McDonald's in France
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Case Details:
Case Code : MKTG262
Case Length : 19 Pages
Period : 1972-2010
Pub Date : 2011
Teaching Note : Not Available
Organization : McDonald's Corporation
Industry : Fast Food
Countries : France
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Introduction Contd...
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During the same year, McDonald's opened thirty new restaurants in France which increased footfall by 11% to 450 million customers.4 CEO of McDonald's
France, Jean-Pierre Petit (Petit), said, "We are the second largest contributor
to Group results. We have a 50% growth in five years."5
Founded in 1940, McDonald's is the world's largest chain of fast food restaurants, serving more than 58 million customers daily as of 2009. McDonald's primarily sells hamburgers, chicken products, French fries, breakfast items, soft drinks, shakes, and desserts. As of 2009, it had established more than 30,000 franchising stores in 119 countries with revenues of about US$15 billions annually.
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According to some analysts, McDonald's entry into the French
market in 1979 was seen as an invasion of American culture in a country known
for its rich heritage of cuisine. "It has been tough for us to become integrated
in the French market. The focus we had at the beginning was to open more stores
and to get suppliers, and we were attacked because we had this image of
globalization,"6 said Eric Gravier, vice-president of McDonald's France, in 2008.
However, McDonald's popularly known as McDo in France, attracted French diners and boosted its sales by responding to the preferences of the locals, tailoring its menu to suit local tastes, remodeling its restaurants, and adding new menu items...
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