eff. W1.0 is dominated by almost completely nonhuman tech. Websites control what users do & give few options Sites are static & goal is keep them that way The Irrationality of Rationality Dehumanization: Humans working for 1.0 sites are highly limited Cannot fully exploit their creative human capacities to improve sites or respond Largely dehumanized from POV of their users Must use a site in the way its designers intend Structured relatively uncollaborative & less social than W2.0 1.0 squanders ability to make use of skills & abilities of makers & users 2.0 reduced irrationalities of rationality 2.0 greatly heightened rationality of these systems W2.0 may be seen as rational next step—but is profit-based motives Exists partially outside of principles of McDo’n 2.0 seen to some degree as tendency toward DeMcDo’n e. DeMcDo’n and the Web Ritzer: “An Introduction to McDonaldization” 19 2.0 is less efficient than 1.0 esp. for users Amount of time producing content exceeds amount of user-gen. existing on 1.0 If eff. = amount of output relative to amount of input Then massive input encouraged by 2.0 is not efficient 2.0 defined by ability of masses to create content online Wasteful in efficient system is embraced by 2.0 Focus is on quality of what’s produced There is far more unpredictability on 2.0 sites Basic structure is predictable But what does/doesn’t find its way to page is unregulated Limits vary per site but quite wide Users unable to predict what they will find when they log on Harder to quantify & calculate what transpires on 2.0 site 2.0 allows more subjective inputs Nonhuman Tech. involved in 2.0 E.g. Computers & the sites themselves But humans more able to manipulate content on 2.0 1.0 is centrally conceived, pre-structured, immune to alteration 2.0 basis that users must manipulate & alter sites Users gaining control over tech. 2.0 serves to reduce irrationalities esp. dehumanization Utilizing skills & abilities of users makes it more ‘reasonable’ system Users remain human & valued for unique contributions Is content on 2.0 like Flickr or YT McDo’zed? No evidence of McDo’zed photography Photos aren’t created to please as many people as possible Photos = human & enchanting, not mechanized/standardized Underlying structures behind pictures are standardized across sites f. Conclusion 2.0 involves process of the DeMcDo’n of the Internet At least when comparing it to 1.0 It contradicts argument of ever-increasing McDo’n User-gen content makes 2.0 lose some of the dimensions But the dimesnsions & McDo’n have not disappeared completely Continues to exist in underlying structures FB exerts control & unprecedented intrusion of tech. into socializing & self Via using nonhuman tech. to the processes Structures social networking by dictating look of profiles Preset & centrally controlled principles & structures “Wall”, constant feed on “friends”, etc. Identity chosen by selecting FB-determined options & checkboxes Uniform profiles, clean interface, user-friendly, promotes content dev’t Digital presentation & socializing has been McDo’zed Ritzer: “An Introduction to McDonaldization” 20 FB is also DeMcDo’ing the web experience Makes web more human via increased social interaction Highly unpredictable since humans interact with humans Difficult to quantify but quality matters most FB makes keeping in touch efficient But inefficient with pressures of facilitating more socialization & ineff. due to time spent on these sites Ritzer: “An Introduction to McDonaldization” 21

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