McDonald's hopes to break even next year

McDonald's India, which started operations in India seven years back, hopes to break even by next year.

The company has 50 outlets in India, while it will open three or four restaurants in the next three months in the northern and western parts.

According to Amit Jatia, McDonald's India managing director (western region), the company will strengthen its base in northern and western parts of the country before entering the southern and eastern markets.

He said the company's entry into the southern markets, including setting up restaurants on highways, is expected by 2004, while it is yet to chalk out a strategy for the eastern part. McDonald's opened its second outlet at Ahmedabad on Thursday.

"Before entering the southern market, a whole chain of backward integration, even up to the potato farmer level, has to be done," he said. He said the company has been working with farmers in Gujarat to produce quality potatoes.

According to Jatia, Gujarat is one of the priority markets for McDonald's and its third restaurant in Ahmedabad will come up in the next six months. Jatia did not specify where the restaurant will be set up.

"With good highways and expressways coming up in the state, there is scope for drive-through restaurants," he said.

"Our outlet at Kalamboli on the Mumbai-Pune expressway is doing well and we are sure that the one at Ahmedabad too will do well," he said.

The restaurant at Ashram Road in Gujarat has 3,000 customers on an average per day.