World’s second-largest fast-food chain to launch its McCafe coffee brand in India on Monday.

McCafe the coffee brand from McDonald’s to capitalise on the growth in India’s cafe market will launch its McCafe brand here on Monday.

Hardcastle Restaurants, the company’s franchisee for the South and West, will launch the first store in south Mumbai within its existing McDonald’s outlet there.
Cappuccino prices at McCafes would start at Rs 90, while a frappe would cost Rs 110. While higher than customary McDonald’s fares, the price for a cappuccino would be lower than rival Starbucks, which charges upwards of Rs 110.

“McCafe is about affordable luxury, where we offer a premium product at a reasonable price,” said Amit Jatia, vice-chairman, Hardcastle Restaurants. “It will act as an extension to the core McDonald’s offering, with consumers now having the option to enjoy an assortment of food & beverages at an outlet. Our plan is to have McCafes in 75-150 McDonald’s stores in the next three to five years,” he added.

Like Starbucks, McDonald’s would source its coffee locally —from Chikmagalur in Karnataka. Coca-Cola would supply coffee beans to the company.

Globally, McDonald’s has 10,000 McCafes, and this business accounts for significant revenue. Coffee would be the third line extension for McDonald’s in India. In the last two years, it had added breakfast and dessert items. So far, McDonald’s outlets had only carbonated soft drinks such as Coke. While Coca-Cola’s Georgia Coffee was available, its pick-up wasn’t very high, experts said.