How McDonalds failed in Fiji - then fixed it - My Business
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McDonald's initially struggled when expanding to Fiji due to failures to understand local culture and assumptions that their brand would be universally understood. They failed to recognize that half the population was Hindu and did not eat beef. Locals complained about "cheeseburgers" containing beef. McDonald's also gave unclear instructions to employees, like asking one to collect garbage miles from the restaurant. They have since learned the importance of cultural understanding and clear communication for international expansion.
How McDonalds failed in Fiji - then fixed it - My Business
- 1. 3/19/15, 3:51 PMHow McDonalds failed in Fiji - then fixed it - My Business Page 1 of 2http://mybusiness.com.au/marketing/how-mcdonalds-failed-in-fiji-then-fixed-it Story by "Justin Grey" | July 12, 2011, 10:01 AM How McDonalds failed in Fiji - then fixed it Category: Marketing Home Special Features Finance Marketing Technology Blogs AwardsSearch search... Subscribe online for mybusiness My Business contains fresh, easy-to-read articles, money-making tips and expert advice. Subscribe now Sign up for our E Newsletter Our free, weekly newsletter brings you the bes site, plus giveaways and other fun. Sign-up no receive every digital edition in 2014 of My Bus FREE! Sign Up | Contact Us More VideosMyBusiness TV Share View Comments Merrill Pereyra spent 23 years with McDonald's as a Senior Executive responsible for expanding the company's operations into local and international markets. In this extract from his new book, Expand Your Brand, Merrill explains why it is critical to understand the culture of any new export market you target. Merrill Pereyra spent 23 years with McDonald's and rose to become a Senior Executive responsible for entering new markets. In this extract from his new book, Expand Your Brand, Merrill shares the experience of cultural clangers in Samoa and Fiji. CHAPTER 16 - LOST IN TRANSLATION: COMMUNICATIONS “Think like a wise man but communicate in the language of the people.” - William Butler Yeat It might sound really obvious, but many people simply do not think about what language they would like to conduct business in. Of course the day-to-day store business is conducted in the local language and trades in the local currency. But often business meetings and management training is carried out in another language. In McDonald’s case, it’s English. Straight away you have identified that you will need a bilingual assistant. Trust me it really helps. In the early days always check every translation even for the smallest memo; sometimes what we say is not what we mean. By way of illustration, when an order is taken with a slight irregularity, say for example, a Big Mac with no cheese, we call this a ‘grill order’. On the opening day in Samoa it was hot and really busy. I was running around lubricating the wheels of industry and closing gaps when I noticed one customer who was waiting a long time and it transpired that he was waiting for a ‘grill order’. I started shouting, ‘Come on, get the grill out. I want the grill out now!’ or words to that effect. After some time, I noticed that everything was slowing down. Like really slow. So I went into the kitchen and found four chefs trying to get the grill out. No, I mean the big apparatus for cooking the food. There were four strong Samoan guys about to pull the grill up from the floor and out of the wall. I screamed, ‘Stop! What are you doing?’ They looked at me in disbelief, ‘We are getting the grill out just like you asked!’ Never assume that just because you are an established brand, everyone will be familiar with the way you present or operate your business. It’s essential to conduct surveys and do research to find out what they know or what they assume about your brand. Humans are very good at adding two and two and getting seven. We made a grave assumption in Fiji: somehow we missed the fact that half the Fijian population were Fijian Indians and a large percentage of them, due to religious reasons, do not eat beef. On the first day we were met with countless complaints about the cheeseburger. I tasted a few and they were great. As the manager slowed down and I became present enough to hear what he was actually saying, I could not believe my ears. The complaint was about false advertising and misrepresentation. When they ordered a cheeseburger they did not expect it to come with beef but only cheese. It was obvious to us, and equally obvious to them, what ingredients a cheeseburger contained – right? We had to act extremely quickly and have all the menu boards and signage updated to say, ‘Contains beef’. I remember on the morning of the opening of the first restaurant in Fiji we had all been working like crazy to get ready. With about one hour to go before the opening an employee came up to me and asked me what I wanted him to do for the day as he was on the staff roster, but without a job description. I did not have the time to sort it out there and then so I improvised. I looked around and spotted a garbage bin on wheels that McDonald’s use for their car park and immediate surrounds. I asked him to make sure that he got all the litter from around the area. The day was chaotic but it went relatively well. Later on that evening around 5pm, when I was heading back to my hotel for a fresh change of clothes, I saw the same employee picking up the garbage some six kilometres away from the restaurant. I could not believe my eyes. I asked him what he was doing and he said, ‘Cleaning up the area boss!’ I commended him on his initiative and dedication, gave him the money for a taxi home and told him we’d deal with the bin in the morning. Key Points Be clear, be specific, be simple. Ensure that you have a bilingual partner or assistant in foreign countries. Ask for some instructions to be repeated back to you. Assume your team are hearing something for the first time until you find a clear communication channel
- 2. 3/19/15, 3:51 PMHow McDonalds failed in Fiji - then fixed it - My Business Page 2 of 2http://mybusiness.com.au/marketing/how-mcdonalds-failed-in-fiji-then-fixed-it © 2015 My Business Google+ Site Map Contact Us Media Kit Share | back to top and a frequency that everyone understands. Always recap your meetings and conversations in 24 to 48 hours of the event happening. Write things on memos in large print for the staff locker rooms. Learn some local common phrases and have fun with communication. Never assume that just because you are an established brand, everyone will be familiar with the way you present or operate your business. PayPal Here continues to enable small business owners 1 comment • 8 months ago Peter Parker — Paypal is one of the most popular site which eables to small business to easily accept credit card … New ASIC app to help small business owners with due diligence 1 comment • 8 months ago Peter Parker — I hope ASIC app provide excellent help to small business owners undertake important checks before … Physical cash to be phased out by 2025, says ANU academic 1 comment • 16 days ago originalgrendelsmum — Almost 10 years too late with prediction - Australia hasn't had "paper cash" since 1996. Do unions have the right to enter your lunchroom? 1 comment • 4 months ago Justine — Great article! Thank you for the insight. ALSO ON MY BUSINESS MAGAZINE 1 Comment My Business Magazine Login! Share⤤ Sort by Best Join the discussion… • Reply • chaos • 2 years ago Hahaha its funny when you say all this it does excited, we dont grow up with burgers we grow up taro an cassava, an yes keep it simple or some knowledge from cooking to prepping to advertising reminder. △ ▽ WHAT'S THIS? Subscribe✉ Add Disqus to your sited Privacy% Recommend♥ 3 Share › Government news for business Have your say on the future Australian Small Business and Family Enterprise Ombudsman Don’t wait! Submissions close soon... How the government cut red tape for business in 2014 Get the details now… Do you use measurement to work out your prices? Find out more about trade measurement and your business... Whitepapers Most popular stories