3.1 Health and Nutritions concerns.
Although McDonald’s thrives on its convenient, cheap and tasty business model to market its products, it is unethical to do so without informing consumers of the health risks, calorie count of each meal, and nutritional value of the consumption of every meal. There are certain countries that have made a law that forces joints like McDonald’s to mention the calorie count of each meal. McDonald’s should themselves recognize the importance of such a policy and not discriminate between regions and countries and should instead themselves provide this information without the legal obligations set by the state to provide such information. Also, if one franchise is providing less information than the other then it is very unethical of the parent company because the whole concept of a franchise and a standardised menu set with specific information would be broken if all franchises did not disclose the same amount of information about their products. McDonald’s has been guilty of violating regulations placed on all chain/restaurants to publicise their calorie information of meals on their notice boards.
McDonald’s was charged with one of the highest number of violations from chain/restaurants and were also liable to fines on these violations (Cordova, 2008). In order to maintain a positive customer image McDonald’s needs to ensure standardisation and transparency of information at every level, region, and country. They must not resist giving out information in fear of lost sales but in fact must realise that the resistance shown could be detrimental to McDonald's image in the long-run.
McDonald’s targets consumers of all age groups, and markets its meals as family centric. There have been great concerns and criticism has been placed on McDonald’s for providing very low nutritional benefits per meal meaning that the nutrition that the human body requires for everyday needs is not even close to being fulfilled by the consumption of McDonald’s food. This is a serious issue when children are being targeted as well in their advertisements and children often persuade their parents into buying them McDonald’s instead of eating a healthier homemade meal or other alternative. Regular consumption would put these children at risk of obesity and deprivation from the nutrition they need to grow properly at that age. By making their nutritional values public as well as the interpretation of these facts, McDonald’s would definitely lose sales as consumers will be much more aware of what they are feeding their children.
3.2 Local Competition
McDonald's faces competition from both international fast-food chains and local restaurants in each market. Local competitors may have a better understanding of customer preferences, pricing strategies, and distribution networks.
According to IBISWorld, a leading industry research organisation, there are 197,163 fast food businesses in the US as of 2022. The country has the largest fast food market in the world, with a
$331.4 billion market size measured by revenue. The competition in the US fast food industry is fierce. To name a few, Subway, Starbucks, KFC, Burger King, Taco Bell, Domino’s Pizza—they all are US-born fast food companies. And in the US, you are more likely to encounter Subway than McDonald’s. As of 2022, there are 22,658 Subway outlets in the US. Moreover, more Starbucks exist than McDonald’s in the US; 15,450 vs 13,438, respectively at year end 2021.
Subway’s dominance in terms of unit count is unique to North America. In China, Japan, and France, Subway is far behind McDonald’s with less than 500 stores each.
In China, McDonald’s biggest competitor is KFC—another American fast food giant. KFC does exceptionally well in China, operating 8,441 stores as of March 31, 2022. This number is much larger than the US KFC store count, 3,977. In addition to the American fried chicken, the American premium coffee Starbucks is growing fast in this country. China’s Starbucks store count just exceeded that of McDonald’s in 2021; 5,360 vs 4,395.
Although McDonald’s is leading the Japanese fast food industry by a big margin, some local fast food chains can be McDonald’s competitors in Japan. One of them is MOS Burger. It is a Japanese burger restaurant chain, founded in Tokyo in 1972. MOS Burger has 1,253 units nationwide as of 30 June 2022. It also operates 448 restaurants overseas, including in Taiwan, Singapore, and Hong Kong. While burgers are popular in Japan, rice is the staple food of the Japanese diet; rice is consumed more than wheat. Accordingly, Japan has its own fast food using rice. Suki-Ya is the largest of such fast food chains that sell Donburi or Japanese rice-bowl fast food. As of July 2022, Suki-Ya has 1,942 restaurants in Japan. McDonald’s usually adapts its menu to reflect local tastes and traditions, and Japan is no exception. Teriyaki Burgers are its regular menu, and it also sells seasonal products for a limited period of time including “Rice Burger.”
France is recognized as the country of gastronomy. Burgers are extremely popular in today’s France, with 80 percent of restaurants in France serving a burger. McDonald’s and Quick—a Belgian burger restaurant—used to exclusively sell burgers before 2012 in France. However, today 32,000 businesses in France are serving fast food including burgers.
3.3 Cultural Adaptation.
McDonald's operates in diverse cultural environments, and adapting its menu and marketing strategies to local preferences and customs can be challenging. What works in one country may not resonate with customers in another, so McDonald's must carefully tailor its offerings and messaging to each market.
In Morocco, people use flatbreads and grilled chicken. During the month of Ramadan, a special menu is offered for the breaking of the fast, including special localities such as dates, milk, and harira. In Japan, items include Shaka Shaka Chicken served in a paper pouch with seasonings, the Fillet-O-Ebi with a fried shrimp patty, and the Teriyaki McBurger. A breakfast option is a hot dog
with the works. Other offerings include sour plum sauce and green tea flavoured milkshakes. In the UK, there are a variety of deli sandwiches and a line of sandwich rolls with fillings. Other specialties include curry flavoured sauce, sweet chilli sauce, mozzarella dippers, and pies with mincemeat. Many sandwiches are made like bocadillos and include egg, bacon, and salchicha in Spain. Other specialties include gazpacho, a tomato based soup from Spain. Many dishes in Germany include sausage such as the McCurrywurst with sausage, tangy tomato sauce, and curry powder. For breakfast there is a choice of bread rolls or croissants with ham and cheese or sweet sauces. Products are certified halal by a Turkish company. Specialties include McTurco, a type of kebab with chicken or beef, Mediterranean plate with egg, feta cheese and English muffin and the Turkish drink Ayran. In Hong Kong, people use thigh filet rather than breast meat. Breakfast includes pasta soups with sausage or chicken. Other specialties include soft serve ice cream in azuki bean, mung bean, and pineapple flavours, burgers with rice patties, shrimp burgers, wasabi fillets, cups of corn, and fries flavoured with seaweed, chargrill, or French onion. Food products are certified halal in India. Beef and pork are not served because of religious beliefs. Only animal products available are chicken and fish. Vegetarian specialties include McAloo Tikki Burger made of potatoes, peas, and spices and McCurry Pan with veggies and cheese. Meat and vegetarian meals are served in separate areas due to religious laws. Mexicans do not serve fish.
Specialties include Flaming Hot Dorito quarter pounder and McBurrito. Breakfast options include McMollete, and English muffin spread with beans and topped with a slice of melted cheese and pico de gallo.