McDonald’s to launch McCafe in India

McDonald’s to launch McCafe in IndiaWidely-popular fast-food chain McDonald on Wednesday announced its decision to launch its international coffee format McCafe in India.

McDonald's Indian arm, WestLife Development Ltd. (WDL), will first launch McCafe in western and southern parts of India, followed by an expansion of the new coffee format in the remaining parts of the country by Connaught Plaza Restaurants Ltd.

Amit Jatia, vice-chairman of WDL, said it was the right time to launch the new coffee format as the acceptance for the beverage is growing.

Announcing the decision, Jatia said, "It is now time to introduce this new format as the acceptance for coffee is growing. This format will bring incremental business to our overall business while establishing McDonald's a coffee destination as well."

Estimates suggest that McCafe helps the fast-food chain generate 15 per cent more revenue in an already established market. However, Jatia didn't reveal how much he expected the new format to add to the company's revenues.

The coffee-cafe market in India grew at 30 per cent year-on-year over the past three years to an estimated value of around Rs 2,000 crore.