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CHAPTER2
FAST FOOD FAMILY RESTAURANTS: CONSTITUTING THE
NEW MIDDLE CLASS IN THE CONTEMPORARY ERA
I
'THE FAMILY' IN RESTAURANTS
The theme of this chapter springs from an observation that popular restaurants in a South
Delhi locality-McDonald's, Nirula's, Sagar-targeting the NMC are family
restaurants. Given the media and market hype about the NMC, to my mind, one way to
approach it is through the family-an entity to which it is related.
The fast food family restaurant converging market-scape and consumer-scape is a
suitable site for throwing light on the NMC imagined by consumer culture. If a light on
NMC is inadvertently a light on the family-as a relation between the two is assumed in
the practices of restaurants-then the reverse should hold too. Thus, instead of taking the
NMC to be given, we shall concretize it by approaching it from the family side.
Investigations indicate that connotations of family differ for the three selected
restaurants. In case of Nirula 's and McDonald's the identification with family is self
identification; but, not so in case of Sagar. In the latter, the 'family' does not qualify the
brand name Sagar.
It is critical to investigate these diverging conceptualizations of family in
consumer culture, of which restaurants are but one aspect. Also, there is an urgent need to
examine the points of divergence, for these are indicative of the contradictory depictions
of the family in consumer culture.
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II
SA GAR: RESPECTABLE FAMILY
The Sagar chl!in of restaurants is owned by Mr. Jayaram Banan. The first Sagar
restaurant opened in Defence Colony in Delhi on 4 December, 1986. On application for a
Delhi Development Authority tender to run a restaurant in Defence Colony, the space
was leased out for Rs. 3, 750 a week1• The specialty of this food company was South
Indian vegetarian cuisine. The managing director maintains that the quality of food owes
to the authentic cooks who hail from Udipi, Kamataka.
In I 994, north Indian vegetarian cuisine was introduced by Sagar-originally a
favourite for authentic regional cuisine2• In order to expand the customer base,
subsequently, Swagath a non-vegetarian, multi-cuisine restaurant was launched in Delhi.
Swagath offers Mughlai, Chettinad, Mangalorean and Chinese food. Fish varieties are
littered with Mangalorean and Malabari spices. Mangalorean chicken kori roti -- chicken
curry served on a bed of crispy flat rice flakes -- and chicken neer dosa are popular . . 3
cmsmes.
Besides diversification of menu, the following developments on the Sagar front
are eye catching. One, Sagar has been on an expansion drive beyond Delhi. Two,
responding to expert ranking of restaurants on bases of quality of food, service,
ambience/decor, hygiene and 'overall quality', Sagar has noticeably 'improved' on the
restaurant decor. An important factor guiding this move is a perception that decor aspect
appeals to the younger generation. Also, having 'woken up' to the 'imperative' of
training restaurant personnel, it is proactive on this front.
It is notable that 'family' does not figure in the trade name of Sagar, in popular
perception it is a 'respectable' place for families to dine. Respectability is attributed by
respondents to 'clean' food; 'open-ness'; to the restaurant not being 'shady' and 'family
crowd'-consisting of men, women and children.
To an observer, the organization of restaurant space is an objective indicator of
respectability; especially, the infusion of space with a notion of sacred. A characteristic
feature of Sagar is a sacred area; in fact, the restaurant space is organized in a fashion
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that the eating area is metonymically associated with a sacred area. The 'sanctum'
comprises pictures of gods with offerings of flowers and incense. The sanctum extends
into the cash counter, which serves to effect a mediation between the sacred and the
secular eating area. Thus, a Sagar restaurant could be described as a sacred space serving
vegetarian food. These attributes link up with a notion of respectability, and give the
place its character viz. a family restaurant
The seating arrangement of the restaurant IS a clue to the configuration of
customers. Going by this, the expected configuration of customers at Sagar is not a
nuclear family unit. There is provision for seating a large group comprising more than
four members. Moreover, the furniture is movable; thereby, re-arrange-able. This allows
the clientele to determine the seating arrangement. Sagar thus, accommodates a variety of
customer configurations. For instance, it is possible to physically accommodate six
people in the restaurant, albeit separately on a table for two and a table for four; but the
restaurant personnel never enforce this when the group walks in as a unit customer. In
fact, if a group of six visits the restaurant, they are accommodated socially guided by the
perception that the group eats together. Observations confirm that a large group that dines
at Sagar is an extended family. Sunday breakfast at Sagar is a family ritual.
Gradually, Sagar is appearing to resemble Nirula 'sand McDonald's with regard
to restaurant presentation, trained managerial staff, menu diversification, expansion drive
and a gradual mechanization of food production. However, where it concerns the family,
an examination of Sagar confirms that the 'eating family' is not a nuclear type; it is most
likely a larger extended family group. Further, for this family, eating out is a ritual of
togetherness.
III
N/RULA'st: WHOLE FAMILY5
A Historic Run
Nirula 's has been on the restaurant map of Delhi since 1934. In popular perception, it is a
key landmark in and of the national capital.
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Given its long run in the national capital, commencing before independence,
Nirula 's is a significant case for historicizing the emergence of American style fast food
in Delhi. A sociological imagination propels us to hypothesize that societal institutions
a modem restaurant in this case--cannot possibly escape imprints of the national society
and national politics. With this conviction, we embark upon an exercise to track Nirula 's
from its beginnings to the Contemporary Era.
A trajectory of Nirula 's suggests that emergence of the family restaurant is a historical
fact. Further, the diversification of menu and types of eating establishments, and its
expansion drive, could be co-related with a corresponding shift in perception of the
consumer and popular rationales imputed to eating out.
The Narula brothers, L.C. Narula and M. Narula, originally from West Punjab
(now Pakistan), migrated to Delhi in 1928. Their predecessors were in the medical
profession. Before settling in for Hotel & Food Service Industry, the brothers tried their
luck with running a pharmacy, optician shop and a photo studio. However, on realizing
that there was a paucity of good eating places in and around New Delhi, they started their
first venture in 1934-Hotel India, D-Block, Connaught Place, New Delhi. Hotel India
boasted a twelve room accommodation and a restaurant with bar license. A restaurant
serving Indian food at Hotel India opened in 1940. The same year saw the setting up of
Indian Coffee Shop in Janpath by the Narula brothers in collaboration with the Coffee
Board. In 1950, Brasserie, a self-service restaurant serving beer and liquor with limited
menu of Indian and western food started operations.
From the 'hotel' to 'quick service restaurants', the family owned business
enterprise changed gears. To begin with, in the early 1940s, a restaurant serving Indian
food at Hotel India was set up wherein ballroom dancing and cabaret were introduced.
This establishment was catering primarily to the requirements of male customers
American troops in India, tourists, state functionaries and businessmen. Gradually, there
was a shift in the customer profile. That by 1947, the prototype restaurant customer was
not a soldier is borne by wide fluctuation in business which came to depend on the
'quality' and 'reputation' of that evening's performer. This necessitated the switch over
to Brasserie.
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The Narula family is the first Indian of non-Chinese origin to set up a Chinese
food restaurant in India. The Chinese Room was set up in 1950; the first chef of this
restaurant, Li Wo Po, came to India with Chiang Kai Shekh and stayed on.
In the decade of the 1950s, Brasserie was succeeded by the first modem cafeteria
in India serving a variety of it~ms where the guests could help themselves to whatever
they fancied. These modem outlets were for 'middle class consumers'. This also marks a
perceptible shift towards 'family-style restaurants', implying that restaurants were now
not exclusively for men; they were for women and children as well. Also, the
introduction of a 'variety' menu reflected the social context or, 'tastes of Delhites' while
at the same time giving Delhites their first taste of pizzas and burgers.
The Nirula 's Hotel was set up in 1958 in Connaught Place and this is one of the
first modem 3-star hotels in India with central air conditioning. This was followed by the
setting up of two restaurants La Boheme & Gufa in 1960. La Boheme was a modem
restaurant with a unique decor specializing in Hungarian cuisine. Mr. Lalit Narula
recounted that this restaurant was the most popular restaurant of its time in India. Gufa
was an Indian restaurant with Indian style seating and an all-silver thali service in a dim
lit romantic atmosphere. This was the first deluxe Indian food specialty restaurant in
India.
The first modem fast food restaurant chain was launched by Nirula 's in New
Delhi in early 1970's. The Pastry Shop and Snack Bar opened in 1972; the Hot Shoppe in
1977 ..
With this, Nirula 's ventured into quick service food business. The Ice Cream
Parlour (first in India) opened in 1978. This was succeeded by Potpourri restaurant with
the first salad bar in India and the Pegasus Bar in 1979.
The first branch of Nirula 's outside Connaught Place opened in Vasant Vihar and
then Chanakyapuri in 1981. The Defence Colony branch and the Chinese Room Bar
opened in 1986. The NOIDA restaurant started in 1987 and modified into a hotel by
March 1991.
The decade of the nineties-ushering in liberalization of the economy-altered
the prevailing perceptions of the consumer that boosted the expansion drive towards
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Family Style Restaurants, Delivery Outlets, Home Delivery Outlets and Express
restaurants 6•
This consumer, as per the management's reckoning, was created by the prevailing
socio-economic conditions in which small and middle scale industries came of age. This
development marks the processing of foods; opens up imports; pushes for an
improvement in the quality and variety of Indian products; boosts the refrigerator market:
refrigeration becomes common and sales of two door refrigerators start. This ushers in an
era wherein urban agglomerations develop (Delhi and Bombay now have more than I 0
million people); foreign travel is common; computerization is the norm; foreign
companies enter some segments of the service sector (foreign restaurant chains such as
TGIF, Dominos, McDonald's, Pizza Hut, Wimpy's, KFC, Baskin Robbins are allowed
entry in the mid 90's); service sector grows substantially in segments such as computer
software, courier service etc. There is a growth of white collar industrial class as
happened with factory workers in the past; the salaries are much higher; so is the work
pressure. This phase marks the beginning of larger disposable income in hands of people
in their 20's and 30's. More and more women are working; full time domestic staff is
difficult to get and affordable only to upper middle and upper income levels. There is an
expansion of Satellite TV network purveying 'new' styles of living, especially in urban
areas consequent to which lifestyle gets affected. However, value for money requirement
remains very strong. There are more than I 00 catering institutes. There is shortage of
skilled labour; fluctuations in the economy increase and rupee devalues further7•
This historical trajectory of Nirula 's indicates that the 'middle class' comes to be linked
with the 'family' gradually but decidedly. Moreover, shifting connotations of the family
can be culled out from this trajectory, an exercise we undertake hereon. Such an exercise
is aimed at getting to the specificity of the family in the Contemporary Era; for, it is the
post-1990s family that links with the NMC.
1950-70
A newly acquired nationhood was the context of Nirula 's from 1950 to 1970. The
connotation of a family restaurant in this context was a 'respectable' place; this in tum
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entailed that restaurant eating ceased to be an 'all men's' activity. Women and children
now had access to the public restaurant. This historical fact echoes the context of public
dining in Bombay researched by Conlon (1996). Conlon (ibid. :I 00) observes that Irani
Cafes-a social resort for Bombay's male population-. gradually enabled the women to
participate in dining out as a custom of family enjoyment. These cafes incorporated
'family cabins'-wooden and translucent-glass partitioned areas where genteel,
respectable groups could dine without being exposed to public gaze. The availability of
unexposed dining areas allowed entire family groups, including women, to partake of a
meal, or at least tea and snacks.
In this phase, the link between middle class and family is made in the public
domain and in the restaurant which is a modern institution in a newly independent nation.
1970-1990
In 1970, Nirula 's ventured into fast food business.
Hereon, its strategies concentrated on food processing. This necessitated taste
identification, controlling costs, a method of manufacture and standardization. This was
achieved by operating from a single, central kitchen that catered to all its outlets in Delhi.
The equipment used in the kitchen was imported and a huge fund-guzzler. In fact, this is
what held back Nirula 's from expanding outside Delhi uphill recently. According to a
company official8, Nirula 's edge is its own production centres. Food production and
processing are done in-house; its dairy plant takes care of the ice-cream and cheese while
breads, cookies and savories are produced at the Nirula 's bakery. Other products
manufactured at of Nirula 's own units are sauces, syrups, ketchup, jams and mustard.
The diversification of menu, made possible by mechanizing food production,
added variety to Nirula 's menu, now comprising Continental, Indian, Mughlai, and South
Indian cuisines and, fast foods: pizzas and burgers-adapted to the 'Indian' situation.
Nirula 's maintains that in the Indian situation, 'standardization' works up to a point. Its
marketing philosophy is to let variety in the menu take precedence over standardization.
A Nirula 's official claims that Nirula 's eighty item menu card is its biggest attraction.
If post 1970, the thrust is on food processing with a simultaneous premium on a
variety, what becomes of the family-the configuration of customers-that in the I 950-
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70 phase linked up with the middle class in the public domain? Does the configuration of
customers change in the 1970-90 phase?
The facts are contrary. Nirula 's now takes pride in knowing the taste buds of
Delhi. It likes to call its outlets family-style restaurants precisely because it is convinced
that the variety menu reflects the variety of tastes that appeal to urban Delhi residents,
who descend on Nirula 's as carloads of families especially late evenings. Thus, the
customer at Nirula 's continues to be family, the members of which prefer a variety menu.
The imperative of variety, to us, is indicative of an increasing social heterogeneity
of the capital city. It is significant, however, that heterogeneity-as variety-is subsumed
under the canopy of family, for, the latter continued to be an idealized customer
configuration at Nirula 's. The appeal of the idea of family reflects in the ad line of
Nirula's viz. Funfoodsfor the whole family. Notably, here the family is a whole. And it
is anywhere between the 6-66 years age bracket.
We do not get to view this whole family in image form in either print or visual
advertisements; so we do not know its imagined composition. What we do know is that
Nirula 's enjoyed an un-surpassed following among Delhites. Respondents nostalgically
recall the 'good old days'. Undoubtedly, the idea of the whole family struck a chord with
a heterogeneous populace. Nirula 's, indeed was a must visit for lunch, dinner, ice-cream
or pizza, especially on weekends or when one went to view a movie at a theatre in
Connaught Place or Chanakya. The following encapsulates popular sentiment9:
Time was when everybody who was anybody, either visiting the national capital or was
part of it, had 'done' Nirula 's. The original fast food joint, Nirula 's had to its credit not
only the tag of the restaurant that virtually brought fast food to Delhi, but also one that
played host to various courtships, sneaky dinner dates, birthday bashes and family
outings at a time when disposable incomes were not what they are today, attitudes were
more conservatively inclined, and the concept of Generation Next did not quite exist.
Those were the 1980s and the early 1990s. Those were also the days when the
McDonald's, Pizza Huts, Pizza Corners and Domino's did not exist on the Indian
landscape.
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Post 1990
Post 1990's, Nirula's had to face stiff competition from MNC's with huge investment
budgets. Prior to players like McDonald's, Pizza Hut and Dominoes, Nirula 's was
perhaps the only major western style fast food chain in Delhi.
In real terms, the McDonald's challenge to Nirula 's was an investment budget to
the tune of $40 million (Rs. 124 crore), its aim to set up 100 outlets in the first seven
years, advance systems, prioritize human resource development, marketing and acquiring
property10•
The management responded by expansion plans, setting an ambitious target of
opening 40 outlets by the year 2003. It planed a North Indian expansion in Chandigarh,
Jalandhar and Ludhianaii to eventually go national 12• Catching up with the trend,
following the opening of McDonald's restaurant on Delhi-Mathura in association with a
BPCL petrol station, Nirula 's inaugurated its first highway hotel on the Delhi-Chandigarh
highway targeting primarily corporate travelers. The trend of highway restaurants is a
clue to the perceived customer type in a liberalized economy.
Some changes were noticeable even before the expansion drive took off. These
are sound indicators of the company's perception of the customers. Nirula 's evolved a
strategy to congregate the entire family in a restaurant by targeting children. Towards this
end, Santa Claus made appearances in outlets to distribute sweets to children; children
under 13 who had membership of the Nirula 's Birthday Club received birthday cards and
got free scoops of ice-cream; and in April, coinciding with the school annual exams,
Nirula 's Scholars Award was instituted. A McDonald's type Happy Meal, in the form of
a 'fun meal' with puzzles and toys was introduced on the menu. Nirula 's celebrated the
Valentines spirit with the romantic treat of a free offer of two heart shaped pastries with
every purchase of any heart shaped pizza. Besides this, there were special heart shaped
chocolates with nuts and truffle centre.
The Byte Cyber Bar-a modem netizen friendly cyber bar with multiple Internet
terminal posts and a well stocked bar serving premium, liquors, wines, beers and
cocktails-was added to one of Nirula 's bigger Delhi outlets. This cyber bar came with
vibrant interiors, snacky food and beverage concoctions, and of course a handful of PCs.
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In August 1997, Nirula 's launched B2C (business to consumer) services. It
entered into E-marketing. An inter-active website was designed to take on-line orders,
and, hotel reservation and collaboration interest enquiries. The online service was made
available primarily for people living outside Delhi to order cakes and ice-cream tubs for
their friends and relatives living in and around Delhi. In course of time, it was opened to
overseas patrons. In fact, most of the orders placed on the website are from non-resident
Indians (NRis).
Nirula 's also launched 21 s Cafes- standalone ice cream cafes-that are a
separate entity altogether. The basic idea was to offer ice-creams in a sophisticated
format of a cafe. The brand name 21 's is derived from Nirula 's 21 ice-cream flavours.
The target consumers are in the age-group of 8-35 years. 21's is customized for a typical
middle class family, students and people on the move. The parlours entertain a seating
capacity of 15-20 people per outlet. In addition to ice-creams and frozen desserts, the 21s
serve beverages such as coffee and tea, besides ready-to-pick up food items such as
sandwiches and buns. These parlours showcase Nirula 's emphasis on image make-over
for, the look and feel of these restaurants is completely different. The decor is bright.
Shades of red and silhouettes of girls and boys are splashed all around.
In May 2003, Nirula 's opened a family-style restaurant on the Delhi University
Campus targeting primarily the students of Delhi University. This restaurant, in fact
replaced the campus coffee house. As this restaurant stands on university property, the
university is entitled to five percent share from monthly sales of the outlet.
Besides the pressure of competition, Nirula 's recognizes that consumer awareness
has increased vastly; that for customers, restaurant ambience and the eating experience
matter. Not surprisingly, the Family Style Restaurants have been overhauled and now
sport a modem look. The Family Style Restaurant that opened in Gurgaon in mid 2002 is
a case in point 13• This restaurant is strategically positioned as an up-market outlet catering
specifically to the corporate clients at Ansals Sushant Plaza. This restaurant has allocated
substantial space to a kiddie's comer with slides for kids and a pastry shop. According to
the general manager (operations), a special emphasis is laid on exteriors and interiors,
keeping in mind the taste of the clientele. This is the first Nirula 's restaurant which
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features contemporary art giving the restaurant a unique look. The company has sourced
some of these works from Art Today 's N eemrana collection.
While the chain's restricted presence does not warrant advertising on the
electronic media, most visibility-generation is been done through promotion-specific
communication. A regular feature of the promotional campaigns is freebies: air tickets to
Delhi-Bangkok-Delhi by Thai Airways, a trip for two to the Kuala Lumpur Formula 1
race, Moulinex white goods, Godrej refrigerators, Blue Star ACs, Thomson webfones, •
Wagon-R car and Quantm PCs.
And now, over to the post-1990s family which is linked to the NMC:
Post 1990s, while the family continues to be a whole. It compnses school
children, university students, net-savvy clientele, corporate travelers, NR!s, a carload of
tourists motoring on the highway, couples imbued with Valentine's spirit, those who
holiday in Kuala Lumpur, use ACs, Refrigerators, PCs, web-phones and those who are
taken in by ambience and the image.
Nirula's: Family all the way
The historical trajectory of Nirula 's serving Fun Foods for the Whole Family lends itself
to sketching portraits of target customers. Given that Nirula 's USP has not changed, it is
clear that whatever be the type, the customer has been within the ambit of family through
its historical run of over half a century in the national capital.
Till about 1940s, Nirula 's catered to male clients. The 1950s registered a shift
towards family restaurants for middle class patrons who desired a fine dining experience
at the Chinese, Hungarian and Indian restaurants in Hotel Nirula 's Connaught Place. For
this period, we do not have a portrait of the middle class family; all we know is that the
eating family now comprised men, women and children. Perhaps, the identity of middle
class itself lay in the accessibility of public restaurants to both men and women.
1970s inaugurated an era of the whole family, game for variety; for cosmopolitan
taste.
The onset of the 1990s saw Nirula 's ' changing perceptions of customers that fed
vitally into its business strategy. Its ideal clientele is beating the pulse of a liberalized
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economy. Suddenly, smce the 1990s, Nirula 's is attributing to customers great
expectations and awareness on matters other than food, even as they eat food! These
pertain to ambience, decor, hygiene and youthful service. The expectations and
awareness of customers is attributed to the global outlook of 'discerning and
discriminating' consumers. The Nirula 's customer, since the 1990s, thus, is a global
Indian-or the NMC-and not a Delhite.
And, what is the form of this NMC family? To get to this, we need to tum our
focus on McDonald's.
IV
MCDONALD'S: NUCLEAR FAMILY
The mainstay of the multinational corporation McDonald's is NMC. In print and
televised advertisements, McDonald's communication strategy projects images of the
NMC consumer configured as nuclear family-its idealized unit consumer.
This family, on the one hand, appears as unit entity; and on the other hand, it is
resolved into elements-adults, children, youth and couples-as target consumer
segments. This image of the family and its everyday concerns resonates in the practices
of Nirula 's and, of Sagar to a limited extent. It is significant that images of the NMC
family projected in McDonald's television advertisements are beamed to a national
audience.
McDonald's in India:
In India, McDonald's is a 50-50 joint venture between McDonald's International and
Hardcastle Restaurants and, McDonald's International and Connaught Plaza
Restaurants.
McDonald's 14 entered India in 1996 in the wake of much publicized problems
faced by Kentucky Fried Chicken 15-PR problems, market problems, palate problems
and protests by right wing activists 16•
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Though McDonald's got the Foreign Investment Promotion Board (FIPB)
clearance in 1991, it was five years before the first McDonald's restaurant was
inaugurated in Delhi's up-market shopping complex in Basant Lok near Priya Cinema on
October 13, 1996. On the heels of the launch in Delhi was the first McDonald's in
Mumbai17•
The decision to start operations in the metropolitan cities New Delhi and Bombay
was informed by a perception that the a significant percentage of population matches
with the profile of 'global Indians' with requisite 'social exposure' to be able to identify
with McDonald's as a global brand. This group is identified with overseas travel, and as
taken in by media representations of modern lifestyles18•
McDonald's launched its communication strategy19 a year after its arrival. In the
first phase (1997-2000), McDonald's was met by diametrically opposite responses. On
the one hand, McDonald's was a 'wow' experience for customers. This could be
attributed to its 'new-ness': self service, queuing for food, food shots in the restaurant,
the conduct of restaurant personnel and the drive-in. Also, contributing to the new-ness of
McDonald's was its approach to children. Children were allowed liberties in a
McDonald's restaurant. For instance, a child spilling a drink or, screaming did not invite
embarrassment. There were no checks on the child. The restaurant staff cheerfully wiped
the place clean and as a bonus the crying child was consoled with a balloon. From the
point of view of adult parents, money was never wasted when drinks were spilt as it was
replaced free of cost. This was certainly a fresh approach, and consumers responded to
McDonald's enthusiastically. Those with money but no higher education were also
attracted to the Golden Arches. This first exposure of people to McDonald's saw queues
as long as 3-4 kms.
On the other hand, in the initial phase, McDonald's was also met with
apprehensions. These pertained to customers' menu and value perception. The impression
was that the food is uninspiring and expensive. Besides this, it was perceived as a western
place meant for youth, the rich, elite and westernized; in other words, unfamiliar and not
suitable for family dining. There was considerable unease with an up-market English
speaking crew.
93
In this first phase, McDonald's spared no efforts to 'feel the pulse' of its potential
customers. The market research it commissioned indicated that customers are drawn
towards the brand and the newness; the newness in fact, added to the brand appeal. But,
the menu and value perception barriers accounted for low footfalls in the restaurant.
The company attempted to counter this reception by devising the strategy: 'Get
people in. Increase footfalls. Convert footfalls into profitable footfalls.' This was sought
to be achieved by: a. launching an EDLP (Every Day Low Price) product to boost
footfalls; the result was the launching of the ice-cream cone (initially at Rs. 9, to be
subsequently re-priced) at Rs. 7; b. providing laddering to entice the soft-serve cone
walk-ins to graduate to meals; this was achieved by gifting bounce back coupons with
every cone. Also, on offer was a Rs. 15 discount on Ecomeals; c. providing attractive
menu price points to induce core product trials. Consequently, Ecomeals were launched
at Rs. 29, Rs. 39 and Rs. 49.
This strategy increased footfalls by 48% and sales by 30%. It is notable that this
stage was dominated by menu related practices; and, these practices heeded to the
consumer point of view that 'fast-ness' of McDonald's food is a non- issue; as is the
concern about food being vegetarian or non-vegetarian. The key consumer concern was
pricing, and the 'type of place' McDonald's was perceived as. Customer response and an
appraisal of emerging concerns drove home the urgent need to work out a communication
strategy. This marked the advent of the second phase of McDonald's in India.
The goal of the company in the second phase (2000-2002) ·was to create a
distinctive image of McDonald's in the consumer's mind. In the second phase, the
practices shifted from pricing products to communicating an image of McDonald's.
Hence, McDonald's became more than a physical restaurant space in such and such
locality offering such and such products; it was now transfigured into a live and moving
lifestyle product.
McDonald's appeared on national television in Oct.-Nov. 2000. By this time,
there were 30 outlets in the Northern region. After a four year presence in the Indian
market, McDonald's adopted an aggressive marketing stance by launching a concerted
national-level TV campaign for the first time. The Rs.l 0 crore campaign marked a radical
shift as hitherto, the company had limited its communication to advertising on the local
94
cable networks and print media20• Strategies of communication factored in insights
pertaining to consumer perception of McDonald's as being youth oriented, elitist,
westernized, catering to the rich and also serving food that is uninspiring.
The task was to get the critical volume stream-Sec B (alongside Sec Ai1-. in
and to provide them with a very Indian experience. This entailed building a perception of
McDonald's as a welcoming, affordable family restaurant with an exceptional eating
experience that makes you feel special and makes you smile. McDonald's spared no
efforts to create an image of a family restaurant; which is the core objective of
McDonald's Corporation in India22•
This task was guided by the consumer insight that Indian families historically
used 'food' and community dining as a bonding experience. This necessitated
identifying the official recipient of the message and defining the core consumer segment •
as families with children. It is noteworthy that though pricing was deemed important, the
issue of pricing was sought to be addressed to the family irrespective of differentials in
purchasing power. And, there is no doubting the differentials given the expanse of India
McDonald's advertisements sought to influence via national television. Family, thus, was
projected as the entity people across the nation, irrespective of language, religion, caste,
class, regions and across urban and rural India, identified with.
Nuclear Family in McDonald's:
In this section, we shall examine McDonald's advertisements targeting a national
audience in order to get a view of the form taken by the family. We are suggesting that,
not only is family the core addressee but, the advertisements configure it as a specific
form'. Even as the family takes shape in a visual field of televised advertisements, the
narratives of these advertisements depict everyday concerns of this family.
This takes us to the second phase, when McDonald's launched its communication
strategy by venturing into production of television commercials. In this phase
identifiable in terms of three stages-, the company's strategy revolved primarily around
brand value and food.
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STAGE 1
The aim was to establish McDonald's as a place that makes you feel special and makes
you smile. This was sought to be achieved by reinforcing existing users and by building
on non-users. The first level of communication thus, aimed at brand-building with a two
pronged target: striking an emotional bond with the customers, and widening customer
base. This was reflected in the television commercials highlighting the positioning of
McDonald's as 'McDonald's mein hai kuch baat '('there is something special about
McDonald's').
What follows is our reading of the commercials:
(A)
This advertisement is billed as the Stage Fright campaign. It revolves around a family's
happy eating experience at McDonald's after their five year old son messes up a stage
performance. In keeping with the brand positioning, there is no shot or reference to food
in the commercial (see Magazine, 2000). The family assumes a nuclear form in this
advertisement. Centre-stage in narrative is the father-son duo. The caring father consoles
his son instead of the expected scolding on account of for failing a stage performance.
The everyday concern depicted in this advertisement is the importance for parents of
talented children (son in this case) who they publicly flaunt. In this ad, the child who
failed to perform on stage would have been an embarrassment were it not for
McDonald's. The family owes it to McDonald's for pepping them up. "There is
something special about McDonald's". ·
STAGE 2
With the objective to establish McDonald's as an affordable family restaurant, the
commercials market a notion of 'value for money'. In the ad, people from different walks
of life visit the restaurant to experience McDonald's great affordable experience. In the
advertisement, the 'value-for-money promise', notably, is held out for the family which
from the point of view of television audiences is the 'eating family' 23.
McDonald's, aiming to deliver the value for money promise, introduces low
priced products. Initially, the communication uses soft serve (ice-cream cone) priced at
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Rs. 7. Subsequently, another low end product-Veg. Surprise-is introduced to reinforce
this.
A reading of the Veg. Surprise advertisements follow:
(B)
A husband and wife couple is walking by a McDonald's restaurant.
Wife (to husband): Rahul I am expecting.
Husband (whose attention is fixed on a poster promoting McDonald's new product, Veg.
Surprise for just Rs 17): Unbelievable ... hmmm; Veg Surprise at Rs. 17. Amazing.
The wife is dismayed and hurt with her husband's indifference to the 'good news'.
In the next shot the couple is inside the restaurant, eating a Veg. Surprise meal. The
husband is reminded of his wife's announcement; something about expecting. He feigns
ignorance and teasing asks whether she is expecting her uncle?
They laugh.
There appears the Golden arches logo and the ad line McDonald's mein hai kuch baat
(there is something special about McDonald's).
This advertisement depicts the conjugal couple and the intimacy they share in public.
STAGE 3
The image of McDonald's as an integral part of the family, is sought to be reinforced by
depicting a bonding between children and McDonald's in the Moving Out campaign24• A
description follows:
(C)
This family is moving house; packers are on job.
This 5-6 yr old boy is lost; the jingle plays "lost you stand there".
The father goes up to his lost son and enquires: "Son, have you packed your stuff?"
The boy is sobbing.
"Don't cry my son", his father consoles him.
The child is going to miss his world ... a neighbourhood and playmates.
As the family car rolls out, in a bid to stop it, the boy's friend runs after it; and in helpless
acceptance of circumstances, sobs to his friend from the car window, "you'll never come
here to play now".
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On way to the new home in a new locality, the car passes by a McDonald's restaurant.
Instantly, for the morose boy, this recalls memories of happy occasions when father
treated family and his friends at McDonald's. The world of McDonald's brings back
sweet memories, and the boy is smiling again.
The new home adorns a contemporary and posh look; the children-the boy and
his little sister- are jubilant now that they have a room to themselves-their own world.
And lo! A McDonald's restaurant is within viewing distance from the window of the
children's room. The sad boy's (and his sister's) face lights up with mirth.
The father, after all, cares enough to ensure that his son is happy and that he does not
miss his playmates and a friendly neighbourhood. For is not McDonald's a substitute for
the friendly neighbourhood? "There is something special about McDonald's".
The narrative of this film revolves around the father and son. The other family members
who feature are the boy's mother, sister and grandmother. An explicit motif is children's
own world, as symbolized by a separate room. Not to be missed is the implicit separation
of children from parents: parents are instantaneously transformed into a conjugal couple.
The everyday concern depicted in this ad campaign is 'moving out' from a small
neighbourhood to a new locality. The big car is not just the vehicle of moving out; it also
symbolizes, along with the house, aspirations to move up.
· Reiterating the idea of McDonald's as a child-friendly world and a home away
from home is another ad:
(D)
A 4-5 yrs old girl loses her way in a busy street. Her parents are enquiring about her
frantically from passersby.
The 'lost' girl is in tears. Quite by chance, she finds herself around a McDonald's
restaurant. She perches herself on a seat besides the life-size doll Ronald McDonald on a
bench outside the restaurant.
Magically, the doll is transformed into a live clown. She is delighted and relieved at the
sight of the familiar figure of Ronald.
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The kindly clown wipes her tears; magically the tears transform into a red rose and the
photo image of a Happy Meal and toy Roland comes alive.
The girl is happy; she is smiling and sings out to him: 'Ronald is my friend'.
By now, her parents. have found her. The family is re-united; happy again.
Again, in this ad, we view a couple and their daughter. Also, the idea of a friend is sought
to be communicated through this commercial.
This brings us to the third phase (2002-2003i5 of McDonald's in India.
According to trade sources, in the year 2002, there was stagnation. Taste became an
important issue. People felt that the entire McDonald's menu, from A-Z, was just
burgers.
Responding to consumer survey that McDonald's menu is perceived as catering only to
children, the company introduced the Wrap, Crispy Chinese burger and McCurry Pan.
These products target adults. The adult customer's preference for hot food is factored in
by toasting the buns so that the oil in it retains heat for a relatively longer period.
The key development on the communications front was that the company had to position
itself as a restaurant that is not a kids' restaurant, but one that offers something for adults
as well. In effect, this should translate into a situation where the 'wives', on returning
home, do not need to cook after the family has dined at McDonald's.
Thus, post 2003, all communication focused on adults.
The ad for a new product: 'Wraps' follows:
(E)
A man is just up from sleep; he is splashing water on his face.
The jingle plays, "I am lost; dreaming about you all the time".
His wife and son are bemused to see him trying to fold the hand towel to shape it like a
Wrap instead of using it for wiping his face. His biting into it causes his son to shriek at,
presumably, 'unusual' behaviour. This brings the man back to reality; but only
temporarily. Again, while knotting his son's tie, he tries to fold it into the shape of a
Wrap.
The jingle goes, "And I'm madly in love with you".
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It is time to leave home. The man's wife gives him a handkerchief. His son, all dressed in
his school uniform is waiting for him; presumably running late for school. But the father,
yet again, is pulled back into the dream world of Wraps; this time the handkerchief is
being perfected into a Wrap.
At last, the family is at McDonald's. The dreamer is contented eating the food he desires.
His wife and his 4-5 yr. old son laugh indulgently at him for a childlike infatuation with
the Wrap.
The message is that 'you won't get the Wrap off your mind'.
Even in this ad, the family is a nuclear unit. The head of this unit is undoubtedly a man.
The focus on the man as father in commercials needs to be understood in the light of
findings of consumer surveys. Market research reveals that the male head of the
household is the decision maker. For instance, he gives his family the option to choose .
between Haldiram 's, Nirula 'sand McDonald's. Eating out in India, this research reveals,
is a decision. It is vital to qualify that this male vested with the authority to take decisions
on behalf of his family is the father of the child. Not surprisingly, the male in the role of
father is a prominent figure in ads.
Two advertisements illustrated below address the father of the child. The family
type depicted is the nuclear family. The theme of this ad is Goofy Daddy.
(F)
The jingle set to the tune of a popular song from a 26Hindi film goes: "Sometimes I am a
hero; sometimes a total zero; sometimes I am a star; sometimes a loser by far. There is
something about me; but I can't explain it. All I can say is that I am the best".
In this family the little girl's Dad goofs up everything he sets out to do. The girl's mother
appears helpless in the face of a clumsy husband and tries to make up to her daughter for
her husband's goof ups.
This is what he does: when he is examining the belly of his big car for a fault, he
emerges with a greased face and dirty clothes. In a bid to wipe his hands he mistakes his
daughter's doll for a napkin which upsets his daughter. He messes up his daughter's art
work by noting telephone numbers on the drawing canvas; he scares her unintentionally
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by his triumphant reaction at having solved the daily crossword, thereby, frustrating his
daughter's attempts to blow a balloon. He is forgetful; has a knack to lose his car keys.
But, here is an uncomplicated formula for the man to be the best daddy. All he
needs to do is to take his family (wife and daughter) to a McDonald's restaurant; after.all,
did not his daughter give him a thank you card and a 'Best Daddy' title for it?
(G)
The second advertisement is about convmcmg the father for a birthday celebration.
Father on returning home, checks the letter box.
Wife: excited: Letter? From whom?
Husband: McDonald's.
And, he hands over the letter to his son.
Son: Wow! The invite is from Vineet. Papa who is this Vineet?
Wife: Is he a colleague's son?
Papa: No, we don't know these people.
In the next shot, the naughty father and his family are at the birthday party.
The everyday concerns depicted in ads are children's happiness, grooming them
for public recognition, children's education, celebrating children's birthdays and moving
house to a new locality. All these concerns are cast as concerns of the 'eating family'
which is a nuclear type. These concerns, one might suggest, are dovetailed to aspirations.
Viewers are given to understand that aspirations are realizable in a consumerist lifestyle.
The ads examined below seek to convey just this:
(H)
Scratch and Win:
A little girl and her father-with a drink from McDonald's in hand- are seen with a
palmist. The girl's father offers the palmist French fries. Eating the fries, the palmist
reads the man's hand, and predicts, "Wow! Your future looks bright ... "
But his prediction does not get any further than this. In an inversion of roles, the
man, instead of the palmist, rattles off the highlights of his bright future, silencing the
traditional specialist in matters such as these; thereby communicating to onlookers the
obsolescence of the traditional functionary.
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The message is that, 'times have changed'. Good fortune is just a McDonald's
Jackpot away. The man makes a prediction: "Very soon I'll gain money; probably fly
abroad; I'll also have a big car".
This ad is promoting McDonald's Lucky Itch Jackpot With a guaranteed prize. It
entices viewers: "Wanna Play?" There are daily draws and loads of prizes to be won:
Panasonic stereo system; televisions; handy cam cameras; DVD players, micro-wave
ovens, mobile phones; Kinetic two wheeler scooters. The weekly draw wins you a trip to
Hong Kong. The jackpot transforms you into a proud owner of Mahindra Scorpio. All
you need to do is 'Scratch and Win'. The scratch coupon comes with every meal you buy.
The magic mantra is itch to become rich.
We see the palmist shutting shop and heading towards the restaurant, endorsing
McDonald's as the contemporary purveyor of good fortune.
(I)
This theme of the second ad is similar. In this ad, the message for adults is that getting
lucky is child's play.
In the opeining frame, a family comprising mother, father and their 5-6 yr old son are
eating at McDonald's.
The jingle plays: "Come let's make a match and win; that's what life is all about"
The serious mannered father is aghast at unbecoming behaviour of customers waving
placards on which a jumble of letters is scribbled, and gesticulating towards him and each
other with expectant faces.
This is the "let's go to McDonald's and make a match" campaign. There is a lucky draw
and prizes to be won: a holiday to Singapore; Electrolux appliances; Kelvinator
refrigerators; and the jackpot prize of Mahindra Scorpio.
And how is one to get lucky? A little girl shows the way to the serious daddy's
son. She points to a sticker on the lid of the drink's container from across tables. On the
sticker is a printed command 'peel here'. Now, the boy has got it! On peeling, you find a
word that needs to be matched with another that completes it. Oh Goodness! The boy
gets the word 'jack' whose match, 'pot', is with the little girl. The girl and the boy are
matched by luck; the right word is 'jackpot'. This is a jackpot winner. The aghast and
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disproving father is won over. The ad theme flashes, "Toh aaj McD hoi Jaye" (How about
going to McDonald's today?)
The family form that is depicted in ads is nuclear, comprising children and their parents.
This family resolves into its elements on the bases of roles assumed by actors, who are
simultaneously identifiable in terms of life course. So, there is child-girl and boy;
daughter and son-; adult-man and woman; father and mother. It is significant that
besides being cast as parents, adults are also conceptualized as a conjugal couple. This is
further confirmed by the following ad.
(J)
Launched in April 2003, the McCurry Pan ad campaign targets Adults.
A grey haired, spectacled couple-presumably from the grandparental generation-is
enjoying a meal at McDonald's. To the utter disbelief of the 'old' man, in view, across
tables is a younger couple engrossed in a kiss.
The man, in disgust, exclaims to his wife: "See that? Is this the only place they found for
that?"
His wife, embarrassed, lest a scene be created, implores him to forget it.
The camera beholds the kissing and moaning couple for a few seconds in a close up shot.
Now it is beyond the older man to contain his 'cultural anxiety' and tolerate a breach of
public propriety. Despite his wife's pleas and attempts to hold him back, he charges
towards the couple. But, an awkward situation arises for, from his new vantage point, he
can see that the couple is eating a McCurry Pan; each slurping the dish from the two ends
simultaneously instead of kissing.
The younger woman looks quizzically at the older man, standing on their heads: "Yes,
Uncle?" The uncle, grins sheepishly, is at a loss of words and returns to his seat.
The advertisers invite the viewer, "Ever had a curry like this before?"
In the next shot, there is a reversal. The older couple-eating McCurry Pan-appears to
be kissing to a group of teenage boys and girls. It is now the tum of the group of
youngsters to remark: "Is this the only place they found for that?"
The invitation resonates: "So, should we go to McDonald's today?"
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The ad, as is the case with all ads, ends with the Golden Arches logo; except, on this
occasion two hearts merge and fade into one logo.
A reading of ads lends itself to an examination of McDonald's communication strategy.
There is no doubting that McDonald's employs family as a potent marketing device given
its appeal to the Indian consumer.
The Sagar family is first and foremost a 'respectable' family. It congregates
ritually in a space that is a family's sacred space. This family is 'not a nuclear family'.
The Nirula 's family always has been a 'whole' family. There is nothing sacred about this
family; it is a carload of fun-family that enjoys slurping ice-creams, pizzas, burgers, hot
chocolate fudge, tandoori chicken and the variety menu.
The McDonald's family is decidedly a 'nuclear family' comprising parents and
children. The nuclear family is further resolved into its elements on the bases Of
relationships and life course, whereby, the elements of this family are child and adults
conceptualized as parents-the authority wielding father and the invisible mother-and
couples. This family too has fun, but its defining characteristic is the encircling of fun
within its confines.
The McDonald's family however, is not simply a fun family; it is a purposeful
family: it is focused on grooming the child; on going for birthday parties; on going to
McDonald's; on winning jackpots; on getting lucky; on moving to a smart house; on
traveling in a big car. The everyday concerns of this family as depicted in the ads,
conceptualize it as given to consumerist lifestyle and aspirations to move up. Children
and parents are immersed in the project of fulfilling aspirations. Besides grooming
children, adults also enjoy a cozy intimacy.
One needs to bear in mind that unlike Sagar and Nirula 's, McDonald's has a hefty
advertising budget. So, unlike the 'respectable family' and the 'whole family', the
'nuclear family' is in service of consumer culture.
The family depicted in ads-the 'eating family' at McDonald's-aims to
disseminate the message to the television's 'viewing family' (Mankekar 1999) who is the
recipient of the communication.
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The family serves two ends for McDonald's. One, per seas a motif it is deployed
by McDonald's to attract the viewer to overcome 'bottlenecks' arising from cultural
anxiety, unease springing from unfamiliarity, and doubts regarding McDonald's
respectability stoked by impressions that it promotes a culture encouraging a free play
between young boys and girls. Two, in form of nuclear family, it is a technique of
consumer culture aiming to shape the viewing family in its image. It promises modernity
inhering in a consumerist lifestyle.
The nuclear family depicted in consumer culture is a modern family. The historicity of
this natural fact-family-is the kernel of Aries's classic thesis linking the development
of the idea of modern family and middle class in modern western society [see Aries 1973
(1962)]. Furnishing the evidence of iconography, Aries' historicizes the idea of the
modern family comprising parents and children. The distinctive characteristics of this
family are attention to children and intimacy between the conjugal couple.
Aries points to a connection between concept of family and class. He argues that
the evolution from 'medieval family' to '17th century family' to 'modern family', was
restricted to nobles and the middle class. The crucial indicator differentiating the 17th
century family from the modern family was that the latter continued to retain an
enormous mass of sociability. The modern family, contrarily, cut itself from the world
and opposed to society the isolated group of parents and children. All the energy of the
group was expended on helping children to rise in the world, individually and without
any collective ambition. The modern family satisfied desire for privacy and craving for
identity by uniting members by feeling, habit and way of life. In effect, it shrunk from
promiscuity imposed by old sociability. Families and classes brought together individuals
related to one another by their moral resemblance and by the identity of their way of life.
The specificity of the link between the middle class and family lies in the withdrawal of
the middle class from the vast polymorphous society to organize itself separately, among
its families, in homes designed for privacy.
The form and concerns of the 'eating family' and its tie up with the (new) middle
class in consumer culture are curiously similar to that of modern family and its link with
the middle class historicized by Aries for the western society.
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In the specific context of post-colonial India, the hegemonic project of linking the
middle class and the family is the focal concern of Partha Chatter:jee (1994. op.cit.)
critique of national modernity, as discussed in the previous chapter.
For McDonald's as for Nirula 's and Sagar, the link between NMC and family holds;
except that McDonald's is marshalling all resources at its disposal to re-configuring the
family into a nuclear type. Thus, the relation between NMC and family is not inert. It is
live. Consumer culture is working to establish an identity between NMC and nuclear
family. Its modality is to constitute the NMC employing the technique of the nuclear
family.
This is worked out stage-wise; by making way into life-course-adulthood,
childhood and youth.
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NOTES
1 See Singh and Rajshekar, 2003.
2 "We don't want to be labeled as a regional restaurant. We continue serving genuine south indian food. Our aim is to become a chain where a family with varied tastes can eat what each of its member wants", clarifies Banan in an interview. See Begg, 2003.
3 See Tankha, 2002.
4 In sketching the historical trajectory of Nirula 's, Mr. Narula's contribution has been invaluable. I thank Mr. Lalit Narula for his hospitality, time, enthusiasm, and patience with my research questions. The secondary sources I referred to for essaying the historical sketch are: Ahuja (2002), Ali (2003), Arora and Neera Bhardwaj (2001), Bhatnagar (2003), Bhushan (2002), Chand (2002), Chandwada (2002), Chawla (2003), Gupta (2002), ITCOT. 2002, Khandelwal (2002), Koul (2002a), (2002b), (2002c), Kumar (2002), Press Coverage (2002a), (2002b), (2003), Sawhney (2002), Sharma (2002), Srivastava (2002), Team Viva (2003), Thukral (2002), Tikoo (2002) and Vishal (2002).
5 Even as I am penning down the historical run of Nirula's in the National Capital, the news just in is that Nirula 's has been taken over by Malaysian private equity firms Navis Capital Partners and Samir Kukreja.
6 The trajectory of Nirula 's has been one of expansion and diversification into Business Hotels, Waiter Service Restaurants, Family Style Restaurants, Ice-Cream Parlours, Pastry Shops and Food Processing Plants. Nirula's took over the management of restaurants at Tej's in November 1985, Karol Bagh in March 1986, New Friend's Colony in April 1988, Bungalow Road in October 1990, East of Kailash in August 1994, Gurgaon in January 1998 and Faridabad in February 1998. In July 1993, Nirula's signed a 5- year contract with the Indian Railways catering to passengers of August Kranti Rajdhani Express plying on the New Delhi-Mumbai-Delhi route. In January 1996, a restaurant complex with a large Family Style restaurant, Pastry Shop and Potpourri restaurant was commissioned at Preet Vihar. In March 1996, with the thrust on take away and delivery service an Express Restaurant opened in Vasant Kunj. Another outlet opened at Bawa Potteries Complex, Vasant Kunj in August 1996. In June 1997, an Express restaurant opened in Rajendra Place. A number of Family Style Restaurants followed: Vikaspuri, September 1998; Paschim Vihar, March 1999; G.K. Part II, 2000; Bali Nagar, February 2001; Saket & Gole Market, March 2001; Sushant Lok, August 2002; Mayur Vihar, September 19, 2002. Delivery Outlets opened in New Friends Colony in September 1998 and in Okhla, March 1999. Home Delivery Outlet opened in Sushant Lok in December 2000. In April 2001, Nirula's outlets opened in Prashant Vihar and Rohini, followed by outlets at Pitam Pura& Yusuf Sarai. A Highway Hotel opened in Panipat in April 2002. And, Express Family Style Restaurant in Pushpanjali in January 2003.
Even McDonald's has ventured into Home Delivery of food, a move that surprises industry watchers as McDonald's stringent guidelines pertaining to the shelflife of products, stand violated! "Eight years after the golden arches started springing up across the country, expect to see them on a fleet of delivery boys' bikes. The reason for these new services are- mounting competitive pressures from other food brands-as well as a variety of Indian fast food and snacking options, which are more affordable, and often, home delivered. McDonald's also hopes to tap the segment of consumers who prefer ordering at home rather than eating out" (Kumar, 'Direct to home'. The Economic Times, p.1, March 3, 2004).
7 Following is the management's perception, shared with me by Mr. Lalit Narula
The corresponding scenario of the F &B (Food and Beverages) industry is as follows: Even more competition in the food and service industry; hotels limit the number of in house restaurants and start taking franchises of chain restaurants; restaurants become more of a necessity; they are part of the infrastructure requirement and luxury/entertainment areas; eating out is taken for granted as a part of day to
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day life (because there is no home staff, increased travel distances, working wives, children prefer ordering for food on returning from school) ; skilled staff shortage (especially chefs); while labour costs escalate, food costs less; part time work force is cost-effective; in-house training becomes essential. The parallel development on the property front follows: a. More independent luxury restaurants. b. More specialization and theme restaurants. c. More restaurants serve Indian Food (catering especially to regional tastes) and the Indian dhabas are modernized. d. Restaurants provide entertainment/cabaret/music (going back to 40s, 50s and 60s in the future) Juke Boxes etc. e. Niche market for Western Foods and for other food restaurants. f. Smaller menus; less skilled staff requirement; and smaller kitchens. g. Development of commissaries and bulk food production units by chains using the most modem food processing and preserving systems. Consequently: a. Restaurant brands provide publicity (Hard Rock Cafe/Planet Hollywood). However bulk business comes from regular restaurants in the mid scale and value for money restaurants meeting day to day requirements of people. Customers, even in these restaurants, expect more than just a meal! Higher advertising and marketing cost to meet competition. b. Earlier huge investments in Interiors and Air conditioning; now higher investment m Kitchen and equipment-with better equipment available, requiring less maintenance. c. Better sanitary conditions required. d. Take away will increase but will not affect restaurant sales very much. It will be replacement and addition to home meals. e. More Chef Owners will be seen. f. More trained staff. g. Multi skill development and more bought out items to lower labour costs. h. More pre-processed foods usage-they will become more common in regular restaurant. i. Increasing use of computer for analysis and cost control, data base, for direct marketing will become a necessity. j. Higher utility costs and consequent use of energy saving devices (PLU lamps etc.) to keep costs in control k. More restaurant chains develop, fast food chains specializing basically in Indian Food start and get popular.
8 J. S. Grover, Vice-President, Nirula 's in an interview to Business Line's Catalyst, March 22, 2001.
9 Ibid. 10 According to a report in Fortune, McDonald's is more of a landlord than a conventional fast food chain. The real estate set-up drove McDonald's to chase profits by locating, building, and opening more stores than anyone else in the business imagined possible. See David, 2003: 42.
11 Nirula 's business policy is to either manage or own units, instead of franchising*. T~contract with owners is that the unit runs under the brand umbrella of Nirula 's, who also manage the unit. The supply of retail goods is sourced from in-house food processing units. The same for food ingredients sourced from the central kitchen comprising bulk kitchen, fruit section, bakery and ice-cream sections. Nirula 's quality assurance department monitors and tests ingredients for the manufacture of food items. As part of the deal, Nirula 's provides Human Resources consultancy and training.
*The franchising model of business is expected to breathe life into the Indian hospitality industry, says a report on the proceedings of a seminar at the Express Hotelier and Caterer. See D'Mello, 2003.
12 See Kothari, 2004.
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13 Gurgaon happens to be the platform for new product launches for McDonald's too. New taste menus are initiated here. According to company sources, a test launch in Gurgaon, could lead to a 15-35% jump in sales without advertising.
14 1t is instructive to view McDonald's experience in India in relation to its business performance in the US.
In January 2003, McDonald's announced its first-ever quarterly loss-$343.8 million-since becoming a public company in 1965. Revenue growth and return on capital are in decline. Same-store sales in the U.S., which had been stagnant for about a decade, have been falling for 12 straight months. On the University of Michigan's American Customer Satisfaction Index, McDonald's-the company that once made its living by prompt, friendly service-has ranked at the bottom of the fast-food industry since 1994. It now sits below every single airline as well as the IRS. The company has lost more than $20 billion in market cap in the past year, and, at a recent $14 a share, the stock is trading near a ten-year low. And the last time the McDonald's menu saw a real hit was in 1983, with the Chicken McNugget. See David, 2003; also 'Business Buzz' Express Hotelier and Caterer February 3, 2003.
In a similar vein, columnist Vir Sanghavi (2003) "Yrites: "It is a little funny ... how, every time a Western phenomenon catches on in India, it is actually running out of steam in the West...outside India and the Far East, McDonald's gives the impression of being a brand that is past its prime. That accounts for the problem in the US market: the formula is out of tune with the times".
15 As reported by The Ecologist (Nov-December, 1995), a broad-based campaign developed against Kentucky Fried Chicken where health activists opposed the entry of "junk food chains" into India, fanners' groups and animal rights' groups opposed factory fanning and environmental groups opposed the entry of TNC's in India's food sector. Consequently, a Bangalore court ordered a closure of KFC outlets. The campaign pressurized the Delhi government to order the closure ofKFC's first outlet in the capital. Ever since, the Government fears that the Bangalore court's decision will deter further investment in India by foreign-owned food processing companies and fast food chains such as McDonald's, which plans to open the first of 60 outlets in 1996 .... The Government of India raised permitted levels of the flavour enhancer monosodium glutamate (MSG) in December 1995. The decision came after a Bangalore court closed a Kentucky Fried Chicken outlet because its food exceeded the legal limits for the additive. Used in a wide range of fast foods, MSG is associated with behavioural disorders, such as hyperactivity, and has induced severe brain damage in rats. Unborn children are at particular risk since MSG concentrates in the placenta. However, KFC is back in Delhi.
16 Protests and resistance has been a regular feature of McDonald's Indian experience. On May 5, 2001, Shiv Sena activists staged a demonstration before the head office of the McDonald's in South Delhi protesting the alleged use of beef flavouring by the international fast food giant in its French fries. The party later submitted a memorandum addressed to the Prime Minister, Mr. Atal Behari Vajpayee, demanding closure of all the outlets across the country stating "in a country where 80 per cent of the population worships the cow, one cannot go on with this kind of a controversy." McDonald's instantly issued a clarification asserting that none of its products, including French fries, contained any beef or pork extract. McDonald's India had taken adequate precautions to avoid untoward incidents in all its outlets in the country, it said. "All our restaurants are open. We have taken all precautions," the Managing Director of the McDonald's, Mr. Vikram Bakshi, said. Dismissing any negative effect on its sales, Mr. Bakshi added, "In India we don't serve any beef or pork in our menu as we are extremely sensitive to the Indian culture and religious sentiments. See Staff Reporter (2001).
Interestingly, these protests are being viewed as reverberations of international events.
The protest over fries laced with beef tallow, is traceable to a law-suit filed against McDonald's in the United States, accusing the company of "secretly lacing" its fries with beef fat. The Bombay municipal
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authorities' response to this favoured McDonald's on grounds that tests confirmed the French fries made by fast food giant McDonald's Corporation to be free of animal fat. According to a press report (see George, 2001) a local head of Shiv Sena, was skeptical of the McDonald's assurance, saying the company had made similar promises in the United States I 0 years ago, but continued to use beef flavoring in French fries. "How do we know what they are serving in India? We can't take them at their word," said Goyal. The Oak Brook, IlL-based McDonald's Corp. announced in 1990 that its restaurants would no longer use beef fat in making French fries and that only pure vegetable oil would be used.
In a similar vein, after 9/11, there were reports of a restaurant having been set on fire by protestors in Pakistan. Delhi police reacted by beefing up security at all these restaurants. Apprehensions of the local police apart, even restaurant authorities were concerned about the ongoing turmoil in Afghanistan. For its part, McDonald's have already taken steps to enhance security in the wake of the terrorist attacks in the U.S. Says the McDonald's Managing Director, Mr. Vikram Bakshi. In the present circumstances, the management is doing everything possible to ensure safety of customers and staff. See Pandey, 2001.
17 See Press Coverage, The Hindu 1996.
18 McDonald's introduces itself to netizens on its website as follows: McDonald's opened its doors to India in October 1996. Ever since, our family restaurants .... have proceeded to demonstrate, much to the delight of all our customers, what the McDonald's experience is all about. October 1996 marks the historic arrival of 'world class cuisine on Indian soil'. McDonald's is 'the world's largest food service system' on account of its presence in the number of continents, countries, restaurants and customers served per day. McDonald's entry in Taiwan, provides comparative insights. McDonald's opened its first outlet in Taiwan in 1984 (Wu, 1997: 119). According to the company's representatives, three factors contributed to McDonald's decision to open restaurants in Taiwan. First, there was still a U.S. military base in Taipei and a sizeable American community. Second, there was an increasingly large Taiwanese population who had firsthand experience of the United States. Third, there was an increasing number of upper-middle-class children with cross-cultural exposure and plenty of spending money. In 1988, the first McDonald's restaurant opened in Apkuchong-dong, one of the most exclusive districts of Seoul, known for its cafes and boutiques, which are frequented by affluent, trendy members of the younger generation. See Bak, 1997: 139.
19 The company has two marketing calendars. The theme communication is done once or twice a year through TVCs (television commercials). The theme is food-item specific. This is done around June (coinciding with school and college vacations) and around Diwali .... Besides the theme communication, communication for Happy Meal is eight times a year. The commercials are aired on Cartoon Network. As told to me by an ad-executive, in the ad agency that handles the McDonald's account.
20 The following news report announced the launching of McDonald's communication strategy. 'The ads will be visible on all the mainline satellite channels. While the launch ad is of 60 second duration, subsequently there will be 40 and 30 second shorter versions. A budget of Rs. 10 crore has been earmarked for the entire communication strategy, which targets 1800-2000 GRPs in April while the 65 second TVC is on and 1500 GRPs once the shorter clips are on air'. See Magazine, 2000.
21 SEC system is the marketeer's index for socio-economic classification. It is devised on the bases of occupation and educational levels of potential consumers and not just income. The middle class consumers are defined as SEC A and B. This information was shared with me by advertising and hospitality industry personnel and, is corroborated by Butcher's research (see Butcher, 2003: 40, endnote 16).
22 Vikram Bakshi, McDonald's MD, spoke about refocusing market strategy:
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"We will position ourselves as a family restaurant and with new launches this focus will be clear. We will also go in for more co-promotions and product launches that will help us to be perceived as more of a family restaurant rather than a kiddy outlet. We will try to keep out of the burger range and bring in new products which are tasty and filling and will target 26 to 39 age group". See EH&C Staff, April 7, 2003. Also see Indianteievision.com's MAM Special Report, 2002.
23 The visual depiction of eating and food is not limited to television advertisements; food and eating have found their way into popular Hindu films also. Analyzing a record setting popular Hindi family film, Uberoi notes: " ... how often was sumptuous food offered up for visual and gastronomic consumption". See Uberoi, 2006c: 149. The consuming family in this case, though, is the Indian Joint family.
24 Thus was the ad campaign reported: "As an extension of its ongoing advertising campaign, McDonald's India is in the process of rolling out an aggressive television campaign from April 2 this year across the nation. Billed as the 'Moving Out' ad campaign, the new 65 second commercial reinforces the positioning. of the company as an affordable family restaurant in its communications... The company has year marked an ad budget of Rs. 20 crore to promote its brand in the niche segment of Quick Service Restaurants." See Srinivasan, 2001.
25 2003 may not mark the official culmination of phase 3. But, this is when my research paused.
26 The film is Phir Bhi Dil Hai Hindustani. This particular number is filmed on actor Shah Rukh Khan.
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