McDonald's gears up for home run

McDonald's gears up for home run

Author | Source: The Economic Times | Saturday, Jul 29,2006 8:26 AM

McDonald's gears up for home run

After making its way to your hearts through your stomachs, fastfood major McDonald's is now planning another strategy to build its brand across India.

The company will soon have a national footprint for its McDelivery format. The quick service restaurant (QSR) chain will be rolling out its home delivery format across the country within the next few months.

Soft-launched in '04, the company had maintained a low profile on the home delivery channel. "We were soft-pedalling it (the channel) because we were deliberating on a uniform model for all our stores.

Having finalised the systems, we are now ready to make that channel more visible," said Vikram Bakshi, managing director, Connaught Plaza Restaurants, Mcdonald's franchisee for north and west India, told ET. The effort would result in incremental sales of 15% of its total revenue.

The fastfood chain has finalised one toll-free number, which will lead all the calls for home delivery to the store in the respective areas. The orders would be recorded accordingly.

Both the Indian franchisees of McDonald's are jointly making some substantial investment in telecom and logistics for the effort. Mr Bakshi, however, declined to share the figure. For areas, which are congested and where access is difficult, for instance, the Chandani Chowk area in Delhi, the company has flagged off McDelivery on bicycles.

The ongoing initiative coincides with McDonald's ten years in India. The fastfood chain has lined up major expansion plans in the coming months. "We plan to add 30 new stores this year and set foot in the East," Mr Bakshi said. The company has just signed up for two stores in Kolkata.

McDonald's is quiet bullish on the Indian market as a whole. While the parent company is making huge investments in supply chain and media communication, it has now begun to help the back-end supplier through direct investments in the joint ventures with them.

"While India is the youngest market for the Big Mac in the Asia Pacific region, the penetration it has achieved in the country matches most of the countries, where the chain is 20-30 years old," Mr Bakshi said. That is probably the reason why, while McDonald's had put a cap on rapid store expansions across the world, it desisted from putting any such restrictions on the Indian operations.

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