McDonald’s, having won India, now targets ‘Bharat’ | business | Hindustan Times
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McDonald’s, having won India, now targets ‘Bharat’

After a successful stint across metropolitan and tier 1 cities, fast food restaurant chain McDonald’s India is eyeing Bharat for its next phase of growth. Vivek Sinha reports.

business Updated: Jun 20, 2011 21:59 IST
Vivek Sinha

Rural India may soon be saying “I am loving it”.

After a successful stint across metropolitan and tier 1 cities, fast food restaurant chain McDonald’s India is eyeing Bharat for its next phase of growth.

Bharat is a common reference to smaller cities and rural areas and McDonalds’s expects half of its revenues to come from such areas in the coming years.

“We are sowing seeds for our future growth,” Vikram Bakshi, managing director, McDonald’s India, told Hindustan Times.

The company would initially increase presence at highways that connect larger cities, he said. “A restaurant at the highways would ensure a regular stream of our loyal customers from the cities and help create awareness around the locality about our brand and food offerings.”

Eating out as a concept is fast cating on with people outside metros, fuelled by increased purchasing power and rising aspirations. “This is the right time for McDonald’s to step in,” he said, adding, over the next five to ten years the company expect to earn 50% of its total revenue from smaller towns and highway restaurants.

At present, around 80% of company’s revenue come from metropolitan and larger cities.

The company, which operates 215 restaurants across the country, plans to have at least 30% of its restaurants on the highways and in smaller cities by 2012-end. Bakshi, however, refused to divulge details about the exact number of new restaurants planned by the company.

The cities (and highways running through them) under the company’s radar include Panipat, Bhopal, Ropar, Neemrana, Amritsar, Khanna, Zirakpur, Dehradun and Zirakpur among several others. The size of an average restaurant along the highway would range from half an acre to two acres with around 3,000 sq ft of built-up space.

The company plans to invest around Rs 500 crore over the next five years to spruce up existing facilities and for expansion.