McDonald’s Food

Chain In India
HISTORY
 Although McDonald's is best known for its hamburgers, cheeseburgers and
French fries, they also feature chicken products, breakfast items, soft drinks,
milkshakes, wraps, and desserts.

 In response to changing consumer tastes and a negative backlash because of the

unhealthiness of their food, the company has added to its menu salads, fish,
smoothies, and fruit.

BUSINESS MODEL
 The company earns a significant portion of its revenue from rental payments
from franchisees. These rent payments rose 26 percent between 2010 and 2015,
accounting for one-fifth of the company's total revenue at the end of the period.
 Macdonald’s marketing strategies
due to heavy competition
• Partnership with Walmart for setting up restaurants inside
Walmart retail stores.
• Partnership with AMOCO Gas Station for setting up
restaurants near to the gas station
• Agreement with DISNEY for mutual Promotions
International menu variations
McDonald's In India
1996 - First restaurant opens in India, at Basant Lok,Vasant Vihar, New Delhi.

 McDonald's India is a 50 — 50 JV partnership between McDonald's

Corporation (U.S.A) and two Indian businessmen Amit Jatia (Hardcastle
Restaurants Private Limited, Mumbai)and Vikram Bakshi (Connaught Plaza
Restaurants Private Limited, Delhi).

 Two separate operations in Northern & southern India.

 Partners and their management teams trained extensively in Indonesia & the
U.S.

 Approximately 75% of the menu available in McDonald's in India is

Indianized and specifically designed to woo Indian customers.
 QUALITY
 SERVICE
 CLEANLINESS
 VALUE
4 Pillars

 LIMITED MENU
 FRESH FOOD
 FAST SERVICE
 AFFORDABLE PRICE
MCDONALD’S SUPPLY CHAIN
Mc Donald's SUPPLY CHAIN IN INDIA

 Source all its requirements from within India

 Developed local business
 Works with 38 different local suppliers
 Trained local farmers to produce according to their specification
Worked with vendor to get the perfect cold chain in place
 Distribution centers — Noida, Kalamboli, Bangalore, Kolkata
 Cold chain — Unique concept of McD supply chain in India
 IN SEARCH OF PERFECT LOGISTICS – THE
STORY OF COLD CHAINS
 Distribution Agent – Radhakrishna Foodland Private Limited (RFPL)
, Mumbai
 RFPL stored the products in controlled conditions with the help of
Refrigerated Vans ( Cold Storage ) and delivered it to Macdonald’s
outlet on daily basis.
 RFPL Build a cold storage in Thane and Delhi.
 There were around 30 suppliers for Macdonald’s.
 AFL Logistics Ltd ( Joint venture between COUGHLIN of US and
RPFL) was responsible for ensuring standards
 Unused Capacity of vehicle was used for delivering products of
other vendors.
In 1997, McDonald’s introduced multi-temperature trucks in India.

 Besides separate compartments for different products, these trucks also had two side doors

which could be used to unload products without disturbing the products in the other

temperature zones.
 Multi-temperature control trucks give a better temperature control of a wide range of
products. And at McDonald’s, the whole process includes the significant aspect of
return logistics as well.

 The empty bottles and racks are sent back for further processing. Plastic crates are
used for buns to ensure their quality.

 The advantages of having multi-temperature trucks are

 All kinds of raw products can be delivered at a single time window which means
everything from lettuce to patties to buns will be delivered together.

 Cost saving is also there; against carrying approximately 150 cases per truck, multi-
temperature trucks can carry as much as 500 cases.
• Managing Logistics For Mconald’s ...............................
• Standards
• Contingencies
• Standardisation
• Vista & kitran Foods supplied the pies , nuggets ,vegetables
meat etc
• McDonald’s Helped TRIKAYA Agricultural to develop variety
of icebergs lettuces ( Winter Crop) and gave technological
backup for storage facility.
•
OUTSOURCING

• The essence of the effective supply-chain model is undoubtedly

attributed to its unique concept of outsourcing. The company has
a 100 percent outsourced supply chain, which is a rare case in
industry giants. But McDonald's has complete control over its
functioning. The performances of outsourced companies are
monitored on Key Performance Indicators (KPIs).

• McDonald's has a total of 40 suppliers, in which 14 are the

• core suppliers, known as Tier-1 suppliers, they supply directly to
the fast food chain.
• The rest are Tier-2 suppliers. Relying on local players, most of
the suppliers are local.
• Some internationally famous foreign players like McCain Foods
India are also the part of supply team.
• McCain set up its Indian business when McDonald's ventured
into the fast food business in the country.

• FAITH IS THE KEY

• McDonald's has no legally signed agreements with its suppliers.

It is a simple „handshake
• relationship‟ with the suppliers. The policy with suppliers is very
clear; one product-one supplier relationship. The policy has
been proven as long-term relationships at every time.”
• TECHNOLOGY AT ITS BEST
• The entire system of supply chain is powered by technology to make it smooth and
effortless.

• Suppliers are using SAP while Distribution Centers are on RAMCO Marshall ERP with
Cobra software. These systems are used to automized upload of store orders. For
assisting in day to day functions of store, technologies have been developed e.g.
track sales, enables restaurants to schedule staff and send forecast orders to DCs,
etc.

• The company is tapping the high growth opportunities with customer satisfaction
criteria effectively and in this effort McDonald's added Mcdelivery, an innovative
option which delivers meals to the customer's doorstep. This service has grown at
stratospheric levels by more than400 percent. Delivery was first launched in
Mumbai and Delhi in 2004.
THANK YOU