Connaught Plaza Restaurants (CPRL), the operator for McDonald’s in North and East India, is investing $80 million to expand its footprint to 500 stores by 2028. The private entity aims to reach ₹2,000 crore in revenue by FY27 despite ongoing inflationary pressures in the QSR sector.
Connaught Plaza Restaurants (CPRL), the master franchisee responsible for McDonald’s operations across North and East India, has announced an investment of approximately $80 million to accelerate its growth. The company intends to use this capital over the next two and a half years to open new stores and invest in digital systems to improve customer experience. This expansion strategy aims to grow the current network of over 320 locations to 500 outlets by 2028.
Financial and operational targets are part of this push, with the company aiming for a revenue of ₹2,000 crore by FY27, up from the ₹1,695 crore reported in FY26. Management has projected an EBITDA margin of around 12% as they look to scale operations. The company plans to focus on new formats, such as drive-throughs and restaurants located at government-run fuel stations, to reach more customers.
This expansion occurs within a challenging environment for the broader Quick Service Restaurant (QSR) industry. Companies in this sector are currently dealing with higher operating costs, including rising expenses for fuel, packaging, and logistics. These cost pressures have squeezed profit margins, forcing companies to balance the need for profitability with the need to keep prices affordable. To manage these expenses, CPRL has indicated that it may implement selective price adjustments on some menu items.
Competition remains a significant factor for the company. The QSR space in India is crowded with major players, including Devyani International, which operates the KFC franchise, and Burger King. These chains are also competing for prime real estate and consumer attention, which adds pressure on operators to maintain high service quality while controlling costs.
Investors should note that Connaught Plaza Restaurants is a private, unlisted company under the MMG Group and is not traded on the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE). The funding for this expansion is expected to come internally through the group’s family-office investment structure, which has been in place since the entity acquired the operations from the global McDonald’s parent corporation in 2020.
The key focus for the company moving forward will be its ability to execute this store expansion plan while managing inflationary headwinds. Success will depend on whether the company can maintain its margins through operational efficiency and whether its chosen locations can generate the expected footfall in a competitive market.