McDonalds to introduce brand McCafe in India

Written by fe Bureau | Mumbai | Updated: Oct 10 2013, 09:28am hrs
US-based burger chain McDonalds on Wednesday said it will bring its global coffee format McCafe in India. The maker of burgers and fries hopes to leverage the growing coffee-cafe market, estimated to be about R2,000 crore and growing at 30% year-on-year over the past three years, to add incremental revenues to its core business in India.

McDonalds subsidiary in India WestLife Development (WDL), a part of the Mumbai-based BL Jatia family will first introduce the format in western and southern India, followed by an expansion in the rest of the markets by Connaught Plaza Restaurants and led by franchisee owner Vikram Bakshi.

We built and established our core business over the last two decades. Its now time to introduce this new format as the acceptance for coffee is growing. This format will bring incremental business to our overall business while establishing McDonalds a coffee destination as well, said Amit Jatia, vice-chairman, WDL.

Jatia did not disclose how much in value terms does he anticipate the newer format to add to the revenues. Though reports indicate McCafe helps deliver 15% more revenue to a McDonalds in the market that it is already established. Jatia refused to talk about revenues per square foot.