How to start McDonald's franchise in India : Investment, initial cost, royalty fees, profit

McDonald's is the leading brand of Quick Service Restaurants throughout the World including India. Worldwide there are about 33000 restaurants of McDonald in 118 Countries and average number of customer enjoying McDonald's food per day is about 67 millions. It is a US based company having different entrepreneurs in different Countries.

In India McDonald's is serving for last 15 years and is the pioneer of Quick Service Restaurants and at present it serves about 6.5 lakhs customers in India at 250 restaurants covering all the major cities and towns in India. The franchise of McDonalds is actually providing the development licensee status and in India is has been provided to two entrepreneurs Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd, which has been awarded a Development Licensee status by McDonald's Corporation, U.S.A, for West & South India, while McDonald's restaurant for North and East India Vikram Bakshi's Connaught Plaza Restaurants Private Limited is managing as a joint venture with McDonald's Corporation.

Is starting McDonald's restaurant a good business in India

As there is boom in food retailing industry and McDonald's India has been brand leader in India for last 15 years, McDonald's restaurant is certainly a golden business idea specially in India. However McDonald's does not directly offer any franchise in India at present. So if you come through any franchise scheme of McDonald's in India, it is a false representation to innocent people having the dream to start franchise of McDonald's in India.

McDonald's franchise investments, royalty fees and expected profit

For providing the franchise or licensing rights McDonald's company’s initial charge is 45000$ but if the restaurant is located in gas station or convenience store which is termed as McDonald's STO, the initial charge reduces to 22,500$. For Satellites that is franchise located in mall, hospitals, airport etc, the initial charge is 0 to 500$. Overall total investment for McDonald's franchise comes out to be 172,425$ to 627,050$ for Satellites and 837,750 to 1.2 million dollars for gas stations. A royalty fees called service fees is charged as 4% on gross sale per month and a rent or percentage rent on gross sale is also charged. However these data is for US franchise and same may not be applicable for other Countries including India.

As far as profit is concerned the volume of sale reveals the entire picture as in 2010 in US maximum sale was 9.8 million dollar for highest performing restaurant and even lowest performing unit’s sale was 387.000 dollars. Thus the break even is almost assured to come in 2 to 3 years.

Can we start McDonald's franchise in India

As mentioned above, McDonald's is not offering any further franchise in India, however Hardcastle Restaurants Pvt. Ltd, which manages West and South India is planning for aggressive expansion almost to double the number of restaurants. McDonald's franchise in India is with Hardcastle Restaurants Pvt. Ltd in West and South and Connaught Plaza Restaurants Private Limited in North and East. If anyone is interested to get associated with World’s leading brand food retail, they should contact these two Companies without being deceived by any false franchise claim by any one.

McDonald's : Contact details, telephone number, official website

McDonald’s India (HRPL) has moved to the India Bulls Office:
Hardcastle Restaurants Pvt. Ltd.
1001 - 1002, Tower - 3, 10th floor,
Indiabulls Finance Centre, Senapati Bapat Marg
Elphinstone Road, Mumbai – 400013
Telephone no : 022 - 49135000;
Fax : 022 – 49135001

For any one interested to rent their space to Mcdonald or want to sell it may contact at
Mumbai: Virendra.adhikari@mcdonaldsindia.com; Saurabh.kalra@mcdonaldsindia.com
South: Yoganand.mukkamala@mcdonaldsindia.com

West of India (for state of Gujarat, Goa, Madhya Pradesh, Chattisgarh & Maharashtra except Mumbai), : sanket.satose@mcdonaldsindia.com For North & east of India: development@mcdonaldsindia.net

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