HISTORY AND PAST TRENDS
Change in gender roles
Rise of automobiles
New highway system
Double Income Group
Relaxation in rules and regulations
Drive Through Service OR On the Go
Food for specific group(e.g., dieters, women, athletes, older adults)
• Eating away form home
• Functional or Healthy fast foods
• Convenience fast foods
• Green fast foods
• Ethnic foods
• Low calorie foods
• The TV dinner
• Fresh foods
• Regional foods
According to Observation of 2002-2010, The fast food
companies have introduced healthier menu options.
The industry will begin to make larger internal and external
business decisions. The food at fast food establishments will all
be brought to an acceptable level of nutrition value.
By 2025 the fast food industry will have transformed from a
food provider to one that serves a speciﬁc health beneﬁt.
Industry will move from healthy to functional. Food Industry
will concentrate on basic nutrition.
The balancing of the food will allow people to eat fast food
meals and gain a balanced diet from every menu. One way to
achieve this transformation is vitamin burgers.
The positive evolution of the industry in the future will be
healthy lifestyles. As technology progresses, scientists will ﬁnd
ways to replace the unhealthy ingredients with healthier
alternatives that keep taste consistent.
The fast food industry will give importance to taste and health.
Companies will Add nutritional meals in daily menu.
Fast-food restaurants seem to be big business in India,
and so a many foreign chains have made an entry into the
market to joint the early movers like McDonald's or KFC.
According to “Indian Fast Food Market Analysis”,
although the market has witnessed a robust growth in the
past couple of years, it remains largely under penetrated
and concentrated into metropolitan cities. It needs to
cover up tier 1 and tier 2 cities.
India is the world’s second largest producer of food next
to china, and has the potential of being the biggest with
the food and agricultural sector.
The total food production in India is likely to double in
next ten years.
Health food and Health food supplement is another
rapidly rising segment of this industry which is gaining
vast popularity Amongst the health conscious.
Respond to social changes - by innovation within healthier
lifestyle foods. Its move into hot baguettes and healthier
snacks (fruit) has supported its new positioning.
Use of CRM, database marketing to more accurately market
to its consumer target groups. It could identify likely
customers and prevent brand switching.
Strengthen its value proposition and offering, to encourage
customers who visit coffee shops and fast food giants.
The new “formats”, McCafe, having Wifi internet links
should help in attracting segments. Also installing children’s
play-parks and its focus on educating consumers about
• HOT favourites .
• Variety and offers and discounts
• Satisfied with the pricing strategy of MCD.
• MCD -excellent, KFC -very good, Barista ,CCD as good and Pizza hut as
• service and quality as excellent.
• Price drives people to MCD
• Half of the quality of food in MCD as excellent.
• PAN India operation of MCD .
• extension of facilities provided in MCD.
• Mc. Donald’s must make all it’s restaurant Wi-Fi.
• shakes and mocktails.
• As Mc.Donald’s has the facility of the celebration of the birthday
parties and kitty parties;similarly, it can arrange the facility of
conference rooms for the corporates.
• It can increase the variety of combo meals it offers like personalised
menus at customised costs.
Issue One: McDonald's relationship with
Issue Two: Changing Consumers Preferences and
Issue three: The performance of McDonald's
From year 2000 to March 2003 McDonalds has experienced a lot of bad experiences
which had affected the company’s profitability, growth, the brand image, the satisfaction of
consumers and their loyalty as follows:
By 1998, McDonald's posted its first-ever decline in annual earnings and then-CEO Michael
R. Quinlan was out, replaced by Greenberg.
Customers surveys show that service and quality now lag far behind those of rivals which led to
Losing big market share and customer satisfaction and loyalty.
Facing a rapidly fragmenting market and great competition from America’s recent immigrants
who present the quick, testy and healthy meals.
A lot of franchisees left the company due to bad performance and the company buys back
franchises if they cannot be sold as well as bear the pretax charges.
Franchises cannot survive with low profit margins and a lot have left the company to other
competitors (faster-growing rivals) which affect the brand image.
McDonalds came in third average service time with 163 seconds after Wendy and sandwich
we recommend to choose the "Decreasing the share of the franchisees in the
upgrading costs" for the following reasons:
Encouraging the franchisees to continue with McDonald's.
By reducing the amount paid in the upgrading process, it can use these funds in
enhancing the employee skills through training.
The third step is applying "Encouraging the innovative new franchisees" for the
following reasons: because It will change the customers perception about
McDonald's traditional products and thought attracting new customers and
keeping "McDonald's lovers" loyal to their favorite brand.
Training the employees and motivate them and develop the feeling of
belongingness in them.
Promote and reposition the brand.
Introduction of $1 meals for price sensitive customers.
Introduction of McCafe in Europe.