It is a well-known fact that McDonalds nowadays is the largest retailer selling fast-food. But it is necessary to admit that even such big company has complaints concerning service. The loudest case was connected with coffee temperature. Stella Liebeck became an unwilling centre of national and international media. Stella was injured by the company, because they preferred to ignore the opportunity to solve the problem. Coffee has to be served hot, but coffee served to Liebeck was really scalding and burning.
Liebeck vs. McDonalds It is a well-known fact that McDonalds nowadays is the largest retailer selling fast-food. It has more than 30,000locations in about 120 countries throughout the world. McDonalds is the most famous place not only among children, but also among grow-ups. But it is necessary to admit that even such big company has complaints concerning service. (The McDonalds Coffee Case) The loudest case was connected with coffee temperature.
Stella Liebeck became an unwilling centre of national and international media. Stella was injured by the company, because they preferred to ignore the opportunity to solve the problem. Coffee has to be served hot, but coffee served to Liebeck was really scalding and burning. Stella Liebeck was sitting in her grandsons car when she was served scalding coffee. As the result she was severely burned by the served coffee in the February 1992. Stella ordered coffee at the drive though McDonalds window. When she received her coffee, her grandson started his car and then stopped it again in order to give opportunity for his granny to add sugar and cream to her coffee.
The Business plan on Case Study of McDonald’s
In the early 1940’s, two brothers opened a burger restaurant that was based on standardized preparation called the Speedee Service System. This “burger restaurant” is now globally known as McDonald’s. In 1976, McDonald’s introduced the breakfast menu as a way to diversify sales and product selection. Today this multinational corporation serves nearly 54 million ...
But some critics say that Liebeck was driving a car or that her grandsons car was moving when Stella spilled her coffee. But neither of these facts is true. (Riba 2000) In order to remove plastic lid she placed coffee on her knees, in the result the contents of the cup was spilled on her knees and injured her. Stellas sweatpants absorbed the spilled coffee and vascular surgeon stated then that about 6% of the body was burned including buttocks, perineum, inner thighs and genital. Liebeck was hospitalized for almost eight days and she underwent grafting of skin and debridement treatment. Stella Liebeck decided to settle a claim against McDonalds for $20,000. McDonalds refused her claim. (The McDonalds Coffee Case) It was discovered that more than 700 people settled claims because of being burned by coffee during 1982-1992.
It is admitted that some claims involved even 30% of burns similar to Stellas. It turned out that McDonalds was aware of such hazard. Corporation argued that consumers realize the fact that coffee is hot and it is the customers who prefer hot coffee. But many customers were really unaware of possibility to be burned by coffee. There was a reminder on the cup that coffee is hot, but there were no reminder of the hazard of being burned. (Riba 2000) Liebecks expert found that liquids, at 180 degrees, will cause a full thickness burn to human skin in two to seven seconds.
Other theories mention that coffee even at 155 degrees is able to burn skin. In other words if Stellas spill spill had involved coffee at 155 degrees, the liquid would have cooled and given her time to avoid a serious burn. (The McDonalds Coffee Case) Because of damages Stella Liebeck was awarded by $200,000 as compensation. Nevertheless the sum later was reduced to $160,000, because the jury found Liebeck 20 percent at fault in the spill. What is more interesting is that Liebeck was awarded $2.7 million in punitive damages, which equals about two days of McDonalds’ coffee sales. Later investigations found that coffee temperature has dropped to 158 degrees. Then the court decided to reduce award concerning punitive damage to $48,000. But the real ending of the story is still unknown and nobody will know it.
The Business plan on McDonald’s and the McCafe Coffee Initiative
Looking at McDonald’s Canada from a resource-based view (please refer to the appendix), I believe that McCafé will succeed in Canada. McDonald’s has a plethora of valuable resources in its disposal. Among them, arguably the most important is brand equity. The “Golden Arches” are instantly recognizable to just about everyone in the planet, and that level of brand awareness ...
It is mentioned that the parties entered into secret agreement never revealed to the media and public. But the case was considered to be public and was subjected to media reporting. But to my mind Stella Liebeck was guilty herself. Everybody knows that served coffee is hot and it can burn skin. It is a well-known fact. And it was rather unwise for her to place coffee on her knees.
The result of the trial court had to be the opposite. She should be refused, because she was guilty as well. It had to be a good lesson for her in the future. But it is up to everyone to decide who is to blame for. (Riba 2000) References Hsu, Shi-Ling. (2005).
Priceless: On Knowing the Price of Everything and the Value of Nothing. Environmental Law, 35, 1, 135-142.
Riba, Lisa. (2000).
McDonalds Coffee and the Liebeck Lawsuit. Retrieved July, from http://www.osmond-riba.org/lis/essay_mcdonalds.htm The McDonalds Coffee Case. (2001).
Retrieved July, from http://www.floridatriallawyer.com/CM/Articles/The- McDonalds-Coffee-Case.asp..
