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Also, I think success of these establishments act as a motivation for locals to invest in businesses of the sort and eventually create an atmosphere of increased competition, which in turn will go towards consumers' benefit.
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Partypooper:
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. I think that globalistaion is a very powerful corrective in our world today, and I would be very happy if Pakistan wholeheartedly opened up to this very real concept, for that is where Pakistan's prosperity lies in waiting.
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Even if local businessmen invested in businesses of that type, (and it would be a large investment), we have to look at why these places are successful. Is it because they are providing value for money, or exceptional food? I don't think so. It's more the image associated with being a multi-national restaurant from America. Look at this business of families dressing up to eat at McDonalds. Would they do the same for a restaurant called McAhmed's?
Anyway, has anybody eaten in one of these desi McDonalds? It would be fascinating to hear which type of people go there, (although I have a fair idea). Did anyone here put on their best shalwar kameez to tuck into a Big Mac?
On the plus side, these places do provide a clean, hygeinic environment and pleasant conditions to enjoy a meal. That's something we could definitely learn from.
These fast food places do offer good tasting food. These guys are in the food business for a long while and they couldn't survive if they couldn't offer good quality food (taste wise). Man, when I get cravings for Pizza Hut's pan pizza or Burger King's Whopper, there is no stopping it. I know it's bad for health (lots of fat) but still when you get the cravings, there is no stopping it.
Value for the money, you are right, it sounds outrageously expensive compared to what it should have been and they are definitely reaping off their image. But that's a good marketing strategy from a business's point of view. People dressing up to go McDonald's shows that. They knew what kinda consumer response they were gonna get from people of a country who is rapidly adopting a Western lifestyle. Even here in US, the business emphasis of these fast food chains is more on marketing than other services. That's why you see all the kids going to McDonalds and older crowd to Burger King or Wendy's. Every time there is a Disney movie out, there is a race between these guys to have the movie character toys out to go with the happy meal. But again, if locals start businesses which are in competition with these American chains then these places would be the first one to drop prices. Good for consumers.
So it's not only delicious food, but a combination of good marketing strategy and image as well.
Back in late 80's, one of my friend's brother opened up a Pizza joint in Fortress Statdium strip mall, which is one of the upscale sorta hang out places in Lahore. The business was so successfull that they made lots of money out of it. Their Pizza was nothing compared to Pizza Hut's pizza. Their pizza crest was more like a pie crust but still it was something new and not bad to eat. I'm sure if they are still in the business, they are gonna have to work a lot harder to produce better pizza to stay in the business now that Pizza Hut has opened its branch in Lahore. And this is along the same lines of what you said about services and atmosphere. But core of any fast food place is food itself to begin with, and it is absolutely imperative to offer food that is tasty to at least a reasonable level otherwise eventually people will rail off the trend.
As far as Shalwar Kameez is concerned, the people who belong to the status quo who would pay 500 Rs for a burger will follow any new trend and right now going to Pizza Hut in an upscale Lahore neighborhood and eating among the likes who own Pajeros and Land Cruisers is the trend, and that's how people are. Any business that captures such market niche would be successful.
Forget about if you find people going to McDonalds wearing Shalwar Kameez and gobbling on big mac ridiculous, that doesn'nt matter. If those people are willing to pay money, then that's what matters.
Assalamo-alaikum,
To be honest, after talking to someone who worked on MacD's and Pizza Hut, the quality of their food really is not that good for the price they charge. The stuff just doesn't fill u up.
But pakistani fast food buisnesses could learn a hell of a lot from the good standards of hygiene these places have (although this is more because of fear of being sued rather than care for the consumer. Believe me, if they could get away with murder, they would!)
But why do the 'Elite' clientelle going to these expensive places seem to be displaying a sense of cultural inferiority?
was-salaam
[This message has been edited by TripleA (edited November 24, 2000).]
Having learnt a little bit about these fast food chains, I also have mixed feelings. There are some misconceptions, biggest one perhaps is the repatriation of profits. Firstly, most these chains are owned by overseas Pakistanis, in shape of franchises. Mc Corp or Pepsi (owner of Pizza Hut) have no stake in the investment, they have only sold a license to sell their products there. So whatever money is being repatriated, it is going into Pakistanis pockets (minus the franchising fees). Secondly, these Pakistanis invest a great deal of their profits into other ventures in Pakistan, therefore, having some kind of trickle down effect. I had learned that the owner of Pizza Hut in Lahore was investing in Orange Juice factories in Sargodha, which will create employment for over 2000 people, in addition to peripheral businesses such as food stalls for employees around the factory.
In terms of food quality itself. I agree that it is overpriced, doesn’t taste anyway near the local off the sidewalk food, and the service is too artificial. There is a difference in being served by a RehRee Wala, who will give you additional Chutney for your Kababs, should you still have half a naan left. Try asking a McDee employee for a few additional fries.
I think after the craze dies down a little, Pakistanis will realize how great their own cuisine really is. To me, nothing comes closer to Pakistani food. Not even an aged ham.
The food sucks and the prices are outrageous... thats my take.
IMO, this industry is still in its infancy in Pakistan where it has matured in the west. The need to eat at a fast food joint will have its appeal for a while and then it will fade away, like the way it has in the west. Restaurants which stress on quality over speed, a la Steak N Shake, are beginning to gain foot hold in US and this trend should follow in Pakistan. I'll wait till then...
p.s.. why don't they open chain stores of cholley? haleem? or bun kabab??
I know what you're saying and it makes sense as far as business goes. I don't agree with restrictive practices in business (although with tariffs and customs there is always restriction in some sense). Certainly I don't blame Macdonalds or Pizza hut for going to Pakistan and making money. I am just a little disappointed that they have managed to sell their products at such high prices for that country. It kind of reflects our stupidity in a sense, after all.
Reminds me of the story of a consultancy firm on the web called Palm Computing. Some arab mailed them with a request for 4000 palm trees and this firm couldn't believe their luck and managed to track down the trees and sold them to the unsuspecting Arab who thought he was dealing with palm tree experts!
The way Pakistani city culture is going, you can even expect some other exotic cuisines restuarants opening in near future.
People in Pakistan have fewer opportunities in terms of entertainment. People who have money have lots of it, but fewer opportunities to spend it in a social setting. Any new, exotic, and trendy restuarant catch people's eyes and the bottom line result is you end up paying 500 Rs for a big mac.
As a matter of fact, it's not only the food business. I am going as far as to say that any new business which provides a social atmosphere and trendy air will boom in Pakistani cities (eg. Take the example of Pace in Lahore - on similiar lines, I think those game arcades can be very sucessful in Pakistan. Similiarly, shopping malls have bright chances of doing good). That's Pakistani city culture dynamics right now. People who got money, want to spend it, and they want to do it in front of others.
OK, so it seems to be a question of social prestige and showing off. People with enough cash can mould their social surroundings as they please- and the flavour of the month at the moment seems to be western fast food joints.
I have to say that the thing i find most uncomfortable when visiting Pakistan is the fact that these symbols of Western prosperity- and the prosperous Pakistanis going to them- juxtaposed with the absolute and abject poverty which typifies most of the country. Why do the top 5% or so of the population hold 80% of the money/resources available? Perhaps it is this type of competitive environment- where 90% of the people try to grab 20% of the resources of the country- that has resulted in levels of corruption stinking to high heaven. Those who are well off seem to be amazingly well off, so well off that they don't know how to waste their money!
I'd like to apologise if i seem to be 'bashing' any section of society- that is not my aim. I'd just like to learn a bit more about what is going on!
was-salaam