McDonald’s is the biggest fast food restaurant chain. Over the years this fast food chain has been growing and has accomplished to be a fast food restaurants with presence in all the world, and has become a symbol of America, fast food, capitalism and globalization. The success of this company more than anything else is to offer an unbeatable price-quality ratio. In every country McDonald’s needs to adapt their menu to the cultural preferences of the market, but always based on its core products. Now a day McDonald’s have a big plan of expansion in India.
They are projecting an increase of 1000% (or 10 times what it is now) for the year 2025. Currently there are 170 McDonalds’ in India and for the next three years they have plans on opening 120 more (roughly 1 new restaurant every 10 days) with an investment of $ 108 million. Drawing a parallel, in China, there are 1080 McDonald’s restaurants. Considering this I can infer that India is a place where this fast food chain has a lot of potential, even though its not the country where they have the most quantity of franchises I think it will be very interesting to analyze there market and what they can do to accomplish their growth target.
What was the main problem of McDonald’s in India? As I mentioned before every company that wants to establish in a different country needs to adapt their products to the culture and the market preferences of every specific country. McDonald’s being a fast food restaurant was not the exeption for this. Specifically in India they found the difference that unlike in other countries the cows are sacred, and because of this religious maners 85% of the Indian population are vegetarian. While in a lot of places the vegetarians are considered weird in India, being vegetarian is “normal ” and eating meat is “weird.
Restaurants are classified as: Vegetarian and Non-Vegetarians. For McDonald’s this represented a problem because basically they serve everywhere hamburgers made out of meet. The company had to solve this so they can succeed in this market. How they did this? McDonald’s in India doesn’t offer beef and pork products so this way they respect the Indian religious sensitivities. The only meet products they offer are fish and chicken but because of the vegetarian thing the meat and vegetarian meals are prepared in different areas and the cooks that prepare the vegetarian dishes have to wear green aprons.
If someone goes to McDonald’s in India they will find different types of 100 percent vegetarian burgers made out with different ingredients such as potatoes, peas, and carrots, Indian spices, and a lot of typical ingredients that are Indian favorites. I think the strategy that McDonald’s is following in India is very good because they are offering exactly what the target market wants but they are not letting behind their essence and their competitive advantage that is quality and price in a fast food restaurant.