McDonald's Franchise Cost in India: A Detailed Overview

McDonald's, the global fast-food giant, has become synonymous with burgers, fries, and a quick meal on the go. Over the decades, the brand has expanded its reach globally, and India is no exception. For entrepreneurs interested in entering the lucrative food and beverage industry, opening a McDonald's franchise could be a lucrative opportunity. However, before diving into the business, it’s important to understand the McDonald's franchise cost in India, as well as the various factors involved in setting up a McDonald’s restaurant.

The McDonald's Franchise Model in India

McDonald's follows a franchise model in India, allowing investors to operate its outlets under the brand's name and guidelines. In exchange for the privilege of using the McDonald's brand, franchisees pay various fees and royalties, and are required to maintain certain operational standards.

McDonald's franchises in India are available in both the "McDonald’s Restaurant" format, which is typically a standalone unit, and the "McDelivery" model, which focuses more on home delivery and smaller spaces.

McDonald's Franchise Cost in India: The Breakdown

The franchise cost can vary depending on various factors such as location, size of the restaurant, and whether the outlet is a standalone or a kiosk format. However, here is a general breakdown of the McDonald's franchise cost in India:

Initial Franchise Fee:

McDonald's typically charges an initial franchise fee ranging from ₹50 lakh to ₹75 lakh. This fee is a one-time payment that gives you the rights to use the McDonald's brand and its operational system.

Investment in Infrastructure:

The cost of setting up the restaurant infrastructure depends on the size and location of the outlet. On average, it can range from ₹1 crore to ₹2.5 crore. This includes the cost of construction, interior design, kitchen equipment, and initial stock.