Given the evolving lifestyles where dining out is now commonplace rather than an occasional treat, foodservice providers must prioritize offering healthy and safe choices. McDonald’s India recently encountered a controversy over its use of cheese substitutes instead of 100% dairy-sourced cheese in its popular items, underscoring how even a single oversight can erode trust and reputation for a well-established brand. This incident underscores the crucial importance of accurate labeling and ingredient authenticity, according to GlobalData.
Jaya Dandey, Consumer Analyst at GlobalData, said, “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.”
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Francis Gabriel Godad, Business Development Manager, GlobalData India, added, “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.”
Cheese and other dairy products play a significant role in the taste and texture of fast food items, making them a priority for customers. Yet, operators often opt for inexpensive vegetable oil-based substitutes to boost profits while maintaining similar textural qualities. However, Indian consumers are cautious about artificial alternatives in food, not only due to taste preferences but also safety apprehensions. Jaya Dandey emphasizes the importance of prompt investigations and quality control measures for the ingredients utilized in such products.
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Francis Gabriel Godad concluded, “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 per cent 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, the report stated.