McDonald’s West & South India ups revenue by 15.6%

The master franchisee for McDonald’s in West and South India - Westlife Development Limited – has reported revenues of Rs 234.29 crore in the past two quarters, reflecting a 15.6 per cent, year-on-year, hike.

The company has, during the past five quarters, not only made changes to menu to correspond to the changing tastes of its loyal customers, but also invested on its digital platforms to enhance customer experience.

Says Amit Jatia, "We have sharpened our focus on the relevance of the McDonald’s brand to the consumer by investing in research and reshaping our organisation for greater efficiency and deeper expertise. Over the mid-term as well as the long-term, Westlife will continue to invest in strengthening the brand as well as in driving innovation across its menu and digital platforms, so that we enhance customer experience and create value for all stakeholders."

The growth is especially admirable as it came after a time of stagnancy in the eating out market in India, especially regarding western Quick Service Restaurant food, which still accounts for 1 per cent of the total market. The industry also faced challenges like muted consumer sentiments, footfalls reducing, and drop in the frequency of eating out.

Its same-store sales – which takes into account only the sales of those stores which are operating during the two comparable periods – grew by 6.5 per cent. The gross margin increased to 60.5 per cent against 59.6 per cent last year.

On the 20-year journey of McDonald’s (West & South), Jatia had this to say: "Today, we can look back with satisfaction. We serve more than 300 million customers at more than 400 restaurants across the country.

Explaining his formula for success, Jatia said, "We didn’t go for blind growth. We built retail in a very intelligent manner." Proudly describing the restaurant’s relevance, Jatia says, "Many mall owners tell me that their food court is incomplete without a McDonald’s."

Another reason why McDonald’s continues to be a brand to reckon with is because – unlike its competitors- it has taken efforts to evolve continuously, instead of simply resting on its laurels, Amit Jatia explained.

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