How does the McDonalds in Korea play non-price competition?
There are 243 McDonald’s restaurants in South Korea today. Compared to the United States which has over 12,000 McDonald’s restaurants, it might be nothing but it is a fact that South Korea has ranked 12th for the most number of McDonald’s restaurants a country has. In Korea McDonald’s is not a cheap fast food restaurant unlike in the United States, but how come Koreans still go and eat there? That is because McDonald’s franchise in Korea plays a well-planned non-price competition with other fast food restaurants.
First McDonald’s in Korea sells food that fits to Korean’s taste without increasing the outcome. They do not sell the same products as they sell here in US. In Korea pork is cheaper ingredient than beef so they use pork in making patty instead of beef. Also they use different ingredients for patties and buns. They use shrimp, crab, bul go gi, chicken, and also beef for patties and have rice buns as well as normal buns, taking ideas from Korean culture.
Next, they provide a higher service to their customers than other restaurants. Customers can order McDonald’s via mobile phone and ask them to deliver it to their own houses. This delivery service brings the restaurants more customers who do not have a car, who are lazy, and who are unable to go out and get their meals.
How much subsidies McDonald’s received from the government and how was it used on?