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Office-goers took a detour from work on Monday morning and students had to make a breakfast stop on their way to college. McDonald’s, as part of its National Breakfast Day campaign, threw open its doors to customers offering a free McMuffin between 8 a.m. and 11 a.m.
The campaign, which ran across 5,000 participating restaurants in over 34 countries, is one of the biggest breakfast activation promotion by any such company.
Vikram Bakshi, Managing Director, Northern and Eastern Region, McDonald’s India, said, “When it comes to breakfast, it is still a blue ocean out there. The aim of having a Day was to popularise eating out the first meal of the day. Globally, it is a popular concept but in India it is still to catch on.”
McDonald’s breakfast portfolio comprises choices such as Sausage McMuffin with Egg and the Egg and Cheese McMuffin for the non-vegetarians, besides Veggie McMuffin and Veg Supreme for vegetarians.
As per the National Restaurant Association of India, 50 per cent of consumers eat out at least once every three months.
“Consumers are eating out nearly six to seven times a month as per our research as lifestyles are changing. There is a huge opportunity for us as we are targeting people on the move,” Bakshi added. McDonald’s has about 300 stores pan-India in formats such as drive-thru, full menu restaurants and kiosks, among others.
Industry watchers note that breakfast contributes over 20 per cent in many matured markets.
Bakshi said the company will be adding 30-odd stores in markets where it isn’t present. “We are growing at 125 per cent and want to maintain the same tempo of growth next year as well,” he said without divulging any number.
Asked if the company relied heavily on overseas sourcing of raw materials especially for its french fries, Bakshi said large component of raw materials was sourced from Gujarat, Himachal and Punjab. “We rely on imports only if there is excess demand.”
The company has four distribution centres in Noida, Kolkata, Bangalore and Mumbai to service its restaurants.
Bakshi said the lack of infrastructure and high commodity prices were hitting margins. “We undertook a price hike last year. We may look at a hike later this year. Also infrastructure bottlenecks such as electricity supply and water are issues we face.”
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