Mcdonald’s franchise is the best American global chain of Quick Service restaurants. We will discuss Mcdonald’s Franchise Cost and Profit. The USP of Mcdonald’s is its fast food, quick service, and humongous Brand name.
The company was started in 1955. Mcdonald’s Franchise now has 38,000+ Outlets around the World in more than 100 Countries. Mcdonald’s has 180+ Outlets in India. The franchise is the 2nd largest employment provider in India.
Mcdonald’s franchise Cost in India
Mcdonald’s Franchise Cost 1.5 Crore Rupees of an Initial Investment. There are many components to estimate the Mcdonald’s Franchise Cost in India.
But the Investor should have the capacity to invest upto 10 Crore Rupees due to the volatile market. Initially, there can be losses so more working capital is required.
Mcdonald’s Franchise Fee
Mcdonald’s Franchise Fee depends upon the type of Outlet and Location. Burger King has not revealed its exact franchise fee. But it is around 30 Lakh Rupees+GST.
In exchange for the franchise fee, you will get the right to sell Burger King Products in a particular area. You will be provided the Raw Material in frozen form for making the material. You will also get a great brand name.
Mcdonald’s Interior Cost
Mcdonald’s Interior, Civil Work, and Furniture cost 25-30 Lakh Rupees depending upon the area. The minimum area required to start a Mcdonald’s Outlet is 1800 Square Feet of which 250 Square Feet will be allotted to the kitchen area and 50 Square Feet will be allotted to the Billing Area.
Civil Work will cost around 6 lakh Rupees which includes building the kitchen and sitting area. Furniture will cost 10 Lakh Rupees of Investment and the rest of 14 Lakh Rupees will be the Interior Cost that includes Hoarding, Signage and Led TV, etc.
Mcdonald’s Machinery Cost
Mcdonald’s Equipment and Machinery cost 30-35 Lakh Rupees which includes the Kitchen Utensils, Oven, Baker, Deep Freezers, Fryers, and many more types of equipment.
Mcdonald’s Franchise Other Expenditure
The other Expenditure in Mcdonald’s cost 15-20 Lakh Rupees as an Investment that includes training cost, transportation cost, Maintainance, Licensing, Marketing, and many more expenditures.
Mcdonald’s Franchise Profit Margin in India
We will analyze Mcdonald’s Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 12,00,000 Rupees i.e. 40,000 Rupees per day.
|Gross Sales||12,00,000 Rupees|
|Food Cost @35%||(4,20,000) Rupees|
|Electricity and Water Supply||(25,000) Rupees|
|Salary of Workers and their Expenses||(1,00,000) Rupees|
|Aggregator Commission (Zomato, Swiggy)||(40,000) Rupees|
|Royalty Fee @4%+GST|
Advertisement Fee @4%+GST
|Other expenses |
(Software, Maintenance and Misc)
|Net Profit||3,25,000 Rupees|
We can conclude that the Profit Margin of the Mcdonald’s Franchise is 27% for the Sales of 12,00,000 Rupees. The outlet may have less profits in the initial days, but Burgers will eventually gain high popularity and have great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 15-18 Lakh Rupees per month and the profit margin will be 32-40% on Sales.
Location plays a very crucial factor in determining the success rate of a franchise along with food quality and service.
The location should have a very high footfall. It should be in the main market of that area. A corner outlet is the most preferable option.
You can open the outlet nearby colleges, corporates, or any place where young people love to have Burger.
How to get Mcdonald’s Franchise in India?
To get the Mcdonald’s Franchise, you have to fill out the Google form below then we will allot you a franchise specialist who will guide you the best. However, we are not the franchise givers of Burger King Franchise, only the Company has the right to sell the franchise in India. We can just guide you on chat-
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