McDonald's to open 100 outlets of McCafe in India

Could invest Rs 35 crore on the format; Bengaluru is first stop on McCafe's southward journey

Global quick service restaurant major McDonald’s, which launched its store-in-store format McCafe in India 18 months ago, is planning to cash in on the growing popularity of coffee drinking in the country. McCafe is the third line of McDonald's business in India, after breakfast (the home delivery), and kiosk formats.

McCafe has now been launched in South India with the first outlet being opened in Bengaluru. As of now there are over 15,000 restaurants that sell the McCafe products globally.

According to sources from the coffee sector, “The format is a competition to Starbucks globally wherever they are present, even as its offerings are priced below those of Starbucks. The competition is now heating up in the Indian market too.”

“The in-store format enables a quick roll-out of a McCafé with an investment of Rs 30-35 lakh per outlet across key trading areas in metro cities of West and South India. Within a span of 18 months we have expanded our McCafé network across 41 restaurants in six cities — Mumbai, Ahmedabad, Nashik, Aurangabad, Pune and Bengaluru. Today, we are well on track to launch over 100 McCafés over the next four years,” said Smita Jatia, managing director — Hardcastle Restaurants Pvt Ltd, in Bengaluru on Monday. Hardcastle Restaurants is McDonald's master franchise in the western and southern markets.

The expansion of the McCafé brand and its product offering is part of the company’s goal to elevate its coffee portfolio, she added.

McCafé uses Arabica coffee beans that are sourced from coffee estates in Chikkamagaluru, and the beans are supplied by Coca-Cola.