McDonald's Delivers in Many Developing Nations.

McDonald’s Delivers

Dec 7, 2012 • Businesses, Demand, Supply, and Markets, Developing Economies, Economic History, Innovation, International Trade and Finance, Uncategorized • 713 Views    No Comments

McDonald’s takeout? Just call or order online and they will deliver.  But… you need to be in China.

Actually, as of 2011, delivery was a part of McDonald’s competitive strategy in 18 countries. Developing nations with densely populated cities, little land available for drive throughs, and lots of cheap labor for scooter deliveries were ideal for McDelivery.

Here is an ad for McDonald’s Malaysia McDelivery:

Looking for new ideas as revenue growth sagged, McDonald’s tested the delivery approach in Cairo during the mid-1990s. With courier fees covering the expense of the delivery men, the toll free 800 calls to a call center, and the motorbikes, the profit margins were enticing. They only had to figure out how to keep the French Fries crunchy and the McFlurries cold. (Battery powered vented heating boxes took care of the fries and insulated bags did the cold stuff.)

By contrast, in the US, because McDonald’s wants diners to use their drive throughs, they have minimized the delivery option. I did read, though, that a few McDonald’s will deliver in Manhattan to nearby high rises.

Our bottom line? As with Chinese Oreos and the French Le Croque McDo from McDonald’s, worldwide competition requires adjusting, culture by culture.

Sources and Resources: Businessinsider has some fascinating slides on McDonald’s and a recent article on McDelivery. Dating back several years, here and here, articles from Bloomberg and WSJ described the early spread of the delivery concept. If you want to place an online order at a Manila McDonald’s, you can do it here.

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