McDonald’s (McD) is a brand millennials have grown up with. Its first Indian outlet opened in New Delhi in 1996, and with time, the brand evolved and adapted to the Indian taste buds and curated a localized menu too. As a global brand, we have seen how it thrives on its automated process of preparing food. Having standardized its operational processes, customer experience is outlet agnostic. It ensures that every customer is “lovin’ it” no matter which McD he/she goes to. The movie “The Founder” allowed us to peep into the story of the brand and how it incorporated Ford’s assembly line procedure to ensure that the best burgers are ‘produced’ every single time, thus becoming an everyday name in households.
To us, McDonald’s is still our go-to place to grab a quick bite. If we have more time, we even want to grab a coffee here every once in a while. Inviting us with its typical McD fragrance, calling of order numbers, and chatter of happy eaters, it takes us back to our childhood days.
Despite being one of India’s most loved fast food brands, isn’t it surprising that it only recently made its first profitable year in 2018? Let’s have a look at the HOWs…
Value Meals
This is a destination for celebrations! A place we would go to when the exam results were announced, or if we had won a cricket tournament. A special-treat place, the children begged for Happy Meals even if it meant having 5 variants of the same toy. Soon enough, it became the hottest birthday party spot for us tiny tots. While we outgrew those parties with time, the Rs.25 Chicken McGrills and Mc Aloo Tikkis remained. A small budget meal attracted students and youngsters with limited pocket money. The Soft Serve got a whole new ‘fancy’ feel to it when the chocolate dip was introduced. That was the time when McD sold on price points.
Today, McD’s Extra Value Meals are one of the most popular orders. The permutations and combinations of burgers-drinks-sides ensure that there’s a combo for everybody. And if that wasn’t enough – McD even ties up with blockbuster movie characters (Po from Kung Fu Panda, Minions from Despicable Me, etc.) and comes up with limited-edition special meals to attract customers across all age-groups.
Over the years, the menu has evolved, but the core has remained the same. We still say “I’m lovin’ it” with the same enthusiasm while munching on fries.
But just when we thought that this is it for McDonald’s, it made its next move.
Extending the Customer Lifetime Value
While McD once stood for standardized meals at a reasonable cost, it now also offers ‘gourmet’ muffins and hot chocolate that we just might want to stop and enjoy! With its McCafe banner, it aspires to bring the typical quick coffee house to us, complete with a range of sweet accompaniments. The McCafe range has become a rage in itself.
While 2018 was the first profitable year for McD India with discounted combos and presence in high footfall markets (like malls) being the driving factors, the arrival of McCafe was a game-changer in itself. Constructing a special counter just for coffee and limited beverages has achieved two goals with a single shot –
Firstly, it adds a premium feel to its beverages and the McCafe brand doesn’t lose its value among ‘Value Meals’. Secondly, this also ensures that the Customer Lifetime Value (CLV) of each consumer at McDonald’s is increased! How? A customer’s first interaction with McD might be in his/her teens when burgers are the go-to food; however, over the years that very customer might consider burgers as junk and unhealthy but will still visit a McD outlet for a warm cup of McCafe’s freshly brewed coffee. And this is why – though McD continues to be a great brand for budget meals and a once-in-a-while junk food restaurant, it now also attracts people far beyond its initial target audience. A family outing is now complete where a young kid enjoys his burger, while the parent sips on a Flat White.
The fast-food giant has claimed that a McCafe will be a part of every McDonalds’ in India by 2022. And why not? A country where the ‘coffee culture’ is on the rise, but finds Starbucks runs a tad bit expensive, McDonald’s offerings hit bang on!
What Next?
In these testing times (a.k.a 2020), the food industry seems to be going through a major overhaul. 74% of consumers say that they will not dine-in at restaurants even if they open up. Safety and sanitation, which have always been the bedrock of this industry, have come into higher prominence. Not just taste, consumers now look for options such as contact-less delivery, no-touch food, server sanitation, etc. Thus, brands such as McDonald’s need to innovate in this space.
While the brand seems to be prepared in serving its customers with utmost safety and satisfaction, we still need to wait and watch if consumers are ready to accept takeaway/ restaurant food at this time.
Nonetheless, we eagerly hope to be able to go and enjoy our favorite McChicken/ McVeggie Meal, sip on a Mocha Frappe and say to ourselves – ‘I’m lovin’ it’!