McDonald's is celebrating its 25 years in India. Westlife Development, which is the owner and operator of McDonald's restaurants in the west and south of India targets opening 500 stores by 2025. In an interview with CNBC-TV18, Amit Jatia, Vice-Chairman of Westlife Development, shared the company’s outlook.
“The plan is to at least double the base of restaurants over the next three-five years,” he said.
It is estimated that opening 500 stores by 2025 will lead to Rs 2,500-3,000 crore revenues for the company. Jatia said, “That is the endeavour. The idea is to also double the revenue along with the number of stores. We are looking at an investment of Rs 800-1,000 crore. We are hoping that it is going to be internally funded.”
He believes that there is a significant shift to the organized sector that is seen post COVID. “We definitely don’t want to lose that opportunity to make sure that now McDonald's is accessible to everybody,” he said.
On the margin front, he shared, “Our vision 2022, which is FY23, talked about 13-15 percent. We are pretty much on track. In the last few quarters, even in these difficult times, we have stayed between 10 percent and 11 percent mark. In the previous years before COVID, we were improving our margin by about 130 basis points (bps) a year. So, I am quite confident that the 13-15 percent mark is a reality.”
Westlife’s focus is to continue to grow the McDonald’s business. “I believe whenever a new brand comes in, the energy required to get that going, the capital and brand-building that is required will take away from Westlife’s focus on taking this brand ahead and making it a Rs 5,000 crore brand,” he said.
“Over a five-seven year window, we want to see Rs 5,000 crore number. If some of our strategies pan out, it is going to be sooner than later. We are quite bullish about where we are heading,” Jatia explained.
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(Edited by : Dipikka Ghosh)