McCafe set to be introduced into India

The McCafe concept may be making McDonald’s restaurants some rather large profits, but the idea of the fast-food outlet serving coffee isn’t as widespread as you might imagine.

However, success is often replicated so therefore the only surprising thing about McCafe’s imminent arrival in key Indian markets is how long it has taken to get there.

Hardcastle Restaurants, the master franchiser for McDonald’s stores in the south and west of India are aiming to bring in McCafe in a bid to boost sales and wrestle customers away from the competition.

According to a report in the Indian press, there could be 150 locations selling McCafe branded beverages in the near future. Currently, most stores there serve their drink selection under the Coca-Cola brand of Georgia.

Coffee is big business in India, and it’s a topic that we have covered in depth over the years. According to market analysts Technopak Advisors the sector is expected to reach $410 million by 2017. At the moment it is estimated to be worth $230 million.

“There are no plans to establish stand-alone [McCafe] stores since it has not worked internationally,” said Hardcastle Restaurants’ director Smita Jatia, announcing that the brand’s inclusion would follow that of what western-based stores.

Nearly 200 McDonald’s outlets in India are operated by Hardcastle and the group is looking to acquire a further fifty in the next five years – and coffee is obviously a key part of their business plan.

In recent years the likes of Starbucks (in partnership with Tata), Costa Coffee and Cafe Coffee Day have all made aggressive moves in the sector and are enjoying healthy financial rewards at the moment, taking advantage of the ever increasing appetite for coffee in the India.

The McCafe brand will certainly help out, but success is not guaranteed. After a trouble period, the Italian company Lavazza finally managed to oust the struggling chain Barista – proving that he who dares doesn’t always win.

Once again, it looks to be an interesting time to be following the coffee sector in India and you can be assured that we’ll be keeping a close eye on it.

photo: Niall Kennedy, Flickr – adapted under creative commons