SERVICE OPERATIONS

PROJECT REPORT

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Submitted To: Sandhya Makkar

Submitted By : Sriprakash

Roll Number : PG20112085

EXECUTIVE SUMMARY

McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in

California,US in the year 1937. By mid-1950s, the restaurant's revenues had reached $350,000. Ray Kroc,

distributor for milkshake machines, expressed interest in the business, and he finalized a deal for

franchising with the McDonald brothers in 1954.

He established a franchising company, the McDonald System Inc. and appointed franchisees.

In 1961, he bought out the McDonald brothers' share for $2.7 million and changed the name of the

company to McDonald's Corporation. In 1965, McDonald's went public.

McDonald’s has grown from being a burger maker to providing other kind of fast food products. It has

made its presence felt all around the world.

Its successful operational performance is worth mentioning for. Maintaining healthy relations with

suppliers, working hard to provide best of quality standards & efficient service to customers has been its

top priority.

With many competitors posing a big threat to it, McDonald’s is working its way ahead in the segments like

inventory management, capacity planning, supply chain, quality management.

McDonald’s

Quick Service Restaurant Industry Review

The fast food industry, also known as Quick Service Restaurants (QSR), has been serving up tasty morsels for as long as people have lived in cities. The modern system of fast food franchising is believed to have started in the mid 1930’s when Howard Johnson franchised his second location to a friend as a means to expand operations during the Great Depression. And oh how it has grown! As cars became commonplace, the drive-thru concept brought explosive growth to the idea of food-on-the go. “Fast Food” was added to the Merrion-Webster dictionary in 1951 and U.S. fast food companies are now franchised in over 100 countries. In the U.S. alone there are over 200,000 restaurant locations! Revenue has grown from $6 billion in 1970 to $160 billion last year, an 8.6% annualized rate.

Fast food franchises focus on high volume, low cost and high speed product. Frequently food is preheated or precooked and served to-go, though many locations also offer seating for on-site consumption. For stands, kiosks or sit-down locations, food is standardized and shipped from central locations. Consumers enjoy being able to get a familiar meal in each location, and menus and marketing are the same in every location.

There have been challenges for the fast food industry in recent years that have been pressuring profit margins. The industry as a whole has proven robust enough to withstand these challenges, though some players have done better than others.

Over the last decade there has been increased focus on the quality of food served in fast food restaurants. Typically highly processed and industrial in preparation, much of the food is high in fat and has been shown to increase body mass index (BMI) and cause weight gain. Popular books such as Fast Food Nation and documentaries like Super Size Me have increased public awareness of the negative health consequences of fast food. Fast food companies have responded by adopting healthier choices and have had some measure of success, but the shadow of bad press still hangs over the industry.

Rising commodity prices have also significantly crunched many fast food franchises. With food and beverage inputs making up approximately 33% of costs, higher prices for livestock, corn, wheat and more have seriously shrunk margins over the past decade. In such a fiercely competitive space it is impossible to force a price increase on customers, so profit margins are often south of 10%. The recent economic recession did lower commodity prices, but the recession brought on its own complications, and now prices for commodity inputs are on the rise again.

Fast food had been thought to be largely recession proof, and indeed the industry did not suffer nearly as much as other discretionary spending sectors. In fact, there was some increase in consumer visits as people choose cheaper fast food options over fast casual or traditional restaurant choices. But overall, the recession hurt spending, and consumers overall purchased less with each trip. Fast food franchises fared reasonably well but still felt some pain.

Market saturation is also a relevant issue in the fast food industry today, at least in the U.S. There is a McDonald franchise is in almost every town, and it usually sits in a row with several competitors. With so many competitors which offer similar products there are fewer customers per location. Increasingly fast food restaurants are also losing market share to fast casual, a relative newcomer in the restaurant space. Busy citizens still need quick meal options, and fast food restaurants are fighting these challenges with gusto. Now offering healthy choices to battle the stigma of unhealthy food, some quick service restaurants now focus on fresh or organic products. From franchises focused solely on salads or healthy wraps to the lower calorie options offered at traditional burger franchises such as Wendy’s or McDonald’s, consumers are able to make better choices…if they want.

Fast food franchises are also focusing on expanding into new product lines, such as the coffee initiative in the McCafe. Intended to offer competition to Startbucks, McDonalds is luring customers back into their stores, hoping they will purchase food as well. Many franchises have been exploring other meal times such as breakfast and the mid-afternoon snack for growth opportunities and to increase real estate utilization.

Company Overview

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68

million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as

a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business

as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a

franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its

worldwide growth.

A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The

corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in

company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007

to $22.8 billion, and 9 percent growth in operating income to $3.9 billion.

McDonald's restaurants are found in 119 countries and territories around the world and serve 58 million

customers each day.McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7

million people. The company also operates other restaurant brands, such as Piles Café.

Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor

and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in many

countries, often has separate stations for placing, paying for, and picking up orders, though the latter two

steps are frequently combined; it was first introduced in Arizona in 1975, following the lead of other fast-

food chains. The first such restaurant in Britain opened at Fallowfield, Manchester in 1986.

In some countries, "McDrive" locations near highways offer no counter service or seating. In contrast,

locations in high-density city neighborhoods often omit drive-through service. There are also a few

locations, located mostly in downtown districts, that offer Walk-Thru service in place of Drive-Thru.

To accommodate the current trend for high quality coffee and the popularity of coffee shops in general,

McDonald's introduced McCafé, a café-style accompaniment to McDonald's restaurants in the style

of Starbucks. McCafé is a concept created by McDonald's Australia, starting with Melbourne in 1993. Today,

most McDonald's in Australia have McCafés located within the existing McDonald's restaurant.

In Tasmania, there are McCafés in every store, with the rest of the states quickly following suit. After

upgrading to the new McCafé look and feel, some Australian stores have noticed up to a 60% increase in

sales. As of the end of 2003 there were over 600 McCafés worldwide.

Some locations are connected to gas stations/convenience stores, while others called McExpress have

limited seating and/or menu or may be located in a shopping mall. Other McDonald's are located in Wal-

Mart stores. McStop is a location targeted at truckers and travelers which may have services found at truck

stops.

McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an

operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by

McDonald's Corporation directly. The remainder are operated by others through a variety of franchise

agreements and joint ventures.

The McDonald's Corporation's business model is slightly different from that of most other fast-food chains.

In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales,

McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of

many franchise agreements, which vary by contract, age, country, and location, the Corporation may own

or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee

does not own the location of its restaurants.

The United Kingdom and Ireland business model is different than the U.S, in that fewer than 30% of

restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its

franchisees and others at Hamburger University in Oak Brook, Illinois.

In other countries, McDonald's restaurants are operated by joint ventures of McDonald's Corporation and

other, local entities or governments.

As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees, instead

organizing the supply of food and materials to restaurants through approved third party logistics operators.

According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in the U.S. have at some

time been employed by McDonald's. (According to a news piece on Fox News this figure is one in ten. The

book also states that McDonald's is the largest private operator of playgrounds in the U.S., as well as the

single largest purchaser of beef, pork, potatoes, and apples.

7P’s OF McDonald’s

After segmenting the market, finding the target segment and positioning itself, each company needs to

come up with an offer. The 7 P’s used by McDonald’s are:

Product

Product is the physical product or service offered to the consumer. Product includes certain aspects such as

packaging, guarantee, looks etc. This includes both the tangible and the non tangible aspects of the product

and service. McDonald’s has intentionally kept its product depth and product width limited. McDonald’s

studied the behaviour of the Indian customer and provided a totally different menu as compared to its

International offering. It dropped ham, beef and mutton burgers from the menu. India is the only country

where McDonald’s serve vegetarian menu. Even the sauce and cheese used in India are 100% vegetarian.

McDonald’s continuously innovates its products according to the changing preferences and tastes of its

customers. The recent example is the introduction of the Chicken Maharaja Mac. McDonald’s bring with it a

globally reputed brand, world class food quality and excellent customer specific product features.

Place

The place mainly consists of the distribution channels. It is important so that the product is available to the

customer at the right place, at the right time and in the right quantity. Nearly 50% of U.S.A is within a 3

minute drive from a McDonald’s outlet. There is a certain degree of fun and happiness that a customer

feels each time he dines at McDonald’s. There are certain value propositions that McDonald’s offer to its

customers based on their needs. McDonald’s offers hygienic environment, good ambience and great

service. Now McDonald’s have also started giving internet facility at their centres and they have been

playing music through radio instead of the normal music. There are certain dedicated areas for children

where they can play while their parents can have some quality time together.

Price

Pricing includes the list price, the discount functions available, the financing options available etc. It should

also take into the consideration the probable reaction from the competitor to the pricing strategy. This is

the most important part of the marketing mix as this is the only part which generates revenue. All the other

three are expenses incurred. The price must take into consideration the appropriate demand-supply

equation. McDonald’s came up with a very catchy punch line “Aap ke zamane mein ,baap ke zamane ke

daam”. This was to attract the middle and lower class consumers and the effect can clearly be seen in the

consumer base McDonald’s has now. McDonald’s has certain value pricing and bundling strategies such as

happy meal, combo meal, family meal and happy price menu to increase overall sales volumes.

Promotion

The various promotion channels being used by McDonald’s to effectively communicate the product

information are given above. A clear understanding of the customer value helps decide whether the cost of

promotion is worth spending. There are three main objectives of advertising for McDonald’s are to make

people aware of an item, feel positive about it and remember it. The right message has to be

communicated to the right audience through the right media. McDonald’s does its promotion through

television, hoardings and bus shelters. They use print ads and the television programmes are also an

important marketing medium for promotion. Some of the most famous marketing campaigns of

McDonald’s are:

“You Deserve a break today, so get up and get away- To McDonald’s”

“Aap ke zamane mein ,baap ke zamane ke daam”.

“Food, Folks, and Fun”

“I’m loving it”.

Physical evidence

The physical appearance affects not only the impression outsiders have of a business but also the way that

business functions. McDonald’s focuses on clean and hygienic interiors of its out lets at the same time they

are attractive. It maintains a proper decorum at its joints. Staff members dress in McDonald’s Dress code

with Green shirts, Blue trousers, Black caps and Customised Ronald McDonald’s tie. Building maintenance

and visible cues are provided by the golden arches, the trademarks and the logo’s in the premises. The

delivery scooters also add to the physicality of the company.

People McDonald’s understands the value of both its employees and its customers. It understands the fact that a

happy employee can serve well and result in a happy customer. McDonald continuously does Internal

Marketing. This is important as it must proceed external marketing. This includes hiring, training and

motivating able employees. This way they serve customers well and the final result is a happy customer.

The level of importance has changed to be in the following order (the more important people are at the

top):

1. Customers

2. Front line employees

3. Middle level managers

4. Front line managers

Processes

McDonald’s worldwide is well known for the high degree of respect for the local customs and culture.

McDonald’s has developed a menu especially for India with vegetarian selections to suit Indian tastes and

preferences. Keeping in line with this, McDonald’s does not offer any beef or pork items in India. In the last

decade it has introduced some vegetarian and non-vegetarian products with local flavours that have

appealed to the Indian palate. There have been continuous efforts to enhance variety in the menu by

developing more such products. It is completely transparent and visible to the customers, allowing them to

judge hygiene standards where the process takes place. The customers are even invited to check the

ingredients used in the food. McDonald’s has also re-engineered its operations repeatedly in its 11 years in

India to address the special requirements of a vegetarian menu. Vegetable products are 100% vegetarian,

i.e, They are prepared separately, using dedicated equipment and utensils.

Only pure vegetarian oil is used as a cooking medium.

Cheese and sauces are completely vegetarian and egg less.

Separation of vegetarian and non-vegetarian food products is maintained throughout the various

stages of procurement, cooking and serving.

Food manufacturing transparent to customers across the counter.

Training to the licensees about how to operate the franchise.

Invented the most efficient cooking equipment with use of latest technology.

New methods of food packaging and distribution are followed

STRATEGIES

POSITIONING WAR

When McDonald’s entered the Indian market, the concept of home delivery was still in its nascent

stages. It existed only in some major cities and was restricted to delivery by the friendly

neighbourhood fast food outlets. Eating out at 'branded' restaurants was more prevalent.

GOING PLACES

McDonald’s has selected their store locations with focus on shopping malls, multiplex complexes,

metro stations, highways, offices spaces not only in Tier-1 but has also extended their foot print in

Tier-2 and Tier-3 cities reaching out to a larger consumer base.

LOCALIZING THE MENU

Since its entry into India, McDonald’s introduced customized products keeping in mind the cultures

and traditions of the country. For instance: In India, consuming beef is strictly prohibited,

McDonald’s came up with Chicken Burgers.

McDONALD’S LOCAL OPERATIONS

SWOT ANALYSIS

Strength

McDonalds has built up huge brand equity. It is the No. 1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. Sales, 2007 (11,4009 million), 5.6% sales growth.

Globalization: 31,000 restaurants serving 120 countries. Of the 31,000 restaurants at least14,000 restaurants in the US

Good innovation and product development. It continually innovates to retain customers in the business.

The McDonalds brand offers consumers choice, reasonable value and great service Weaknesses

Until recently, had very few options for eating healthy

Core product line out of line with the trend towards healthier lifestyles for adults and children. Product line heavily focused towards hot food and burgers

Quality issues across the franchise network. Opportunities

“Going green” – energy management, improving packaging efficiency, environmentally friendly refrigerants, and partnering with Greenpeace for rainforest protection

Innovation: Continued adaptation to societies needs such as USDA and Supersize Me upgrade.

Conservation: Researching green energies and green packaging solutions and incorporating these findings as a part of their marketing strategy and advertisements.

Exploration: Create new product offerings. Continue to use technology to influence revenue strategy: possibly use text messages to deliver specials offers to individuals who sign up for such services.

growing dining-out market(especially for young generations and middle age group)

Joint ventures with retailers (e.g. supermarkets).

Use of CRM, database marketing to more accurately market to its consumer target groups. It could identify likely customers (based on modelling and profiles of shoppers) and prevent brand switching.

Threats

Current world economic standing: the company's revenue streams are diversified, but depending on the length of this "recession", they will inevitably be negatively impacted by the trickle down effect.

Health professionals and consumer activists accuse McDonald's of contributing to the country’s health issue of high cholesterol, heart attacks, diabetes, and obesity.

Competitive pressures on the high street as new entrants offering value and greater product ranges and healthier lifestyles products. E.g. subway, supermarkets, M&S.

MACRO-ENVIRONMENT OF McDONALD’S

Political factors

The company operates separate policy and instructions of operations. The certain markets

concentrate on various areas of anxiety, such as various area of health, protection of the worker,

and environment. All these elements are noticed in the state control of licensing of restaurants in

the corresponding states. For example, there is a legal dispute in privilege McDonald’s in India

where certain infringement of rights and infringement of the religious laws concerning the

maintenance of meal. Meat existence in their menu in India is obviously offensive to Indian

religions in the mentioned market. There are also other researches which specifies in infringement

of McDonald's Stores concerning existing laws on employment in the target market. As any

business enterprise, these McDonald's stores should argue with problems of procedures of

employment just as their tax obligations to succeed in the foreign market.

Economic factors

The organizations in the fast food industry aren't excused from any disputes and problems.

Branches and privileges of networks of the enterprises of fast service as McDonald’s has a

tendency to experience difficulty in cases where the economy of the corresponding states is

amazed by inflation and changes in exchange rates. Clients hence face a survey stalemate through

their separate budgets, whether they should spend more on these foreign networks of the

enterprises of fast food. Hence, to these chains, possibly, it is necessary to take out problems of

effects of economic environment. Especially, their problem depends on the answer of consumers

to these main principles and how it could influence their general sales. In an estimation of

operations of the company, food chains as McDonald’s tend to import the biggest part of the raw

materials to certain territory if there is a delivery lack. Exchange rate fluctuations will also play an

essential role in company’s operations.

Socio-Cultural factors

Articles about the international strategy of McDonald’s, apparently, function on several areas to

guarantee profitable returns for the organization. To illustrate, the organization changes to the

best an establishment of positive thinking from their basic consumers. McDonald’s indulges a

special variety of consumers with certain types of persons. Also it has been noticed that the

company has given the markets, such as the United Kingdom, a choice concerning their lunch

requirements. Specified that McDonald’s beginnings considerably valued set of meal which offers a

reliable degree of quality for the corresponding market where it works. In addition, those who are

elderly only below a bracket of thirty five as said are the most frequent consumers of McDonald’s

privileges.

Technological factors

McDonald’s makes a demand for their own products. The key tool of the company for marketing is

by means of TV advertisings. There are some requirements that McDonald’s is inclined to interest

the younger population more. Existence of game stains also toys in the meal offered by the

company shows this validity. Other demonstration of such marketing strategy is obvious in

advertising they use. They use recovered descriptions of the characters as Grimace and

Hamburglar. Other advertising operations employ popular celebrities to promote their products.

Similar became endorsees for McDonald’s all over the world “loving’ it” campaign. Besides,

operations of McDonald’s have considerably been infused with new technology. Elements as the

system of stock and management of the value chain of company’s creation consider easy payments

for the suppliers and other sellers with which the person supplies in the corresponding agreement

on the markets. Technology integration into operations of McDonald’s tends to increase cost of

their products. Basically it is shown in improvements on its chain of creation of value. Improvement

of stock system just as its systems of deliveries allows the company to work in the international

context.

Legal factors

There was a current roar against the fast food industry. It has forced McDonald’s to apply more

close examination on their corporate social responsibility. As a whole it has addressed to

requirement of the company to generate its corporate reputation to more positive and the more

socially responsible company. The reputation of McDonald’s is obviously a huge question. Noticed

on company’s web site, seems, that they have got steps to take in hand the key social

condemnation that they abused them in the last decades. The company gave to their clients the

corresponding data in which they need the relation of food essence of their products. This is to

attend to the arguments of obesity charged against the products of the company. In the same way

consumers have provided freedom in a choice, whether they want to buy the meal.

Environmental factor

Social responsibility of McDonald’s on the state influences to company operations. They involve

charges of harm to environment. Among the reasons why they are accused of such requirements, is

that the work of substances is not decomposed by microorganisms for their drinks glasses and

treasury of expanded polystyrene for meal. Some civil groups in Hong Kong have made actions to

make McDonald’s privileges in Hong Kong aware of the rather copious use of containers of

expanded polystyrene and resulting abusing by environment. Further, has specified that in 1995,

McDonald’s Hong Kong ran through the expanded polystyrene used by both Australia and the

incorporated United States.

TRAINING & DEVELOPMENT The Belief at McDonald’s regarding training & development is to help the employees & staff refine their skills, and gradually mould them to occupy greater responsibilities. With many competitors entering the scene, it becomes important for McDonald’s to keep their staff effective, efficient & motivated for improved performance on a regular basis. There are basically 4 modes of traing and development at McDonald’s:

Hamburger University

Since its inception, training at Hamburger University has emphasized consistent restaurant

operations procedures, service, quality and cleanliness. It has become the company’s global center

of excellence for McDonald’s operations training and leadership development.

In 1961, Fred Turner, McDonald’s former senior chairman and Ray Kroc’s first grillman, founded

Hamburger University in the basement of a McDonald’s restaurant in Elk Grove Village, Illinois.

Since 1961, more than 80,000 restaurant managers, mid-managers and owner/operators have

graduated from this facility. McDonald’s is the first restaurant company to develop a global training

centre.

Global Mobility Program

McDonald’s Global Mobility Program is designed to enhance the development of its leaders—it

gives unparalleled insight into McDonald’s global operations and the impact McDonald’s has on a

global scale. A global assignment offers the opportunity to experience working and living in a new

global location and it encourages their employees to get the most out of the experience on both a

professional and personal level.

Internships

McDonald’s offers graduates and college level students to experience the taste of corporate world

by way of internship opportunities.

LOCATION PLANNING

Location planning is a significant step, critical for the success for any company planning to start operations

anywhere in the vicinity. The success or failure of any company depends very much upon where it is

located.

McDonald’s takes the following points in consideration:

Large Customer Base

Transport Access

Availability of parking space

Coverage of target segment

Availability of market in case of material shortage

Disposable Income of the local people.

McDONALD’S SUPPLY CHAIN MANAGEMENT

A unique sense of dedication and commitment characterizes McDonald's India – a commitment to be

driven by the leadership of local owners. Commitment to provide quality products and fast friendly service

at a real value to support other Indian businesses through local sourcing and imparting new skills and to

generate local employment by being a part of the local culture. This commitment has translated into

enduring benefits to the businesses at the grass root level, in the areas of introduction of new crops, new

agricultural practices and food processing methods and procedures.

McDonald's unique 'cold chain', on which the QSR major has spent more than six years setting up in India,

has brought about a veritable revolution, immensely benefiting the farmers at one end and enabling

customers at retail counters to get the highest quality food products, absolutely fresh and at great value.

McDonald's, through its unique cold chain, has been able to, both cut down on its operational wastage, as

well as maintain the freshness and nutritional value of raw and processed food products. This has involved

procurement, warehousing, transportation and retailing of perishable food products, all under controlled

temperatures.

A McDonald's burger is not just a burger but an outcome of dedicated efforts by farmers, its suppliers,

distribution centre and a firm promise by McDonald's. McDonald's contributes a great back end process

which enables you to enjoy your favorite burger fresh & hot, and for that, the supply chain truly acts as a

backbone of the business. The supply chain begins at the grass root level, with the suppliers receving the

crop from the farmers. The crop is then processed and dispatched to the Distribution centres in special

temperature controlled trucks, which ensures that the quality of the items is not compromised.These items

are stored in rooms with different temperature zones and are finally dispatched to the McDonald's

restaurants on the basis of their requirements. McDonald's expectation of 'Cold, Clean, and On-Time

Delivery' plays a very vital role in maintaining the integrity of the products throughout the entire 'cold

chain'.

Suppliers: Maintaining Quality Standards

QUALITY MANAGEMENT AT McDONALDS’S

Quality management/system at McDonald’ is implemented on the following:

Quality service: It is the expected level of performance of the major peripherals of McDonald’s that it

has put up. It can be measured under the following heads:

Employees

- Must follow certain standard operational procedures,so that customers receive exceptional

customer service.

- They should be properly dressed & punctual.

- Always make sure that the customers receive safe and clean food everytime.

Food

- Vegetables should be fresh & properly washed.

- The cooked food or fried eatables should not be raw.

Restaurant

- Food delivers fast , and accurate to the right person.

- The premises should be clean.

Quality Control

- McDonald’s thrives on customer feedback to continuously improve quality.

- Continuous training to staff as well as suppliers.

- Quality, Service & cleanliness is the company’s pledge, that defines its 100% commitment to deliver

the best & safest quality to its customers.

- Maintaining close ties with members of scientific community on food & safety to keep up with the

latest developments.

OPERATING PROBLEMS OF McDonald’s

During rush hours, McDonald’s fails to manage capacity. As a result, customers are found waiting

for space to sit & serve themselves.

Long queues could be found at most of its stores, which results in customers going to its closest

competitors like KFC & Fastrax.

The staff at McDonald’s are not equipped with skills relating to handling multiple jobs.

The size of McDonald’s outlets that are present in metropolitan cities or frequently visited places

like malls or market places needs to be researched upon.

McDonald’s has always been in the news for promoting high cholesterol & high calorie food.

SOLUTIONS

McDonald’s has its big sized outlets on the highways & expressways that are drive through

restaurant format. It needs to come up with a revamped structure for its operations in

metropolitan cities that can accommodate the rising rush. It is understood that McDonald’s targets

the youth, and they contribute 65% of the total country’s population.

With people becoming more health conscious, their preference from “Low priced products” is now

changing into “Healthy food”. Therefore, it needs to introduce healthy fast food options.

It is observed that during rush hours, the staff faces issues in serving them at the lowest possible

time. Additional temporary counters can be put up during rush hours. Most importantly, all

employees should be trained to handle multiple jobs.

The company could try out a different ordering mechanism.

REFERENCES

www.mcdonaldsindia.com

www.mcspotlight.org

Ucallit.wordpress.com

economictimes.indiatimes.com