Westlife

Westlife Development to add over 200 McDonald’s outlets: Vice President Amit Jatia

Westlife Development Ltd, which operates McDonald’s in western and southern India, plans to add more than 200 restaurants over the next three to five years to accelerate brand growth.

In an exclusive conversation with Business Today TV’s Global Editor, Udayan Mukherjee, Amit Jatia, Vice President of Westlife Development, said, “We expect to open over 200 restaurants over the next three to five years, which is more aggressive than what we’ve done before.” Currently, Westlife Development operates approximately 326 McDonald’s restaurants.

While inflationary pressure from rising input costs has forced brands in all segments to dramatically increase prices, the company plans to stick with its usual price hike as it does every year. “Essentially, my general philosophy regarding inflation is that it’s here to stay in one form or another in every country. And therefore good companies have to cut costs every year. And the whole mantra in India, from less from my perspective and that’s what I tell my management team, is to increase volumes and simultaneously reduce costs,” Jatia said.

“The idea is that even if we increase menu prices by 2-3% per year, this should support the cost increases. And, the cost reduction we are making on the business along with the volume growth should give margin expansion. So, over the last five years, we have consistently increased our EBITDA margin by 130 basis points,” he added.

Speaking of expansion plans, Jatia said the company plans to accelerate growth in new towns as well as smaller towns. This may include Kolhapur, Indore or the markets of Gujarat.

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