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McDonald's announces aggressive expansion plans

10-May-2005
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McDonald's announces aggressive expansion plans

McDonald's North India yesterday announced an aggressive expansion drive under which it plans to open 14 family restaurants, four McDonald's Express and six McDonald's Kiosks. Its current strength is 70 restaurants in the country. The company has invested around Rs 400 crore for this expansion.

The idea behind this is to fortify its position by introducing unique convenience formats such as the McDonald's Express, Kiosks and Home Delivery, in addition to the full menu family restaurants.

The new restaurants will be located in the states of UP, Uttranchal, Punjab and Himachal Pradesh. Some of the non-Metro towns and cities targeted include Agra, Allahabad, Ghaziabad, Kanpur, Dehradun, Chandigarh and Shimla.

Vikram Bakshi, Managing Director, McDonald's India, and Joint Venture Partner for North India, said, "We see the Indian QSR industry growing at a rapid pace. To leverage on this huge opportunity, and establish ourselves as a volume driven mass marketer, we are focusing on three key essentials - an extremely high quality product accepted by the customer, affordability and penetration through an increase on the number of outlets, introduction of home delivery and new formats to offer branded convenience to the customer. This heralds the beginning of the phase to establish a Pan-India presence."

The company is expanding its presence on national highways, Expressways, Airports, railway Stations and other places of convenience. Currently, McDonald's has six restaurants on the National Highways at Mathura ( Delhi-Agra Highway), Karnal ( Delhi-Chandigarh Highway), Doraha ( Ludhiana), Jallandhar, Manesar (Delhi-Jaipur Highway).

"Our focus will remain on branded affordability in the non-Metro cities. This new avenue would drive 50 per cent of our growth and within two years time we hope to hit our first century of restaurants. Along with our suppliers, we will be infusing about Rs 400 crore as investment to support our latest initiatives," he added.

Asked on the contribution from its home delivery service, he said, "The service that was launched a year ago today contributes 15 per cent to sales." The three formats of restaurants in operation today are the full menu restaurants, the McDonald's Express, selling limited menu offerings and the Kiosks, which offer only beverages and desserts. The later would be introduced in malls, food courts and petrol pumps.

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