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McDonald's to expand in India
http://www.sina.com.cn 2003/04/08 10:55  Shanghai Daily

  Mcdonald's Corp and its partners plan to double the number of restaurants they have in India by 2005, even as the world's biggest burger chain closes outlets in the US, Japan and other countries.

  McDonald's will add 52 restaurants to the 48 it already operates in the country, said Vikram Bakshi, head of the venture that runs McDonald's outlets in northern India, including New Delhi, the capital. The chain and its partners have invested about 7 billion rupees (US million) since the first Indian outlet opened in 1996.

  "McDonald's considers China and India to be vital for expansion and will continue to invest more and more in both countries," Bakshi said in an interview. "We would've invested between 10 billion and 13 billion rupees in India by 2005."

  China and India, both with populations exceeding 1 billion, are growth areas for McDonald's, which in the last quarter of 2002 had its first loss since going public in 1965 after a drop in global sales forced it to close some restaurants. Both countries boast a growing number of population whose appetite for Western-style fast food is growing.

  In India, the company is targeting its Chicken-Mexican Wrap and Pizza McPuff at middle-income consumers earning between US and US,600 a year.

  Thatsgroupsis growing as software companies, call centers, banks and auto companies hire more workers to fill overseas orders and cater to local demand.

  McDonald's sales in India have risen an average 40 percent a year since its debut in 1996, Bakshi said. The local venture expects to break even by December, he said, declining to give revenue figures.

  The expansion drive is targeting locations at new shopping complexes and highway stops. The chain is also varying its menu, with choices adapted to local tastes. It doesn't sell beef in India as the cow is considered a sacred animal, limiting its meats to chicken and fish.

  McDonald's plans to introduce two products suited to Indian palates by 2004. It already sells 14 local-menu choices, such as McAloo Tikki potato patties and Crispy Chinese burgers.

  "In the next two years, we should finally have a menu that is entirely relevant to the Indian household," said Bakshi.




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