Amit Jatia ceo of macdonald's inda.

1. AMIT JATIA
CEO of MAC DONALD’S(India)
Prepared By:Kevin Pastagiya (06)
MEB SEM - 1

2. History of Macdonald’s
• Since 1955, we’ve been proud to serve the world some of its
favorite food. And along the way, we’ve managed not just to
live history, but create it: from drive-thru restaurants to
Chicken McNuggets to college credits from Hamburger U and
much more. It’s been quite the journey, and we promise this is
just the beginning-we’ve got our hearts set on making more
history.
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3. History of Macdonald’s
• 1954
• Ray Kroc became the first franchisee appointed by Mac and
Dick McDonald in San Bernardino, California.
• 1955
• Ray Kroc opened his first restaurant in Des Plaines, Illinois
(near Chicago), and the McDonald's Corporation was created.
• 1957
• Quality, Service, Cleanliness and Value (Q.S.C. & V.) became
the company motto.
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4. History of Macdonald’s
• 1959
The 100th McDonald's opened in Chicago.
• 1961
Ray Kroc bought all rights to the McDonald's concept
from the McDonald's brothers for $2.7 million.
Hamburger University opened in Elk Grove, near Chicago.
• 1963
One billion hamburgers sold.
The 500th restaurant opened.
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5. Mission and values:• Macdonald’s brand mission is to be our customers favorite
place and way to eat and drink. Our worldwide operations are
aligned around a global strategy called the plan to win, which
center on an exceptional customer experiencepeople, product, place, price and promotion.
• We are committed to continuously improving our operations
and enhancing our customer experience.
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6. Amit Jatia
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7. Introduction
• Mr. Jatia, an alumnus of University of Southern
California, Los Angeles, left his family business of industrial
chemicals before establishing HRPL, as a JV (50:50 stake)
with McDonald’s Inc. for West and South India region.
• Amit Jatia, in more ways than one personifies the
entrepreneurial spirit, that young Indian businessmen aspire
for. He is credited for playing a significant role in facilitating a
smooth entry for McDonald’s in India. Today, he is
spearheading McDonald’s in West and South India.
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8. Background
• Mr. Amit Jatia, B.Com., B.Sc has been the Managing Director
of Hardcastle Restaurants Private Limited since 1995. Mr.
Jatia is responsible for all aspects of the establishment of
McDonald's in west and southern India including site location
and acquisition; site development and equipment installation;
supply chain and product development; marketing strategy;
and local government liaison.
• He has been with McDonalds since 1995. From 1987 to
1995, he was involved with Houghton Hardcastle (India)
Limited and served as its Managing Director since 1993.
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9. Background
• Mr. Jatia has been a Director of Sterling Holiday Resorts
(India) Ltd. since 2011. He serves as a Board Member of the
Young Entrepreneur's Organization and serves as a Member of
the Young President's Organization, Mumbai.
• He served as an Independent Non-Executive Director of
Sterling Holiday Resorts India Ltd since 2011. He served as a
Member of the Managing Committee of the Indian Merchant's
Chamber.
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10. Achievement
• He has been recognized for his achievements with the
awarding of the “Young Achievers Award“ by the IndoAmerican Society in 2003.
• Business world's “Most Respected Company“ award for the
Food Sector in 2005, for the third consecutive year, as well as
Images “Retailer of the Year“ award in 2004 and 2005.
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11. Interview of Amit Jatia
• What is the investment for the 75 to 100 restaurants that
you are putting up in two years?
It would be Rs 300 crore and we propose to fund that through
internal accruals. We also recently raised Rs 180 crore from
Arisaig, which would help us in our endeavour to expand our
footprint in the west and south of India. We also have the
option of raising debt. In short, there are avenues available to
us to raise money.
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12. Interview of Amit Jatia
• Much of your stores are leased. Are you comfortable with
this model?
Yes. That is the model that we have in place and it has worked
for us. We have very few company-owned stores and we do
not propose to increase this number. We also have different
formats in places such as kiosks, stores located in food
courts, malls, high-street locations. It is a mix that we have.
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13. Interview of Amit Jatia
• Is it easy to maintain price lines when utility and food costs
are shooting up?
It is a challenge. We are a value brand. So yes, we have to be
conscious about price. At the same time, we cannot allow
margins to erode. To answer your question, we have to look at
price hikes, the frequency of which depends on how much the
inflation is biting us.
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14. Views
• According to Amit Jatia, the forty-year-old entrepreneur who
manages the franchise in southern and western India:
“Glocalization, in a word. We couldn’t cut and paste business
models from other countries, but we needed to bring the
McDonald’s brand and its expertise in supply chains and
restaurant operations to India, and combine it with local
requirements and culture.”
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15. Views
• At the outset, the Indian partners( Amit Jatia and Vikram
Bakshi ) had to convince McDonald’s that to succeed in
India, it would need an entirely different menu, low price
points, and a highly localized business model. Customer
feedback had shown that many Indians would not even enter a
restaurant that served beef or pork.
• India therefore became the first country in the world where
McDonald’s does not offer beef or pork items. Other than
fries, beverages, the McChicken sandwich, and the Filet-OFish, there is little in common between a McDonald’s in
Bangalore and one in Boston.
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