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For McDonald’s India, 2016 is about delivery, brand and innovation


Expect to see more ‘McCafes’, an upgraded menu & more aggressive delivery promotions.

The game plan in 2016 for McDonald’s India is its focus on its delivery business, brand extension and innovation, not necessarily in that order.

“We are emphasizing on innovation, our brand extensions like McCafes and our delivery business, which have significantly added to our revenues,” said Smita Jatia, MD, Hardcastle Restaurants.

Entering India in 1996, McDonald’s is also betting on alternative, healthy offerings with a slew of menu innovations this year. The burger category is growing at a healthy clip along with the western fast-food category, which is growing at 13-15% YoY. Its delivery business has tripled since starting in 2009, riding the wave of food technology. “It’s a good time to focus on building it. Nearly 40% of our revenue from the McDelivery Service comes from online ordering, up from single digits in just three years,” said Jatia.

Hardcastle is stepping up its operations in the Western and Southern markets by doubling its outlets by 2020 from the present 216 with an investment of INR 750 crore. The McCafes brand extension, introduced in 2014, currently has 62 locations, which is expected to go up to 140 by 2017.

Source: PTI/Times of India

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