Is McDonalds Franchise In India Still The #1 Burger Franchise?

on Apr 26, 2023 | 427432 views

Is McDonalds Franchise still the #1  burger franchise in India?  Well, to know about this, let us know more about McDonald’s Franchise in India.

About McDonald’s India

McDonald's is among the most well-known fast food restaurants in the world. Richard and Maurice McDonald, two brothers, established the company in San Bernardino, California, in 1940. They started out as a barbeque drive-in, but by 1948, they had relaunched as a fast food joint, complete with assembly line service and a small selection of burgers, fries and soda.

The McDonald brothers began franchising their business model in the early 1950s, allowing other business owners to set up shop serving the same food under the same name with the same methods. 

Milkshake machine seller Ray Kroc bought out the McDonald brothers in 1961 after becoming the company's first franchisee in 1955. Fast-forward to 1965, and Kroc has expanded the company to include more than 700 outlets.

There are now more than 38,000 McDonald's outlets in more than 100 countries, making it a truly worldwide chain. Over 90% of McDonald's restaurants are owned and controlled by franchisees, and this has been a huge factor in the company's success.

McDonald's Corporation and two Indian businessmen, Amit Jatia and Vikram Bakshi, formed a joint venture to open McDonald's restaurants in India. Since opening its first restaurant in Mumbai in 1996, McDonald's India has expanded to become the largest fast service restaurant brand in the country, with over 600 restaurants in more than 100 cities.

But the question still remains unanswered, is McDonald’s the #1 burger franchise in India?  The closest competitor to McDonald’s is Burger King. But that’s not all.  The made-in-India brands are capturing the market as quickly as the international brand.  

Here are some examples of the 5 top made-in-India burger brands.

  1. Burger Singh

  2. Biggies Burger

  3. The Burger Company

  4. Wat A Burger

  5. JumboKing

But have you ever thought, what makes McDonald’s stand apart from its competitors?  Customers will be more loyal to your business if you invest more in things like brand equity, food quality, customer service, the in-store environment, and marketing. All these are aspects McDonald's has been concentrating on.

Also read: Top QSR burger brands in India and all about franchising these brands.

McDonald’s Franchise in India - Cost, Requirements & Benefits

Before we get into the cost and requirements of starting a McDonald’s franchise in India, let us understand the benefits of acquiring this fast food franchise in India.

Benefits of acquiring McDonald’s Franchise in India

1. Well Known & Established Brand

Customers can be attracted to your business by using McDonald's, which is one of the most famous and long-standing brands in the world.

2. Profitable Business Model

McDonald's uses a tried-and-true formula for success that has been tried and tested for decades. If you play by the company's rules, you'll have a better chance of reaching your goals.

3.  Adequate Training and Support from the franchisor

Franchisees of McDonald's are given a great deal of resources and assistance in order to run their restaurants successfully. Training and support in areas such as operations, marketing, and more are provided on an ongoing basis.

4.  High Purchasing Power

As a McDonald's franchisee, you can save money on supplies and equipment thanks to McDonald's massive volume discounts.

5.  Advertisement Campaign

The success of McDonald's national advertising campaigns can be used to promote your own business.

6. Development and Innovation

As a franchisee of McDonald's, you have the unique opportunity to take advantage of the constant stream of new goods, services, and technologies that the company introduces to the market.

7.  Flexibility

McDonald's provides franchisees with a number of restaurant formats, including drive-thru, food court, and others, so that you can pick the one that works best for your business and its clientele.

8.  Growth Potential 

McDonald's is thought to be a safe, long-term investment with room for development and growth.

McDonald’s Franchise Cost & Space Requirement in India

Several factors, including the location and size of the restaurant, contribute to the overall cost of a McDonald's franchise. However, the average franchise fee for McDonald's is rather high. Google and the McDonald's India website both indicate that a McDonald's franchise in India can cost anywhere from Rs. 10 crore to Rs. 15 crore. 

Equipment, signs, and initial stock, as well as McDonald's-provided training and support, all fall under this category.

Some more costs that you can expect when starting a McDonald’s franchise in India are as below:

  • Initial franchise fee of approx Rs 25-30 lakhs.

  • Development costs of around Rs 20-25 lakhs.

  • Ongoing royalty fees of around 4-6%.

  • Advertising fee to promote the brand which is 3% of the gross sales.

  • Payments for training, support and other assistance.

Also you may require a space requirement of around 1800 sq.ft. approximately.

McDonald’s Profit Margin in India

Several factors, including the location, the size of the restaurant, and the business savvy of the franchisee, can affect the profit and margin of a McDonald's franchise. However, for the proper person, owning a McDonald's franchise can be a lucrative economic enterprise.

McDonald's franchises normally have a profit margin between 20% and 25%, though this might vary from place to location. This means the franchisee can anticipate a profit of Rs 20,000 to Rs 25,000 for every Rs 100,000 in revenue.

Remember that these are just estimates, and that the actual costs will depend heavily on the type of eatery and its location. A franchise's profitability depends on a variety of factors, such as the local economy and the level of competition, in addition to the cost of goods, labor, and rent.

McDonald's is a well-known brand, so even if the outlay is high, it could pay off handsomely in the long run. In addition, McDonald's provides its franchisees with resources and guidance to help them run their businesses successfully and financially.

Keep in mind that opening a McDonald's franchise is no guarantee of financial success, therefore the choice to become a franchisee should be founded on careful consideration of the investment and potential return, as well as an honest appraisal of the candidate's business acumen.

McDonald’s Franchise in India FAQs

Q.1. What is the contact number of McDonald’s franchises in India?

To get in touch with McDonald’s for franchising in India, you can visit their official website or speak to them on the number 022 - 49135000.

Q.2. Is McDonald’s franchise profitable in India?

Well, the answer is simply yes.  

Q.3.  How long will it take to make a profit if I start a McDonald's franchise in India?

To properly prepare for the launch of a major enterprise, it is crucial to obtain an estimate of the expected return on investment (ROI).  After your initial two to three-year commitment to McDonald's, the company claims that your business will be fully profitable.

Conclusion,

To sum up, those who have the necessary qualifications and means may find success with a McDonald's franchise. However, being a franchisee involves a large financial commitment and compliance with numerous rules and regulations. 

Before deciding to invest in a McDonald's franchise in India, individuals should do extensive research to fully comprehend the costs, duties, and commitments involved.  If our blog has provided you with valuable insights of how to start a McDonald’s franchise in India, feel free to leave us a comment in the box below.

Nevertheless, you can contact our experts at FranchiseBazar, for more burger franchises in India, and many more latest franchise opportunities in India.

 

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