CREATED BY

ADITI RAJ

SECTION
PGDM 1

SUBMITTED TO CASE STUDY

PROF. G PRAVIN SIR
MCDONALDS FRNCHISE
NEEDS NEW DIRECTION IN
INDIA’S NORTH AND EAST
 BRIEF
INTRODUCTION
1. In the year 2017, Mcdonald’s had
announced that it had terminated the
franchise agreement with CPRL for
169 restaurants .
2. About 80% of its restaurants worldwide
are owened and operated by franchises.
3. The key reason for Mcdonald’s success
was the ability to customize its menu to
switch local tastes by understanding
Indian consumers preferences.
 SECTOR COMPANY PRODUCT SERVICES

- Quick Service - Mcdonald’s - French fries - Low cost meals

Restaurants (QSR) - Burgers - Faster delivery
within a minute

SCPS
- Low cost - CPRL - Chicken and - Lives well
- Daily - HRPL - Discounts on
consumable sandwiches meals
- Combo meals
COMPETITORS AND THERE GROWTH

1. DOMINO’S
2. MCDONALD’S
ITSELF
3. CPRL
MCDONALD’S
4. KFC
5. SUBWAY
DATA INTERPRETATION OF
TWO COMPANIES
McDonald’s India
posted a loss of ₹3.05
billion. Reportedly, the
company had made a
provision of ₹1.98
billion in its financial
statements to cut back
losses accumulated
following termination
of the franchise
contract with CPRL.
 PROBLEMS / CHALLENGES
1. Conflict of interest (COI).
2. Breach of agreements.
3. Legal disputes.
4. Negative market image.
5. Competitors growing.
SOLUTIONS / STRATEGY
1. Adding the hold to remove the
franchise in case of affecting
negative brand image.
2. Food / services quality check
from time to time.
3. Quick services were limited to 1
minute delivery.
4. Low cost of the products to cut
the competitors.
5. Local product development.
 LEARNINGS

1. Do a background profile check to whom you are giving

the franchise.
2. Write a full hold terms on the audit agreement you are

signing the franchise.

3. Local product development.
4. Food quality check frequently.
5. Low cost to cut the competitors.
THANK YOU

THANK YOU