Westlife Development Ltd, which operates McDonald’s in western and south India, plans to add over 200 restaurants over the next three to five years to accelerate growth for the brand.
In an exclusive conversation with Business Today TV global editor Udayan Mukherjee, Amit Jatia, vice-chairman, Westlife Development said, “We are planning to open over 200 restaurants in the next three to five years, something that is more aggressive than what we have done before.” Currently, Westlife Development operates about 326 McDonald’s restaurants.
While inflationary pressure from rising input costs has forced brands across segments to raise prices significantly, the company plans to stick to its usual price hike as it does every year. “Essentially, my overall philosophy around inflation is that it is here to stay in some form or the other in every country. And therefore, good companies have to take costs out every year. And the whole mantra in India, at least from my point of view and that's what I tell my leadership team is to grow volumes and simultaneously cut costs,” Jatia said.
“The idea is that even if we grow menu prices by 2-3 per cent per year that should take care of cost increases. And, the cost take out that we do from the business along with growth in volumes together should give a margin expansion. So, for the last five years consistently, we have grown our EBITDA margin by 130 basis points," he added.
Talking about the expansion plans, Jatia said the company plans to accelerate growth in new cities as well as in small towns. It may include Kolhapur, Indore, or markets in Gujarat.
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