McDonald’s India operator Connaught Plaza Restaurants (CPRL) is set to invest $100m (Rs8.7bn) to $125m (Rs10.9bn) for the expansion of its outlets in northern and eastern parts of the country.
In an interview with Outlook Business, CPRL promoter and vice chairperson Anant Agarwal expressed the company’s goal to have 300 outlets by 2025-end.
The investment will be made in the next three to four years.
In 2020, the MMG Group, under the leadership of Sanjeev Agarwal, assumed control of McDonald’s India’s holding company with 160 stores after the exit of original partner Vikram Bakshi.
At present, CPRL operates 245 outlets in northern India, including the latest addition in Siliguri.
Anant revealed that out of these, 125 stores feature McCafe, with plans to double the outlets and the number of McCafes in the coming years.
Anant highlighted the growing coffee culture in India, especially among the young working class and students.
He emphasised CPRL’s commitment to providing “best quality” coffee at affordable prices, sourced from Chikkamagaluru in the Indian state of Karnataka. The coffee is said to be 100% Arabica.
Each McCafe is staffed with a four-man team, including one barista, with employees undergoing 600 hours of training.
The planned investment will not only cover outlet expansion but also enhance digital capabilities and support the growth of McCafe.
Anant mentioned that there are no immediate plans for a public listing, with most of the financing coming from internal cash flows.
Sales are generated through dine-in, delivery and drive-through channels, with dine-in providing a complete brand experience and delivery accounting for a significant portion of sales.
The promoter also discussed CPRL’s participation in rapid delivery programmes such as Swiggy’s Bolt and Zomato’s Bistro.
Despite inflation and rising commodity prices, it is focusing on supply chain and operational efficiencies to mitigate the need for significant price increases.
