McDonald's has experienced both success and challenges in expanding to China. With over 235 restaurants, McDonald's menus have been customized to local tastes like spicy wings in Beijing and vegetable nuggets in New Delhi. While some see McDonald's as promoting cultural imperialism, others view it as a symbol of modernization and a safe, child-friendly environment. McDonald's has targeted children aged 3-13 and their parents, and celebrates birthdays to become a popular community gathering place. However, McDonald's has also faced anti-American protests as a symbol of Western influence. As China's population ages, McDonald's role may shift from focusing on children to welcoming retirees.
2. McDonaldization in China
• 235 restaurants in China
• 158 McD franchises in Hong Kong
• One McD for every 42,000 residents
• Menu board in Chinese with
english in small letters
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3. Cultural Imperialism through McD
• Thomas Friedman says “McDonald’s serves
the interest of middle classes that are
emerging in autocratic, undemocratic
societies. Countries that have a McDonald’s
within their borders have never gone to war
against each other”
• Experience: eating in a cheerful,
AC, child-friendly restaurant that
offers revolutionary innovation
of clean toilets
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4. Localization of McDonald’s
• Daniel Ng, an American-trained engineer,
opened Hong Kong’s first McD in 1975,
promoting McDonald’s as an outpost to forget
that they lived in a tiny colony on the rim of
Maoist China
• The signs outside his first restaurant were in
English, the Chinese character for McDonald’s
didn’t appear until the business was safely
established
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5. McD: Menu Customization
• McDonald’s open a new restaurant every 17hrs
• Makes heroic efforts to ensure food looks, feels
and tastes same everywhere
• Menus vary only when need for beyond burgers
and fries
Spicy Wings – Beijing
Vegetable McNuggets – New Delhi
Kosher Big Macs - Jerusalem
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6. McDonald’s Success Secret
• “Golden Arches”
• Targeted Children of age 3 – 13 yrs and their
harried, stressed-out parents
• Parents wanted their children to connect with
world outside China
• “McD important stop on way to Harvard or MIT
• Haven for school age children
– No smoking, no alcohol
– Effectively eliminating drugs and gangs
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7. Celebrating with the Little Emperors
• Changing lifestyle and family culture helped McD
• McD promotes Birthday Party
• McD offers a party package (food, cake, gifts,
toys) – Ronald Room
• Convenient and welcome place for family
celebrations
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8. Feeding China’s Little Emperors
• Entertain children and help frustrated parents
– Uncle and Aunty McDonald
• Outlet visits as reward for good
behavior or academic achievement
• Children are full scale customers who
command respect in today’s economy
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9. McDonald’s: Set Backs
• Often preferred site for anti-American
demonstrations
• Past 5 yrs, McD has been targets of violent protests
• Like the Stars and the Stripes, the Big Mac stands
for America
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10. McD: A Cultural Change
• Clean toilets showing public civility
• Changing local culture and higher standard of
company
• Young crew local workers promoted to
management’s rankings
• Changing fast food restaurants into leisure
centers for seniors and after school clubs for
students
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11. Imitating McDonald’s
• McD attracts Chinese – food is safe, clean and
reliable
• New model of modernization, hygiene and
responsible management
• McDucks, Mcdonal’s, Nancy’s Express(N) and
Honggaoliang (H) : dressing uniforms coperate
mascots, showing cleaniness
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12. China’s graying population
• With the increasing of the elders, the locus of
consumer power will soon shift generations as
the parents of today’s little emperors retire
• McDonald’s : from a child-centered industry to
be a welcoming retreat from
the isolation and loneliness
of urban life
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