McDonald- The

Franchising
Agreement
McDonald’s : Global and
Asia Pacific
McDonald: History

• Two Brother, Dick and Mac

established the McDonald’s
chain of fast food in 1954.
• McDonald has more than 30,000
fast food restaurant ,spread
across 119 countries
• In 2005,net profit of US$2.6Bn on
revenue of US$20.5Bn
 McDonald
• McDonald’s Corp. the world’s largest fast-
food chain has been in India for the last
thirteen years. Having tasted failure in its
initial years ,the company was quick to
adapt to the Indian consumer’s taste buds
and has come out with flying colors.
• The fast-food chain has finally turned
profitable despite being in the midst of one
of the most difficult economic conditions
over the past one year. McDonald’s now
even plans to double its revenues from
India in the next three years through new
outlets.
McDonald’s strategy

• McDonald’s mantra for growth is

going to be a slew of tie-ups not only
to open stores at the petrol pumps
and malls but also to open stores at
the railway stations as well as on
highways. In fact, it expects almost
20per cent of the overall revenues to
come from the highway stores by
2012.
Case Study – Domestic Market Opportunity

McDonald’s is one of the world’s leading fast food restaurant chain.

 Steps taken by McDonald’s:

 Steps taken by McDonald’s:
→ Menu customised to Indian taste – McAloo
→ Menu customised to Indian taste – McAloo
Tikki, Paneer Salsa Wrap, Chicken Maharaja
Tikki, Paneer Salsa Wrap, Chicken Maharaja
Mac and Veg McCurry Pan.
Mac and Veg McCurry Pan.
→ Advertisements that appeal to Indian
→ Advertisements that appeal to Indian
customers.
customers.
→ Menu priced to suit Indian pockets with burger
→ Menu priced to suit Indian pockets with burger
price as low as INR 20.
price as low as INR 20.
 Success in India:
 Success in India:
→ Made its debut by opening two restaurants in
→ Made its debut by opening two restaurants in
Delhi and Mumbai in 1996.
Delhi and Mumbai in 1996.
→ Currently, the company has around 132
→ Currently, the company has around 132
restaurants in India.
restaurants in India.
→ Planning to increase the number of outlets to
→ Planning to increase the number of outlets to
about 220 by the end of 2008.
about 220 by the end of 2008.
McDonald-Strategies
adopted by McDonald
• Strategies adopted by McDonald:
• Franchising Based Operations
• Localization of Menu
• Uniformity in Look and Feel
• Setting up Outlets in Prime locations
• Innovative Distributions Strategies
In India-Home delivery System
– In Hong Kong-Sells ice creams on
pedestrian
– In China-opening more drive-through
restaurants
– In Singapore-Round the clock restaurants
McDonald-The
Franchising Agreement
• Matching Ambience with local
Preference
• Sourcing from Local Players
McDonald-The
Franchising Agreement
• Mr. Vijay a Management
Graduate, after accomplishment
of his management degree
opted for self employment. He
wants to set up MC Donald in
Mumbai.
• Kindly help him in taking
decisions.