McDonald's F&B retail chain posts good growth in the Indian market this FY
By Nabamita Chatterjee | Vjmedia Works | May 15, 2017
They added 25 new restaurants in FY17, taking the total count to 258 in west and south India. The company aims to have 450-500 restaurants by 2022.
Westlife Development Limited, owner of the Master Franchisee of McDonald’s restaurants in west and south India, announced audited financial and operating results for the 4th quarter and fiscal 2016-2017. WDL reported a 11.7% increase in total revenues to â‚¹9,307.9 million from â‚¹8,334.3 million Y-o-Y (year-on-year) riding on the operations of its subsidiary, Hardcastle Restaurants Pvt. Ltd, (HRPL), a master franchisee for the west and south India operations of McDonald’s Restaurants.
Commenting on the financial results Amit Jatia, Vice-Chairman of Westlife Development Limited said, “FY17 has been a significant step forward for brand McDonald’s in India. The company has delivered a robust performance, recording a year-on-year sales growth of 11.7 per cent on the back of aggressive menu innovations, brand extensions and migrating to a more efficient restaurant operating system. On the operating front, new stores have performed remarkably well under the Restaurant Operating Platform (ROP) 2.0 that was launched in the last quarter of FY16. New stores that were opened under ROP 2.0 yielded substantial cost efficiencies, leading to a significantly shorter break even time.We ramped up our menu with the introduction of new dishes providing our customers wholesome and healthier meal options. Despite challenges in the external market environment, we remain confident of our ability in being able to deliver value to our consumers and shareholders.”
During the year under review, HRPL took a quantum leap and launched its EOTF or “Experience of the Future” stores. These stores enhance convenience by offering customers the choice of self-ordering kiosks, air chargers, table service and other facilities with a view to provide our patrons a modern dining space. This contemporary McDonald’s experience will be a key differentiator for the brand and will be a cornerstone of growth for HRPL over the next few years. The company substantially increased its McCafé footprint, adding 36 McCafé’s in FY17 with 7 McCafé being added in the last quarter, taking the total count to 111. McCafé has enabled the company to broaden its addressable market and grow baseline sales.
WDL added 25 new restaurants in FY17, taking the total count to 258 in west and south India. In this quarter, the company added 9 restaurants (4 in Maharashtra, 1 each in Chhattisgarh, Goa, Gujarat, Karnataka and Tamil Nadu) and aims to have 450-500 restaurants by 2022.