McDonald’s India operator CPRL to invest US$125M for expansion

INDIA – Connaught Plaza Restaurants (CPRL), McDonald’s India operator, has announced plans to invest US$100 million (INR 8.7 billion) to US$125 million (INR 10.9 billion) to expand its outlets across Northern and Eastern India.

Connaught Plaza Restaurants Ltd (CPRL) aims to expand its McDonald’s outlets to 300 by the end of 2025, according to promoter and vice chairperson Anant Agarwal.

The company plans to invest in this expansion over the next three to four years.

The MMG Group, led by Sanjeev Agarwal, took control of McDonald’s India’s northern and eastern operations in 2020, following the exit of former partner Vikram Bakshi.

Since then, CPRL has grown to 245 outlets, including a newly launched store in Siliguri.

Anant stated that 125 of these locations feature McCafe, with plans to double both the number of outlets and McCafes in the coming years.

He noted that India’s coffee culture is expanding, particularly among young professionals and students. CPRL remains committed to offering high-quality coffee at competitive prices, sourcing 100% Arabica beans from Chikkamagaluru, Karnataka.

Each McCafe is operated by a four-person team, including a trained barista, with staff undergoing 600 hours of training.

The planned investment will not only support new outlet openings but also strengthen CPRL’s digital capabilities and accelerate McCafe’s growth.

While there are no immediate plans for a public listing, Anant stated that the expansion would be primarily financed through internal cash flows.

CPRL generates revenue through dine-in, delivery, and drive-through services, with dine-in offering a complete brand experience and delivery contributing significantly to sales.

The company is also engaged in rapid delivery programs such as Swiggy’s Bolt and Zomato’s Bistro.

Despite economic pressures, including inflation and rising commodity costs, CPRL is focused on supply chain and operational efficiencies to limit major price increases.

This initiative aligns with the company’s broader expansion strategy.

In May 2023, CPRL announced an investment of INR 400-600 crore (US$48-72 million) to double its McDonald’s outlets and upgrade existing stores within three years.

The company has held the McDonald’s franchise for North and East India since 2019, when McDonald’s India acquired CPRL following a settlement with former joint venture partner Vikram Bakshi.

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