McDonald's Expands Menu with McCrispy Amid Urban and Rural Shifts

In September 2024, McDonald’s India (West and South) launched the McCrispy Chicken burger, a globally popular menu item, into the Indian market. This introduction came at a time when urban demand was slowing, rural demand was increasing, and more consumers were opting for premium products. Meanwhile, competitors like Burger King were introducing more budget-friendly options.

Leading FMCG companies also noted the weak urban market. Nestlé India’s CEO, Suresh Narayanan, pointed out pressure from big cities and metro areas, while Tata Consumer Products mentioned a drop in urban demand during the same period.

To capture both ends of the market, McDonald’s launched the McCrispy Chicken along with its vegetarian version, the Crispy Veggie. According to Arvind R P, the Chief Marketing Officer of McDonald’s India (W&S), the goal is to strengthen McDonald’s position in the “large filling burger space.” While the McCrispy and gourmet burgers aim to retain existing customers, budget-friendly options like the Rs 69 Chicken Surprise Burger and the Rs 75 McAloo Tikki are designed to attract new ones.

Despite its Rs 199 price tag, Arvind clarified that the McCrispy is not considered a premium burger. He said a product priced at Rs 250 or higher—like the Maharaja Mac—falls under the premium category, whereas the McCrispy sits just below.

With urban demand facing challenges and rural demand growing, McDonald’s continues to target different consumer segments. Affordable options like the Chicken Surprise Burger cater to the masses, while premium items attract those looking for a larger meal. This balanced approach aims to appeal to both price-conscious and premium-seeking customers.

The brand is also exploring future variations of the McCrispy, similar to its McSpicy range, which already includes different versions like McSpicy Deluxe and McSpicy Premium.

In response to rival QSRs, McDonald’s maintains strong offerings for entry-level customers, with the Chicken Surprise Burger showing excellent performance. Additionally, McSaver combos are available at similar price points.

McDonald’s is currently focusing on enhancing the appeal of its Chicken Surprise and McCrispy burgers, investing resources to strengthen these product categories. Arvind emphasized that despite its price, the McCrispy doesn’t belong in the premium category but fits well with McDonald’s diverse menu.

The decision to introduce the McCrispy in India came after in-depth research. McDonald’s aimed to tap into the growing demand for large, filling burgers, similar to its 2021 launch of the gourmet range. The McCrispy burgers were customized specifically for Indian tastes, with additions like pepper mayonnaise to cater to local preferences.

Arvind also highlighted that the McCrispy’s launch campaign was designed to showcase delivery and takeaway options, although the burger has performed well in dine-in scenarios too. The focus on various eating occasions supports McDonald’s omni-channel strategy.

As for the McAloo Tikki, Chicken Surprise, and McCrispy burgers, Arvind stated that entry-level products help bring in new customers, while filling burgers like the McCrispy are geared towards family dining and customer retention. The initial response to both the Chicken Surprise and McCrispy burgers has been highly positive, especially in the omni-channel environment that McDonald’s continues to develop.