Maharaja Mac Conquers The Capital

This multinational which takes its hamburger business more seriously than anyone else, in the words of its legendary founder Ray Kroc, is dead earnest about urning Indian. McDonalds India is an Indian company. We have worked hard to ensure that the products we offer are appropriate to the taste and culture of India, claims Bakshi.

With rivals KFC and Pizza Hut having burnt their fingers in the country, McDonalds is taking no chances. Thus, while the Big Mac may have landed in town, the Big Mac beef burger is conspicuous by its absence. Instead, the worlds bestselling hamburger has been usurped by Maharaja Mac a sesame seed bun, layered with juicy mutton patties and peppered with pickle and tamarind flavoured sauce. In fact, the McDonalds outlet looks nothing like a symbol of all-American culture against which the swadeshis have been crying themselves hoarse from the day India uncorked the first bottle of Pepsi.

 

In most of its overseas ventures, the fast-food giant has seen spectacular success because of its willingness to localise. The company which transformed the humble bread of Hamburg into Americas favourite meal, has kept the cash registers ringing by not limiting itself to a stereotypical product. It has been very innovative in countries such as Poland and Germany, enlivening its fare with local favourites such as black currant shake and shrimp salad.

But according to some industry pundits, it is precisely this quality to adapt in most countries that becomes a drawback.

Confusion abounds regarding its brand identity is it American, global or local? However, the company sees itself as having transcended such classification. And as McDonald Corporations vice president, Steve Simpson is fond of saying, McCulture is in a class by itself.

McDonalds India is now invoking the same formula for success: We have created this menu for India and this is a milestone for McDonalds. We do not sell beef or pork, and have a dedicated vegetarian menu, points out Steve Simpson. Whats more, the vegetarian food will be prepared in separate kitchens and in utensils untouched by meat a fact the company tirelessly harps on. And why not? After all, McDonalds sees itself as not merely a seller of food, but also a seller of values and bright smiles.

Despite being armed with a virtual blueprint for spinning profits in the global arena, McDonalds is showing no signs of complacence. On the contrary, it spent three painstaking years on research and a whopping Rs 20 crore on infrastructure and vendor development before making its foray into India. The second McDonalds outlet in India is slated to open in Mumbai later this month.

We knew there was a controversy regarding fast food in this country. But we have met various government officials and politicians to assure them that we are different from the rest we are local in every respect, reiterates Simpson.

McDonalds India is sourcing almost all its ingredients locally, from places as far flung as Ooty and Phillaur. Thats a smart move considering the number of tongues KFCs imported hens had set clucking!

We are actually helping the economy, insists Bakshi, when asked about McDonalds structure of operations. McDonalds has roped in companies such as the Dynamix Dairy in Maharashtra, Hyderabad-based VST Industries and the lettuce-growing Ooty Farms as its suppliers. The company is confident that it will catapult all its local partners into the global market place.

But the burger giant is as serious about McDonaldising its suppliers and management, as it is about Indianising itself. Flooded with hundreds of applications, the company zeroed in upon the right partners after a lengthy selection process that included four stages of rigorous interviews. McDonalds India has struck 50:50 joint venture partnerships with Bakshis Connaught Plaza Restaurants Pvt Ltd in New Delhi and Amit Jatias Hardcastle Restaurants Pvt Ltd in Mumbai.

Both Jatia and Bakshi had to matriculate at McDonalds in-house Hamburger University in Illinois.

Jatia describes his training: It began as a course in restaurant operations, but in the end, it was nothing short of a mini-MBA. Simpson adds. We wanted to find out whether our partners were willing to get down on their knees and clean the floor and toilets, as is expected of McDonalds staff. Now the company is setting up training centres at Delhi and Mumbai to ensure that its Indian staff dishes out world class service.

The strategy looks foolproof. But those who have been keeping an eye on McDonalds fortunes point out instances where local competitors started out as McDonalds clones and eventually beat it at its own game.

In the Phillipines, for instance, Ronald McDonald has paled in comparison to the cute orange coloured bee which is the mascot of the local fast food chain Jollibees.

Surrounded with competitors like Wimpy, Dominos, KFC and the local favourite Nirulas, could McDonalds run into similar trouble in India? Simpson gives a confident, if somewhat cliched response. Jollibees is very aggressive. But we believe that competition makes us better. We will not let our business be dictated by our competitors. We have the formula to grow and we refuse to look over our shoulders at every point.

Besides, McDonalds pricing could not have been more competitive.

Says Simpson, We are committed to providing as low prices as are possible. In addition, our customers will get the quality and comfort of eating at McDonalds. It does sound like a good deal.

The small McBurger and the Veggie sandwich cost as little as Rs 12, and the McBurger Meal burger, french fries and Coke come for a nominal Rs 39. The company is hoping to offset low margins by having very large volumes.

Off to a promising start, McDonalds appears to have Delhiites literally eating out of its hands.