Oct 14 2012
McDonald’s is more than just meat
This post is in response to Mingchi Choo’s post about McDonald’s vegetarian restaurant venture here.
McDonald’s name is associated with more than beef. The chain’s popularity draws on prices and convenience, which are marketable regardless of what is in its sandwiches. McDonald’s recent move to set up vegetarian restaurants in India shows just that.
McDonald’s seeks to cater to local tastes in its expansion into India.
Opening a line of vegetarian restaurants with items friendly to both beef eschewing Muslims and pork eschewing Sikhs, especially on holy sites is differentiation that could prove hugely profitable. Opting to establish a vegetarian-ized version of McDonald’s allows the company to add to its current value proposition of quick meals at low prices and expand its target market to include culturally sensitive areas. Currently, McDonald’s prices have deterred Indian customers used to buying few rupee samosas, but with India’s rapid development, household income will increase- making fast-food a more attractive option. Will McDonald’s ‘beefed up’ reputation affect Indian patronage? Not likely, as the company entered India with the local culture in mind. None of the Golden Arches’ Indian menus offer beef, instead choosing to serve customized versions of classic American burgers. McDonald’s latest venture once again shows the chain’s ability to “cater to local tastes without losing its brand image” and will likely prove profitable as “India [is] expected to overtake China for the position of the country with the largest population.”