McDonald’s master franchise for western and southern India, Westlife Development plans to add 35-40 restaurants by the end of this financial year, and 200 new stores over the next 3-4 years. The company will invest around Rs 800- Rs 1000 crore for the planned expansion, Amit Jatia, Vice-Chairman of Westlife Development Limited, told FinancialExpress.com. “In terms of kinds of outlets, we have our real estate portfolios which means that we are not over leveraged on one particular kind of outlet. So we have a very strong portfolio of drive thrus, high streets, malls and food courts. Because the portfolio is very balanced, our risk was very well managed during the Covid,” he said.
Earlier yesterday, Westlife reported a net profit of Rs 23.58 crore in the quarter ended June 2022 as against the net loss of Rs 33.99 crore during the same period last year. In the quarter under review, the company’s revenue increased by 107.6 per cent year-on-year to Rs 537.93 crore as against Rs 259.16 crore during the same period last year. With its operating costs and expenses at Rs 421.53 crore, Westlife registered a 365.5 per cent on-year increase in the company’s Restaurant Operating Margin which is Rs 116.4 crore up from Rs 25.5 crore the previous year.
“Despite the challenging external environment and inflationary pressure, we are showing consistent performance. We have managed to make about 100-130 basis points of margin improvement when it comes to EBITDA,” Amit Jatia said. Westlife Development is the owner of Hardcastle Restaurants Pvt Ltd, and the master franchisee of McDonald’s restaurants in West and South India. The company’s expansion plans include the reimaging, ‘Experience of The Future’ (EOTF) restaurants, etc.
What’s working for Mcdonald’s in West and South India?
The company’s Same-Store Sales Growth (SSSG) for the quarter stood at 97 per cent Y-O-Y. It also recorded a PAT of over Rs 23.1 crore in the quarter. “Our omnichannel strategies, menu innovations wherein we are focusing on offering meals, and the kind of experiences we are offering to our customers, are working out for us. In fact, our in-store comebacks are now 14 per cent above 2019 levels, during the same quarter. Not only that, our delivery business is also up by 13-14 per cent,” Akshay Jatia, Executive Director, Westlife Development Limited, told FinancialExpress.com.
The business for McDonald’s recovered faster for both dine-in and convenience channels. While dine-in grew five times from the last year, the growth in convenience remained healthy at 13 per cent YoY. Dine-in, as well as the various convenience channels of delivery, takeaway, drive-thru, and on-the-go, currently generate over Rs 450 crore in sales per quarter, the company said in a statement. In terms of menu innovation, the company launched a range of premium burgers with the Gourmet Burger Collection this year. “Further, McSpicy Fried Chicken on the menu really has a great potential in South India and we are aiming to get a decent share of this market,” said Amit Jatia.
Westlife has a total of 331 restaurants across 48 cities, as of June 2022, with 65 drive-thrus, 267 McCafes and 132 Experience of the Future (EOTF) restaurants.