In the milieu of changing lifestyles and eating out becoming an everyday habit rather than a rare indulgence, foodservice operators need to be at the top of their game with healthy and safe offerings. McDonald’s India faced a controversy recently regarding the use of cheese substitutes instead of 100% dairy-sourced cheese in its popular products. It highlights how a single lapse can lead to the loss of trust and goodwill even for a renowned brand. It also brought to the fore the importance of correct labeling and the authenticity of ingredients, according to GlobalData, a leading data and analytics company.
Jaya Dandey, Consumer Analyst at GlobalData, comments: “Global fast food companies are increasingly gaining traction in India owing to its huge population and the cost-effective choices of consumers. With the growth potential also comes significant responsibility and accountability on the part of operators. The McDonald’s fiasco resulted in renewed scrutiny by the state of Maharashtra on all major foodservice providers for compliance with food standards.”
Francis Gabriel Godad, Business Development Manager, GlobalData India, adds: “Young and upwardly mobile consumers worldwide increasingly demonstrate a preference for convenient fast food. According to a GlobalData survey*, 51% of Indian consumers admitted that their spending at quick-service restaurants is very high or quite high. This validates the popularity of fast-food chains in India and the loyal consumer base most of them have. Recalls and ethical non-compliance in the food industry lead to big losses in profitability, putting the onus on fast-food chains to put in consistent efforts to retain customer loyalty.”
Dandey continues: “Dairy products such as cheese are widely used in fast food products, and customers place high priority on the taste and texture they provide. However, some inexpensive vegetable oil-based substitutes provide profit margins to the operators while offering the same textural elements. Indian consumers are wary of artificial alternatives in food products, not only for sensory reasons but also for safety concerns. This emphasizes the need for timely investigations and quality control of the ingredients being used.”
Godad concludes: “When consumers spot mislabeled or subpar ingredients at their chosen foodservice venues, they lose trust in the brand and switch to competitors, often for good. Moreover, with the power of social media, it does not take long for a single mishap to irreparably damage the label’s image. Furthermore, health and wellness have become focal points and are making consumers rethink their dietary choices altogether. When asked how they see their lifestyle evolving in the next three months, 82% of the survey respondents* in India said that they would start to cook meals at home from scratch, continue doing it, or do it more frequently. Service inconsistencies of foodservice providers and failure to comply with regulations will only reinforce such consumer attitudes in the long run.”
* GlobalData 2023 Q4 Consumer Survey – India, with 564 respondents, published December 2023
