McDonald's plans franchise model for North India operations

Mumbai: Global fast food chain McDonald's is considering a franchise model for its North India operations by 2008 for a deeper penetration into the country's growing food and beverages market.

"We are studying the franchising sector in India to identify the right kind of people and opportunities suitable for a business model like McDonald's and hope to launch franchise programme by 2008," Vikram Bakshi, managing director of Connaught Plaza Restaurants, said.

McDonald's has 61 outlets in North India that are run as 50:50 joint venture between McDonald's International and Connaught Plaza Restaurants. McDonald's plans to open another 25 joints in the current year and invest Rs400 crore over the next three years.

"We would invest Rs400 crore in next three years to increase presence in the smaller towns and cities and are looking at doubling our sales every three years," Bakshi said.

McDonald's is also planning to introduce the McCafes concept in India by the end of this year.

McDonald's India is planning to increase its restaurants from 105 to 155 this year. The company is also looking at recruiting 1,500 freshers from the Indian Institute of Hotel Management (IIHM) of the Livelihood Advancement Business School (LABS) - the flagship programme of Dr Reddy''s Foundation.

The company is also opening 25 new hubs of McDelivery concept in cities such as Pune, Hyderabad, Bangalore and Gujarat apart from setting up 15 new McDonald's kiosks for takeover of food products, by next year, reports quoting Amit Jatia, managing director, west and south, McDonald's India, said.

While implementing an ''employee value proposition'' (EVP) to actively promote employees from within the organization — with across-the-board promotions to 60 per cent of the 5,000 employees last year — McDonald's India this year is visiting campuses and making a structure communication to them.