Are you considering investing in a McDonald’s franchise in India? Understanding the cost is crucial before taking the plunge. McDonald’s is a global fast-food giant known for its consistency and brand value, making it a lucrative franchise option. However, the initial investment is substantial, covering franchise fees, real estate, equipment, and operational costs.
Additionally, ongoing royalty and advertising fees impact profitability. In India, the cost varies based on location and restaurant type, such as a traditional outlet or a drive-thru. Knowing these expenses helps in planning finances and evaluating potential returns on investment. So, is it worth the cost?
In this blog, we will look at McDonald’s Franchise Cost in India.
Beginning of McDonald’s
The McDonald’s restaurant chain originated from a tiny barbecue eatery founded by Richard and Maurice McDonald in San Bernardino, California, in 1940. They changed their operations in 1948 through the “Speedee Service System,” which delivered quick preparation methods and high efficiency.
The revolutionary concept became the essential element that created contemporary fast-food dining. Ray Kroc, an existing milkshake machine salesman recognized the McDonald brothers’ potential business concept, so he became their franchise agent in 1954. Ray Kroc pivoted to purchase the McDonald’s business from Richard and Maurice McDonald after he opened the first franchise in Des Plaines, Illinois in 1955.
During Kroc’s time as McDonald’s leader the company expanded tremendously into a worldwide fast-food empire known for its iconic Golden Arches and hamburger as well as French fries menu. The McDonald’s corporation maintains more than 100 countries within its service range where it provides daily meals to millions of consumers.
Why McDonald’s Franchisee?
- Strong Brand & Scale: McDonald’s globally recognised brand and 39,000+ outlets make it a beautiful franchise opportunity.
- Proven Franchise System: Decades of success driven by standardised operations, efficiency, and continuous innovation.
- Comprehensive Support: Franchisees receive extensive training, operational guidance, and access to an established customer base.
- Robust Supply Chain: Centralised procurement ensures consistent quality ingredients and cost efficiency.
- Marketing Power: Nationwide and global marketing campaigns strengthen customer reach and brand recall.
- Technology Leadership: Ongoing investment in digital ordering, delivery platforms, and modern restaurant technology.
- Financial Potential: Despite high initial investment, franchises offer strong long-term profitability opportunities.
- Risk Reduction: Support in site selection, staffing, and operations lowers startup and operational risks.
- Future-Focused Growth: Menu innovation and sustainability initiatives help attract and retain a broad customer base.
Who Owns McDonald’s Franchise in India?
McDonald’s India has two main entities: Westlife Foodworld, which handles the West and South regions under Hardcastle Restaurants Pvt. Ltd., and Connaught Plaza Restaurants Pvt. Ltd., which handles the North and East regions.
McDonald’s began its operations in India in 1996, and it grew to operate in more than 300 sites in various main urban centres. McDonald’s India operates through two franchise partners: McDonald’s India – North and East (run by Connaught Plaza Restaurants) and McDonald’s India – South and West (managed by Westlife Foodworld).
McDonald’s serves Indian customers by providing non-pork and non-beef choices among its special Indian menu, which includes vegetarian selections such as McAloo Tikki and Paneer Wrap.
The business adapts its menu to suit Indian society but preserves the global quality norms. The expanding customer base prompts McDonald’s to introduce digital solutions, delivery capabilities, and enhanced customer satisfaction in all parts of India.
Types of McDonald’s Restaurants: Formats and Offerings
- Traditional Restaurants: Standard outlets offering full menus with dine-in, takeout, and drive-thru services.
- Drive-Thru Restaurants: Drive-thru restaurants provide quick service for vehicle-based clientele while establishing strategic locations near busy roads.
- McCafé: McCafé is a combination of coffee shops that reside within its restaurants to provide specialty beverages and baked goods as well as dessert treats.
- Express Kiosks: Express Kiosks operate as compact outlets in transportation hubs, along with shopping complexes and airports to deliver rapid service for minimal menu selections.
- Self-Order Kiosks: The implementation of Self-Order Kiosks provides customers with digital screens to place their orders and personalize their food selections.
- Delivery-Only Kitchens: Delivery-Only Kitchens operate as “Cloud kitchens” to serve customers who order through online delivery apps.
- PlayPlace & Family Restaurants: Kid-friendly outlets with play areas, ideal for families.
- Flagship Experience Stores: Premium locations with modern interiors, table service, and unique menu offerings.
Also Read: Burger King Franchise Cost in India
What Is a McDonald’s Franchise?
McDonald’s is a franchise-based business with more than 93% of its outlets running as independent businesses rather than McDonald’s itself. This business strategy enables McDonald’s to grow rapidly by capitalising on the business expertise and capital of its franchisees.
How it operates in India
McDonald’s operates differently in India compared to its operations in the USA. McDonald’s operates its business through a Master Franchisee/Developmental Licensee business format rather than the individual franchise store format. McDonald’s operates its business through several key areas that are considered essential for its operations:
- Regional Division: The country is divided into two major areas with separate corporate entities.
- Menu Localisation: McDonald’s maintains a completely beef-free and pork-free menu.
- Supply Chain: They have a system known as a “cold chain” that allows fresh items to be transported to different states at specific temperatures.
- Operational Standards: Every outlet is required to follow a strict set of guidelines known as the global “QSC&V” protocol.
- Developmental Licenses: Unlike traditional franchises, these partners own the operational rights for entire regions rather than single stores.
How Much Does a McDonald’s Franchise Cost in India?
- Initial Franchise Fee: Approximately ₹25–30 lakh.
- Total Investment: Including expenses for equipment, maintenance, staff training, and other setup costs, the total investment ranges between ₹6.6 crore and ₹14 crore.
- Liquid Capital Requirement: It’s advisable to have around ₹5 crore in liquid assets to manage unexpected expenses.
- Ongoing Fees:
- Advertising Fee: 3% of gross sales.
- Royalty Fee: 4%–6% of gross sales.
- Break-Even Period: Typically, franchisees can expect a return on investment within 2–3 years, depending on factors like location and operational efficiency.
McDonald’s Franchise Cost in India (2026 Quick Overview)
Note: As of early 2026, McDonald’s India is largely focusing on its current franchisees and does not accept new individual franchise applications.
| Investment Component | Estimated Cost (INR) |
| Initial Franchise Fee | ₹25 Lakhs – ₹30 Lakhs |
| Equipment & Machinery | ₹35 Lakhs – ₹60 Lakhs |
| Interior & Civil Works | ₹70 Lakhs – ₹1.5 Crore |
| Liquid Capital Required | ₹5 Crore |
| Total Infrastructure Investment | ₹6.6 Crore – ₹14 Crore+ |
Example Monthly Profit Table
| Item | Estimated Value (Monthly) |
| Average Gross Sales | ₹20,00,000 |
| Cost of Goods Sold (COGS) | ₹7,00,000 |
| Royalty Fee (approx. 5%) | ₹1,00,000 |
| Operating Expenses (Rent, Staff, Utilities) | ₹8,00,000 |
| Net Monthly Profit | ₹4,00,000 |
McDonald’s Franchise Requirements: What You Need to Know
Potential owners seeking McDonald’s franchise opportunities in India need to fulfill multiple requirements for consideration. A total estimated budget starting from ₹6.6–14 cror,e accompanied by a franchise entry fee of ₹25–30 lakh, is necessary.
Existing McDonald’s franchise owners with both previous business experience and solid financial standing need ₹5 crore in available funds for consideration. Franchisees need to complete McDonald’s instructional programs and maintain all operational standards without exception.
Franchisees must choose prime locations with heavy traffic to enhance revenue while upholding brand marketing practices and maintaining product quality standards.
The McDonaldization of the McDonald’s Franchise Agreement in India
- Standardization of Operations: A standard operational framework applies to every McDonald’s outlet to maintain consistent food standards alongside identical service delivery and brand experience at all locations.
- Franchise Model Structure: McDonald’s India maintains its franchise structure through a partnership with Connaught Plaza Restaurants (North & East) and Westlife Foodworld (South & West) as master franchise operators.
- Investment Requirements: Potential franchisees need to commit ₹6.6–14 crore through a payment of ₹25–30 lakh as the franchise fee and actual liquid capital worth ₹5 crore.
- Strict Quality Control: The franchise must follow McDonald’s QSCV (Quality Service Cleanliness Value) standards without exception.
- Supply Chain Integration: The supply chain integration requires McDonald’s franchisees to buy raw materials exclusively from specified vendors to maintain product consistency.
- Marketing & Branding Commitment: As part of their Branding & Marketing duties Franchisees must use 3% of their gross sales revenue to support McDonald’s national advertising campaigns.
- Royalties & Fees: Ongoing royalty payments of 4-6% of sales fund both operational support and brand maintenance.
- Technology & Innovation: Franchise owners must deploy self-order kiosks and digital menus and delivery services as a part of their commitment to technology and innovation.
- Training & Development: Training & Development Standards require McDonald’s franchise owners to finish their required McDonald’s training to operate their establishments successfully.
- Location Selection: The approval process for franchisees requires them to secure well-visited locations which will drive their profitability.
Understanding the McDonald’s Franchise Agreement
The McDonald’s franchise agreement establishes the business rules that relate to McDonald’s restaurant operation by individual or corporate franchisees. India’s franchise system functions through Connaught Plaza Restaurants’ control of North and East India and Westlife Foodworld’s management of South and West India.
Investors must allocate between ₹6.6 crore to ₹14 crore to establish a McDonald’s franchise location while paying an additional base fee of ₹25–30 lakh. To operate a McDonald’s restaurant, franchisees must adhere to McDonald’s detailed operational mandates that cover product quality standards along with supply chain procedures and brand principles.
Franchises must give McDonald’s royalties that represent 4-6 percent of their total sales and pay marketing contributions of 3 percent. Franchisees receive tailored training programs that help them uphold global brand standards. McDonald’s maintains both brand consistency and customer experience through an agreement that keeps protocols constant between different locations.
How to Apply for a McDonald’s Franchise in India
- Research & Eligibility: Understand McDonald’s franchise model, investment requirements (₹6.6–14 crore), and qualifications.
- Financial Preparation: Ensure you have the required capital, including ₹25–30 lakh franchise fee and ₹5 crore in liquid assets.
- Submit Application: Visit the McDonald’s India website and fill out the franchise application form with business details.
- Initial Screening: McDonald’s reviews applications based on financial capability, business experience, and location plans.
- Interview & Evaluation: Shortlisted applicants undergo interviews and assessments to determine their suitability.
- Site Selection & Approval: Propose a location with high customer potential; McDonald’s conducts feasibility studies.
- Sign Franchise Agreement: Upon approval, sign the agreement outlining operational, financial, and brand guidelines.
- Training Program: Complete McDonald’s training covering operations, customer service, and quality standards.
- Restaurant Setup: Work with the McDonald’s team to design, equip, and launch the outlet.
- Grand Opening & Operations: Begin operations under McDonald’s supervision, following all brand and service guidelines.
McDonald’s Franchise Profit in India: What to Expect
- Average Annual Revenue: Approximately ₹2.6 crore per outlet.
- Profit Margin: Typically ranges between 20% to 25%.
- Profit per Revenue: For every ₹1 lakh in revenue, expect a profit of ₹20,000 to ₹25,000.
- Annual Profit: Estimated between ₹50 lakh to ₹1 crore, depending on factors like location and footfall.
- Return on Investment (ROI): Typically achieved within 4 to 6 years.
Franchise Comparison – McDonald’s vs Other QSR Franchises
| Franchise Brand | Investment | Profit Potential |
| McDonald’s | ₹6.6 Cr – ₹14 Cr | High (20-25% Margins) |
| KFC | ₹1 Cr – ₹3 Cr | Moderate to High |
| Subway | ₹30 L – ₹80 L | Moderate |
| Domino’s | ₹50 L – ₹1.5 Cr | High (High Volume) |
Authorised McDonald’s Franchise Operators – India
1. Hardcastle Restaurants Pvt. Ltd. (West & South India)
- Address: 1001–1002, Tower-3, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013, Maharashtra, India
- Phone: +91-22-49135000
- Email (Customer Feedback): myfeedback@mcdonaldsindia.com
- Email (General): info@mcdonaldsindia.com
- Email (Real Estate): RealEstate@mcdonaldsindia.com
- Email (Careers): careers@mcdonaldsindia.com
- Email (Media): corpcomm@mcdonaldsindia.com
2. Connaught Plaza Restaurants Pvt. Ltd. (North & East India)
- Corporate Office: Sarojini House, Bhagwan Das Lane, Mandi House, New Delhi – 110001, India
- Alternate Office: 13A, Market, Jor Bagh, New Delhi – 110003, India
- Email (Real Estate / Development): re.helpdesk@del.in.mcd.com
Challenges of Operating a McDonald’s Franchise in India
- High Initial Investment: Requires ₹6.6–14 crore, making it a capital-intensive business.
- Real Estate Costs: Securing prime locations with high footfall is expensive and competitive.
- Operational Costs: High expenses for staff salaries, electricity, maintenance, and supply chain logistics.
- Strict Compliance & Regulations: Franchisees must adhere to McDonald’s global standards, local food safety laws, and labor regulations.
- Supply Chain Management: Ensuring timely procurement of fresh ingredients while maintaining cost efficiency.
- Changing Consumer Preferences: Adapting to evolving dietary trends, including demand for healthier options.
- Market Competition: Facing strong competition from local QSR brands and international fast-food chains.
- Royalty & Advertising Fees: Ongoing payments (4–6% royalties and 3% advertising contribution) impact profit margins.
- Economic Fluctuations: Inflation, tax policies, and market downturns can affect consumer spending.
- Technology Integration: Maintaining up-to-date digital infrastructure for online orders, delivery services, and automated kiosks.
- Employee Retention: High attrition rates in the fast-food industry lead to frequent hiring and training costs.
- Menu Localisation: Balancing McDonald’s global menu with Indian flavors while maintaining brand consistency.
Current Trends and Future Outlook
- Expansion Plans: McDonald’s India is aggressively expanding, with Westlife Foodworld planning to add 580–630 new restaurants by 2027.
- Menu Localisation: To cater to Indian tastes, McDonald’s has developed beef-free burgers and products that incorporate local flavors.
- Digital Integration: The company is enhancing its digital presence through initiatives like the McDonald’s India app, which has seen significant growth in monthly active users.
- Health-Conscious Offerings: McDonald’s India is introducing healthier menu options to align with the growing health awareness among consumers.
- Economic Challenges: High food inflation and low wage growth have led to reduced consumer spending, impacting sales. Westlife Foodworld reported a 59% decrease in third-quarter profit due to increased expenses and subdued consumer demand.
- Competitive Market: The fast-food sector in India is highly competitive, with both international and local brands vying for market share. This competition necessitates continuous innovation and value offerings to attract cost-conscious consumers.
- Consumer Spending Trends: Persistently high inflation has led India’s middle class to tighten its belt, reducing discretionary spending and affecting sales in the fast-food sector.
Ending Thoughts
McDonald’s has established itself as a dominant player in India’s fast-food industry through strategic expansion, menu localization, and strong brand recognition. Its franchise model offers lucrative opportunities but requires significant investment and adherence to strict operational guidelines. While challenges such as high operational costs, economic fluctuations, and intense competition persist, McDonald’s continues to innovate with digital integration, health-conscious offerings, and customer-centric services.
The brand’s future in India looks promising, with aggressive expansion plans and evolving consumer preferences shaping its growth. Success in the Indian market will depend on balancing affordability, quality, and innovation while adapting to changing economic conditions and customer expectations. Overall, McDonald’s remains a strong force in India’s quick-service restaurant sector.
FAQs
How Many McDonald’s Franchise Restaurants Are There in India?
As of now, there are around 500 to 550 McDonald’s outlets in India. The company has been growing rapidly and plans to reach 600+ outlets across India by the end of 2027, covering both Tier 1 and highway “drive-thru” outlets.
What training does McDonald’s provide to franchisees?
Comprehensive training on operations, management, and customer service is provided to ensure consistent quality.
Can I own multiple McDonald’s franchises in India?
Yes, McDonald’s encourages multi-unit ownership for qualified franchisees with proven success.
What are the profit margins for a McDonald’s franchise in India?
Profit margins vary but are generally between 10% to 20% of total sales, depending on location and expenses.