Chryss John T.

Querol
FME 2 - Franchising

McDonald’s Case Study

I – Introduction

Ray Kroc, founder of McDonald's worldwide chain of fast-food restaurant used to

describe the McDonald's phenomenal success thus, "We take the hamburger business

more seriously than anyone else." Kroc was a perfectionist to the core and never used

to compromise in any aspects of business. He promised to offer the customers high

quality products, served quickly in a clean and pleasant environment, at an affordable

price, from the day he opened the first restaurant. Thus, Quality, Service, Cleanliness

and Value (QSC&V) became the corporate philosophy guiding the success of

McDonald's Hopeful of growth in South India, Ranjit Paliath, Director, South at

McDonald's India, said on this occasion, 'Eating out has become popular in Chennai

and we see lot of potential in this rapidly evolving market.

McDonald's first entered India in 1993 through a 100% subsidiary, MIPL

(McDonald's India Private Limited), which formed two 50:50 joint ventures with Vikram

Bakshi of Connaught Plaza Restaurants to manage North and East India, and Amit

Jatia of Hardcastle Restaurants to manage West and South India. The staff received

business training in India, the United States, and Indonesia.

II – Issues Underlying the Problem

 One feature unique to India was that half of the population was vegetarian,

necessitating the creation of a separate menu.

 Indians wanted to try American fast food, but it couldn't replace Indian cuisine.
  Supply chain is challenge for the distance from the production area to store is

very far.

 Approximately 50,000 worth of food produced is wasted due to lack of proper

infrastructure for storage and transportation

III – Alternative Solutions to the Problem

 Vegetarians make up a large portion of India's population. To appeal to this

demographic, the company created a completely new line of vegetarian items,

including the McVeggie burger and McAloo Tikki. Throughout the various stages,

the vegetarian and non-vegetarian sections are kept separate.

 Introduce chicken and fish products to entice more customers

 Work with local suppliers to produce needed products locally

 Develop the established cold chain distribution system to reduce wastage and

ensure quality products

 Indians love hot and spicy products

IV – Conclusion

McDonald's continues to innovate products and improve customer satisfaction by

expanding its customer base. McDonald's must constantly think of new concepts to

incorporate into all of its operations, particularly marketing, in order to survive in a highly

competitive market. The introduction of breakfast outlets was the result of a

spontaneous thought, and a chance encounter with a technology specialist resulted in

online booking orders, birthday parties, and signature outlets. These are McDonald's

signature products, and they will help the company improve its already excellent
services by providing better customer service and a better shopping experience in the

long run.

V – Recommendations

To increase profits, expand to other cities. New distribution centers are being

built. New product development/additional adaptation costs (due to different regional

preferences). Reiterate the importance of family involvement. Because the "American

Dream" is so popular in India, they might be able to set up shop near some of the

country's most prestigious universities.

McDonalds may develop hot and spicy foods into their menu. Also, the company

may develop a Indian flagship burger, healthy beverages and focus more on chicken

products. McDonalds mus always look for newer opportunities. The company must also

look for solutions to localize all needed ingredients and product to address the supply

chain bottle neck.

VI – Factual Experience

The BBC (2014) featured McDonalds in India and stated that across the world

the Big Mac beefburger is the company's signature product. Amit and his partners had

to come up with their own signature product for India, so the Chicken Maharajah Mac

was born. Unlike McDonald's around the world, there are hardly any parents with young

children here.

Moreover, Harvard (2018) studied McDonalds in India and stated that

McDonald's has changed some of their products by adding local spices that Indians

enjoy. McAloo Tikki Burger, Veg. Pizza, Chicken McGrill, and McVeggie Burger are

among the customized products. Because many Indian communities do not eat eggs,
they have created customized sandwiches that do not include eggs. Restaurants in

India have also developed sauces and dips that do not contain eggs. To cater to the

majority of Indian customers, the restaurants have offered drinks and McShakes without

eggs in addition to sauces, dips, and sandwiches.