How to Open McDonald’s Franchise in India
Macdonald's franchise in India
Macdonalds Franchise Business India: are you are planning to open a restaurant business in India, this article is only for you. Here you will get an idea about how to start the business with the world's largest restaurant chain "McDonald's Franchise in India".
Why McDonald's franchise?
If you have a decent investment of around 10 Crores INR & business space available in urban or suburban areas in any part of the world, Mcdonald's Franchise could be a great opportunity for you. Yummy! The world-class taste, unique McDonald's exclusives, and much to eat & explore.
Did you know? A new McDonald's franchise or outlet opens every 14.5 hours around the world. So, now you can guess how famous and profitable such a big business franchise could be. McDonald's has been in the Indian market since 1996, they have been controlling the Indian market for nearly thirty decades now.
Westlife Foodworld Limited holds the master franchise for McDonald's in both western and south India. After the introduction of McDonald's in India, the perspective of eating burgers changed in the minds of Indians. They started preferring more western-cultured food and appreciated the way it was made and served to them. Now, these are some of the reasons why you could choose a McDonald's franchise.
There are various reasons why you could blindly trust such a huge and reputable fast food franchise company. Some of the reasons for choosing a McDonald's franchise are the following:-
- Importance- Owning such a reputable franchise is a dream come true for many entrepreneurs out there. Opening a McDonald's franchise can help the business owner become financially independent by earning an enormous profit margin. In simple, opening a McDonald's franchise is a certificate of success.
- Reputation- McDonald's is the largest fast-food joint in the whole world. Becoming a part of such a huge fast-food company brings you goodwill and a reputation.
- Training from the best- Yes, you get top-quality training from McDonald's. They offer training for managers and cooking staff.
- Tools and Branding- You get to use the latest tools from McDonald's and they help you in promoting as well.
Let's try to understand what kind of franchises option are available with McDonald's Franchise in India. Right now, McDonald's is providing the four types of McDonald's Franchise in India
You can also check about the below franchise business model
1- Patanjali Franchise Business
2- Goli Vada Pav Franchise Business Model
Mcdonalds Franchise options : Various Franchise options with Macdonalds in India
Mcdonalds Traditional Franchises option
In this franchises, You can open storefront, food court like the business. For such business, MacDonald's provides 20 years of the franchise.
Mcdonalds Settelight Frenchies business model
In this Franchise model, You can start your restaurant business in a mall, college, railways station. The meaning of this business means you should have space nearby location.
Mcdonalds's STO and Start Location
In this model, you can start your business in small cities, nearby petrol pup and related stuff. In this case, you get at least 20 years of franchises.
Mcdonalds BLF Franchises
In this model, you can either open your franchise in corporate offices or even you can convert your existing restaurant into MacDonald's franchise business.
Space Requirement for McDonald's Franchise in India
One of the major drawbacks of opening a franchise could be related to the space requirement. Almost every business franchise around the world asks for a great place and store area. People willing to become a part of a reputable business franchise need to fulfill the area terms and conditions or else they might get the final approval.
Similarly, McDonald's expects its franchisee to rent or have a good area. This helps the parent company to load, unload, pack, park, and brand their company. Make sure you open a McDonald's franchise at a great location. The best place to open a McDonald's franchise is in malls, hospitals, colleges, and schools.
As per McDonald's requirements, you need to have at least 1500-4000 square feet of land. Yes, this is a huge area requirement but, it will help you conduct the dairy business operation very smoothly. So, while opening a McDonald's franchise make sure you have at least the asked space.
Investment Required for Mcdonalds franchise in India
You need to have lots of working capital and budget to open a reputable business franchise. This is because you are not only becoming a part of a world-class business franchise but, you are becoming a part of a solid business system. to follow and respect that system a huge investment is a must for such a reputable business.
McDonald's might be a profitable business franchise but, they ask for a lot of additional fees from franchisees. The total investment required to open a McDonald's business franchise will surely differ as per the location, area, and demand. If you are opening a McDonald's franchise in a busy market area or mall then the investment will surely go higher than the average amount.
The average total investment required to open a McDonald's franchise is between Rs 6-14 crores. Yes, the total investment is quite high if you are willing to become a part of a McDonald's business franchise. In this total investment, you have many other charges included which we will discuss later in this article. The total investment to open a McDonald's franchise includes the cost of machinery, equipment, furniture, billing counter, printers, computers, internet connection, signage, and initial inventory.
Mcdonald's Franchise Cost Explained
The franchise cost of McDonald's can also be tricky just like its total investment. This is because the land, labor, and machinery cost will vary on the state you are opening the franchise. We surely cannot give you a perfect franchise cost but, the average franchise cost has been revealed by many franchise owners.
The average franchise cost of opening a McDonald's franchise across the country is between Rs 25-30 lakhs. Other than the franchise fee you need to pay other charges as well while and after opening a McDonald's franchise.
Below are some of the costs that you can expect when opening a McDonald's franchise across the country:-
- Development cost- You need to spend quite a lot on the overall development cost. The average development cost required is between Rs 20-30 lakhs.
- Training and support- Unfortunately, the training and support offered by McDonald's are not free. You need to pay for the training that is offered by the parent company to managers and chefs.
- Royalty fees- To become a part of the McDonald's franchise you need to pay a 4-6% royalty fee.
- Advertising fee- Yes, you need to pay for the advertising fee as well, the fee is usually 3% of your gross sales.
How to get McDonald's Franchise in India?
Getting a McDonald's franchise is very easy only if you fulfill all the requirements. There are two processes to open a McDonald's franchise. Below is the franchise application process-
- You can visit the official website and release a franchise initial inquiry form
- Make sure you give all the information correctly before submitting them
The second process is the following:-
- For the North and east region you need to contact Mr. Vikram Bakshi. He is the regional head of these locations.
- For the South and West regions, you need to contact Mr. Amit Jatia.
Is McDonald's Franchise Profitable?
Again the profit margin of McDonald's franchise will vary as per the place, location, and demand. However, opening a McDonald's business franchise is a profitable business in India.
The average profit margin ranges from 20-25% in India. This means every Rs 1 lakh of revenue generation then as a franchise owner you can have a profit of Rs 20-25k. Make sure you do your research before planning to open such a reputable business franchise.
From where You can Get McDonald's Franchise in India
MacDonald doesn't offer any franchise directly from its own brand. In India, Macdonald's appointed two companies to work for them. You as a business partner, you have to connect with them
For Western and South Indian Area:
You can connect with Hardcastle restaurant private limited.
For Eastern and North Indian Area:
You can connect with Cavanaugh Plaza restaurant India Private Limited.