Inflation hits all companies large and small, Mc Donald's appears to be one of the worst hit this time. It has already hiked the prices for this year and that is not even its last. It has planned another hike soon due to the economic slowdown to adjust the fares fue to low demands. The chain of restaurants hopes that the prices will help them get through for another seven months.

This new hike follows a 5 per cent hike after the government increased the service tax rate in February. "There is pressure and it's a tough environment, no doubt. But inflation is at 8-10 per cent so we have to hike our prices," said one of the franchise owner said.

Indian market is clearly hit especially the food, clothing, automotive and restaurant businesses. People have been cutting down their expenses in these fields greatly

McDonald's entered India in 1996 without its signature hamburger, respecting local religious beliefs which mean many people avoid eating beef and pork. It has become India's largest fast food chain operator selling chicken and fish burgers along with vegetarian items like McAloo Tikki, which has a potato patty, and the McSpicy Paneer, filled with cottage cheese.


(AW- Anil)