After establishing itself in the Northern and the Western India, McDonald’s opened their
first restaurant in Eastern India at Kolkata. Out of the total investment, Rs.100 crore (US $
25 Million) was to be spent to concentrate on the new Eastern region. The focus was on
expansion of the brands presence and introduction of new formats. The company adopted
a cluster approach to identify key locations in a 500-700 km radius of the city for further
expansion. McDonald set up a regional distribution centre in Kolkata. In South India, the
company planned to open more stores in one city than one store in many citiesxxxiv.