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McDonald’s bets on coffee in India

Fast food giant McDonald’s believes coffee offers a huge opportunity in India.

The company says increasing coffee consumption in tandem with rising income of the middle class have prompted a focus on its McCafe coffee brand. It currently has 27 McCafes in Mumbai, Pune, Ahmedabad and Nashik and will open up to 150 more within three to five years.

Smita Jatia, MD of McDonald’s India, west & south said the new stores would open in “key cities across west and south India”.

“We see a huge potential here and will continue to expand our beverages platform to serve as one stop destination for all customers across all day parts. Our range of premium coffees and specialty teas offer great value for money and can be enjoyed in the relaxing ambiance of McCafé – which is housed within McDonald’s restaurants.”

She said the launch of McCafé brand is a major step in its beverage growth strategy.

“Internationally, McCafes are housed within McDonald’s outlets but have a separate look and feel, the same format will be followed here in India. McCafes will complement McDonald’s restaurants by offering a range of premium specialty coffee including cappuccino, latte, iced mocha and frappe. It would also sell quality beverages such as hot chocolate, specialty teas along with cookies, pastries and muffins.”

McDonald’s master franchisee for western and southern India is Hardcastle Restaurants, a subsidiary of Westlife Development.

India’s ‘organised cafe market’ is currently worth US$230 million and analysts predict it will reach $410 million by 2017.


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