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McDonald’s enters Indian coffee market, launches McCafe brand

Published 11 October 2013

American fast food chain McDonald’s is all set to foray into the Indian coffee market by launching its McCafe brand with Hardcastle Restaurants, a franchise operator of McDonald’s Restaurants in west and south India.

Initially, around 75-100 McDonald's outlets are slated to be launched in the next two years. McCafé will be launched within the existing McDonald's restaurants with the first opening at So Bo Central outlet in Mumbai.

Measuring almost 4,000ft2, these Mc Donald's outlets would include 500ft2 McCafes, with the existing McDonald's outlets to undergo renovation to facilitate the new format within its premises, reports The Hindu Business Line.

Commenting on the expansion, Hardcastle Restaurants vice-chairman and CEO Amit Jatia said that McCafes serve as a beverage destination and apart from coffee there would be added beverages like juices and ice teas.

"It is a tough environment to operate in but the QSR segment is growing between 10 and 12 per cent and within it there is phenomenal growth for the coffee segment which is expected to reach $700 million in the next five years," added Jatia.

The company plans to set up around 150 McCafes over the next five years.