Emphasising that the burger giant is not worried about Subway, rival quick-service restaurant brand, overtaking it globally, Mr Amit Jatia, Vice-Chairman, McDonalds India (West and South), said it was a matter of how one looks at the size of companies. “In terms of revenue (globally), we are far ahead of them (Subway stores). While we are at $24 billion, they are at $10-15 billion.”
At the end of 2010, McDonalds globally had 32,737 outlets, while Subway had 33,749 stores. In India too, the two brands are neck and neck (in terms of store count in the first week of March), with McDonalds at 211 outlets and Subway at 200.
Mr Jatia added that McDonalds also believes in offering larger outlets to customers with each store at about 3,000-3,500 sq ft, stressing that the brand stands for affordability and mass-market reach.
McDonalds India (West and South) is a franchise-operated business by Hardcastle Restaurants. McDonalds Corporation sold out its 50 per cent stake it had in the joint venture with Hardcastle. McDonalds India (West and South) now joins the global league of franchisees that have 100 per cent ownership of the operations. It plans to invest Rs 550 crore to increase its presence from 110 restaurants now to about 250 outlets in the next three-four years, he said.
Funding for the expansion would be through internal accruals. About six lakh customers walk into McDonalds everyday. “The revenues are healthy enough for us to fund our expansion,” he said.
McDonalds (West and South) in India is experimenting with new menus, having just launched a spicy range and a breakfast menu. The company will also launch an instant feedback initiative through a digital marketing initiative. The ‘Spice-o-Meter' that records consumer feedback on the spiciness of its menu is displayed at all its outlets and outdoor hoardings across the region.