McDonald’s: Fleecing of customers in Pakistan

Society Pakistan & World Affairs
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→ Fleecing of customers in Pakistan.

McDonald’s charges Indians Rs10 a burger, Pakistanis Rs100
By our correspondent

KARACHI: McDonald’s, the world fast food chain charges its Indian customers only Rs10 for a burger, Rs7 for a beverage and Rs5 for an ice-cream cone while the company offers its so-called low priced burger at Rs100 in Pakistan.

“When we started selling the cone at seven rupees, we were doing so on a cost-to-cost basis. But with volumes up ten times, our gross margins went to 38 per cent. So it is possible to lower prices and still make profits. In fact, this is the only way to truly penetrate the Indian market and make our food affordable to all,” McDonald’s India managing director (MD) Vikram Bakshi said to an Indian newspaper.

“As cold chain infrastructure improves, procurement will be more efficient, bringing costs down and allowing for hedging against future price rises. Technologies will also bring costs down enabling the likes of McDonald’s to bring prices down. What food retailers need to do for the next five years is look at market expansion rather than market shares,” he added.

“A McDonald’s burger for Rs10, a beverage for seven rupees and an ice-cream for five rupees. The company believes this is the only way it can truly penetrate the Indian market. Is it really possible to pull it off? And does one really need such a price strategy for this product category,” asked an economic expert.

The paper said the McDonald’s entry-level burger called ‘vegetable surprise’ currently costs Rs15, a soft drink starts at Rs16 while an ice-cream cone costs seven rupees. The success of the ice-cream cone has spurred the company to get into the volumes game in the future.

The company’s price strategy for Pakistani market is quite reverse of its Indian experience. It is still selling the same kind of food at exorbitant rates in Pakistan. “Even the low priced burger in Pakistan costs you Rs100,” said a burger addict. He said the multinational fast food chains are fleecing customers in Pakistan.

–>Please write to Mcdonalds for this unfair practice/business model. let them hear you.

McDonald’s USA Contact Us
http://www.mcdonalds.com/corporate/info/exec_bios/index.html
-Attention: James R. Cantalupo,
Chairmain and Chief Executive Officer

-Claire Babrowski
President - Asia/Pacific, the Middle East and Africa

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→ Can some guppie(s) with good writing skills create an online petition at www.PetitionOnline.com

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i guess this is alreadya big news in India! :slight_smile:

**In Pakistan, McDonalds means McRip-Off **
ANI WEDNESDAY, NOVEMBER 19, 2003 05:30:39 PM

KARACHI: Most fast-food loving Pakistanis feel that multinational fast-food chains like McDonalds are fleecing them.

For instance, they claim that McDonalds charges Rs 100 for a burger here, while India, the same item can be purchased for as little as Rs 10.

The price of a beverage or an ice cream in India is Rs 7 and Rs 5 respectively, whereas the same items are more expensive in Pakistan, they claim.

“Even the low priced burger in Pakistan costs you Rs 100,” The News quoted a customer, as saying. He reportedly said the multinational fast-food chains are fleecing customers in

Pakistan.

The paper said that the McDonald’s cheapest available burger the “Vegetable Surprise” was available for Rs 15, the price of a soft drink starts at Rs.16 while an ice-cream cone costs seven rupees.

According to the company, however, the sharp differences in prices has been attributed and linked to the huge sales volumes in India. A similar situation does not prevail in Pakistan, they claimed.

“When we started selling the cone at seven rupees, we were doing so on a cost-to-cost basis. But with volumes up 10 times, our gross margins went to 38 per cent. So it is possible to lower prices and still make profits,” the paper quoted Vikram Bakshi, the Managing Director of McDonalds India, as saying.

“In fact, this is the only way to truly penetrate the Indian market and make our food affordable to all,” Bakshi added.

“As cold chain infrastructure improves, procurement will be more efficient, bringing costs down and allowing for hedging against future price rises. Technologies will also bring costs down enabling the likes of McDonalds to bring prices down,” he said.

http://timesofindia.indiatimes.com/articleshow?msid=291201

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:rotfl::rotfl: what next ?? Mcdonalds Charging 100 Rs to Pakis and 1 dollar to Americans ?? Probably that’s what they think the value of Paki Rs. is. A bunch of cry babies.

What kind of losers pakis are to eat at mcdonalds and then abuse america whole day.

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you could have said it nicely and decently, dont need to bring racial/political slur in everything which is wrong in Pakistan. By using such terms as “Losers Paks or losers Bhindians” :disgust: one would not win the hearts of majority here. I think you get my point!!

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asifK currency rates are not an issue here, gross margins are and it makes sense.

kher, why on earth would you want to eat at mcDeath when you have sillverspoon right there. those who want to pay 100 for a burger, deserve to be fleeced. I will also like to sell them a 80 rupee kitkat

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I think it proves that Pakistanis have more purchasing power, that they are still able to flock McDonald's and buy 100 rupee burgers. Its all supply-and-demand. If people thought the burger is too pricey, they won't buy it, and the vendor has to reduce the prices.

Even other vendors (S 'N P e.g.) in Lahore had their burger-combos priced at Rs 65-140, even before McDonald's came to Pak, and these outlets will be over-flowing with wait times of one hour or more during the weekends. So, the market was ready to absorb that pricing.

If the cost is so low, its an opportunity for an enterprising Pakistani to start his/her own chain of fast food, where he sells good quality burgers for Rs 10 and still make profit. Last I knew, even mini Market Gulberg's thailay wala's anda/shami burger was also costing Rs 15-25. Go figure! :)

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Last year when we went to pakistan everyone wanted to eat at KFC...UGH i was like i don't even touch that place.

NOTHING beats a yummy kabob from the Rari wala!

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hmmm...lekin ye to zaahir see baat hay na kyun k aik to gosht sabzi se mehnga hae oopar se pakistani rupay kee keemat indian rupay se kam hae

waisay the mcD's in karachi have been closed since the iraq war started because some ppl damaged some of the mcD's in protest when the war started

ab park Towers wala jo mcD hay Abdullah Shah Ghazi k mazar k paas...us ka darwaza bahar se band ker k andar se kholnay ka bandobast ho rha hae suna hay...

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McDonald’s in Pakistan are run by 2 super rich guys (check below). MD-Pak imports most of pre-cooked food items from South- Africa, even beef patties. This was/still is true for couple of years ago as this made some major headlines in Pak as to meat is Halal or not!

PAKISTAN
-Lahore
Akbar Group of Companies (The Akbar Group of Companies has a successful track record of introducing high profile brands such as McDonald’s, Nike, Singapore Airlines, Swiss Air and a host of other brands. headed by Mr. M. I. Akbar) but no website!!
Karachi: No 1, First Floor
Services Club Extn. Bldg
Merewether Road
Karachi, Pakistan
Phone* : 92-21-567-2451
Fax* : 92-42-571-5743

  • U.S. customers, dial 011 + before an international number, except in Canada, dial 1 + number.

Karachi
Lakson Group of Companies (Tobacco, Detergents, Paste, Papers & Board, Insurance, Power Generation, Surgical items, internet services.)
website: http://www.lakson.com.pk but not working!!
Lakson Square, Bldg. No. 2
Sarwar Shaheed Road
Karachi, Pakastan 74200
Phone* : 92-21-568-6419
Fax* : 92-21-568-5308

  • U.S. customers, dial 011 + before an international number, except in Canada, dial 1 + number.

another tid-bit: It cost over Rs 10 Crore (US$2 million) to open First MD in Khi in N. Nazimabad. Even Nawaz Sharef visited that place out of curiosity :wink:

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There is a very good reason McDonald's is charging Rs. 10 in India...The McDonald's in India is actually a philanthropic venture on part of the McDonald's corporation to eradicate hunger in India...That's why they are selling at such cheap prices...

Apart from that any more expensive and the Indians would never know what a burger tastes like...

According to the stringent time control placed on its products, Pakistan based McDonald's sells off its expired goods to the Indian McDonald's thereby making it possible for the Indians to taste what a burger is for a mere 10 Rs....

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I think that it's a simple matter of market and brand positioning.

In India, McDonald's wants to be viewed as a mass-accessible restaurant for everyday usage

In Pakistan, McDonald's wants to position itself as being more of a premium place where people go for special occasions.

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[QUOTE]
*Originally posted by mAd_ScIeNtIsT: *
I think that it's a simple matter of market and brand positioning.

In India, McDonald's wants to be viewed as a mass-accessible restaurant for everyday usage

In Pakistan, McDonald's wants to position itself as being more of a premium place where people go for special occasions.
[/QUOTE]

Not to mention any more expensive and they wouldn't be able to afford it...:D

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Well whatever.. They can sell a burger for 1 rupee, still I wont go to eat there.. If other people want, its their choice.

But what makes me laugh, is that I have heard that when people in Pakistan go to Mc Donalds, they get properly dressed, and also there is no self service. A waiter comes to take the order.. Well that sort of explains the higher prices! But its absurd to go dressed in a fast food restaurant.

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^^ They actually showed a McDonald's on TV in Noo Yark which has a doorman and the burgers and fries are served on silver platters...I didnt get to see the program but the settings were lush with musicians playing in the background...No doubt valet parking too...Beat that...:D

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[QUOTE]
*Originally posted by Lajawab: *
but the settings were lush with musicians playing in the background...No doubt valet parking too...Beat that...:D
[/QUOTE]

Yr 1998 or 99: Welcome to Pizza-Hut in Khi (in defence/clifton somewhere, first one in Pak)... musical band, vip sitting to name a few.. not to forget Rs1200 (~$30 in '98) medium size pizza...and the medium size is even smaller than a US medium pizza.. :D

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Go East or go West… Pak’s Bun-kabob is the best

**Go East or Go West… Pak’s Bun-kabob is the best **:biggthumb
kudos to our Bun-kabab walas :dhimpak:

[thumb=D]bun_kabob1.JPG[/thumb]

[thumb=D]bun_kabob2.JPG[/thumb]

Pakistan> Bun Kabob: There’s nothing magical about this popular lunch meal, except that it’s a quick and convenient energy food. It consists of a ground meat and lentil kabob (which has a circular shape and is lightly fried) placed between a bun, smothered with mint chutney and topped with sliced onions and tomatoes. The bun kabob is the Pakistani version of fast food and is easily prepared at home or picked up at the corner store.
link

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^^ itnay pyaray pyaray plastic k dibbon mein chutni kon se burger kisam ke bun kabab walay ne pack ker k dee haen? :D

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^^ janab, ye "burger kisam" key bun-kabab waley Ameriki-desi hai :)
ye chutni wali dibiya bhi ameriki si-tyle ki hai ;) ..

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an educated person like u who claims to be tolerant and open minded shud know better than to use racist term such as paki on a pakistani forum. :-/

n i’d even pay Rs. 200 for a burger in pakistan. its halal, thats what matters to me :smiley: