Westlife Foodworld Rating: Neutral | Vision 2027: A bigger slice of the QSR pie | The Financial Express

Westlife Foodworld Rating: Neutral | Vision 2027: A bigger slice of the QSR pie

Technologically enabled stores to increase to 100% in the next 5 years

Westlife Foodworld Rating: Neutral | Vision 2027: A bigger slice of the QSR pie
The company’s rapid expansion plans will also boost overall sales growth.

Westlife Foodworld that (that owns and operates the master franchisee of fast food chain McDonald’s in West and South India) has released its growth vision for CY27 (FY28) after successfully achieving its Vision 2022. Among some of the key target is the sales target of Rs 4,000 crore-Rs 4,500 crore in the next five years. This growth will be facilitated by an additional 250-300 stores from its current 337 over the next five years.

Among the pillars of Vision2027 is meals strategy which is supported not only by growth in the burger portfolio but also with increasing focus on chicken-based products especially in Southern India.

Also Read: Bandhan Bank Rating: Buy | Portfolio diversification is top priority

Omnichannel strategy is divided into three components, this pillar focuses on on-premise sales, delivery, and ‘drive-thru’ sales. On-premise strategy is increasingly focused on driving the Experience of the Future (EOTF) store. Westlife is already well ahead of its peers in India in providing technologically enabled stores with a modern look and self-ordering kiosks that cover 48% of its existing store network now. The target is to take this number to 100% in the next five years, making the business more efficient.

On delivery, the company plans to focus on own app sales and own delivery network as well but detailed numbers were not shared. ‘Drive thru’ stores in highways are currently 20% of the network and are likely to be ~35% of incremental store expansion building on the company’s existing lead in this format, in which RoI (return on investment), speed of service, and sales per store are all higher. The company’s rapid expansion plans will also boost overall sales growth.

Vision 2027 plans indicated the management confidence on the prospects of healthy growth, led by opportunity in the QSR (quick service restaurant) space and its own efforts over the next few years. The management is in talks with McDonald’s Corporation to stagger royalty rate increases beyond FY26.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 05-12-2022 at 05:30 IST