McDonald’s India walks the line between value and novelty

For Arvind RP, chief marketing officer of McDonald’s India (West & South), the fabled golden arches are tied to a double set of memories. First, as a boy in Delhi, it was the Karol Bagh outlet—birthday parties, post-movie visits, the thrill of fast food on special occasions.

Second, as a professional, it was the week after he joined the company. manning counters, frying chips, scrubbing floors, and learning the hidden choreography behind the brand’s carefully calibrated customer experience.

These recollections, both personal and professional, now serve as touchstones for how he thinks about marketing.  “How can we bring those memories alive year-after-year—be it a birthday, a date, celebrating your first salary or giving your mother a treat—through storytelling?” Arvind often asks his team.

Much of McDonald’s growth in India has hinged on understanding that value is not just a price point—it’s an entry point. A well-worn industry anecdote has it that the company’s INR 7 softie, launched in the late 1990s, was a lure to get customers through the door.

While Arvind does not confirm the “urban legend,” he frames it as part of the chain’s consistent approach.

“Part of our playbook is to have attractive price points for every occasion, including dessert. Ice cream is an impulsive purchase for people walking in after a movie screening or hanging out after college. Similarly, our McSaver combos are another example of an attractive price point,” he explained.

The tactic works beyond impulse treats. By making burgers, chicken, coffee, and desserts accessible, McDonald’s nudges customers to try something new on repeat visits. Over six to nine months, that cycle helps build long-term customer value, balancing affordability with brand stickiness.

Ordering without judgement

In 2018, McDonald’s India introduced self-ordering kiosks. Another urban legend framed them as a response to the quiet anxiety of ordering face-to-face—the pressure of queues, the perceived judgement of cashiers.

Arvind concedes there is some truth to it. “Placing an order at the self-ordering kiosk is much more private and personal, where they can take time to customise their order. And when they spend more time, they might end up ordering a little more than usual. So, kiosks are a big win for the consumer and McDonald’s.”

Beyond psychology, kiosks were also a practical bet on India’s digitally-forward consumers. The ability to tailor meals and avoid counter bottlenecks resonated. Today, they are one of the brand’s most consistent revenue drivers—proof that convenience can be just as compelling as cost.

Customisation as cultural strategy

For a brand that has battled ‘burgers-are-not-Indian-food’ scepticism since its arrival, localisation has become McDonald’s survival playbook. From the McAloo Tikki Burger, which evolved into a global bestseller, to the McMaharaja and Masala Grill Chicken, the menu reflects a careful balance of Indian tastes and Western fast-food formats.

“It’s not an easy task because every culture is different and food habits change vastly every 100 kilometres,” Arvind says. “But food is at the centre of McDonald’s culture which gives us marketers a fertile area for building our brand playbook.”

This fusion extends into themed menus and limited editions. A BTS meal tapped into the K-pop wave.

Shruti Kopekar from Pune hoped she would get a chance to meet one of the Bangtan Boys from the BTS in person. Alas, that was not part of the brand collaboration. But she still ended visiting the Shivajinagar outlet in the hope that every bite of the chicken nugget would bring her closer to her musical idols.

Similarly, a Korean food festival drew on India’s growing appetite for global cuisines. Anime-themed outlets and Minecraft tie-ins turned restaurants into cultural playgrounds. “It’s about making experiences more authentic because advertising alone won’t do justice for such deep storytelling,” Arvind notes.

McDonald’s has increasingly cast itself as a backdrop for everyday Indian rituals. Last Diwali, it positioned outlets as extensions of the home—festive spaces where families could celebrate together. “The idea is to refresh consumers' memories about the role McDonald’s plays in their lives,” Arvind says.

At the same time, the brand has had to respond to a consumer discourse increasingly shaped by health, hygiene and provenance. Its ‘Real Food, Real Good’ campaign emphasised supply chain practices, innovation, and cold chain infrastructure. “Nothing beats home-cooked food, but everyone needs a break,” Arvind argues. By spotlighting both quality control and emotional occasions—college hangouts, drive-through snacks, or family meals—the chain tries to straddle indulgence and reassurance.

Value under pressure

Globally, McDonald’s is under strain. U.S. same-store sales fell 3.6% in Q1 2025, with CEO Chris Kempczinski warning of a “two-tier economy.” Developed markets such as the U.K. and Australia posted 1% declines, while developing markets, buoyed by the Middle East and Japan, rose 3.5%.

How does this translate to India? Arvind says the middle-income consumer remains relentlessly value-conscious. “Our global playbook focuses on value platforms, like the McSaver meals, at an attractive price point. The consistent we are, the resilient we will be when it comes to any macro trend. But it’s important to add new layers on top of these value platforms, or refresh it, as consumers can become jaded.”

This mix of consistency and novelty is core to McDonald’s India strategy: affordability anchors the brand, but periodic “surprise and delight” keeps it relevant.

As consumer journeys fragment across outlets, delivery apps, and quick commerce platforms, McDonald’s has had to recalibrate its media spend. “In the last 6–7 years, around 50% of our marketing spends was on digital; today 70–75% of it is around digital,” Arvind says. From YouTube and Instagram campaigns to retail media tie-ins with Swiggy and Zomato, the focus is on being omnipresent.

“The challenge is to ensure we are relevant at all touch points, whether it is the golden arches on Google Maps, hoardings on the highway, or ads on retail media channels,” he adds. With Indian consumers toggling between price sensitivity and a growing appetite for premium experiences, hyperpersonalisation is no longer optional.

Premium and value

McDonald’s now plays at both ends of the market. Value seekers are offered McSaver meals and softie treats. For premium buyers, gourmet burgers launched three years ago offer a different hook. “The increase in competition is good news,” Arvind says. “One of McDonald’s clear differentiators is that we are omni-occasion for an omni-channel brand—be it a drive-through, delivery or in-store experience. Replicating that playbook is very hard.”

That dual strategy mirrors what many marketers are finding: India’s middle-income consumer is increasingly bifurcated. Some want reassurance on price. Others seek upgrades. Few want to feel left out of either.

McDonald’s India’s journey is a case study in adaptation: softies as bait, kiosks as democratisers, menus that swap beef for potato, and campaigns that turn restaurants into cultural stages. Yet beneath the marketing stories lies a harder truth: the QSR sector in India is both booming and brutally competitive. Domestic chains are upping their game, new global entrants are circling, and consumer expectations are rising on both affordability and quality.

Arvind’s memories of Karol Bagh and the back kitchen may provide a romantic anchor. But the reality is less sentimental. To thrive in a “two-tier” economy, McDonald’s India must continue balancing nostalgia with reinvention, value with aspiration, digital with in-store. The arches may be golden, but the ground beneath is shifting fast.