And since the buns plant was in Khopoli near Pune, that city was a logical market for expansion. This is important. McDonald's wants to ensure that expansion in any market takes place only if the infrastructure is right, that the logistics work. So we are looking at our plans currently and seeing how we can do this. But reach and logistics are not the only criteria on which new markets are chosen.
Traffic is another crucial determinant.
Take the case of Jaipur. It has a large population of middle class, high per capita income and a huge tourist traffic, which has a fit with McDonald's core target customer. So Jatia is currently looking at a few other cities around Mumbai and Pune. Right now, McDonald's seems to be keeping the north and the west in focus. Since the issue is to ensure uninterrupted supplies to its new restaurants, McDonald's will now need additional distribution centres.