https://blogs.ubc.ca/hardevsidhu/2012/10/07/mcdonald-indias-high-end-problems/

http://www.business-standard.com/india/news/has-mcdonalds-bitten-off-more-than-it-can-chew/488790/

I definitely agree with Hardev on this issue. Mcdonald’s India is already successful on a large scale; they have opened over  280 stores since they opened 15 years ago. Now, they are trying to improve the quality and customization of the food served, at the sacrifice of production speed. However, trying to change the tried and true business model may do more harm than good.

While the company has had success with their new “Made For You” business model in the Western world, I have difficulty believing that these gains will be possible in India. The middle class Indian’s disposable income is much lower than someone who lives in a developed country, and this means that the increased customization (and the increased price that comes with it) may not be met with open arms by consumers.

Another advantage that Mcdonald’s gives up when it switches to this new business model is the speed that the heating lamp and continuous stocking system offers to consumers. Many Indian consumers greatly value how quickly they are served when they go to a Mcdonald’s compared to other fast food chains. Without this speed of service, many time sensitive consumers will go to different stores that can meet their needs.

Mcdonald’s should avoid this change in their business model, as it eliminates too many key points of difference over its competition, which will greatly cut their sales.

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