Good News for McDonald’s Lovers

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Saumi Mukherjee, EMBA 2015-18, Vinod Gupta School of Management, IIT Kharagpur

McDonald’s India ,which was the first quick service restaurant (QSR) format to start operations in India two decades ago has decided to step up its operations in western and southern markets of the country by doubling its outlets with an investment of Rs.750 crore by 2020.

“We currently have 213 restaurants, and are looking to add up to another 250 restaurants by 2020, which would entail an investment of Rs. 750 crore,” said Amit Jatia, Vice Chairman, Westlife Enterprise, a master franchisee for McDonald’s here.

Besides expanding it’s market in India, McDonald’s also focuses on offering healthier foods to customers.

“While we do offer competitive order deliveries, our core focus will be the QSR format, which is robust for us globally.We are now betting big on our coffee. We have opened McCafe’s within our outlets serving premium locally-sourced Arabica coffee at affordable prices,” said Amit Jatia.

“We offer a range of smoothies, besides coffees and this encourages customers to opt for non-carbonated drinks,” he added.

Till now there are almost 45 McCafés in India, which is going to increase up to 140 by 2017.The company has to invest almost 20-30 lakhs for every McCafes.

McDonald’s has already reduced sodium content in a number of foods between 10-20 percent and calorie content in sauces by 60-70 percent to draw attention of those who are health conscious.

Through these changing marketing strategies McDonald’s is going to set tough challenge for its other international competitors e.g. Dominos, Pizza Hut, KFC, who are also in the same segment.

 

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