McDonald’s To Further Expand Its Brand In India

McDonald’s is looking to expand its business past the usual burgers and fries. Although McDonald’s is well-known in India for being a burger chain, reports show that a fourth of its revenue comes from ice-creams, coffees and smoothies.

After falling behind Domino’s in 2013 and with KFC overtaking them in the QSR (quick service restaurants) sector, McDonald’s has ramped up it’s plans to expand its brand in more ways than just a burger restaurant. The restaurants currently has four avenues of revenue – home delivery, dessert kiosks, McCafes and breakfast. Amit Jatia, vice-chairman of Westlife Development and McDonald’s partner in West and South India, talking to Economic Times noted that the sales value of these four offerings will reach 850 crores in the next four years.

McCafe, a coffee house style offering by McDonald’s, is said to be the prime revenue generator for McDonalds in the coming years. It has already surpassed the revenue generated by normal restaurants. Jatia noted that there has been around 52 new McCafe openings and further expansion in the near future.

Jatia mentioned there are plans to further expand the brand by opening new restaurants and has already earmarked around Rs. 750 crores for 200 new restaurants in the coming years. Although the revenue generation has increased by 21%, McDonald’s have had its hands tied due to a unreliable economy and its own legal battle with its previous partner in North India, Connaught Plaza Restaurants.

The QSR revenue is on target to exceed Rs 16,800 crores by 2018 and McDonald’s is doing its best to grab a share out of that money making pie.