Macdonald in India

Topics: McDonald's, Fast food restaurant, Hamburger Pages: 9 (2956 words) Published: March 8, 2012
McDonalds entering the Indian market

Presented to Dr. Madiha Metawie

Done by:
Hosam Doaa Elkhateb
Moha Abd Elsattar Elsawy
Omar Khaled Fayez
Maged Eldesouqy Eleraqee
Ahmed Mohammed Adly

2)Problem definition
3)Literature survey
4)Theoretical framework
5)Research variables
6)Hypothesis development
7)Research design
8)Data collection methods
9)Research plan

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, french-fries, breakfast items, soft drinks, shakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, wraps, smoothies and fruit. Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined; it was first introduced in Arizona in 1975, following the lead of other fast-food chains. McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder are operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee does not own the location of its restaurants.

Problem definition:
When McDonald's entered India in 1996, it came with hopes of a happy meal soon enough. Thirteen years later and around Rs 4000 million of accumulated losses later, the plate seems to be half empty. Delhi-based Connaught Plaza Restaurants, one of the burger chain's two subsidiaries in India, which operates the franchises for the north and east, showed Rs 2114.1 million of accumulated losses for fiscal 2008. The company had posted an accumulated loss of Rs 1891.9 million for the previous fiscal ended March 31 2007. At the same time, Mumbai-based Hard Castle Restaurants, which operates the franchise business in the western and southern markets, had posted an accumulated loss of Rs 1190 million in fiscal 2008 For thousands of years, India's Hindu culture has revered the cow and does not eat the meat of the sacred cow. In addition there are some 140 million Muslims in India, who do not eat pork. However, McDonald's managers noticed that some people never dropped in when they passed by. Some...

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