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McDonald’s Franchise in India: Case Study

McDonald’s Franchise in India: Case Study

McDonald’s Franchise in India – Before explaining the franchise Of McDonald I’ll tell you about McDonald’s Which Help you to understand the Business of McDonald’s and after that, it is easier to you take any decision related to McDonald’s.

I’m definitely sure, hear this name “Mcdonald’s” and I’m also sure you definitely visited Macdonal one a week. Today I’ll tell you about the history, business model, business strategies and some interesting facts about Macdonald’s.

So, hold your coffee and enjoy the ride.

HISTORY OF McDonald’S

Mcdonald is an American fast-food chain which is one of the largest fast-food in the world, famous for its hamburger. It’s headquartered in Oak Brook, Illinois the first Macdonald restaurant was started in 1948 by brothers Maurice “Mac” and Richard Macdonald in San Bernardino, California.

Mcdonald First Restaurant

They bought appliances for their small hamburger restaurant from salesman Ray Kroc, who was intrigued by their need for eight malts and shake mixers. When Kroc visited the brothers in 1954 to see how a small shop could sell so many milkshakes he discovers a simple, efficient format that permitted the brothers to produce huge quantities of food at low prices. A basic hamburger cost 15 cents, about half the price charged by competing for the restaurant. The self-service counter eliminates the need for waiters and waitresses: customers received their food quickly because hamburger was cooked ahead of time, wrapped and warmed under heat lamps.

seeing great promise in their restaurant concept Kroc offered to begin a franchise program for the MacDonald brothers. On April 15, 1995, he opened the first Mcdonald corporation, eventually buying out the Mcdonald brothers in 1961.

Now, Mcdonald is the largest quick-service restaurant food chain in the world, according to Forbes The list of the fast-food quick-service restaurant is

  1. Mcdonald
  2. KFC
  3. Subway

 

Some Interesting Facts About Mcdonald’s

  • Most visited restaurant in the world
  • Burger ready in 3 minutes or 180 seconds
  • Serve in 115 countries
  • Serve 68 million burgers to customers
  • 100 billion burgers sold
  • Earned 24 billion dollars revenue in 2017
  • 3.75 lacks employees
  • Ronald Mcdonald has become more famous than Santa Claus
  • McDonald is the largest single owner Real estate in the world

 

McDonald's Frenchise in India

The public face of Mcdonald was created in 1963 with the introduction of a clown named Ronald Mcdonald, while the double-arch “M” symbol become the Mcdonald’s most enduring logo in 1962, Lasting far longer than the tall yellow arches that had once dominated the earlier restaurant rooftops, other products and symbol would define the Mcdonald’s brand, including the Big Mac 1968, the Egg McMuffin 1973, happy Meals 1979, and chicken McNuggets 1983.

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Strategies Which Makes The Mcdonald’s No. 1 Fast- Food chain in the World

 

1. The Power of systems & Repeatability

The owner of Mcdonald Franchise in India and globally understood this strategy at the beginning of the company in 1940. He understood he needs the speed in his business but speed needs repeatability, without repeatability he never achieves speed, Now what is the meaning of repeatability here don’t worry I’ll tell you.

Every successful business needs the repeatability and scalability

Example: Ray Kroc know they didn’t want any chief for their hamburger because a junior chief makes the same hamburger with good taste if he learns the process of making hamburger and repeats its as fast as possible which is quite easy. If any business has duplicability and repeatability then, it will easier that business to grow successfully.

 

 Model & Method Format & System

If you make the Model & Method and understand the format & system, then you haven’t worry about it after understanding and apply this in your business, you have to do only thing is take a cup of coffee and sit on the chair and see your business, your business will grow automatically like a tree.

Ray Kroc who is the first CEO Mcdonald’s, understand this format, he knew his product is not his product but his business format his product, Because of everyone knew how to make a good quality hamburger but don’t everyone know how to sell their business all over the world. Ray Kroc knew he would never be successful if he focuses on their hamburger. Therefore he focuses on their business model. He said franchise owner his first, last and most important customer for him.

Benefits of Model & Method Format System

  • Number of restaurants increases globally
  • Global Profitability Increases
  • Growth of sale also Increases
  • Created Operational excellence
  • It standardize the product
  • Low operating cost

 

2. Strategic Value ( Q.S.C.V )

“Q”  stands for Quality Mcdonaldnever compromises with the quality of hamburger. It provides high-quality and tasty hamburger because of Ray Kroc knows, If he compromises with the quality of hamburger he doesn’t maintain the stand of food and would never succeed.

“S” stands for service, we all aware with the fast service of Mcdonald’s franchise in India and globally also. You read above Mcdonald’s provide a hamburger within 180 seconds that is why it is in the market because of known for the Fast-food restaurant chain and this tag “Fast- Food” comes in the market because of the Mcdonald’s service.

“C” stands for cleaning, whenever we visit in Mcdonald’s restaurant, we always see the hygiene Mcdonald’s always assuring this, people expect whenever they visit in Mcdonald’s in any corner of the world there is always cleaning in the restaurant.

“V” stands for value for money, we all know Mcdonald’s is very cheap in cost. If a person has 100 rupees in his pocket, then he will eat food in Mcdonald’s.

Whenever economic down comes Mcdonald’s never affect it because of its affordability, people go into Mcdonald’s because it provides a meal at an affordable price and that is why people come in Mcdonald’s and, It is also known for affordable hangout. Mcdonald’s achieve the tag “meal under 100 rupees” whenever the classification occurs in India Mcdonald’s shortlist for a meal under 100 rupees. Macdonald Franchise consistently maintains its ability of affordability hangout because of these middle-class people attracted towards the Mcdonald franchise.

3. Begin With Internal Marketing Plan

People understand “Marketing Plan” means outside Marketing they try to Marketing Outside their company which is the second step but they don’t know the first step. Whenever Mcdonald’s launches it’s new meal first it marketing in their own company employees, Mcdonald’s first serve a new meal to their own employees and take the feedback from their employees and implement on it.

Mcdonald’s always taken care of employees it always gives them training and provides a free meal to their employees. As we know Mcdonald’d don’t acquire a high paid employees, Mcdonald employees paid is less than 20,000 rupee. So, Mcdonald takes care of their employees it always encourages their employees and provides good facility and also try to feel their employees always happy and motivated. If your employees dorsn;t feel happy, then he/she will not keep other customers happy.

4. Menu Innovation

I don’t know can you ever observe or not but Mcdonald’s has a limited number of items in their Menu. At the beginning of Mcdonald’s Franchise in India and globally, has so many items in their menu but later, Mcdonald understand this strategy, Mcdonald cut- down the items from their menu and it cuts more than 50% items from the menu. Mcdonald only focuses on those items who are ready within minutes because Mcdonald doesn’t want his customer to wait even 5 minutes, that is why its focus on limited item.

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Mcdonald has made an item chart or scoreboard in this board it visualize a scale of items which is FNS (Fast, slow and Non-moving) with the help of this chart Mcdonald analyses, which item sale has Fast, slow and Non-moving and according to their item it change its strategy. Mcdonald limited its product line and maintain its efficiency and effectiveness which is speed and taste respectively, it helps to attract the particular customers.

 

5. Local People, Local Product, Local Price

Mcdonald focuses on regional strategy, they try to maintain their local responsiveness and global integration which are product and process respectively. Mcdonald makes a strategy which focuses on a local place, and local product to customize its product line in the local plane with the same speed and efficiency.

Mcdonal Local taste

Mcdonald always hires local manpower because it is easier for them to connect with their customers.

for example: If Mcdonald’s Franchise in India opens a new restaurant in the south – India and its staff members are also south-Indian, therefore it is easier for Mcdonald to connect or interact with their customers and also McDonald’s Franchise in India maintains the local taste in its hamburger. In the beginning days of the company when Mcdonald comes in Asian country from the USA, Ray Kroc know if he wants to survive in Asian countries, Mcdonald has to leave the American taste. so Ray changed the taste of their hamburger according to the local places.

like Mcdonald serve vegetable hamburger only in India with the name of Maharaja Mac similarly it serves hamburger with the taste of seafood in chine and Greece.

6.  Invite In With Low Ticket Price & Cross-Sell For high Ticket Size

 

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I don’t know you observe or not but the Mcdonald price board which on the entrance. Generally, McDonald shows its those items onboard which has an extremely low price and when people see this board they attract into the Mcdonald and after that, when people order something Mcdonald staff members ask “would you like to fries with it”  and they ask this question again and again and most probably one – third of Mcdonald customers buy it and increases the customer bill from 25 to 150 rupee. With the help of this technique, Mcdonald increases its revenue by 33%.

 

 

 

 

 

 

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