The Growth of McDonalds in India – Master Franchisee HardCastle Restaurants

Growth of McDonalds in IndiaHardcastle Restaurant (HRPL) is the master franchisee of McDonald’s for India’s southern and western regions . The other franchisee is Connaught Plaza Restaurants Pvt Ltd which holds franchisee rights for Northern and Eastern parts of the country. It pays royalty of 3% of sales which will gradually increase to 8% by 2020.

HRPL acquired is a Development Licensee means an entity which is granted franchise rights to own and operate McDonald’s restaurants, to adopt and use the McDonald’s system to develop and run McDonald’s restaurants in a given area, and to advertise and use the McDonald’s brand name (more…)

Holii – HiDesign Luxury Products on Sale

EOSS_Holii_Mall Marketing_finaleHolii a joint venture of Hidesign, leading luxury leather bag company and Future Group, the largest retailer in India have announced end of season sale.

Holii gives you yet another reason to love the sale season and boost your collection of exciting colourful bags! Buy a product at any Holii exclusive store and get a 30% off on your second buy. Pick an office bag and a matching wallet to go along; or gift your (more…)

Wee Store – Apparels & Accessories Store Launched in MGF Metropolis Mall, Gurgaon

Wee StoreWital See’s multi brand retailer opened its Wee Store a Specialty Store for Apparels & Accessories. The flagship store is spread over 3300 square feet store and is located in the heart of Gurgaon at MGF Metropolis Mall. The new store is an exclusive apparel and accessories store that will cater to the Upper Middle Class customers located in Gurgaon and neighboring areas.

Wee store is on a concept of next door neighborhood stores (more…)

How Many More Dominos Pizza Stores Can Be Opened in 10 Years ?

Dominos Pizza India to take 10 Years to add next 1000 StoresDomino’s India has a historical five-year revenue CAGR of 46%, which has been evenly split between growth through new store expansion as well as growth in same-store sales. Against this backdrop, the big question that needs to be answered is: can the strong acceleration in new store opening run-rate sustain? Hence, can Domino’s maintain its sales growth rate in excess of 35-40% over the next few years through the opening of 200-300 new stores annually ?

The current demographics limit the total store count (more…)

FDI in Multi-Brand Retail Skids; Will Not take Off

FDI in Indian RetailAs soon as P. Chidambaram took over as the Finance Minister of India, he pushed along the much needed Reforms Policy by permitting Foreign Investment in Multi-Brand Retail in India. 9 Months after the announcement of the Policy, there are no takers. We analyze why FDI in Multi Brand Retail has hit the Road Bump.

Approval from state governments a must for setting up foreign multi brand stores FDI-funded retailers will be allowed to operate stores only in those states that have agreed to allow foreign investments in retail. So far only ten states and two union territories have (more…)

How McDonalds India beats Inflation & Keeps Customers Happy ?

McDonalds India Happy CustomersIn our last review we have already highlighted India’s best supply chain management system of McDonalds beating Reliance Retail and others in the way. Today we’d like to point out on what business strategies McDonalds has adopted to beat the Inflation unacceptably high under the Corrupt Congress Government.

Transformation of agriculture practices: Mechanized field preparation and Drip irrigation were implemented on product farms which has lowered wastage and improved yields consistently. Eg: Farm yields for iceberg lettuce have improved from 60% to 80% while processing yields have improved to 75% from 45% earlier. (more…)

How Does McDonalds Manage its Supply Chain in India ?

McDonalds IndiaMcDonald’s supply chain facilities include the chicken patty plant (Vista Processed Food Pvt. Ltd.), cold chain distribution center (Radhakrishna industries) and over a dozen vendors and suppliers. We present insights on the close interdependence between key vendors and McDonald’s, which is a long term competitive advantage, complex supply chain which is vital to support its growth acceleration phase, and ability to manage inflation through transformation of agricultural practices and supply chain optimization.

McDonald’s offers its key suppliers long term sustainable and profitable growth. The backbone of McDonald’s operations is built on a unique farm-to-fresh cold supply chain. McDonald’s Corp (US) itself invested Rs 4.5 bn to develop the supply base which took (more…)

Competition & Expansion in the QSR Chain market in India

Competition in QSR In IndiaJubilant Foodworks master Franchisee for Dominos and Dunkin Donuts has ambitious expansion plans to open over 100 stores per year, taking the total estimated store count to 800 stores by FY15. At the same time big players like McDonalds, Yum Brands, Subway, CCD, and other smaller and regional players also have similar expansion plans. Also, many new entrants are expected to enter this business in the coming few years.

Yum Brands (YUM US) has outlined (more…)

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