Westlife Foodworld to add 300 McDonald’s outlets by 2027

Westlife Foodworld, the master franchise for American fast-food giant McDonald’s in West and South India, is aiming to nearly double the store count for the popular burger brand over the next four years. Emerging stronger from the COVID-19 pandemic, the restaurant chain operator is now planning to push the growth engine further, a senior company executive told Business Today.

According to Smita Jatia, Vice Chairperson of Westlife Foodworld, the financial year 2023, began with the company delivering impressive results thereby maintaining the momentum of strong business performance. “We ended the fiscal with several significant milestones and record-breaking performances. Our execution excellence strategy, which focused on menu, meals, and branding, generated growth and strengthened our brand, establishing a new baseline to build on. We reported record-breaking revenue of Rs. 2,260 crore, up 44 per cent from the previous year. This was substantially higher than India's economy and the QSR (quick service restaurant) sector, showing your brand's irreplaceable appeal,” she said.

Its store opening rate hit an all-time high, and same-store sales growth stood at 36 per cent. According to Jatia, the company's commitment to capital efficiency grew with its revenue, yielding an operating EBITDA (earnings before interests, tax, depreciation & amortisation) margin of 17.3 per cent  - up 300 basis points bps). While cash PAT (profit after tax) increased 97 per cent, to Rs 254 crore, and cash PAT margin improved by 11.2 per cent. Restaurant operating Margin also grew 400 bps, to 23.2 per cent, she said.

Riding on the growth momentum, Westlife has now set a target of adding some 300 McDonald’s outlets in its area of operations (primarily West & South Indian states) by 2027.

“As part of our network expansion, we will continue to penetrate unserved geographies and fortify existing markets with renewed aggression. Our expansion strategy involves penetrating unserved geographies while reaffirming our presence in existing markets with renewed vigor. We aim to add  some 300 restaurants and achieve a return on capital exceeding 40 per cent by 2027,” Jatia told BT.

She plans to double revenue to Rs 4,000-4,500 crore and increase store count to 580-630 by end-2027 from 357 now.

Also read: MPW 2023: Smita Jatia is leading Westlife Foodworld through a high growth phase

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