Starting a franchise business is always a profitable business and it returns the quickest ROI due to some reason which we are going to explore in this article.
This article is dedicated to McDonald’s franchise business and will explore what is the McDonald’s franchise cost in India, how how to get Mcdonald’s franchise in your city, how many types, and many more.
McDonald’s is one of the most popular and reputed restaurants in the world and doing business with this brand is always a profitable business decision.
If you are thinking to start a Mcdonald’s franchise business, this article will guide you perfectly step-by-step.
Now, before starting any business, we are supposed to go through the profitability, sustainability, and future of that business, right?
As business visionary people, we can not aim in the dark, we must have all the data in terms of plans, sales, profitability, and trustworthiness of the product.
So, in this article, we are going to explore all details about Mcdonald’s business, and you will be able to conclude whether you should take the franchisee of McDonald’s or not.
At a Glance
|Franchise Cost||6.6 crores to 14 Crores|
|Liquid Cash For Expense||5 Crores|
|ROI||Two to Three Years|
|Business Type||Indirect Business|
|Net Profit in India||Rs. 65.2 Lakhs (FY 2017-2018)|
Is Mcdonald’s Franchise Profitable in India?
Whether you are living in India, or anywhere else, it doesn’t matter, because Mcdonald’s is an international brand so you will get benefits everywhere.
Now, the question is, is Mcdonald’s franchise business profitable? Should you buy the franchise of Mcdonald’s? If so, then why should you start the Mcdonald’s franchise in India?
Well, there are too many questions raised before starting the business of Mcdonald’s outlet, and it must be, after all, you are going to invest the eight-figure amount in the business, right?
The answer is: Yes, you should definitely start the Mcdonald’s outlet of Mcdonalds, and it is very profitable everywhere.
These are stats and facts about Macdonal’s, and now below are the reasons why you should start the franchise business in India.
Mcdonald’s Franchise Profit in India
According to the businesstodayindia, Mcdonald’s has registered its net profit of Rs. 65.2 lakhs in 2017-2018 FY, as per the latest available data.
It’s very obvious that you might be thinking about how much does a McDonald’s franchise earn in India, so you can conclude whether you should go for taking Mcdonald’s franchise or not, of course, it’s not a small investment.
The official data of particularly a profit of franchise business of McDonald’s is not available anywhere, but you can grab it by contacting the team of Mcdonald’s, contact details are given in this article later on.
Should You Buy Mcdonald’s Franchise For Business?
After going through the stats and facts about Mcdonald’s business model, you might be sure that the Mcdonald’s franchise business is profitable in India.
But why should you start the franchise business, what is the additional benefit of franchise business, and why is the owner of the franchises charging a huge amount for providing the same?
Whenever we start up a new business, we have to spend a minimum of 999 days to grow the business and become sustainable.
It means, we have to survive with a new business model without profit or with minimal profit and revenue.
Moreover, we have to market our business, spend a lot of money on advertising, campaigning, building up the customer base, establishing trustworthiness, branding, authoritativeness, etc…
Whereas, whenever you buy a franchise of any reputed business, you don’t have to do any of the above-mentioned tasks, you get everything on the first day of starting the business.
You get the brand name, customer base, reputation, and goodwill with the business and you don’t need to spend money on advertising and marketing because that stuff is being done by the company itself.
In a franchise business model, all the processes are set, you are informed which equipment you need to use, how you have to make the food, and how much will be the quantity for such amount of food.
Service size, temperature, quantity, and quality of raw materials, all are predefined, you just have to process them whenever you receive an order from the customer.
It is not like you have to test one by one, or which one is working fine, what the customers like, etc…
All these experiments have been done by the franchise owners, so you are not going to take any risks.
So, in a nutshell, buying a franchise of McDonald’s is surely profitable, and if you are planning to start the Mcdonald’s franchise business, you should move on to the further process.
Business Strategy of Macdonal’s Business Model
Mcdonald’s is one of the most popular restaurant business models in the world because of its business strategies and business model working system.
It follows a unique pattern to maintain the business standard across the world and it is the same everywhere in the world.
Mcdonald’s follows the QSCV Policy.
- Q – Quality
- S – Service
- C – Cleanliness
- V – Value
They focus more on quality, even if you go to any store of Mcdonald’s in any country, any state, you will find the same and consistent taste everywhere.
Every customer of McDonald’s is aware that even if they go to any store of McDonald’s, they will get the same taste and that is why they like and love MacDonald’s.
The service of Macdonal’s store is such a nice, and you might have experienced as well if you might have visited it.
You will find every store of Macdonal’s very clean everywhere, the entry point, service space, tables, washroom, kitchen, and every place you will find very clean.
The last strategy is; value because QSC is affordable for other restaurants as well, but giving value is not affordable for everyone.
But the most differentiated point is; value, Macdonal’s is selling the complete value for money product.
These are the four points on which Macdonal’s business is running and due to that millions of customers visit its store across the world.
Types of Macdonal’s Franchise Stores in India
Like Domino Pizza, Macdonald’s also is offering the multi types of stores outlet in India.
Traditional stores are the common stores of MacDonald’s which are supposed to be opened around and inside the shopping malls, buildings, and food courts, and they offer the entire menu as well in this type of outlet.
In this store, they offer a very good space for service, customers can enjoy the food with a family as well, and the lease term of the traditional store’s outlet is for 20 years.
The cost for a traditional store of McDonald’s franchise is around $45,000, which is 30,00,000/- rupees.
Satellite location for McDonald’s
Satellite location stores mean there are small stores in airports, universities, and hospitals, where you will not find the full menu, there will be only the selected items.
The franchise fee for the Mcdonald’s satellite store is $22,500 means 16,80,000/- rupees. There is not a fixed duration for agreement, it depends on the location that you choose to start the McDonald’s franchise business.
STO means small town oil location, and it is understood by name that the location will be inside petrol pumps.
STR stands for small-town retail, where you can open the McDonald’s franchise in the villages.
In this franchise type also you will get the full menu, and they will provide the full space where customers can have the food along with their families as well.
BFL means the business franchise leads offered for the three years on the lease, and the locations are under the business facilities.
For instance, if you want to open a McDonald’s store in the office of, a multinational company, then you can opt for this model of business for the franchise of McDonald’s.
Most people opt for the first two types of Mcdonald’s outlets, and the rest depends upon your business plan, however, all the business models of McDonald’s are profitable.
How to Get McDonald’s Franchise in India – Contact Authority
McDonald’s is an international brand and is not doing its business directly in India, so if you want to open a McDonald’s franchise in India, you need to contact the third party associated with the McDonald’s business.
If you want to open a Mcdonald’s franchise in West India or South India, then you need to contact Hardcastle Restaurants Pvt Ltd.
And if you want to open the business of a franchise of Macdonald’s in East India or North India, then you need to contact CRPL Pvt Ltd.
Now, moving on to the process of buying the franchise business, you need to read the disclosure agreement of Mcdonald’s of 375 pages and sign it.
There will be unfamiliar terms also in that agreement, so you would need the help of your lawyer or accountant as well.
After approval, you will be provided training through the university of Mcdonald’s which is Hamburger University.
You are supposed to attend the online courses in which you will be taught about how to run the Mcdonald’s stores, and the duration of completion of that course is around one or two years.
Once you and your staff complete that training and online store, you will be provided the license and will be allowed to open the McDonald’s store.
McDonald’s Franchise in India Contact Details
According to Mcdonald’s India website, you can reach out to the Mcdonald’s team by calling, or email, and can go to the physical locations as well.
- Mcdonald’s India Office Address:
- Hardcastle Restaurants Pvt. Ltd. 1001 – 1002, Tower – 3, 10th floor, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013
- Phone Number:
- 022 – 49135000
- 022 – 49135001
How Much Mcdonald’s Franchise Cost in India
Finally, you reach the main topic of the article which you have been reading this article for!
You need to have an investment from 6.6 crores to 14 crores to start a McDonald’s franchise in India.
You might be thinking, wow, it’s a very huge amount to invest, right?
But here you are getting too many benefits against this amount, the risk is about nothing, you are getting already branded business, you are not supposed to do any experiment that contains the failure chances.
You are dealing with the business models which have only success, so you have to pay the amount as well for the risk-free business, do you agree?
Along with this amount of investment, you must have a liquid investment of Rs 5 crores for the upcoming expenses.
- Franchise Fees: 30 Lakhs (Average)
- Service Fees: 4% of total sales
- Advertising and Promotion Fees: 4% of total sales
These are only the major expenses, and apart from these, there are some more expenses for which you will get the disclosure agreement of the franchise.
ROI: How Much Time You Will Take to Become Profitable?
ROI: Return on Investment!
Whenever we are going to start any big business, it is essential to have the approx ROI so that we can plan the plans for our business.
According to Mcdonald’s, you will be breakeven in two to three years, and after your duration, your business will become purely profitable.
Final Thoughts on Opening Mcdonald’s Franchise in India
If you are having enough investment to start McDonald’s business, and have the perfect location, then you don’t need to think twice before doing so.
You are supposed to get the readymade risk-free and branded business model in such an amount.
If you start your own business from scratch, you have to do different experiments, need to check what the customers like, and what they don’t like, and ask for lots of money and time.
It’s not decided which of your experiments will succeed and which one will not.
Moreover, McDonald’s itself is saying that one will become purely profitable in just two or three years, so that is giving a very good deal.
I am Ritesh Ajmeri, Founder of Growmorebizz, professionally I am a content writer and blogger by passion. I have experience of 3+ years in SEO Blog Writing and Content Writing.
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