Westlife Foodworld, the master franchise for American fast-food behemoth McDonald’s in West and South India, plans to nearly treble the popular burger brand’s location count in the next four years. After recovering from the COVID-19 pandemic, the restaurant chain operator plans to rev up the growth engine even more, according to a top corporate leader.
According to Smita Jatia, Vice Chairperson of Westlife Foodworld, the fiscal year 2023 began with the company achieving remarkable results, keeping the momentum of great commercial performance going. “We completed the fiscal year with a number of significant milestones and record-breaking performances.” Our execution excellence plan, which focused on menu, meals, and branding, resulted in growth and brand strengthening, setting a new baseline to build on. We announced record revenue of Rs. 2,260 crore, a 44 percent increase over the previous year. This was significantly greater than the Indian economy and the QSR (quick service restaurant) industry, demonstrating your brand’s incomparable appeal,” she remarked.
Its shop opening rate reached an all-time high, and same-store sales increase was 36%. According to Jatia, the company’s dedication to capital efficiency expanded in tandem with its revenue, resulting in an operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin of 17.3% (up 300 basis points bps). While cash PAT (profit after tax) surged by 97% to Rs 254 crore, cash PAT margin increased by 11.2%. She also stated that the restaurant operating margin increased by 400 basis points to 23.2 percent.
Westlife Foodworld
Westlife has now set a target of adding 300 McDonald’s locations in its area of operations (mainly West and South Indian states) by 2027, riding on the growth momentum.
“As part of our network expansion, we will continue to aggressively penetrate unserved geographies and fortify existing markets.” Our expansion plan include expanding into underserved markets while confirming our presence in established markets with fresh energy. “By 2027, we hope to have added 300 restaurants and achieved a return on capital of more than 40%,” Jatia told BT.
She intends to double income to Rs 4,000-4,500 crore and grow the number of stores to 580-630 by the end of 2027, up from 357 today.
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