McCafes likely to debut in capital

McDonald’s may introduce its proprietary in-coffee-house-style food and drink chain, McCafe, in north and east India following its buyout of its former partner, Vikram Bakshi’s 50% stake in their joint venture Connaught Plaza Restaurants (CPRL).

Consumers can currently find McCafes in South and West India, where Westlife Development-owned Hardcastle Restaurants operates 296 McDonald’s outlets across 41 cities. The master franchisee for the US burger chain has opened 190 McCafes in those regions. In comparison, McCafes are absent in North and East India, where CPRL runs 165 quick service restaurants (QSR) under the McDonald’s banner.

“McDonald’s has not been able to scale up in North and East India due to the long-drawn legal tussle between the burger chain and its former partner Vikram Bakshi. As a result, several global brand extensions, such as McCafe, have not been integrated into its system in those regions, leading to consumers having a disparate brand experience while visiting McDonald’s across the country. Now, McDonald’s will bring in those extensions to create a uniform look and feel across all its outlets,” said a senior executive who did not want to be quoted.

After taking over the reins from Bakshi last week, McDonald’s has temporarily shuttered all 165 outlets of CPRL to overhaul operations, which will include vetting CPRL’S current suppliers.

When asked about its plans of introducing McCafe, a global McDonald’s spokesperson told TOI, “Our immediate priority is on carrying out our work in restaurants so that we can re-open them as soon as possible. In terms of future business strategy, it is important to note that we are actively looking for the right developmental licensee partner for North and East India.”

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/mccafes-likely-to-debut-in-capital/69334942