September 16, 2015

McDonald's India is planning to invest US$113 million to intensify operations and double its number of restaurants in the western and southern regions of the country.

McDonalds, which was the first quick service restaurant to enter the Indian market two decades ago, plans to add an additional 250 restaurants to its current 213 by 2020. Over the past 20 years however, the space in the country has become increasingly crowded and competitive with Burger King, Dominos, Pizza Hut, Dunkin Donuts, and on-demand food delivery services all competing for a share of the market.

The company is shifting its strategy and catering to consumer demands by offering healthier options including healthier beverages to India’s consumers including coffee made from locally sourced arabica beans through the company McCafe’s within its outlets. Launched in 2014, there are currently 45 McCafes in the country, a number which is expected to climb to 140 within two years at a cost of between US$2 million and US$3 million per café.

The company has also reconfigured its food menu to reduce the calorie content in its sauces by between 60% and 70%, thereby reducing the overall calories of a meal by 9%.