Mcdonald in Hindu culture

ARIFUL KAYAL
ROLL NO.9004

Introduction:
McDonald's, also known as "Mickey D's", or "McD's, is the world's best known
fast-food chain. With its familiar golden arches logo. The largest fast food chain in
the world was founded as a barbecue drive-in in 1940 by Dick and Mac
McDonald. The first McDonald's restaurant was located in San Bernardino. Ray
Kroc, a milk shake machine salesman, found the greatness of the restaurant and
purchased the rights from the brothers. Kroc opened his first McDonald's
restaurant in Des Plaines,in 1955 and preached cleanliness in them. His very basic
step paved the path to glory. A clean atmosphere separated McDonald's from the
rest of the competitors and attributes to their great success. It has over 310000
outlets worldwide with annual revenue of over US$23billion serving 50 million
customers daily in 119 countries.

Reasons for going global:

1) Threat from major competitors like Burger King,Taco bell, Wendy’s, KFC
Subway and mid size sit-down restaurants in USA.
2) To capture foreign markets before its US counterparts enter.
3) Study new markets where there was demand for such products.

Mcdonald In India:
McDonald's opened its doors in India in October 1996. It was a joint venture
between Mcdonald’s wholly owned owned subsidiary Mcdonald India Private
Ltd(MIPL) and Connaught Plaza Restaurants for North India and with Hardcastle
Restaurants for Western India.Presently it has over 192 outlets in India.

Reasons for entering India:

Mcdonald had opened its outlets first in America then Europe and Asia
respectively. In Asia it opened its first outlet in japan followed by
Singapore,Russia, China,India respectively. This was done after analyzing the
market demand and size. Main reasons for entering India can be highlighted as
1)Economic growth after liberalization
2)Long term demographics- huge middle class population with high
disposable income and young age
 3)Shifting lifestyle trends- increasing number of people who likes eating
outside there homes.
4)Economic environvent - very less competiton from Indian organized retail
outlets like Narula’s.

Strategy used to enter India:

The enterprise model used to enter the Indian market was by Joint-Venture.the
main purpose of going for JV rather than other models is because of the benefits it
would draw like
1) Temporay alliance with less legal norms
2) Less cost of entry
3) Shared risk with Indian counterparts
4) easy expansion with growth of the market
Apart from this model, India being a diverse country with people from different
religious background like Hinduism, Islam, Christian, Buddhism, Jainism etc the
menu served here was changed to the suitability of all Indians. It removed Beef
and Pork items from the Menu and introduced vegetarian items so that it fits all
Indians religion sentiments. Even the Menu cards were change to 2 different
colours Green- For Veg items and purple- for Non-veg items.

Spillover of Mcdonalds entry in India:

With the entry of giants like Mcdonald in India the food industry has gone through
lots of changes. Existing Indian fast food companies like Narula’s have also setup
their new outlets where they found markets. some new Indian companies have
come up in this sector. Jumbo King a Mumbai based company started its
operation to sell Vadapao in Maharashtra. Recently a Lucknow based company
Tunde Kebabs have also opened there retail oulets in North India serving veg as
well as non veg foods.

Criticism:
In 2001 Mcdonald was sued by 2 Hindus of Indian origin for claiming its
Frenchfries to be cooked in 100% vegetable oil when they were adding beef
flavours in it.This led to mass protest in India and certain outlets were vandalized.
Mcdonald lost the lawsuit and promised to stop using beef flavours in its French
fries and other food which are consumed by people who have religious restrictions
on Beef consumption.
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