Jubilant FoodWorks (2017) states that India’s present day fast food market is one tenth the size of China’s fast food market. India’s market is growing on a very fast pace and is expected to grow even more due to two reasons :
1) Dynamic consumer preferences
2) Present day India has the largest youth population in the world
The population of our country amounts to around 1.27 billion and the number of fast food chain outlets are only 2,700 which emphasises on the fact that large sections of our country are still unreached.
As far as fast food industry in India is concerned, top 8 players (rank wise) except McDonalds are :
2) Café Coffee Day
4) Pizza Hut
6) Burger King
Micro forces include suppliers, market intermediaries, customers, competitors and financially interested public. These forces are close to the company and have an impact on customer satisfaction.
Macro forces include demographic factors and external business environments like economic environment, technological environment, natural environment and political environment. These forces are comprised in a larger society and have an unintentional impact on the company’s performance.
In Question 3, we have answered in detail how micro and macro environmental forces affect the development and growth of the Indian fast food industry as a whole and also McDonald’s development as part of the case study.
Latest updates and developments are more on a positive note. Half of McDonald’s customer packaging comes from renewable, recycled or certified sources, and 64 percent of fibre-based packaging comes from recycled sources. Also, it strives to bring in a recycling revolution in all of its restaurants across the globe by 2025 i.e. 10% more than today. McDonalds is also aiming to eliminate its foam packaging by the end of 2018.
In August, 2017, Connaught Place Restaurants Limited (CRPL, McDonald’s 50% partner in north and east India) led by Vikram Bakshi faced some irregular payment issues with its logistics partner Radhakrishna Foodworks resulting in reduction in volume of supplies. During this turmoil, roughly 6500 jobs were at stake and 84 outlets in the whole region were forced to shut down due to this reason.
Resolving this issue, In december, 2018, Bakshi led CRPL found a new logistics partner ColdEX and made sure that all the 84 shut outlets are back to being fully operational.