Business · Companies · 8 hrs ago
McDonald’s north and east India business plans $80 million investment
McDonald’s north and east India business plans about $80 million in investment over the next two and a half years, mainly for new stores and digitisation.
The business is run by Connaught Plaza Restaurants, which the MMG Group acquired in 2020.
It has more than 320 stores and plans to grow to over 500 by 2028, including drive-throughs, highway locations and sites at government-run fuel stations.
The expansion comes as competition from KFC operator Devyani International and Burger King heats up.
Rising food, packaging and transport costs are squeezing profits, after inflation linked to the West Asia crisis pushed up expenses.
The chain has avoided price rises so far, but plans small increases on selected items because current prices are becoming unsustainable.
It expects revenue of ₹2,000 crore in FY27, up from ₹1,695 crore in FY26.
McDonald’s north and east India business plans to invest about $80 million over the next two-and-a-half years.
The investment will support store expansion and digitisation as the business seeks to meet consumer demand.
Chairman Sanjeev Agrawal said the investment would be funded internally by group companies.
The business expects profitability to remain under pressure from rising food, packaging and transport costs.
Connaught Plaza Restaurants operates more than 320 stores and expects to exceed 500 by 2028.
- Who
- McDonald’s north and east India business, operated by Connaught Plaza Restaurants.
- What
- It plans to invest about $80 million in store expansion and digitisation.
- When
- Over the next two-and-a-half years.
- Where
- North and east India.
- Why
- To meet consumer demand and expand the business amid rising competition.
This story does not have two clearly opposing sides.
MMG Group acquired the north and east India business from McDonald’s Corp.
McDonald’s reported US sales growth of 0.8% year on year and 1.9% growth in its international developmental licensed markets.
McDonald’s global chief Chris Kempczinski announced an $8.5 billion franchisee support package at the company’s Investor Day.
The Economic Times reported the north and east India business’s plan to invest about $80 million over the next two-and-a-half years.
- Planned investment
- About $80 million
- Investment period
- Next two-and-a-half years
- Stores currently operated
- More than 320
- Store target
- More than 500 by 2028
- FY27 revenue expectation
- ₹2,000 crore
What people are saying
This will be our highest investment in a two-year period.
Up till now, we have invested $175 million in the business, through our own family offices; future investments will also be funded internally from group companies
Due to West Asia crisis, profitability has been under stress with costs of oil, transportation, packaging-all up and have had a cascading effect