GST would help add new stores in non-metro places: Hardcastle Cafe

McDonald's, the brand that introduced India to burgers, announced the launch of its 300th restaurant in West and South India, at Churchgate, an iconic landmark in Mumbai.

Hardcastle Restaurants Pvt. Ltd. (HRPL), the master franchisee of McDonald's in the region, commemorated this milestone by reinforcing its commitment to grow the business sustainably - in a way that's good for the people, the community and the planet.

HRPL has always ensured sustainability across its business - including things that the customers can see and those that they cannot. Over the last few years, HRPL has leveraged cutting-edge technology to consciously minimize its landfill, moderate its energy consumption, cut its carbon footprint and create eco-friendly processes to run restaurants. The Company has deployed an Energy Management System to minimize energy wastage, by monitoring in-store resource consumption across all restaurants. Last year, the Company also started converting used cooking oil from its restaurants to 100% bio-diesel to fuel its delivery trucks, saving diesel, a scarce and expensive national resource.

As a result of these initiatives, the Company has managed to conserve 28 lakh units of electricity, 300,000 litres of water, 550,000 litres of diesel and 2,400 gas cylinders, cutting its overall carbon footprint by a whopping 4,300 tonnes. Going forward, the Company is committed to leverage technology to accelerate its sustainability efforts to create a bigger environmental impact.

Commenting on this, Smita Jatia, Managing Director, Hardcastle Restaurants Pvt. Ltd., said, "Businesses can thrive only when they create a symbiotic ecosystem that is conducive to long-term sustainable growth. We have always created benchmarks for the QSR industry by taking a lead in innovation and best practices. We believe that with a footprint of 300 stores, we are in a very strong position to take bold steps and make a significant difference to society at large."

Sustainability has always been an integral part of the business at HRPL. Since its inception, the Company along with its partners invested over Rs. 1,000 crores to ensure best-in-class agricultural practices and a sustainable supply chain. Today, 95% of the ingredients used at HRPL are sourced locally and sustainably. The product packaging is also created with paper that is Forest Stewardship Council(FSC) certified, that ensures that it is sourced from a forest and supply chain that is managed responsibly. The Company has also introduced bio-degradable cutlery across all restaurants, eliminating any customer-facing single-use plastic. 

HRPL has also leveraged technology to transform the customer experience by launching the new 'Experience of The Future' or 'EOTF' restaurants. The new restaurants with Self Ordering Kiosks, table trackers and air chargers elevate the dining experience significantly. Keeping with the evolving needs of the customers, the Company also re-engineered its menu to make it more nutritious and wholesome.

With an objective of offering an indigenous, nutritious and wholesome menu/local taste in an international format, McDonald's has constantly reinvented itself to remain relevant to its customers. Path-breaking menu innovations, technology advancements, robust supply chain and sustainability initiatives, along with strategic bold moves have helped McDonald's create various trends in the QSR industry thus maintaining its leadership position.

Hardcastle Restaurants, the master franchisee for McDonald's in the western and southern markets, now recycles used cooking oil from McDonald’s outlets and converts it into biodiesel for powering its refrigerated supply delivery trucks.

The company started this pilot project last year with Unicon Biofuels and has so far scaled it up to cover 85 restaurants in Mumbai.

Currently, the company converts more than 35,000 litres of used cooking oil every month into biodiesel, said Vikram Ogale, Director-National Supply Chain & Quality Assurance, McDonald’s India.

The process of conversion begins at the restaurant, where the team from the distribution centre collects used cooking oil. The collected oil is then taken to the converting facility in tankers. The oil is converted into biodiesel and sent back to the distribution centre. It is then used in dedicated refrigerated trucks for McDonald’s supply logistics in Mumbai.

The company is piloting the project in Mumbai, and also looking at Bengaluru. "We will soon bring all our 277 outlets under the recycling programme," Ogale said.

Ogale said the biodiesel made from the used cooking oil is a cleaner fuel with 75 percent lower carbon emissions than diesel over its entire life cycle.

Sandeep Chaturvedi, president of the Biodiesel Association of India, said HRPL and Unicon Biofuels have been working for the past one year to convert used cooking oil to biodiesel as per the Bureau of Indian Standards (BIS).

"The Biodiesel Association of India encourages all food companies to learn from this initiative and apply it to their business model," he added.

Over the next four years, Hardcastle Restaurants is looking at expanding its restaurant footprint to 450-500. This means, the company will be using about 15 lakh litres of used  oil to make biodiesel for running its refrigerated delivery trucks.

Hardcastle Restaurants Private Limited, the Master Franchisee for McDonald’s restaurants in West and South India, has successfully transitioned from plastic to eco-friendly and biodegradable alternatives for items used for guest packaging.

HRPL has worked with its suppliers over the past many months and implemented sustainable solutions which enhance customer experience. It has already moved away from plastic in Maharashtra and key cities in Karnataka and is working on a plan for a market-wide change over the coming months.

McDonald’s now gives customers wooden cutlery (spoons, stirrers, knives, and forks) instead of plastic ones. The plastic cups have been replaced by superior quality paper cups. The straws are either made of paper or other biodegradable materials that are derived from corn starch. In addition, HRPL is testing various alternatives to ensure the best experience to its customers. 

“As the leader in the Quick Service Restaurant space in India, we are committed to using our scale for good and working towards finding sustainable solutions across our business.  This is in line with McDonald’s global vision of building a responsible business,” said Ranjit Paliath, Senior Vice President, Business Operations & Restaurant Enablement while commenting on the initiative.

While the restaurant chain has replaced products in its restaurants across key cities in Maharashtra and Karnataka, the company is working on alternative solutions for its delivery segment that can ensure safe and fresh food is delivered without spillage. In the meantime, restaurant associations have requested exemptions from the plastic ban for delivery and takeaway orders.

Hardcastle Restaurants Pvt Ltd (HRPL) which is the master franchisee for McDonald’s restaurants in west and south India, has announced ‘The Good Food Story’ to reinforce its commitment towards promoting nutritive and wholesome food.

Having served the Indian food lovers for the last 22 years, McDonald’s always taken care of Indian tastes and sensibilities. It has kept its vegetarian kitchen separate from the non-vegetarian kitchen. The company also does not serve pork and beef in any of its restaurants in India.

The food giant has developed a menu that offers a wide array of choices to suit different preferences. There is a range of high protein products that have paneer, chicken, egg, and fish.

Outside of the signature burgers and fries, the company has launched Chatpata Naan a truly Indian delicacy with an international form. With the recent launch of rice having the goodness of bulgar, basmati rice and fresh vegetables in select markets, McDonald’s has ensured there is something for everyone. The menu also offers a plethora of sides and desserts to complete a meal. Through McCafé, it offers a range of over 30 cold and hot dairy and fruit-based beverages.

“Our customers are increasingly adopting healthier lifestyles and trust brands that behave responsibly and transparently, especially when it comes to food options. Our goal has always been to build a better McDonald’s by making little changes that add up to a big difference. All modifications in ‘The Good Food Story’ have been a result of over three years of persistent re-engineering of our products just so that we could offer more wholesome and balanced food choices to our customers at a great value,” said Amit Jatia, Vice-Chairman of Westlife Development Limited.

“The overall lifestyle of Indians is changing as many of them are leading a sedentary life with very little physical activity. This may cause obesity and deficiency of essential nutrients. It is a good step that restaurants are now offering food choices with a better nutritional profile which are richer in protein and dietary fiber as well as lower in fat and sodium. This along with nutritional awareness will go a long way in ensuring a healthy lifestyle.” Commented JS Pai, Executive Director, Protein Foods & Nutrition Development Association of India at the launch of the initiative by Hardcastle Restaurants Pvt Ltd.

Dr Nilesh Amritkar, Managing Director, Envirocare Labs Pvt. Ltd added that “It is indeed good to know that fast foods can be health positive. I think this is a good effort and will have a positive impact on the food industry.”

“Reducing salt and overall sodium content of the products are small yet significant steps initiated by McDonald’s. The effort taken to re-engineer their food towards a healthy shift is a good initiative. Using technology innovations to reduce overall fat content may be a sustainable solution towards responsible nutrition,” Naaznin Husein, President, Mumbai Chapter of the Indian Dietetic Association (IDA) said.

“As Indians, the majority of our population is protein-deficient. In the future, more concentration could also be placed on increasing protein in all products. The steamed egg is a great value-add. Healthier choices like wraps, steamed eggs, and other such options should be added to the basket of products. Lastly but most importantly, portion control is important. Also, a takeaway message is that these foods are ’sometimes’ food and should not replace every day healthy balanced meals,” she added.

According to Hardcastle Restaurants, the licensee of McDonald's for West and South India, closure of 43 outlets in Delhi is a local issue and it has not hurt the brand in other parts of India.

Amit Jatia, Vice Chairman, Hardcastle Restaurants, said that the closure of stores is a local issue in Delhi and the impact is just a blip in short term.

On being asked whether the brand McDonald's has got a hit because of this, Jatia told PTI, "I do not think so. From West and South point of view, we are firing from all cylinders and things are good for us."

He said, "The customers do not care as who owns the restaurants. The customer is visiting a McDonald's from McDonald's and not necessarily knowing as who they are (franchise)."

He added, "This would obviously going to have an impact on Delhi as the number of McDonald's store has gone down. So obviously, they would use other brand instead."

According to Jatia, "We (McDonald's) have 420 restaurants in India and is opening 30 new restaurants a year. From a brand point of view to cover 43 restaurants is just a matter of year. I my view, its a blip in the short term."

Last month, McDonald's had decided to shut down 43 of the total 55 outlets in Delhi due to failure to renew eating house licences.

Jatia said, "As the dispute between Vikram Bakshi, an equal joint venture partner of McDonald's India Pvt Ltd (MIPL) in Connaught Plaza Restaurants Ltd (CPRL) that is the licensee for North and East India regions is over, the US fast food chain must have plans to bring their brand on track."

He added, "As they resolve it, I am sure McDonald's has plans to do what they need to do to get the brand right again in North and East."

Hardcastle Restaurants has plans to invest Rs 700 crore in next 3-5 years to double the outlets of the fast food chain to 500 in the two regions from the present 260.

Jatia said, "We would invest around Rs 700 crore by doubling our restaurants. The Idea is to double the base of restaurants in next 3 to five years but also along with that is to re-image and McCafe."

He added, "In last three years, Hardcastle Restaurants has opened over 100 restaurants with an investment of around Rs 300 crore."

Besides, the company is also adding McCafe stores in its existing McDonald's on store-in-a-store format and changing the look of its restaurants to sync with the future and the new generation

In an unprecedented move, the infighting between Connaught Plaza Restaurants (CPRL), the 50:50 local joint venture between Vikram Bakshi and the US-headquartered McDonald’s that operates the fast food chain in north and east India, and the global burger giant took an ugly turn with the CPRL board deciding to shut down 43 out of 55 restaurants in Delhi from 29 June.

In a statement, the Indian arm of the US-based burger chain confirmed that "the eating house licenses of a number of McDonald’s restaurants in Delhi have expired."

It added that CPRL is working to obtain the required licenses.

Vikram Bakshi, Former Managing Director, CPRL, "It's unfortunate, but operation of 43 restaurants operated by CPRL has been temporarily suspended."

The closure of the restaurants comes against the backdrop of a legal battle between Bakshi and McDonald’s.

In 2013, McDonald’s voted against the re-election of Bakshi as the managing director of CPRL, following which Bakshi challenged his removal in the Company Law Board (CLB), accusing McDonald’s of mismanagement and oppression.

Later in 2013, McDonald’s had revoked the JV agreement and invoked arbitration.

McDonald’s has been pursuing arbitration against Bakshi in the London Court of International Arbitration.

McDonald's India said, "While there are on-going legal disputes, suspending the operations of the restaurants is a collective decision of the CPRL Board of Directors."

Brand strategist Harish Bijoor contends that unless McDonald’s sorts out its legal battle, things might worsen.

"Every passing day is a slur on the frontend brand," he says, adding that there is nothing really bigger than the brand.

McDonald’s operations in west and south India have not been affected. In those markets, its master franchisee rights are owned by a separate company Westlife Development, through its subsidiary Hardcastle Restaurants.

Hardcastle Restaurants Private Limited (HRPL), a Master Franchisee for West and South India operations of McDonald’s restaurants and a subsidiary of the BSE listed Westlife Development Limited, has entered Mangalore with the launch of two outlets.

With this launch, the brand has added 44 restaurants in Karnataka and established a network of over 74 restaurants across Southern India.

McDonald’s iconic golden arches will first be seen at the Forum Fiza Mall located at Madison Road, followed by the launch of its second restaurant at the City Centre Mall situated at K S Rao Road.

The 128 seat attractive new restaurant at the centrally located Forum Fiza Mall sprawls over 3500 sq. ft and offers comfortable seating for guests while the restaurant at City Centre Mall can seat up to 134 guests within the restaurant and 32 guests outdoors.

The two new restaurants reflect best-in-class design with a full range of amenities and services unique to McDonald's restaurants around the world.

The restaurant is designed as a modern dining destination with free Wi-fi internet access, family-friendly amenities like a party room and ample parking for vehicles. McDonald’s Forum Fiza mall will welcome customers daily between 10 a.m. to 10.00 p.m. while the one at City Centre Mall will operate from 10 a.m. to 11 p.m.

“We are proud to open two McDonald's restaurants in Mangalore, a city which offers great opportunity to grow our Brand. Our commitment is to deliver a modern and exciting restaurant experience with delicious food and drinks, at the convenience our customers expect from McDonald's. McDonald’s has been a pioneer in the QSR industry and offers wholesome and delicious meal options to customers. We ensure that customers who come to us get quality fresh food at great prices," said Ranjith Paliath, Vice President, Business Operations, McDonald's India (West & South).

The menu has been created using flavourful spices that appeal to Indian tastes. The restaurants will each have a team of 50 employees to manage operations in the initial phase.