updated - September 18, 2021 Saturday EDT
Due to rising inflation, McDonalds announced Tuesday plans to bump up prices in India for the second time this year, according to a report.
McDonald's said it would raise prices by 5-6 percent. That follows a 5 percent hike after the government increased the service tax rate in February, according to Reuters.
"There is pressure and it's a tough environment, no doubt. But inflation is at 8-10 percent so we have to hike our prices," said Amit Jatia, vice-chairman of Hardcastle Restaurants, which owns the McDonalds franchise for west and south India.
The golden arches fast food chain first entered India in 1996 without its signature hamburger, respecting local religious beliefs which mean many people avoid eating beef and pork. It has become India's largest fast food chain operator selling chicken and fish burgers along with vegetarian items like McAloo Tikki, which has a potato patty, and the McSpicy Paneer, filled with cottage cheese.
The burger chain plans capital spending of 5 billion-10 billion rupees ($92 million-$184 million) in India over the next 3-5 years, mostly for store expansion, Jatia said, adding India's long-term consumption growth story remained intact.
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