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Aug, 12 2013

Mc Donald’s to Move beyond Burgers

Mc Donald’s to cash in on the coffee market estimated at Rs 2,000 crore.

With profit on its mind, the US-based burger chain, is planning to bring its global coffee-house-styled food and drink chain 'McCafé' to get into the fast growing quick service restaurant (QSR) segment in India.

"This will help McDonald's deliver better margins. However, it will take at least one year  for the project to roll out. We are currently studying the model and looking at various permutations and combinations. We have no immediate plans as if now," said Mr. Rajesh Kumar Maini, General Manager -  Corporate Communication at McDonald's India.

Ms. Saloni Nangia, President, Technopak, says "Among the existing food formats, premiumisation is emerging as a strong trend owing to changing consumer habits. While McDonald's is the core flagship business, diversifying into other formats will help it to improve margins.”

Mr. Samir Kuckreja, Founder and CEO, Tasanaya Hospitality, says "Depending upon the format, a well-run QSR business in India can command 24-27% Ebitda margins compared to a cafe business, where it could be 15-20%.”

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