Mc Donald's impetus on smaller towns
Mc Donald's impetus on smaller towns

 

Vikram Bakshi, JV partner, Mc Donald’s India, in an interaction with Ankur Gaurav shared company’s plan to expand in India and also expressed his dissatisfaction with the hurdles governments put in the growth of such companies. 

 

Ankur Gaurav: Mc Donald’s is in expansion mode and are following different models in different zones of India. What is the reason behind that?

Vikram Bakshi: Mc Donald’s works with number of models across the world. There is individual franchisee model which is followed in down south. There is Joint Venture model which is followed in the northern India. Corporate owned model is being followed in countries like Singapore, Malaysia and Japan. It depends on the corporate to decide which model will best suit to the location.

AG: What is the growth and contribution you are expecting from tier-1 and tier-2 cities in the years to come?

VB: We have already said that we expect to double the stores in these areas. Our focus is on tier-2 and tier-3 cities which has a lot of hunger. And the number which we have attained in 15 years, the same we wish to attain by 2015. The product range will be the same but size, design, seating space will vary from location to location.

AG: What are the key challenges that you are facing while expanding in these areas?

VB: I have started saying that whatever we control, we do not have a problem with that. Manpower, real estate is not a problem. But whatever is in government’s control is a problem like infrastructure which is a problem in such areas. Proper roads and Power is not adequate. So the only issue is infrastructure, power and we wish that the government should stay out of our way by minimizing the shackles and licenses.

AG: You have also been advocating about the land reforms, what is your vision regarding that?

VB: What I feel is that government treats the land as their ‘jaageer’. They are holding a lot of land which must be released so that the business will succeed. If business succeeds, employment will be generated, revenue will come and ultimately the economy will thrive.

AG: Do you think, the vision which you share will be good for government and economy?

VB: Yes, a few days ago, Sukhbir Singh Badal said, Mc Donald’s is the largest VAT payer and is more than all the other restaurants put together in Punjab. Now if the business is more organised, people will find it easy to pay taxes, they will not fraud. So this is how the government can do good to themselves, the economy and the people as well.

AG: What is your message to the budding entrepreneurs who want to venture with Mac Donald’s?

VB: At present we are not following the franchise route, so that is out of question, All we require is a good quality property, and the partner will be passionate enough to get all the necessary permission and is ready to and want these smaller areas to generate a significant amount of revenue. 

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