McDonald’s India to double outlets in 3 years

PTI Mumbai | Updated on December 23, 2011 Published on December 23, 2011

Fast food chain McDonald’s India plans to double its outlets to 500 over the next three years with an investment of Rs 1,000 crore.

The American fast food chain McDonald’s is being operated in the country by two franchisees — the Hardcastle Restaurant promoted by Amit Jatia runs the chains in the West and South and Vikram Bakshi-led Connaught Plaza Restaurant runs the outlets in the North and East. Together these two franchisees run 250 McDonald’s outlets in the country now.

“We have about 250 McDonald’s outlets now and we will double the number in the next three years. Hardcastle runs about 130 restaurants and we will take it to 250 outlets in the next three years with an investment of Rs 500 crore,” McDonald’s India (West & South) Vice-Chairman, Mr Amit Jatia, told PTI here.

The rest of the outlets will be added by Connaught Plaza, which has about 120 stores now. The combined investment will be to the tune of Rs 1,000 crore over the three-year expansion period, he said.

A significant number of the new outlets will be the drive-throughs, which are typical highway outlets where take-aways are encouraged.

McDonald’s has 45-50 drive-through outlets in the company and the franchisees are keen to more than double the format.

“Drive-throughs is a big focus for us. We want to more than double its reach. The investment is more for a drive-through but we don’t give a breakup for the investment,” Mr Jatia said.

The company has tie-ups with Bharat Petroleum, Hindustan Petroleum and Indian Oil to have drive-throughs in their petrol pumps.

McDonald’s also plans to double its headcount in next three to four years by adding 2,500 people each year.

“Today we have about 12,000 working with us. We will double this in the next three to four years,” he said.

On the attrition level in the company, he said it is comparatively better at 30 per cent head churn while the industry average is a high 70 percent.

The company has managed to keep its prices affordable despite high input costs, Mr Jatia said, adding that normally he hikes prices by 3-4 percent on an annual basis.

McDonald’s India has set up farm and processing facilities that are owned by suppliers. It sources almost 98 per cent of its products locally.

Published on December 23, 2011
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