McDonalds is planning to invest Rs 500 crore by next year to expand its network to 220 outlets.

"We will invest Rs 500-crore by 2008, excluding real estate costs," McDonalds Managing Director Amit Jatia said

We plan to add 50-60 outlets every year, he said, the company would have 150 outlets by the end of this year.

The idea is to have a cluster at one place rather than expanding throughout the country, he said, adding McDonalds would soon be coming up with such a cluster in Hyderabad.

On franchisees, he said: "We already have two such stores in Bangalore but we are not looking at franchising for the next two-three years since it is difficult to train people."

However, he did not rule out the possibilty totally, saying "the possibility exists but not immediately".

On his expansion plans for the Pune and Mumbai markets, Jatia said "we would like to add another 8-10 outlets every year in both these markets."

However, getting ideal real estate in both the places were difficult, he said.

The future held immense potential for the business, he said, as there was a huge market for McDonalds products

Source: The Telegraph
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