Westlife Foodworld, the master franchisee for McDonald's in West and South India, is gearing up for an impressive expansion, eyeing the addition of 300 new outlets by 2027. This ambitious move comes after a robust financial year 2023, fueled by strong revenue growth, record-breaking store openings, and a renewed focus on operational efficiency.
Emerging stronger from the COVID-19 pandemic, Westlife Foodworld delivered impressive results in FY23, solidifying its position as a leading player in the Indian QSR (quick service restaurant) market.
Revenue soared 44% year-on-year to reach a record-breaking Rs. 2,260 crore, significantly exceeding both India's overall economic growth and the QSR sector average.
This stellar performance underscores the enduring appeal of the McDonald's brand in India, highlighting its resilience and potential for further growth.
Westlife Foodworld's commitment to operational efficiency yielded substantial rewards in FY23.
The company's "execution excellence strategy" focused on menu optimization, meal deals, and branding, effectively driving sales and strengthening its brand identity.
Operating EBITDA margin surged by 300 basis points to 17.3%, while cash PAT (profit after tax) jumped 97% to Rs 254 crore, reflecting enhanced profitability.
Restaurant operating margin also saw a significant increase of 400 basis points to 23.2%, demonstrating further streamlining of operations.
Buoyed by its strong financial performance and unwavering confidence in the McDonald's brand, Westlife Foodworld has set an ambitious target of adding 300 new outlets by 2027.
This expansion will primarily focus on unserved geographies in West and South India, offering residents increased access to the iconic burger chain.
Existing markets will also witness renewed focus, with the aim of further strengthening brand presence and market share.
Doubling revenue to Rs 4,000-4,500 crore and increasing store count to 580-630 by 2027 are key objectives of this ambitious expansion plan.
Westlife Foodworld's expansion plans are a testament to the robust growth potential of the Indian QSR market, particularly for established brands like McDonald's.
The company's focus on operational efficiency, strategic menu offerings, and targeted expansion are key ingredients in its recipe for success.
This expansion will not only create new jobs and boost economic activity but also offer consumers greater choice and convenience, contributing to the overall growth of the Indian QSR landscape.