Reports said that the decision has come on the backdrop of rising inflation in the country, especially food inflation, which has been denting margins of the company.
The move follows a 5 per cent hike after the government increased the service tax rate in February.
"There is pressure and it's a tough environment, no doubt. But inflation is at 8-10% so we have to hike our prices," said Amit Jatia, vice-chairman of Hardcastle Restaurants which owns franchisee for west and south India.
Consumer spending in India took a hit as inflation rose in double-digits, while income level hardly improved amid global economic uncertainties. McDonald's said same-store sales remained under pressure and although they would grow, the increase would not be at the 22 per cent achieved in the fiscal year ended March 2012.
