Saturday, May 19, 2007

McIndia, McDelivery, McVeggie

McDonald's currently operates about 50 restaurants in India, including 18 in Mumbai and 2 in Bangalore. What does it do differently there?

1. According to a CBS report (with video from Bangalore), "It's got the same old golden arches, the same efficient counter help slinging cheap eats, just the way they do everywhere from Poughkeepsie to Port Arthur. But in India, there's something missing at the world's fast food giant: hamburgers. That's right - McDonald's signature snack and its most recognizable symbol is nowhere to be found in one of the biggest countries on earth. According to Amit Jatia, a partner of McDonald's India, "It is the only country in the world that does not offer beef at all."

McDonald's has customized its menu to take advantage of the fact that India is the world's vegetarian paradise. Nearly all of the one billion people living here eat meat only occasionally, or not at all. McDonalds serves only veggie burgers and chicken burgers in India.

2. McDonald’s India is one of the few countries that provides home delivery service, available through a single access number for the entire country. McDelivery accounts for 5% of sales and is one of the fastest growing platforms, according to this report. Pizza delivery service has become so popular in India that McDonald's is trying to compete now with burger delivery. I wonder also if the horrible traffic conditions in large cities in India also make home delivery of burgers more attractive there than in the U.S. and Europe?

(Via Alliance Business School Ray Titus'
BuyerBehaviour blog.)


At 5/19/2007 11:57 AM, Anonymous Anonymous said...

But don't powerful corporations force their customers to take what they're given? Whatever happened to market power? To the power of advertising?

At 5/19/2007 12:50 PM, Blogger happyjuggler0 said...

McDelivery is probably due to the very low cost of labor. When I lived in Amherst MA all kinds of restaurants had free delivery (although tips are common or the norm). This is because it is a college town, with UMass dominating the local economy, and there's much more available labor at minimum wage than elsewhere.

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