company stores. The company's service strategy is also heavily dependent upon a company operated training center for its managers, for both franchise stores and company stores.
There is a trend toward greater consumer demand for full service in the restaurant industry. This trend will cause fast food firms to modify their methods of operation. McDonald's service strategy has incorporated increased levels of inside service in response to this trend.
A second important trend in the fast food segment of the restaurant industry is the practice of establishing fast food outlets in non food retail stores. This trend will affect location strategies for fast food companies. McDonald's has responded to this trend through the establishment of restaurant operations inside Sears department stores.
Some of McDonald's essential service strategies have not changed over the years, and this stability has contributed to the company's ability to maintain its dominant industry position. One of these enduring service strategies is a low price to value ratio. McDonald's position in this context remains consistently superior to the positions of its competitors. Another of McDonald's enduring service strategies is its reliance and emphasis on franchising. As indicated at an earlier point in this discussion of the company's service strategy, more than two thirds of McDonald's restaurants are operated by franchise holders in the early 1990s. Yet another of McDonald's enduring service strategies is the establishment, monitoring, and maintenance of performance standards. While competitors in the fast food segment of the restaurant industry have also adopted this practice, it was developed by McDonald's, and the company continues to lead the way in this area.
In other ways, McDonald's has been flexible in the development and implementation of service strategy to meet changing environmental conditions. The company added in house seati...