McDonald’s partners with Telangana to launch its largest global capability centre (GCC) in Hyderabad

INDIA – McDonald’s has joined forces with the Telangana government to set up its largest Global Capability Centre (GCC) in Hyderabad, strengthening its presence in India.

McDonald’s has secured 200,000ft² of space in RMZ Nexity, located in Hyderabad’s IT hub, for its new Global Capability Center (GCC).

The company plans to recruit over 2,000 employees within the next few years, with operations set to begin in April 2025.

The announcement coincided with a meeting between McDonald’s chairman and CEO Chris Kempczinski and Chief Minister Anumula Revanth Reddy.

Kempczinski emphasized that Hyderabad was chosen over competing cities like Bengaluru due to its strong talent pool and advanced infrastructure.

He was accompanied by McDonald’s Global Business Services (GBS) president Skye Anderson, chief global impact officer Jon Banner, and India GBS head Deshant Kaila.

The delegation discussed the GCC project and McDonald’s interest in sourcing agricultural products from Telangana farmers for both national and international markets.

The Chief Minister welcomed the investment under the Telangana Rising initiative and stated that the company planned to use the state as a training hub for skill development in India and overseas.

He further announced on social media platform X that the partnership would generate thousands of jobs and business opportunities for young professionals.

Beyond the GCC, McDonald’s and its Indian partner currently operate 38 outlets in Telangana, with plans to open three to four new locations annually, including in smaller cities.

The Chief Minister also suggested sourcing agricultural products locally to support the state’s farming sector and enhance farmer incomes.

The expansion comes as McDonald’s faces a challenging environment in India’s quick-service restaurant (QSR) sector.

In October 2024, Foodworld, the operator of McDonald’s outlets in west and south India, reported a nearly two-fold drop in quarterly profit.

The company’s consolidated profit after tax for the second quarter, ending September 30, fell to INR 3.6 million (US$42,832), significantly below the previous year’s INR 223.7 million (US$2.6 million) and analysts’ expectations of INR 48.9 million.

Following the announcement, Westlife’s shares dropped by as much as 5%.

Quarterly same-store sales declined by 6.5%, driven by weak in-store business, which constitutes more than half of total sales.

The broader QSR industry has been struggling to attract Indian consumers, who are cutting back on discretionary spending due to rising food and essential goods prices.

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