Our brand extension efforts focus on the development of McCafé locations. McCafé locations are stylish, separate areas within restaurants where customers can purchase a variety of customizable beverages, including lattes, cappuccinos, mochas, hot and iced premium coffees and hot chocolate. McCafé locations have been very successful in creating a different customer experience, optimizing the use of our restaurants at all hours of operation and providing a higher profit margin than our regular restaurant operations. We believe the primary benefit of McCafé locations is that they attract new customers by increasing the variety of our product offerings and improving our image.
McCafé concept is well-suited for restaurants in large-scale shopping centres and commercial areas. In a span of two years McCafés network has expanded across 62 restaurants in 7 cities – Mumbai, Ahmedabad, Nashik, Indore, Aurangabad, Pune & Bengaluru.
Customer convenience is at the core of all operations at McDonald’s. To this end, McDelivery™, a global brand extension was successfully launched in India in the year 2005. With the launch of McDelivery™, customers have the convenience to enjoy McDonald’s products from the comfort of their homes. McDelivery is available across various platforms such as web ordering, mobile app and call centre. Today, over 110 restaurants offer McDelivery service across west and south region. McDonald’s is the only QSR players that offer customers multi-lingual options while placing their orders online. While the delivery is not a focus area and only a brand extension, we believe the room for growth is strong from the current level and is also likely to increase margins and return ratios.
The breakfast category is an important one, globally. In India, we are the only QSR chain to offer a dedicated menu range for breakfast for the discerning customer. We believe that there is a growing market for an out-of-home breakfast option. We spent several months understanding the customer’s needs for a wholesome, convenient breakfast option and designed our menu keeping in mind their requirements. With the launch of the breakfast menu we aim to offer a truly all-day dining experience to customers at our restaurants and enhance our promise of offering a convenient and hygienic eating-out experience for the entire family.
Dessert Kiosks have been an integral part of our growth. Dessert Kiosks operate separately from existing restaurants, but depend on them for supplies and operational support. For example, a mall store restaurant can provide support for several Dessert Kiosks located in different locations throughout the same mall. Our Dessert Kiosks are conveniently located to attract customers, thereby serving as important transaction generators and providing an effective method of extending our band presence to non-traditional areas. At Dessert Kiosks, customers can purchase a variety of dessert items, including the McFlurry and soft-serve ice cream. Dessert Kiosks require low capital expenditures and provide returns on investment that are significantly higher. As such, we believe they are an important driver in increasing our market penetration.