May 9, 2013

McDonald’s Indian franchisee to open 90 outlets by 2014

McDonald's Indian franchisee Hardcastle Restaurants plans to expand its retail footprint in the country by opening 80 to 90 stores over the next two years.

By admin-demo

McDonald’s Indian franchisee Hardcastle Restaurants plans to expand its retail footprint in the country by opening 80 to 90 stores over the next two years.

Through this expansion, company is planning to further its presence in western and southern part of the subcontinent.

The local franchisee is also seeking equity fund to drive the chain’s retail growth in the country over next few years, according to Reuters.

Hardcastle Restaurants vice-chairman Amit Jatia stated that the chain is likely to invest INR5bn-10bn ($92m-$184m) in India for its growth over the next 3-5 years, primarily intending at store expansion.

"We are in talks with merchant bankers every day and are open to it. But we are considering all our options and that includes debt also. We will be clear with our decision on what instrument we choose in a month," Jatia revealed.

Meanwhile, the company is mulling to increase prices of its offerings in a bid to tackle rising inflation and economic slowdown in the market.

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If Hardcastle introduces this hike, it will be the second such instance in the same year, after it implemented 5% rise in line with federal government’s service tax increase in February 2013.

Jatia said that the company has no immediate plans to raise prices.