Thursday, January 10, 2013

In the lair of adephagia

there was hardly anything ‘fast’ in the manner in which this fast food chain spread its reach in the indian market. but mcdonald’s would still look back at the past 19 years with satisfaction, for indians have accepted them quite well

She did it again! It’s quite well established now that there is a lot that US Secretary of State Hillary Clinton looks forward to whenever she visits India. And Indian food definitely figures up there on the list. That is why, when she came to the Taj Palace in New Delhi during the current visit, she had an extended 2 hour dinner session, where she got to taste the best of Indian cuisine, one of the main reasons why she made headlines in her previous visit as well.

Visiting India and enjoying Indian cuisine is one thing. But when it comes to bringing cuisine from back home to tantalise Indian taste buds; well… MNCs haven’t exactly been having a ball there, have they? Firstly there is the tremendous competition that MNCs have with traditional Indian food. That’s where many failed at the onset – to adapt their tastes to Indian likings and sensitivities. Moreover, careful planning was missing in most of the forays, so was the kind of investment that is needed to sustain in this market; where breaking even can take what seems like eternity. And price… who can forget price? They made strong attempts to make Indians adjust to their pricing norms, but in fact ended up adjusting their own. Brands like KFC and Domino’s, therefore, learned the hard way. But the most recognisable Quick Service Restaurant (QSR) brand in the world – McDonald’s, was a notable exception.

As journalist John F. Love points out in his book – McDonald’s – Behind the Arches, that in the 1950s, McDonald’s realised the importance of logistics and supply chain to maintain the consistency of the brand. While the initial aggressive approach followed by most American MNCs ultimately gave way to a humble growth model, the McDonald’s headquarters at Oakbrook had other plans for India. The company has always had the policy to wait for as long as possible to find the right franchisee along with a sturdy supplier base, before entering any country. Critics have lambasted it for running bullock carts in the era of jet planes. But its patience is showing results, as it’s the only American MNC in the fast food chain business that has seen success from day one and reached break even in 17 years in India.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
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