More yellow arches across India. The McDonald’s chain of fast-food restaurants is planning to penetrate further into the country, where it already has 160 outlets, with the business divided zonally between two units of the burger chain.
“We will invest Rs 400 to Rs 500 crore over the next five years to open 150 to 170 more restaurants in India,” said Amit Jatia, managing director, McDonald’s India (West and South).
The company spends around Rs. 3 crore on each outlet.
In 2009, the company will open 40 more restaurants, and add 200 people to its staff. The company follows the strategy of expanding in cities where it is present first, before moving to new areas.
The company, which became popular in India by coming up with a vegetarian burger and products suited to local tastes like the McAloo Tikki burger, has announced the introduction of ‘Chicken McNuggets’ to its menu for the Indian market.
Despite its popularity, McDonald’s has been hit by the economic slowdown, with its growth rate slumping to 35- to 40 per cent from 45-50 per cent. “We are still growing in double digits as far as same store sales growth is concerned”, said Jatia.
McDonald’s, which entered India 13 years ago, is present in 30 cities in India and serves 3 to 4 lakh people everyday.