McDonald’s plans to invest up to 600 cr in its north and east.
MMG Group, which owns and operates McDonald‘s restaurants in northern and eastern India, will invest Rs 400-600 crore over the next three years on reimaging of outlets and opening new ones, its chairman, Sanjeev Agrawal, told ReTale.
“All the investment financing shall be sourced internally. Currently, we have approximately 6,000 employees, with plans to hire about 1,500 people this year,” said Agrawal, adding that the company plans to hire about 5,000 people over the next three years.
MMG Group had won the rights to run McDonald’s outlets in northern and eastern India three years ago. Since then, McDonald’s outlets have come up in several new markets, including Orissa, Assam and Shimla, according to Agrawal.
“This year, our target is to open 40 new restaurants. Currently, we have 170 outlets. We shall also be opening the first McDonald’s outlets in markets such as Ranchi, Jamshedpur, Sri Ganganagar, Siliguri and Gorakhpur, besides expanding in eastern India,” he said. “We are also expanding our footprint by opening more outlets in Delhi, Punjab and Uttar Pradesh this year.”
MMG has also opened ‘no onion, no garlic’ McDonald’s outlets along the Vaishno Devi shrine path at Katra and Tarakot, expanding the number of vegetarian McDonald’s restaurants operational in the region to three. One such vegetarian outlet has been running near the Golden Temple for long.
Agrawal said even after the new ‘experience of the future’ outlets, there is no intention to change the pricing, but the company will consider introducing premium offerings by the end of this year or the beginning of next year, as demand for premium products has increased.
“We will offer the best experience to our customers at the same price,” he said, adding that the company opened northern and eastern India’s largest QSR outlet in Assam in December last year. The outlet, spread over more than 6,700 sq ft, got a “fabulous” response.
Meanwhile, Anant Agarwal, vice chairman for McDonald’s India North and East, said the company has already achieved the highest revenue per store per day among all QSRs and has ramped up the marketing spends by 30% this year.
“Our focus for the next two to three years would be on burgers, chicken and coffee through the three Ds–deliveries, drive-through and digital,” he said.
Two years ago, McDonald’s North and East started with its reimaging plan for the restaurants, and till date, 42 have been reimaged into ‘experience of the future’ outlets, besides the new ones. These new outlets offer table service, self-ordering kiosks, split counters, and digital menu boards. Technology plays a key role, and there is no more shouting out for orders.
McCafé is also a ‘very critical brand extension’ and a very important part of the company’s coffee strategy, said Anant Agarwal.
The company has 15 McCafés across the national capital region and Punjab and plans to have more than 30 such outlets at the end of 2023 and more than 90 by the close of 2024.
According to Anant Agarwal, some 7% of the sales comes through the global marketing app and the company is planning to launch its own loyalty programme on the app by next year.
“We will focus a lot more on ramping up sales through the internal global marketing app instead of tying up with aggregators. In future, the aim is to increase dependence on the app,” he said.