Hardcastle Restaurants, which operates McDonald's restaurants in India, plans to invest about Rs 700 crore over the next five to seven years in order to meet its expansion plans, a top company official said.
The company, which also runs McCafe outlets in McDonald restaurants, recently forayed into the Chennai market.
"First we wanted to test the brand in Mumbai. After it was successful, we expanded it. Now, we have positive response in Chennai. We are happy to inaugurate our first McCafe outlet in Chennai", Hardcastle Restaurants Managing Director Smita Jatia said.
"We have been opening McCafe outlets in our restaurants across West and Southern regions. The Chennai outlets which we are opening in Vijaya Forum Mall and the other one at Anna Nagar are 94th and 95th outlets of the total 245 restaurants we own" she told PTI here.
"Within three years, we have expanded our McCafe network across 95 restaurants in 12 cities. Our business goal is to double the McCafe footprint in next 12 to 18 months",she said.
Elaborating, she said the company planned investments of about Rs 700 crore for expansion of McDonald's restaurants and McCafe outlets.
"Overall, we will be investing about Rs 500 crore to Rs 700 crore, spread over five to seven years. We will be expanding in the Western and Southern regions", she said.
To a query, she said the company grew by 15 per cent in the quarter ending September 30, 2016 as compared to industry growth of 11 per cent.
Asked whether there was any impact due to demonetisation, she said "the impact will be based on footfalls in malls. If there are less number of footfall in malls, then we have less number of customers. But so far we have not faced any such difficulty as people either pay through cards or e-wallets".
To a query, she said each McCafe outlets attracts investments of Rs 18 - Rs 20 lakh and generates better profitability and margins.
Westlife Development Ltd focuses on putting up and operating Quick Service Restaurants in India through Hardcastle Restaurants which is a McDonald's franchise which operates McDonald's restaurants in West and Southern markets.
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