McDelivering powerful performance

At a time when companies across the country are reeling under demonetization and subsequent policy changes, McDonald’s has achieved considerable feat in its Q3 2017 performance. Amit Jatia, Vice-Chairman, Westlife Development Ltd, shares with us the strategies and USPs that have helped McDonald’s achieve the desired results…

Let’s look at the facts first… Westlife Development Ltd (WDL), owner of the Master Franchisee of McDonald’s restaurants in west and south India, reported 14.6% increase in total revenues Rs 2417.5 million from Rs 2109.1 million y-o-y riding on the restaurant operations of its subsidiary, Hardcastle Restaurants Pvt. Ltd, (HRPL). Topline performance growth was driven by restaurant network expansion, addition of new formats, brand extensions and innovative menu additions. Our company’s y-o-y gross additions stood at 29; 7 new restaurant openings in Q3FY17; we expanded our total network of restaurants to 252 across west and south India.

The demonetization dilemma

The company witnessed headwind on demand, which was also perceptible in eating out segment post cash crunch. Westlife Development took this opportunity and provided ease of ordering via multiple payment options, thereby seeing an upward jump in cashless transaction to 50-55% system wide. In the past few months, we saw there’s an increase in payments by customers through cards and wallets at our restaurant and for delivery. We feel the customers are adopting the cashless/digital payments and it’s likely to increase in the future. 

WDL invested in increasing footprint of McDonald’s by entering Kollam city in the state of Kerala and opened 7 new restaurants in this quarter by taking the total count to 252 restaurants across 34 cities and 10 states. The company is on track to take its restaurant footprint to 450-500 by 2022. During the quarter, WDL opened its 100th McCafé in a span of 3 years and overall increased its footprint to 104 restaurants by adding 11 new outlets. WDL is on track to double its McCafé base by FY17.

Our results reflect the balance of our brand portfolio, geographic footprint, consistent marketplace execution and a relentless focus on productivity. While facing the challenges of a volatile macro environment, we continued to make thoughtful investments in our 20 years’ brand journey communication, introduction of our premium Share Shakes, an LTO at McCafé and riding on the popular Mexican and Lebanese McAloo Tikki fest and Mexican Cheesy Fries. By making such investments in product innovation and expansion, we have fortified our business for sustained growth.

Fortifying business towards sustenance

We are happy to report our 6th consecutive quarter of positive comparable sales of 5.1%, demonstrating consistent performance across all segments in the face of recent volatile macroeconomic challenges. Our bold actions have differentiated the brand in the minds of the consumer across the QSR segment and is testament to the progress we are making too. With the revamped MDS app, we are confident of connecting more than ever with consumers and offering them easy, personalized and truly useful features. In fact, our web and mobile platforms contribute over 55% sales to the total McDelivery business for McDonald’s.