Drive-throughs, tier-2 cities, McCafé fuel McDonald’s India’s growth plan
The company is also seeing drive-through formats emerge as a powerful growth lever, now contributing over 30% of store revenues. McDonald’s maintains a balanced revenue split, with 65% of business from in-store dining and takeaway, and 35% from online delivery platforms.
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McDonald’s India is entering its most aggressive growth phase yet, with plans to double its current footprint of 245 outlets in the next 3–4 years, backed by a projected investment of $100 million. The golden arches are no longer just an urban icon; they’re fast becoming a tier-2 growth engine. “Cities like Guwahati, Siliguri, Gangtok, Lucknow, and Chandigarh are outperforming expectations. Tier-2 will be at the heart of our store expansion strategy,” Anant Agarwal, Vice-Chairperson, CPRL (McDonald’s India- North & East) told Storyboard18.
The company is also seeing drive-through formats emerge as a powerful growth lever, now contributing over 30% of store revenues. This shift aligns with broader infrastructure upgrades and the rising trend of highway tourism in India. At the channel level, McDonald’s maintains a balanced revenue split, with 65% of business coming from in-store dining and takeaway, and the remaining 35% from online delivery platforms such as Swiggy, Zomato.
"Drive-throughs now account for over 30% of store revenues, riding on the back of India’s expanding highway network and the rise in road tourism. The brand maintains a 65:35 split between on-premise (dine-in + takeaway) and off-premise (delivery) channels."
Among its category plays, McCafé has turned out to be a standout performer. The in-store café brand currently contributes 8–10% of overall sales and is growing faster than the core food business. The company aims to scale McCafé from 125 to 200 cafés by the end of 2025, signalling a pivot toward higher-margin beverage categories and lifestyle positioning.
Digital marketing continues to be a core lever, with influencer-led campaigns accounting for 15–20% of the brand’s digital marketing budget. From tapping into K-pop fandoms to launching limited-edition celebrity meals, McDonald’s India has been actively leveraging cultural insights and social trends to engage younger audiences.
Its Korean Meal, inspired by the Hallyu wave, was so well received that it was extended beyond its original run—proof that global flavors resonate deeply with Indian consumers.
The brand is now doubling down on its data-driven, multi-format, multi-channel strategy to deepen penetration in Bharat while remaining culturally relevant and innovation-forward in urban India. With clear bets on regionalization, channel mix and content-led engagement, McDonald’s India appears poised for its next phase of scaled, sustainable growth.
