Macdonald in India

In: Business and Management

Submitted By jagos980
Words 1190
Pages 5
Issue/Problem Identification
McDonald’s is trying to expand its franchise to India and compete with the local food dealers “Dabbawallahs”. The issue that exists, is that many of the products from a regular McDonald’s menu (Europe/North America) cannot be eaten by Indians, because sacred animal products can be considered offensive to their beliefs and religion. As well, most Indians prefer homemade meals, and express delivery from the Dabbawallahs. Dabbawallahs have fed Indian workforce for a long time, for just a small amount of money. Mcdonald's is competing with the Dabbawallahs pinpoint accuracy and delivery.
Mcdonald’s has 80 restaurants in Mumbai. Assuming Mcdonald’s spread out their restaurants similarly to how they do in North America (based on population density), they are closer to the workplaces than some of the residencies in North Mumbai. Despite this, workers would rather eat home cooked meals, because they are under the impression cafeteria food is not healthy.

Mcdonald’s has catered their menu to meet the needs of different religions, but more could be done to match the food Indian people regularly eat. The care needed to offer religion-friendly meals has already been taken by Mcdonald’s, by separating its food preparation inside restaurants, and distribution centres. The upstream food sourcing is all localized, to keep logistics cost low, and ensure food avoids cross contamination.

Currently, Dabbawallahs offer accurate, and convenient delivery service. Indian workers see value in not having to travel at all to get their lunches. This costs the family providing the meals a small monthly expense. Their system works effectively despite most of these delivery-people being illiterate. The Dabbawallahs have a expert knowledge of the transit system and know basic symbols to figure out where the food is going. They are six sigma…...

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