In fact, relationships matter a whole lot to a far-flung operation such as McDonald's, which must maintain a consistent level of quality across 109 countries and territories. Stable relationships with suppliers are a crucial element in sustaining an infrastructure massive enough to support 12,000 restaurants in the United States--a number that grows by 600 to 1,200 restaurants each year.
To keep things running smoothly, McDonald's simply can't change suppliers every year, explains Tony Spata, the building systems engineer who oversees the company's ambitious building program. "You've got to have repeatability and stability--that's the only way we can lock in things," Spata says. "As long as you do right by us, we're going to stay with you. Normally, we stay with you until you totally screw up. And then we have to sure you're totally beyond salvage before we go out and make a change."
Ray Kroc, the former milkshake machine salesman who built McDonald's into a $10 billion-plus operation before his death in 1984, likened the company's success to a "three-legged stool." The legs represent the company, its franchisees and its suppliers, with each supporting the weight of the McDonald's system equally.
Suppliers who make the cut must be quite familiar with how the hamburger giant operates and must be willing to "invest in the company's success," Langert says.
"When we say 'supplier' at McDonald's, that's a very serious thing, because we have very long-term relationships with our suppliers," says Langert. "Our french fry suppliers are always figuring out how they can produce better french fries, so our customers will like them better and they'll end up buying more french fries."
Eventually, McDonald's wants to develop that same type of special relationships with only a half-dozen or so energy suppliers who are experts in that field.
In that regard, McDonald's is way out in front of its fast food rivals. A Burger King spokewoman says the company is certainly "aware of" the various deals McDonald's has been signing, but is not yet ready to emulate them.