McDonald's Halts Tomato Supply from India Due to Quality Concerns Amid Soaring Prices

In response to soaring tomato prices and supply shortages, fast food chain McDonald's has decided to exclude tomatoes from its burgers and wraps in various regions of India. Wholesale prices for tomatoes, a staple in traditional Indian cuisine, have skyrocketed by 288% within a month, reaching a record high of 140 rupees ($1.7) per kilogram on Friday.

This surge in prices has led many consumers to reduce their tomato consumption. The Indian government attributes the price increase to a lean production season marked by disruptions in transport and distribution due to monsoon rains. However, this issue comes after consumers have already been grappling with higher prices for various items, including milk and spices, in recent months.

Notices displayed in two McDonald's stores in the capital city, New Delhi, explained the absence of tomatoes, stating, "Despite our best efforts, we are not able to get adequate quantities of tomatoes which pass our stringent quality checks. We are forced to serve you products without tomatoes." McDonald's franchisee for the north and east regions of India, Connaught Plaza Restaurants, attributed the decision to "temporary" seasonal issues rather than pricing concerns.

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In contrast, Westlife Foodworld, the franchisee of McDonald's responsible for operating 357 restaurants in the western and southern regions of India, stated that they did not encounter any major issues specifically related to tomatoes. According to the franchisee, the issue was seasonal and affected only 10% to 15% of its stores, resulting in a temporary suspension of tomato usage.

While McDonald's Delhi locations still provide tomato ketchup sachets, a nearby Subway restaurant confirmed that they had no issues serving tomatoes. Meanwhile, vegetable vendors across the country have experienced a significant decline in tomato sales. Vijay Sharma, a vegetable vendor in Mumbai, reported that his daily sales dropped from 40 kilograms (88 pounds) to just five kilograms due to customers cutting back on tomato purchases.

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As the demand for tomatoes declines, some businesses are suggesting alternatives. An advertisement on the BigBasket shopping app, owned by the Tata conglomerate, encourages consumers to use tomato puree as a substitute when faced with high tomato prices.

While McDonald's is grappling with quality concerns and tomato shortages in India, it remains to be seen how long the situation will persist and how it will impact the fast food chain's offerings in the region.

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