Connaught Plaza to invest Rs 500cr to double McDonald's outlet
Connaught Plaza Restaurants, jointventure partner (North and East) of McDonald's, today said it plans to invest up to Rs 500 crore to double total number of outlets of the American fast food chain to 300 by 2015.delhi Updated: Jun 07, 2013 16:01 IST
Connaught Plaza Restaurants, jointventure partner (North and East) of McDonald's, on Friday said it plans to invest up to Rs 500 crore to double total number of outlets of the American fast food chain to 300 by 2015.
This year, the company will add 45 outlets to its present outlet strength of 152 stores.
"The aim is to double the number of restaurants by 2015 with an estimated investment of Rs 450-500 crore. We will continue investing," McDonald's India (North and East) Managing Director & JV Partner Vikram Bakshi told PTI.
The company today opened McDonald's largest outlet in India at Noida, spread across 8,000 sq ft as against an average outlet size of 3,500 sq ft.
"Flagship (outlets) like this is not a standard but we could look at opening more such stores depending upon demographics," Bakshi said.
On the timing of the expansion, he said: "This is the best time to grow. We can get better quality real estate and all resources are available. Most people slow down around this time."
While he did not share the exact turnover, Bakshi said the company is eyeing 30 per cent year-on-year growth in sales this year as against 25 per cent in 2012-13.
Bakshi said the company has been able to overcome squeeze in margins and maintain profitability by improving efficiency and introducing value added products.
McDonald's increased prices by 2.5 per cent last year.
The company, which turned profitable in 2009, has managed to keep its debt similar to 2009 levels.