McSpaghetti? How McDonald’s Crafts Its Country-Exclusive Menus | WSJ The Economics Of

Summary

McDonald's success in international markets is fueled by its localized menu items, which cater to regional tastes and preferences. From the McAloo Tikki burger in India to fried chicken in the Middle East, McDonald's adapts its core offerings with unique regional flavors. These international items not only drive local sales but have also been embraced globally, such as the McFlurry and McSpicy. While some items like the McPlant haven’t found long-term success, McDonald's continues to innovate by balancing global icons with locally-inspired dishes, contributing to its extensive global reach and profitability.

Takeaways

• 😀 McDonald's serves local menu items in international markets, which are not available in the U.S.
• 😀 International menu items like the McAloo Tikki Burger and McPops help McDonald's attract tourists and drive global sales.
• 😀 McDonald's operates over 40,000 restaurants in more than 100 countries, with about 27,000 of them located internationally.
• 😀 Localization is a key strategy McDonald's uses to cater to local tastes and preferences, contributing to their global growth.
• 😀 In India, McDonald's introduced a beef-free menu, including the Maharaja Mac, catering to cultural beliefs about cows being sacred.
• 😀 Menu adaptations are often based on customer research, with local flavors integrated into familiar McDonald's staples.
• 😀 Spicy Chicken McNuggets are a popular international item, with regional variations of spice to suit local preferences.
• 😀 Some countries, like Mexico and the Philippines, feature entirely new items such as McMolletes and McSpaghetti.
• 😀 To compete with other fast-food brands like KFC, McDonald's offers items such as fried chicken in markets where chicken is popular.
• 😀 Successful international items, like the McFlurry and McSpicy, have expanded to McDonald's menus globally, showcasing the appeal of localized options.
• 😀 McDonald's has tested plant-based options like the McVegan and McPlant, though not all of these items have found lasting success in the U.S.

Q & A

What is the strategy behind McDonald's international menu offerings?

McDonald's uses a strategy called localization, where they adapt their menu to fit local tastes and preferences in different countries, helping to drive international sales and attract tourists.

Why does McDonald's avoid serving beef in India?

In India, cows are considered sacred by many, so McDonald's created a beef-free menu that includes alternatives like the Maharaja Mac made with mutton patties to respect local cultural beliefs.

What are some examples of international menu items at McDonald's?

Examples include the McAloo Tikki burger in India, McMolletes for breakfast in Mexico, fried chicken with McSpaghetti in the Philippines, and poutine in Canada.

How does McDonald's adapt its spicy food offerings for different regions?

McDonald's tailors its spicy offerings like the Spicy Chicken McNuggets to suit local interpretations of spice, using different flavor profiles such as curry, Tabasco, Thai chili, or jalapeno depending on the market.

How do local flavors compete with other fast food chains in McDonald's global markets?

In some markets, McDonald's competes with local brands like KFC by offering menu items that appeal to regional tastes, such as fried chicken in the Middle East to rival KFC's offerings.

What popular international McDonald's items have become global menu staples?

Popular items like the McFlurry, which started in Canada, and the McSpicy, which originated in China, have been adopted globally by McDonald's due to their success in local markets.

How did the BTS meal impact McDonald's sales in 2021?

The limited edition BTS meal, featuring sweet chili and Cajun sauces inspired by South Korean flavors, helped McDonald's achieve a 40% increase in global sales from the previous year and boosted McNugget sales.

What challenges has McDonald's faced with introducing plant-based menu items?

McDonald's attempts to introduce plant-based items, like the McVegan and McPlant, have not always been successful, as consumers in certain markets, like the US, have shown limited interest in plant-based options.

Why is McDonald's considering streamlining its global menu offerings?

McDonald's is examining the large variety of menu items offered globally, as there are too many redundancies, such as having 70 types of chicken sandwiches worldwide, and is looking to simplify the offerings while still maintaining localized items.

What is the McAloo Tikki burger, and where is it popular?

The McAloo Tikki burger is a popular item in India, consisting of a potato and pea patty blended with Indian spices, and is a key example of McDonald's localization strategy in the country.