Many people in India choose McDonald’s for its delicious fast food, and its popularity is only increasing. People from every age group enjoy the various treats that McDonald’s offers.
The large and appetising menu, along with quick service, are the main reasons McDonald’s has become famous worldwide. Since many entrepreneurs are joining this brand, now might be the best moment for you to look into it!
McDonald’s is valued at around $240 billion, which makes it a highly prized and prosperous company in the fast food industry. Let’s examine the McDonald’s franchise in India and see how it could be a good choice for you.
- The Start of McDonald’s: A Brief History
- McDonald’s Outlets
- Why Investing in a McDonald’s Franchise is a Smart Move
- McDonald’s Menu in India
- McDonald’s Franchise Types, Costs & ROI
- McDonald’s Franchise Profit Margin
- Steps to apply for a McDonald’s Franchise in India
- Eligibility Criteria for Owning a McDonald’s Franchise in India
- Conclusion
- McDonald’s Franchise FAQs
The Start of McDonald’s: A Brief History
Richard and Maurice McDonald opened their first McDonald’s Bar-B-Q drive-in restaurant in San Bernardino, California, in 1940. First, they sold many different items, but in 1948, they changed their business by adopting the “Speedee Service System.” With this system, the speed of food service increased, and it was more affordable since there were only burgers, fries and beverages on the menu.
In 1954, Ray Kroc, who sold milkshake machines, became interested in what the McDonald brothers were doing. He became part of the business and started the first franchise for McDonald’s in Des Plaines, Illinois, in 1955. Kroc realised that consistency and strong branding could build a fast-food business on a national and global scale. In 1961, he secured sole ownership of the McDonald’s name and then grew the business rapidly.
Because McDonald’s made its food the same way and kept it high in quality everywhere, it soon became a familiar brand. Currently, McDonald’s operates in more than 100 countries and has over 38,000 locations where millions are served each day.
The company’s achievements are due to its creativity, excellent operations and strong commitment to making customers happy, which led to its rise as a leading global brand.
McDonald’s Outlets
As of early 2025, McDonald’s operates more than 40,000 restaurants across the globe, which makes it the biggest fast-food chain in the world. The company aims to grow further, aiming to have 10,000 new outlets by 2027 and focusing a lot on fast-growing markets such as India and Japan.
The fact that McDonald’s operates in so many countries shows that its food is consistently excellent, it runs smoothly, and it adjusts to meet different people’s preferences.
McDonald’s Outlets in India
In 1996, McDonald’s came to India and has since gained a strong and expanding presence all over the country. Two master franchisees control the operation of the brand.
- Westlife Foodworld Ltd. manages operations in West and South India.
- Connaught Plaza Restaurants Ltd. (CPRL) oversees North and East India.
As of mid-2024, McDonald’s has reached a major milestone with 400 outlets in India, including the landmark 400th store at Hyderabad International Airport.
Expansion Plans in India:
By 2027, the company aims to open 300 new outlets in West and South India, taking its total number of restaurants there to 580-630. They are concentrating on drive-thru restaurants and including McCafé in more locations.
In North and East India, CPRL aims to increase its store number to more than 300 in the next three years by expanding in places such as Kolkata and Guwahati.
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Why Investing in a McDonald’s Franchise is a Smart Move
- McDonald’s offers world-class training programs to ensure smooth operations and long-term success.
- The brand’s proven and profitable business model makes it a low-risk investment for entrepreneurs.
- Having a dependable and efficient supply chain network, franchisees can get quality products at reasonable prices.
- McDonald’s enjoys a strong and trusted reputation around the world.
- You can use McDonald’s trademarks and a worldwide recognised operating system.
- McDonald’s aids franchisees from the beginning of their venture until they are fully running the business.
- Field offices provide regular and direct business support when it is needed.
- The company’s successful marketing and award-winning advertisements attract a lot of customers.
- Help is available from both local and national sources to support franchisees.
- As the world’s largest quick-service restaurant chain, McDonald’s brings unmatched brand value and credibility.
McDonald’s Menu in India
McDonald’s in India caters to a wide spectrum of tastes by offering both vegetarian and non-vegetarian options. Burgers, fries, wraps, fresh drinks, shakes, and breakfast dishes are all part of the menu, which aims to suit every taste and age. Happy Meals, which kids love, offers a healthy drink, a burger, some fries, a side dish and a toy.
McDonald’s does well in India by offering fast service and prices that are seen as fair by most consumers. There is something for every taste, whether you want a little snack or a full meal.
Many Indian customers prefer the McAloo Tikki burger, spicy McChicken and the McPuff with pizza sauce. A McFloat, which is a cold beverage with a scoop of ice cream, is a fun addition to your meal.
McDonald’s has also launched the McCafé concept in India, which offers a comfortable café setting and a variety of coffee, cookies, shakes and breakfast foods.
McDonald’s Franchise Types, Costs & ROI
McDonald’s provides several franchise options tailored to different locations, audiences, and investment levels. Here’s a comprehensive overview of the available formats:
1. Traditional Restaurant
This is the most common and widely recognised franchise format. Most traditional outlets are found in malls, busy shopping streets or commercial areas where people can dine in or get their food to go.
Franchisees are granted lease contracts that last up to 20 years and offer the full menu. The company estimates that setting up a franchise in this format requires a franchise fee of around INR 30 Lakhs.
2. Small Town Retail (STR) & STO Locations
McDonald’s also offers franchise options under the STR (Small Town Retail) and STO (Small Town Oil) models. STR stores are usually located in smaller cities close to business and residential areas, but STO stores are usually found close to fuel stops and major roads.
They are built to help businesses gain higher profits at a lower cost of running them. Because they are placed in strategic spots, they attract a continuous flow of customers, mainly from travellers and people commuting. They work well for people who want to invest in quickly growing tier 2 and highway markets.
3. Business Franchise Lease (BFL)
It is designed for companies that would like to open McDonald’s counters inside their offices. The BFL has a 3-year lease, and it can be extended if everything works well. You can save money because there is a built-in group of people and regular traffic from workers.
4. Satellite Location
You can usually see these smaller outlets at airports, colleges and companies with small spaces. Most of them have a small menu and are leased for a flexible period. The cost to open these outlets is lower, around INR 15 Lakhs, so they are suitable for places that require less service.
Cost Breakdown & ROI
| Essentials | Estimated Cost / Details |
| Franchise Cost | INR 25 – 30 Lakhs |
| Development Cost | INR 20 – 30 Lakhs |
| Training & Support Cost | INR 20 Lakhs |
| Civil Work Cost | INR 10 Lakhs |
| Machinery Cost | INR 5 Lakhs |
| Safety Capital (Contingency) | INR 5 – 6 Lakhs |
| Furniture Cost | INR 4 Lakhs |
| Interior Cost | INR 2 Lakhs |
| Royalty Fees | 4% – 6% of Gross Sales |
| Other Initial Investments | INR 6.6 – 16 Lakhs |
| ROI / Break-Even Time Frame | 2 – 3 years |
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McDonald’s Franchise Profit Margin
Buying a McDonald’s franchise in India can be a very profitable business move. But, how much a business earns is influenced by its type of outlet, its location, the number of customers it attracts and how well it is run.
On average, a McDonald’s outlet in India generates an annual revenue of approximately INR 2.6 Crores.
For every INR 1 Lakh of revenue generated, a franchise owner typically earns a profit of INR 20,000 to INR 25,000, translating to a profit margin of 20% to 25%.
Even though the rewards are encouraging, it is necessary to fully research the market and create a financial plan before going ahead with a franchise investment.
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Steps to apply for a McDonald’s Franchise in India
Here’s a step-by-step guide to help you through each step of the process if you want to be a McDonald’s franchise partner:
Step 1: Initial Contact
To start, go to their website or contact the team responsible for developing their franchises. You will get the right guidance and help to start your journey.
Step 2: Submit Your Application
Give accurate information about yourself and your business when completing the application form. Send the required paperwork to the office for review.
Step 3: Eligibility & Background Review
After your form is submitted, McDonald’s conducts a thorough background verification. They assess your eligibility, financials, and may also schedule a personal interview to understand your intent.
Step 4: Franchise Agreement & Signing
If approved, you’ll receive an official offer. You’ll then be required to sign the legal franchise agreement after reviewing the terms and conditions.
Step 5: Location Finalisation & Construction
McDonald’s will help you pick the best place to establish your outlet. When the order is confirmed, construction and setting up are started.
Step 6: Franchisee Training & Launch Support
You and your team are taught in detail before the restaurant opens. After the store is open, they continue to assist to keep everything running smoothly.
Timeline:
The complete process, from application to opening day, typically takes 1 to 1.5 months.
Eligibility Criteria for Owning a McDonald’s Franchise in India
McDonald’s has a strong reputation and is known by people all over the world as a quick-service restaurant (QSR) brand. Anyone who wants to be a franchise partner in India must first meet these requirements:
- Applicants should have worked in food service or hospitality before.
- Must have at least a net worth of ₹5 Crore.
- Should be ready to run the franchise for at least 20 years.
- Must have liquid capital of at least ₹1.5 Crore.
- Must show they are ready to learn and change as the business faces new challenges.
- Must have drive and leadership skills, important for an entrepreneur.
Essential Documents for a McDonald’s Franchise in India
To apply for and establish a McDonald’s franchise, the following key documents are typically required:
- Documentation showing that funds are available.
- Reviewed financial statements.
- A comprehensive and well-structured business plan.
Additional documents may be requested depending on the application review process.
Conclusion
As the world’s largest and most iconic fast-food chain, McDonald’s enjoys an immense global fan base. Since McDonald’s does not sacrifice anything on quality, hygiene or flavour, you should also not compromise when thinking about investing in a franchise. It’s more than a company; it’s about striving for excellence and sustainable achievements.
FAQs About McDonald’s Franchise
1. What is the investment required to open a McDonald’s franchise in India?
It costs between ₹6.6 crore and ₹16 crore to establish the business, which covers the cost of the store, machinery and working capital. Most franchisees must pay an initial fee of between ₹25 lakh and ₹30 lakh.
2. What are the eligibility criteria for owning a McDonald’s franchise in India?
Individuals wanting to buy a franchise should have worked in the food sector before, have a net worth of ₹5 crore and have ₹1.5 crore in liquid capital. You must agree to a 20-year franchise term.
3. How profitable is a McDonald’s franchise in India?
A McDonald’s outlet that is well managed can make annual revenues of about ₹2.6 crore. Most companies achieve profit margins between 20% and 25%, making ₹20–25 lakh profit from every ₹1 crore sold.
4. How can I apply for a McDonald’s franchise in India?
Currently, McDonald’s is not accepting new franchise applications in India. Operations are managed by Hardcastle Restaurants Pvt Ltd in West and South India, and Connaught Plaza Restaurants Pvt Ltd in North and East India.
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Disclaimer: The net worth, assets, and other information shared here are based on reports from News websites. Sometimes, celebrities or their teams also provide their input, which we include when available. We aim to provide accurate information, but unless stated otherwise, these numbers are approximate. We welcome feedback at info@eblogtalk.com.
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