Journey of McDonald’s making people love them

in Bangladesh
(Case-6)

Submitted To: Submitted By:

Tajuddin Ahmed Group-A
Lecturer
North South University

Date of Submission: 8th April, 2019

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 Journey of McDonald’s making people love them

NAME ID Signature

1. Afrin Haque 1330960030

2. Tabasum Kamal Marin 1410625630

3. Nigara Rahman 1420578030

4. Sharmin Nahar 1421022030

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 Journey of McDonald’s making people love them

Who are they?

The food service industry in Bangladesh has evolved dramatically. Over the last several years, newer
and newer restaurant businesses in Dhaka city have popped up and it has become a place of huge
interest for global giants. McDonalds is an American restaurant which is one of the most popular
restaurants in the world and it has entered into 117 foreign markets and draws in millions of consumers
daily. Recently McDonalds has shown their interest to enter the Bangladeshi restaurant business and
they want North
South University’s HR students to do a survey on the market as they know the HR students of NSU are
very potential. They have portrayed the recent success rate of other international restaurants like-
Dominos and Burger king in Bangladesh. Recently Bangladesh has become a record- breaking
investment for Dominos. McDonalds is famous for their burgers and French fries and people are here
already in love with burgers. They are now craving for an international big burger’s restaurant like
McDonalds. Also, many global companies are constantly showing their interest to have a piece of this
intensive growing market.

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 Journey of McDonald’s making people love them

McDonald's is an American fast food company, founded in 1940 as a restaurant operated by Richard
and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business
as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being
introduced in 1953 at a location in Phoenix, Arizona. In 1955, Ray Kroc, a businessman, joined the
company as a franchise agent and proceeded to purchase the chain from the McDonald brothers.
McDonald's had its original headquarters in Oak Brook, Illinois, but moved its global headquarters to
Chicago in early 2018. McDonald's is the world's largest restaurant chain by revenue, serving over 69
million customers daily in over 100 countries across 37,855 outlets as of 2018. Although McDonald's is
best known for its hamburgers, cheeseburgers and french fries, they also feature chicken products,
breakfast items, soft drinks, milkshakes, wraps, and desserts. In response to changing consumer tastes
and a negative backlash because of the unhealthiness of their food,] the company has added to its menu
salads, fish, smoothies, and fruit. The McDonald's Corporation revenues come from the rent, royalties,
and fees paid by the franchisees, as well as sales in company-operated restaurants. According to two
reports published in 2018, McDonald's is the world's fourth-largest private employer with 1.7 million
employees (behind Walmart with 2.3 million employees).

The siblings Richard and Maurice McDonald opened in 1940 the first McDonald's at 1398 North E
Street at West 14th Street in San Bernardino, California but it was not the McDonald's recognizable
today; Ray Kroc made changes to the brothers' business to modernize it. The brothers introduced the
"Speeded Service System" in 1948, putting into expanded use the principles of the modern fast-food
restaurant that their predecessor White Castle had put into practice more than two decades earlier. The
original mascot of McDonald's was a chef hat on top of a hamburger who was referred to as "Speeded".
In 1962, the Golden Arches replaced Speeded as the universal mascot. The symbol, Ronald McDonald,

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 Journey of McDonald’s making people love them

was introduced in 1965. The clown, Ronald McDonald, appeared in advertising to target their audience
of children. On May 4, 1961, McDonald's first filed for a U.S. trademark on the name "McDonalds"
with the description "Drive-In Restaurant Services", which continues to be renewed. By September 13,
McDonald's, under the guidance of Ray Kroc, filed for a trademark on a new logo an overlapping,
double-arched "M" symbol. But before the double arches, McDonald's used a single arch for the
architecture of their buildings. Although the "Golden Arches" logo appeared in various forms, the
present version was not used until November 18, 1968, when the company was favored a U.S.
trademark. The present corporation credits its founding to franchised businessman Ray Kroc in on April
15, 1955. This was in fact the ninth opened McDonald's restaurant overall, although this location was
destroyed and rebuilt in 1984. Kroc later purchased the McDonald brothers' equity in the company and
begun the company's worldwide reach. Kroc was recorded as being an aggressive business partner,
driving the McDonald brothers out of the industry. Kroc and the McDonald brothers fought for control
of the business, as documented in Kroc's autobiography. The San Bernardino restaurant was eventually
torn down (1971, according to Juan Pollo) and the site was sold to the Juan Pollo chain in 1976. This
area now serves as headquarters for the Juan Pollo chain, and a McDonald's and Route 66 museum.
With the expansion of McDonald's into many international markets, the company has become a symbol
of globalization and the spread of the American way of life. Its prominence has also made it a frequent
topic of public debates about obesity, corporate ethics, and consumer responsibility. has become
emblematic of globalization, sometimes referred to as the "McDonaldization" of society. The Economist
newspaper uses the "Big Mac Index": the comparison of a Big Mac's cost in various world currencies
can be used to informally judge these currencies' purchasing power parity. Switzerland has the most
expensive Big Mac in the world as of July 2015, while the country with the least expensive Big Mac is
India. Thomas Friedman once said that no country with a McDonald's had gone to war with another.
However, the "Golden Arches Theory of Conflict Prevention" is not strictly true. Exceptions are the
1989 United States invasion of Panama, NATO's bombing of Serbia in 1999, the 2006 Lebanon War,
and the 2008 South Ossetia war. McDonald's suspended operations in its corporate-owned stores in
Crimea after Russia annexed the region in 2014. On August 20, 2014, as tensions between the United
States and Russia strained over events in Ukraine, and the resultant U.S. sanctions, the Russian
government temporarily shut down four McDonald's outlets in Moscow, citing sanitary concerns. The
company has operated in Russia since 1990 and at August 2014 had 438 stores across the country. On
August 23, 2014, Russian Deputy Prime Minister Arkady Dvorkovich ruled out any government move
to ban McDonald's and dismissed the notion that the temporary closures had anything to do with the
sanctions. Some observers have suggested that the company should be given credit for increasing the
standard of service in markets that it enters. A group of anthropologists in a study entitled Golden
Arches East, looked at the impact McDonald's had on East Asia and Hong Kong, in particular. When it
opened in Hong Kong in 1975, McDonald's was the first restaurant to consistently offer clean
restrooms, driving customers to demand the same of other restaurants and institutions. McDonald's has
taken to partnering up with Sinopec, the second largest oil company in the People's Republic of China,
as it takes advantage of the country's growing use of personal vehicles by opening numerous drive-thru
restaurants. McDonald's has opened a McDonald's restaurant and McCafé on the underground premises
of the French fine arts museum, The Louvre. The company stated it would open vegetarian-only
restaurants in India by mid-2013. Foreign restaurants are banned in Bermuda, with the exception of
KFC, which was present before the current law was passed. Therefore, there are no McDonald's in
Bermuda. On January 9, 2017, 80% of the franchise rights in the mainland China and in Hong Kong
were sold for US$2.080 billion to a consortium of CITIC Limited (for 32%) and private equity funds
managed by CITIC Capital (for 20%) and Carlyle (for 20%), which CITIC Limited and CITIC Capital

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 Journey of McDonald’s making people love them

would also formed a joint venture to own the stake. On April 1, 2019 Nations Restaurant News reported
that McDonald’s made a rare choice, spending $3.7 million to invest in Plexure.

Their plus points:

Their plus points are strong brand name, image and reputation. McDonalds has built up huge brand
equity. It is the no 1 fast food company by sales, with more than 31,000 restaurants serving burgers and
fries in almost 120 countries. The image of McDonalds is recognized everywhere. This brand is in top
ten of the most powerful brand names in the world with Coca-Cola, Nokia or GM. They have large
market share. McDonalds is considered as the largest player in size and global reach. When Wendy’s or
Burgers King are losing market share in 2006, McDonalds still increases its market share. Market share
of McDonalds in the recent time is about 19% while Yum Brands is 9% and both Wendy’s and Burger
King is 2%. They have Specialized training for managers. McDonalds is very serious on training
managers. This company has its own program to train managers the most professionally, which is called
Hamburger University. As a result, McDonalds has many good managers who can help company
development well. McDonalds has Plan to Win. McDonalds customer focused plan to win provide a
common framework for its global business yet allows for local adaptation. Through the execution of
initiatives surrounding the five elements of its plan to win People, Products, Place, Price and Promotion.
McDonalds has enhanced the restaurant experience for customers worldwide and grown comparable
sales and customer visits in each of the last eight years. This Plan, combined with financial discipline,
has delivered strong results for company’s shareholders. McDonalds is considered the first one enter to
fast food industry. It initiates to other brand to enter this industry. As a result, when think about fast
food, customers always remember McDonalds first. In fact, in some big countries, especially in US,
McDonalds is the first choice of a large number of customers. McDonald’s is keeping at the forefront of
technology around the globe. For example, In Brazil McDonald’s is currently studying the installation
of Internet access terminals in some outlets as well as enabling customers to order online. This will
create a
more efficient process that will reduce the amount of lag time between a customer’s orders and pick up
of the order. No matter the continent, children and adults know the face of Ronald McDonald is
synonymous with the colossus restaurant chain. This results in wonderful marketing strategies among
management which conducts a very thorough market analysis, resulting in much success around the
globe.

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 Journey of McDonald’s making people love them

Their minus points:

McDonald's has been impacted by negative press like the documentary "Supersize Me" by Morgan
Spurlock in which he contributed our society’s obesity to McDonald's and other fast food chains. In fact,
each McDonalds dishes provides large number of calories but not too much nutrition. McDonalds has to
compete with many strong brand names in fast food industry such as Wendy’s, Burger King or Yum
Brands. This fierce competition makes McDonalds lose a large number of customers who prefer favor
of other brands. McDonalds use Trans - fat and beef oil in their food. Although it is not illegal, it affects
badly on customer’s health because Trans – fat is causes of some kind of cancer. Consequently, a
number of customers who care about their health stop eating at McDonalds restaurants. It makes
revenue of company decrease. McDonald’s has been involved in a number of lawsuits and other legal
cases in the course. For example, there are many cases which involved with trademark issue.
McDonald’s force many others restaurant, company of just a coffee shop to change their brand name
because of keeping “Mc” letters. Although McDonalds tries to update its menu by healthy criteria,
McDonald’s meals are still unbalance. For example, there are many dishes with chicken (both grilled
and fried), bacon, beef, rib or egg. Besides, just several dishes are salad with vegetable and fruit.
Moreover, amount of fruit or vegetable is not much. Although McDonalds has many good managers as
well as skillful employees, the turnover rate is still high. Every year many of their employees are fired
out of the restaurants. Moreover, many others quit their jobs, especially part time employees because of
low salary as well as too high working pressure. McDonalds uses HCFC 22 to make polystyrene that is
contributing to ozone depletion. The company has to repair this weakness if doesn’t want to be
criticized. Franchisees are beginning to become very dissatisfied with the fees that McDonald’s are
forcing them to pay. As the company continues to expand, they are also increasing the amount of fees
franchisees have to pay for the use of the notorious fast-food brand. Many people are not very happy
about this and as a result many franchisees are selling their businesses.

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 Journey of McDonald’s making people love them

Things they might do:

Fast food industry now is developing significantly. The change of lifestyle leads to the change in people
eating habit. In the past, if just workers, drivers or someone who had to work busily and didn’t have
enough time for a home meal choose fast food; nowadays, almost people eat fast food and a major of
them like fast food very much. It is a huge chance for fast food brand to increase their revenues,
especially McDonalds. McDonald should research green energies and green packaging solutions and
incorporate these finding as a part of their marketing strategies and advertisements. McDonalds has
more than 31,000 restaurants serving in almost 120 countries. Of the 31,000 restaurants, at least 14,000
are in US. However, now, because the care of McDonalds about favors and cultures in each country it
enters, McDonalds can open more restaurant in new areas such as China or India – the countries which
culture influences on people lifestyle deeply. They are very potential markets. The expansion of these
areas is big opportunities for McDonalds. With low cost menu, McDonalds can attract customers who
just have low income. This segment makes up a fairly remarkable part, especially in the recent time,
when global economic is struggling. It is not difficult for McDonalds to apply low cost menu on all
restaurant. Discounts given on every food item may help them gain more customers. Moreover, a new
trend is rising among customers that they like freebies and discounts, even when they don’t need it or
don’t use these freebies after. Customer’s tastes now become more diverse. As a result, they require new
format of service in order to satisfy them. McDonalds, with new format of business such as McCafé, it
can attract new segment of customer; for instance civil service, who prefer coffee as well as want to use
Wi-Fi to work when drink coffee. Although people concern about how McDonalds influence badly on
their health, it is also a chance for McDonalds. This company can develop new products, specifically
fresh burger or healthy dessert.

Future hazards for them:

Along with the development of fast food industry, there are many new fast food brands enter to the
market. It is nothing to say if there is no strong brand which can compete with McDonalds. However, in
fact, there are some and they are stronger gradually, for example Yum Brands, Wendy’s or Burger
King. Although market share of these brand is lower than McDonalds, they try to gain more customers
from McDonalds. Moreover, more casual dining restaurants increase their burger offering and decrease
the price. If we are not really hurry, we may choose this kind of restaurant instead of fast food
restaurants. They also become the competitors of McDonalds. With a growing number of obesity cases

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 Journey of McDonald’s making people love them

among Americans, fast food chains like McDonalds will continued to be overshadowed by their
previous products offerings, for example Supersized Meal, no fruit or yogurt, slim salad selection.
Besides, people nowadays are facing heart problem more seriously. As a result, they require nutritious
and healthy food as well as lifestyle. The company's revenue streams are diversified, but depending on
the length of this "recession", they will inevitably be negatively impacted by the trickledown effect.
Recession or down turn in economy may affect the retailer sales, as household budgets tighten reducing
spend and number of visitors. Environment is one of the hottest topics all over the world. Any action
which influence on the earth and human life is criticized strongly. Consequently, if McDonalds keep
using HCFC -22, it may lose customers, especially who really care about the earth.

Restaurants available in Bangladeshi food industry

Food industry in Bangladesh has become very popular from early 20s, specially from 2010 this industry
just boomed out just in a blink of eye. Facebook and other social medias have a huge role to this.
Another reason to get so much popularity of restaurants because in Dhaka city there are no such other
option to entertain themselves. There are more than 2816 restaurants available and actively working in
Dhaka. Both local and foreign chain restaurants are included. The restaurants are based on different
cuisines. But most restaurants are fast food based, such as pizza, burger, fried chicken etc. Now a day’s
people love to eat and try new different foods. In Dhaka there are a lot of restaurants. Such as, Dosa
express, Khazana restaurant, Hakka Dhaka, Lotas Etang, Soi71, Thirty Three, Taste of Lanka, Aaheli
khabab and restaurant, Tradition BD,
Tarka, Nanna biriyani, Buikahara Dhaka,
Star kabab and restaurant, Café chreyy
drops, Bread and Beyond, American
Burger, Preetom, Live Kitchen, Takeout,
BFC (Best Fried Chicken), Veni Vidi
Vici, Saltz, Fish and Co, Boomers café,
Oregano, Burger and
Boost, Hazi Biriyani, Nando’s, Kabab
Factory, Mad chef, Pizza Hut, Pizza Inn,
Al Fresco, BBQ
Bangladesh, A & W restaurant, KFC,
George Café, Time out, Tabaq, Gloria
Jeans Café, Tastebud, CFC
(California Fried Chicken), American
Burger, Sbarro, Dhaba, The Manhattan fish market, Pizza king, Pizza guy, Pizza Roma, Real pizza,
Dominos pizza, Pizza la vita, CP, FFC, Cafe Eleven N Half, Dhaka fried chicken etc.

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Comparison between Foreign Franchises and Local Restaurants

There are only a few restaurants of Foreign franchisee are running in Bangladesh. Foreign franchisee
restaurants are well known due to their worldwide fame and brand value. People also find their full
course of satisfaction due to higher brand, hygienic and high quality food at exclusive environment.
These restaurants are maintaining the same taste and recipe years after year throughout the all branches
so that food lovers can enjoy the real taste and value of origin although they have to pay higher due to
international brand value.

On the other hand there are lots of local brand restaurants are available throughout the country
considering different stages of customers. Most of the resultants are providing cheap quality products
and ordinary dishes at cheaper price. Sometimes they offer unhygienic foods also which is really very
unfortunate. People usually go mostly to the local restaurants due to their availability in locality and also
cheaper price. There are also some good quality restaurant exist who really provide hygienic and high
quality food as like as foreign franchisee and also a very decent environment with other facilities. Their
price is also lower compare to the foreign franchisee restaurants who are really strong competitor of
them due to same taste and quality dishes offering at lower price.

Competitors of McDonald’s

KFC

KFC (Kentucky Fried Chicken) is an American fast food restaurant chain that specializes in fried
chicken. It’s Headquartered located in Louisville, Kentucky, USA. This is the world's second-largest
restaurant chain (as measured by sales) after McDonald's, with 22,621 locations globally in 136
countries as of December 2018 and one of the top McDonald’s competitors. It has specialty on fried
chicken and burgers. The brand has grown and expanded into other territories with close to 20,000
branches or locations in more than 120 countries. KFC was founded by Colonel Harland Sanders, an
entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during
the Great Depression. KFC’s fried chicken has been admired as the best in the world and its slogan

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 Journey of McDonald’s making people love them

‘Finger-Lickin’ Good’ embodies how good they are in what they do. Apart from fried chicken, KFC
also offers Salads, French fries, Soft drinks and chicken burgers among other appreciable products.
There are some unique qualities in KFC which make the firm different from others. Such as high quality
product, assurance of purity, customer loyalty, unique taste, customer care, employee loyalty, secret
recipe, popular among young generation, faith and trust of people, recognized brand etc. These are the
major uniqueness of the firm that makes it different from other firms.

Burger King

Burger King (BK) is an American global chain restaurant of hamburger fast food items. It’s
Headquartered located in the unincorporated area of Miami-Dade County, Florida. The company was
founded in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain. The company
was founded by Keith J. Kramer and his wife's uncle Matthew Burns. After visiting the McDonald
brothers' original store location in San Bernardino, California, the founders and owners, who had
purchased the rights to two pieces of equipment called "Insta-machines", opened their first restaurants.
After InstaBurger King ran into financial difficulties in 1954, its two Miami-based franchisees David
Edgerton and James McLamore purchased the company and renamed it "Burger King". It is one of the
big competitors for McDonald’s because they had more than 16,000 locations in more than 100
countries, with approximately 11 million daily visitors worldwide. All of those locations are owned by
independent franchisees. The company’s menu includes breakfast, lunch and dinner items. Hamburgers,
chicken sandwiches, chicken tenders, French fries and beverages are categories are included on their
menu. Burger king has positioned itself as a force to classify within the fast food industry. There is no
doubt that Burger king is one of the top McDonalds Competitors.

Pizza Hut

Pizza Hut is an American restaurant chain and international franchise which was founded by two
Wichita State University students named Dan and Frank Carney in 1958. Pizza Hut is famous for its
menu which includes the popular Italian-American cuisine. Dessert, pasta, Buffalo wings, and pizza are
some of the other dishes being served at Pizza Hut. Day by day it’s rapidly growing and new branches
are opened all around the world. It has now 18,431 restaurants all around the world which are providing
the best quality pizza existing the real taste and flavor. The company considered as the best pizza chain
in the world, so the major portion of Pizza Huts revenue is generated through pizza sales. There are
more verities exist in terms of pizza such as Thin and Crispy, Sicilian, Stuffed Crust, Pan Pizza and
Hand Tossed many others. Pizza Hut is one of the top McDonalds Competitors in terms of pizza.

Pizza Inn

This is one of the most popular restaurants of all around the world. It is an American restaurant chain
and international food franchise, specializing in American-style pan pizza and side dishes. It was
founded by two Texas brothers, F.J. (Joe) and R. L. Spillman opened the first Pizza Inn across from
Southern Methodist University in Dallas.in 1958. Today, Pizza Inn operates 310 franchised stores and
five corporate-owned stores in 12 countries, with several new stores scheduled to open in the next year.
Pizza Inn is also popular in the Middle East and Bangladesh. A few branches of Pizza Inn are also

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 Journey of McDonald’s making people love them

opened in Uttara, Banani, Gulshan and Dhanmondi of the Dhaka city. They have several types of pizza
like Mexican, Italian, Bulgarian, American, Six Season, Four Season etc. All of their items are high
quality and really mouthwatering tasteful as well as their services are well organized which will attract
the customer to go their frequently. So, they hold their position as competitor for McDonald’s.

Domino’s

Domino's Pizza, Inc., branded as Domino's, is an American pizza restaurant chain founded in 1960. The
corporation is headquartered at the Domino's Farms Office Park in Ann Arbor, Michigan, and
incorporated in Delaware. In February 2018, the chain became the largest pizza seller worldwide in
terms of sales. Domino’s has continued to be a dominant force in the fast food industry and they are
operating more than 13000 locations globally. Domino’s main products include dessert, pizza, chicken
wings, pasta and sandwiches. Domino’s is the only brand in the ‘big four’ pizza chains as well as they
serve cold drinks like coca cola for their customers.

Nando’s

Nando's is an international food chain originating in South Africa. The restaurant was founded in 1987
in the Johannesburg suburb Rosettenville when Portuguese-born audio engineer Fernando Duarte took
his entrepreneur friend Robert Brozin to a Portuguese takeaway called Chickenland for a meal. After
trying the chicken with peri peri, they bought the restaurant for about 80,000 rand (equivalent of about
£25,000 at the time). They renamed the restaurant Nando's after Fernando's first born son. Right now
they have 1000 branches all around the world throughout the 35 countries as well as four restaurants in
Bangladesh. They are specializing in Portuguese-style chicken dishes with various peri-peri marinades
as well as other fast food items like pizza, burger, sandwich etc. They are very popular in Bangladesh
for their exclusive dishes and can be a strong competitor of M McDonald’s.

Shwarma House

This is one of the most popular restaurants of Bangladesh. It has multiple branches throughout the
Dhaka city. The most common items of the restaurant are shwarma, pizza, burger, noodles, soup, pasta
etc. They are doing well and improving themselves through customer review. In that case they have
positive attitude to take review and if there is any complain then they try to solve that problem as soon
as they can. All branches of shwarma houses environment is quite nice and it will be a very good place
for all types of food lover. So, it can be considered as a competitor for McDonald’s.

BFC

BFC (Best Fried Chicken) is the one of the most popular and oldest fried chicken restaurants in Dhaka.
They are famous for their quality and spice in their crumb. They have total 15 branches of restaurant
throughout the Dhaka city. They offer very good quality crispy chicken fry at very competitive price.
They are very popular for their high quality and growing rapidly based on their popularity. As a local
brand they are alternative choice of food lovers due to cheaper price and high quality and could be a
competitor of McDonald’s.

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 Journey of McDonald’s making people love them

CP

C.P (Charoen Pokphand) is well known for its ready mate food products which brand name are known
as CP five star. This company is operating business in 25 countries all over the world and approximately
more than 300,000 employees working worldwide for this organization. They produce ready to eat
products to provide testy, healthy and hygienic food to serve their valuable customers. There are more
than 258 CP five-star outlets in Dhaka, Chittagong and Sylhet and their future plan is to expanding
business to other districts. The company is also a big supplier of ready mate food in super shops, hotels
and restaurants.

Burger Lab

Burger Lab is newly started restaurant who just started their business on couple years ago in 2017. They
opened their one & first branch in Bashundhara Residential Area of Dhaka city. They are offering a
very wide range of burger named Old School, Say Cheese, Garlic Test, Spicy Flame, Mushroom Cloud,
Prototype 1, Prototype 2, BurgerLab Legacy, Booster, Mutant, Steak inside, Dual Core etc under name
of total 5 series which name are gradually Red & White, B.B.Q, Cheesy & Creamy, Steak Series and
Origin Series. Their burgers are available from bdt 160 to 460. Their products have become very
popular due to their good quality and unique taste and also their price cheaper. So considering all the
things they could be a good competitor of McDonald’s in near future.

Partnership

Transcom with Pizza Hut and KFC

Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza Hut, the first
International Chain Restaurant in Bangladesh, and went on to sign the contract to become the franchisee
of Kentucky Fried Chicken (KFC) in the year 2006. Both Pizza Hut and KFC are subsidiaries of the
world’s largest restaurant company. In a span of seven years, TFL has opened 4 Pizza Hut and 7 KFC
outlets so far throughout the country.

Burger King with Tiffin Box

Burger king has tapped Bangladesh based Tiffin Box Ltd as its national franchise. General Manager of
burger king said that having a great partner is the best recipe for success. we found the match here with
the right partner and the right market. They are proud to work with their partner Tiffin Box Ltd. Tiffin
box is an arm of the Bangla Track Group, which has interests in infrastructure, power and
telecommunications, has signed a long-term development agreement to launch and expend the Burger
King brand in Bangladesh. Bringing Burger King Restaurants in Bangladesh is a strategic move by
Bangla Track Group to enter the QSR (Quick Service Restaurant) sector.

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 Journey of McDonald’s making people love them

Domino’s Pizza with Golden Harvest

Jubilant FoodWsorks Ltd (JFL)has formed a joint venture with Golden Harvest QSR Ltd to launch
Domino’s Pizza in Bangladesh. In Golden Harvest, they have found a trusted and capable partner with a
diversified set of businesses. Golden Harvest QSR Ltd is a part of Golden Harvest Group of Bangladesh
which is a diversified conglomerate and has interests in various sectors such as food, commodities, IT,
logistics, real estate, dairy and insurance. So, Domino’s Pizza came in Bangladesh through Golden
Harvest. Before the launching they said that Domino's would be the fourth American pizza chain to
enter Bangladesh after Pizza Hut, Pizza Inn and Sbarro.

Foreign Chain Companies:

1. Nando’s: Nando's is an international casual dining

restaurant chain originating in South Africa. It
currently serves over 1,000 outlets. Its headquarters
are in the
United
Kingdom, and
it operates in
over 30

countries. It specializes in Portuguese style chicken dishes with various peri-peri marinades. It
started operations in Bangladesh in 2007 with its first restaurant in Dhanmondi and has been a
crowd favorite ever since. MGH Restaurants Pte. Limited is the Master Franchisee of Nando’s in
Bangladesh, and in Nepal. With the first 550 square meter sprawling Flag Ship Store opened in
Dhanmondi, Dhaka, MGH opened the second 550 square meter store in Gulshan in 2009, the
Premium Suburb of Bangladesh. They are basically famous for their Peri-peri chicken. They
serve their food with their special peri-peri sauce which gives an extra kick to the meal.

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 Journey of McDonald’s making people love them

2. Sbarro: Sbarro, LLC is a pizza chain that specialises in New

York-style pizza by the slice and other Italian-American
cuisines. With its headquarters in the US, it serves in over 800
locations in 33 countries. Its products include Italian-
American cuisine, pizza, pasta and salads. It started its
operations in Bangladesh in 2015. They have 9 outlets in
Dhaka right now. They not only serve pizza but also salads,
pasta, rice meal and desserts. Their specialty is their hand
made pizza which is rare in Bangladesh and they serve their
food really fresh.

3. A&W Restaurants: A&W Restaurants, Inc. is a chain of fast-food

restaurants which is famous for its draft root beer and root beer
floats. It became famous in the US for its frosty mugs. The mugs
are kept in the freezer and eventually get filled with A&W Root
Beer before they are served to customers. From its headquarters in
the US, it serves in more than 1,200 locations worldwide. This
includes 16 countries and territories. Its products include hot dogs,
root beer, cheese curds, burgers
and chicken. A&W opened its first
restaurant in Bangladesh in
December 2004. A&W Restaurants
Bangladesh is great for regular eating and great for fun occasions of
all kind. This restaurant is famous for American fast food with high
quality. At A&W you can go with your friends and family for special
treat. They basically serve American (traditional), burgers and
chicken, chips, tasty hot dogs.

4. Burger King: Burger King is an American global chain of

burger fast food restaurants with its headquarters in USA. The
Whopper Burger is its signature product, but it also offers
hamburgers chicken French fries soft
the drinks, milkshakes, salads, desserts
and breakfast hot dogs. It serves in
over 15,000 locations worldwide and
employs more than 35,000 people. It
opened its first outlet in Bangladesh
in December 2016. They not only
serve chicken burger, they also serve
fish burger for fish lovers, though

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 Journey of McDonald’s making people love them

they used to charge high but due to less demand they are restructuring their prices. Right now they have
five outlets in Dhaka city.

5. Baba Rafi: Kebab Turki Baba Rafi is the world's largest chain of kebab
stores. With its headquarters in Indonesia, it operates in over 1200 outlets in
more than eight countries. It primarily sells kebabs, burgers, sandwiches,
shawarma and hot dogs, bread and frozen foods. It started its operations in
Bangladesh in 2016. They have 9 outlets in Dhaka right now. They are
spreading the taste of Indonesia in Bangladesh.

6. Krispy Kreme: Krispy Kreme Doughnuts, Inc. is an American

doughnut company and coffeehouse chain. With its Headquarters in
the United States, it operates in over 1000 locations worldwide. Its
products include baked goods, soft drinks, hot beverages,
sandwiches, frozen and iced beverages. And it currently employs
about 4,500 people worldwide. It started its operation in Bangladesh
in May 2016. And it plans to open at least 20 stores all over the
country in the next five years.

7. Gloria Jeans: Gloria Jeans is an

American Coffee company that started
their operation in Dhaka in 2012. Their
first outlet opened in Gulshan and now the
second branch of Gloria Jeans Coffees has
finally been inaugurated in Dhanmondi.
Gloria Jeans maintains the freshness in
every bite and brew here as it does all the
world over. They serve breakfast, lunch
and dinner and also some of their
signature drinks are available.

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 Journey of McDonald’s making people love them

8. Herfy: Herfy is a major fast food restaurant chain in Saudi Arabia

and one of the largest in the Middle East. has signed an Area
Development Franchise Agreement with Greenland Services Ltd., a
business unit of Greenland Group
of Bangladesh, to expand its
business horizon beyond the Middle
East. The agreement spells out a
vision to open 30 Herfy outlets in
Bangladesh in a
staggered schedule within a few
years. They serve authentic Middle
East flavored burger here.

Local:

Takeout: Takeout restaurant is the market

changer of burger restaurants. There are lots
of burgers shops in Dhaka now. Fast food
industry is one of the most fast-growing
sectors in Bangladesh. As their most
preferable customers are young generation
so Burger is the most preferable fast food
among all. Now we have lots of burgers
restaurant at Dhaka. The increasing rate of
restaurants success and based on customers
prefer ability and their demand is grabbing
international restaurants attention.
Competition in this sector has become very
acute. As a result of intense competition.
fast-food restaurants are increasingly
recognizing the importance to continuously improve their customer hospitality to retain and
attract customers. There are numbers of local restaurants who are doing really well among them
Takeout Restaurant is one of the successful restaurants in Bangladesh. They have started their journey
in 2014. They are the 1st burger restaurants who have change the taste of burgers in Bangladesh. For
Takeout restaurant people get the chance to taste the juiciest and softest bun burgers. They were capable
to grab their customer’s attention for their food quality. Now takeout have 3 outlets in Dhaka. Their 1st
outlet was in Banani, Abedin Tower (1st floor), 35 Kemal Ataturk Avenue, Dhaka, Bangladesh
1213. 2nd outlet is in Dhanmondi, 736 Rangs KB Square, Level - 3, Road - 9/a, Satmosjid Road, Dhaka,

17
 Journey of McDonald’s making people love them

Bangladesh 1209 and 3rd one is in Uttara 17 Sonargao Janapath, Level - 3, Sector - 13, Uttara Model
Town, Dhaka, Bangladesh 1230. Takeout is the 1st Bangladeshi restaurant that has opened their
restaurant in Malaysia. In their menu they have three categories of burgers. One is normal burgers, then
special and chef’s special burger. Normal chicken and beef burger, chicken and beef cheese burger;
their specialty is their chicken delight and supreme burgers. These range started at 195tk to 450 tk.
Their customer gets the privilege to customize their own burger by adding extra chees, peperoni, bacon,
patty and also BBQ sauce. They have special drinks named blue lagoon, sparkling lime and fizzy orange
at cost of 165 -180. People get to choose different shakes from their menu from vanilla, chocolate and
strawberry. They have more options from there like- Dairy milk shake, Kit Kat shake, Mars shake, cad
berry shake, dairy milk silk shake, Hershey’s shake, Oreo shake. These are also very popular menu

from Takeout restaurant. They have burger at 800 take cost which is their chefs’ special burger. Their
French fries are as delicious as their burgers. They serve it which special sauce which makes this mire
mouthwatering. They have recently added cheesy meatballs and cup dessert item for their customers.
They have burgers in different ranges and different taste. There regular beef and chicken burger is 160
take and beef/chicken cheese burger is and BBQ cheese burger is same price 180tk. Takeout special
beef/ chicken cheese burger is
330 and their chef’s special burgers twister, supreme, mushroom caramel, cheese delight burger are 220
to 410 tk. Their dessert items and soft drinks are a popular as their burgers. Now when the international
chain restaurants are thinking to come in Bangladesh, they also try to maintain the taste like takeout
restaurant. Recently Burger King has entered in Bangladeshi restaurant market. They have come with
their six outlets. One is in Banani, House-104, Block-C, Road-11, Banani Dhaka, Bangladesh- 1213,
Gulshan-1, Mirpur, Sony
International LTD. Plot-01,
Section-2, Block-D Dhaka,
Bangladesh 1216, Dhanmondi
, Plot-43(new), Road-2A
(Satmasjid
Road),Dhaka, Bangladesh
1209, Uttara Highlights info row image Plot-16, Sector-9, Sonargaon Janapath, Uttara Dhaka,
Bangladesh 1230 and Bashundhara Gate, Dhaka, Bangladesh 1229Bashundhara R/A. Burger King (BK)
is an American global chain of hamburger fast food restaurants.it has started its journey in 1993. For last
66 years they are ruling almost 100 countries with
their 1, 7796 outlets. For local market burger king
was an unbeatable competitor especially for the
local burger restaurant. But it wasn’t that difficult
for restaurants like takeout and some others. People
were searching the same taste from burger king that
they are used to. And the taste was takeout. First it
was missing from burger king’s burger. People were
searching the juicy and cheesy burger from burger
king also. To cope up with people taste burger king
has to come up with their changing new menu. In

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 Journey of McDonald’s making people love them

Bangladesh burger king didn’t run so well because of their taste. It was not so satisfying for Bangladeshi
people. So, Burger King had to make changes and had to endorse new offer on different occasion to stay
in the market. Comparing to burger king, takeout is doing more profitable business in this market. Being
an international burger chain burger king is not doing as good as the local burger restaurant like
Takeout. People still prefer to go take out rather than Burger King. Even takeout has been applied an
interesting strategic policy to keep different food besides burger for their customer. People are
welcoming this thing as they did with takeout burgers. They have special French fries which are top of
the town and their dessert items are as popular as their mouthwatering burgers. They have chocolate
treasure, nuts cheese. This business strategy helps takeout to be at its place.
Chillox:

This is one of the most popular and demanding burger restaurants in Dhaka. This is also a local burger
restaurant which is doing really good comparing to many other international chain burger restaurants.
It has started its journey on February 14th 2016. At first it wasn’t any restaurant, it was a food cart. But
its quality and taste was so good that people were crowded before this cart. Within some months it gets
so popular that it opened their 1st restaurant in Dhanmondi Level 3, AMM Center, Road 3A, Dhaka,
Bangladesh 1209 for their huge customer’s demand. They have opened their 2 more outlets one in
Banana, 2nd Floor, Ahmed Tower, Kamal Ataturk Avenue (Opposite Hotel Sarina), Dhaka,
Bangladesh 1213, and another one is in Uttara. They have an option for their customers where their
customers can customize their burgers. There are options to choose their spice levels. It has option to
choose mild spice, spice, extreme spice, and NAGA spice. People can also add extra chasse, bacon,
peperoni, BBQ sauce, extra patty. they have soft drinks and shakes in different flavors- Oreo shake, kit
Kat shake, mars shake within tk 100-150.in their menu there are loaded of burgers verity- like, cheese
burger, chicken with bacon, chicken/beef

with sausage, double decker chicken /beef burger. Their

special burger calls gourmet burgers – they named these
3xl burger, American cheese burger, honey BBQ and
bacon. These burgers are extremely popular among the
youg generation as well for every aged people. People
love chillox burgers taste and their quality also. By seeing
the popularity of restaurants business of Bangladesh lots
of foreign chain businesses are coming toward this
market. We have international burger’s chain restaurant
like Herfy Bangladesh, American burger, Johnny
Rockets. But comparing to tense burgers restaurant people
are more fond of local burger’s restaurant like Chillox ,
Burgerlogy. Their quality, taste and also their costs is
appropriate for most of the citizens of Bangladesh.
Though these foreign chain restaurants have more outlets
and more spaces than these local restaurants. But still
people go for restaurants for their foods taste. Johnny
rocket has three outlets in Dhaka. But most of the people
are disappoint about their food quality.

Pizza lab:

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 Journey of McDonald’s making people love them

It’s in Bashundhara road, Dhaka, Bangladesh 1229. They have 3 categories pizza- small, medium and
large. There range started from tk 350- 800. Pizza lab gets such popularity with a short period. Pizza is a
savory dish of Italian origin. Bangladesh now has a broad maker of restaurants that lots of foreign chain
pizza restaurants have already entered the market. Besides lots of local pizza restaurants are doing really
well comparing to these foreign restaurants. As international pizza restaurants pizza hut is the first
franchise restaurant in Bangladesh it has started its journey in 2003 in Bangladesh. They have 8 outlets.
There’s pizza lab has started in 2017 and it has only one outlet in Dhaka. Comparing to the time period
pizza lab has got more popularity than pizza hut.

Pizza inn:

Pizza inn is the first Bangladeshi pizza restaurant which comes with the original taste of pizzas. Now it
has total 7 outlets in Dhaka city- in Banana, Gulshan. Uttara, Mirpur, Dhanmondi and Bailey road. The
price of pizzas is a bit high but still people love to go this place because of its quality and taste. It gets
huge popularity from its customers. In their menu they have premium pizza, chicken pizza, beef pizza
and vegetarian pizza. They have chicken drums and French fries and salads in their menu. As
international pizza restaurant there is Domino’s pizza that just entered this market. Dominos is doing
well at their first appearance.

Pizza guy:

Established in 2012 as a small home-based pizzeria, Pizza Guy is one of the most renowned restaurants
in Dhaka today serving authentic and delicious Italian gourmet food, including pizzas, different kinds of
pasta, lasagna, desserts and a range of delicious signatures drinks. The brand attracted the love and
appreciation of true pizza lovers because of its delicious pizza varieties within a short period of time
they use finest ingredients, which include gourmet meat from premium butchers, imported Italian
cheese, naturally healthy olive oil and fresh herbs from their rooftop garden. Their pizza crust is made
with Original Neapolitan recipe. Bella Italia is an Italian franchising pizza restaurant in Bangladesh.
They have one outlet in Gulshan -1. But their pizzas are mostly high price that general people and
specially the students cannot afford this place. So, people are preferred to go pizza guy than Bella Italia
because they are getting the authentic taste of pizza from pizza guy in an affordable price.

Pizza Roma: it’s a local pizza restaurant and it has a thin, crisp crust and is bursting with flavor. It is
cooked for just a few minutes in a very, very hot oven. They work with importers and leading suppliers
of produce to ensure that our customers get the best pizza in town.

Chese: this is a new pizza restaurant in Dhaka Banani. It’s a n local pizza restaurant that has already
grabbed customers attention for its delicious pizza. They have lots of verities in their menu. They have
almost 20 categories of pizzas.

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 Journey of McDonald’s making people love them

Functional Areas:

The Human Resources department- In McDonald’s will look after all the employees that work
at McDonald’s whether they work at the tills or work at the office. McDonalds will look at each
employee; they will look at how they are working and whether they deserve a promotion. The
Human Resources department will also have records of former employees and what position
they had in the company; this will determine the amount of pension money they will receive
when they turn fifty-five years old. When there is an accident in the business then the human
resources department will provide compensation for the employee. Take for example at
McDonalds if
somebody is burned by something hot falling on them and it wasn’t their fault then they are
eligible to seek compensation. With regards to Recruitment the Human Resources department at
McDonald’s will have to identify that there is a vacancy then they must decide where to
advertise it and then when all applications have been gathered in then they have to decide which
applicants should be interviewed. Then along with that the human resources department have to
interview the applicant or arrange the meeting with the applicant who will then see the person in
charge. Then the Human Resources department has the tough decision of deciding who will take
the job and then they have to write to inform the unsuccessful candidates. The human resources
department uses ICT to create spreadsheets which store the employee’s data such as their
address, Date of birth and Postcode. The Human Resources department will also use ICT to
inform employees of changes within the business whether it is redundancies or some other news.
They will also use ICT to inform people of Job vacancies such as on the website or by creating
posters to be pinned up around the town or in Job centers.

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 Journey of McDonald’s making people love them

When a person is interviewed for a job they should be interviewed they should be told about their
conditions. The terms and conditions of employment are found in the contract of the employee, which
relates to the location, hours in which working, holidays, sick pay, pension and how much time in
advance to be given if the employee wants to leave. Which other departments do the human resources
department work with? The human resources department work with the finance department and
Production. They work alongside the finance department for many reasons; they have to find out via the
finance department how much money to pay the employees.

• Operations - The Operations Department attends to the administration duties necessary for the
day to day running of Mc Donald’s such as purchasing office supplies, telephone and utilities
contracts, covering rents rates and insurance. It may do this in bulk for all the restaurants and
head office to bulk buy and save money.

• Supply chain and Franchisees - This department will deal with suppliers and ensure that they
are complying with the agreements they have made with McDonald’s; it will be responsible for
maintaining good relations with suppliers. Many McDonalds restaurants are not owned by the
company but owned and run by franchisees who are responsible for complying with agreed
terms set by McDonalds. This department will be responsible for maintaining good relations and
ensuring franchisee agreements are upheld.

• Legal - The main role of the Legal Department is to provide legal advice for any issues relating
to McDonalds, the legal department will handle legal contracts, leasing agreements, property
purchases, issues with franchisees etc. and ensure Mc Donald’s is not operating outside the law
in any area or country. They will also produce report on changing legislation etc.

• Restaurants - This department takes responsibility for the network of restaurants operating in
the chain. They will ensure that they have a good coverage and will look for new properties.
Within each restaurant they will ensure that it is operating efficiently, staffed, achieving the
maximum sales revenue, complying with policies on health and safety, cleanness and following
corporate guidelines.

• Marketing Department- Macdonald’s Marketing department plays the key role for their
survival in this industry. This department basically promotes the offers and announcements to
the customer. And also works to grab the lion share of customer from the market. They create
demand and competition in the market. They use their creativity to make attractive
advertisements so that customers get interest on purchasing their product. This helps to increase
their sales and also their annual profit.

• Brand - This department is responsible for the McDonald’s brand. They will create and develop
the McDonalds brand through their Marketing Strategy, this requires market research, product
development, communication of the marketing campaign and support for the sales team.

• CFO - the Chief Finance Officers Department is accountable for the administrative, financial
and risk management operations of the company. This includes development of a financial and
risk management strategy, control systems designed to preserve the company’s assets and
production of financial accounts.

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 Journey of McDonald’s making people love them

McDonald’s entering in Bangladeshi food market:

McDonalds has undergone several changes since its inception in San Bernardino, California. The fast
food chain has conquered the US and it now focusing on the rest of the world. McDonalds, along with
this trend, continues to strive toward customer satisfaction while still enhancing its international market
position. The company is doing very well and keeps trying in Africa, China, and the Middle East, which
will be continued source of revenue for many coming years. If McDonalds can overcome all of its
challenges, makes use of advantages and has right strategies, it will win the market again and hold fast
to first position in fast food industry. It’s not only the United States’ economy that affects McDonald’s
success. The economy of each country they operate in ultimately affects their results. They must decide
whether it’s a smarter decision to purchase raw materials locally or to ship them in. The number of
tariffs for imported resources and foreign incorporation taxes plays a vital role in this decision. In 2008,
McDonald’s took a financial hit from the economic recession. Disposable income was at an all-time low
while people scrambled to find new jobs. Since then, McDonald’s brand image has taken a hit due to an
increase in health consciousness among consumers. Many fast food restaurants are adding healthy
options to their menu while trying to shed their “junk food” image. But it’s hard and expensive to
change the opinions of the public. Additionally, McDonald’s should factor in the unemployment rate of
each location they’re in. The company is known for its high turnover rate, meaning they hire and lose
workers on a consistent basis. It’s a known joke that McDonald’s is “always hiring” but this can be a
glimmer of hope for locations with high rates of unemployment.

To come Bangladesh, McDonald’s need a franchise. As it is the first time for them in Bangladesh so, it
requires a lot of money to spread the business and run successfully in Bangladesh. Based on that concern
and every other prospective, ABUL KHAIR GROUP might be the perfect match. They might be the best
option to be a franchise of McDonald’s in Bangladesh. Abul Khair Group is operating their business as
an industrial conglomerate in Bangladesh since 1953. It has developed their production facilities for
steel, ceramics, cement, cigarettes and food products. It was a Cottage Industry in 1953 than, it started

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 Journey of McDonald’s making people love them

its journey as a tobacco marketing. Abul Khair Group is mainly based in the commercial capital
Chittagong. It is one of the nation’s fast-growing business conglomerates, engaged in manufacturing &
marketing of many diversified fast-moving consumer goods (FMCG). Such as Beverage, Juice, snacks
and Branded Tea, Cement, Ceramic, Ready Mix Concrete, Tobacco, and Cigarettes- “from Seed to
Smoke” Matches, Biros (Hand Rolled Tobacco Smoking product), Shipping line and logistics operations
and General Trading Operations. The group provide employment to approximately 38,000 people in
different business unit. The companies listed under Abul Khair Group are Abul Khair Condensed Milk
Industries Ltd, Abul Khair Tea Limited, Shah Dairy Products Ltd, Abul Khair Steels Ltd, Abul Khair
Condensed Milk and Beverage Industries, Smirk Coconut Oil Products Ltd, Shah Dairy Foods Ltd, A.K
Properties Limited, A.K Corporation Ltd, Abul Khair Tobacco Company Ltd.

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