Westlife Development, the master franchise of McDonald’s restaurants, has assigned a capex outlay of Rs.120 crore for the next financial year. With plans of adding 25-30 restaurants in South and West India, the capex would also involve refurbishing its existing stores and brand extensions in its menus.
Recording its same store sales growth of 20.7 per cent for the third quarter, it was the tenth consecutive quarter of positive growth for the QSR chain with sales at Rs.305 crore.
Attributing its growth to higher volumes and footfalls, it was also brand extensions like McDelivery and new products on the menu which worked for it.
Amit Jatia, Vice-Chairman, Westlife Development said, “While the economic environment remains volatile, we are beginning to see tailwinds turning slightly. However, the third quarter has been strong for us and we see our gross margins sustaining since there are value innovations and extensions like McCafe and McDelivery along with 12 new products in the menu like chatpata naan, which has caught the fancy of consumers.”
During the quarter, Westlife launched 9 new restaurants and 5 new Mc Cafes and would continue to house its McCafes within its restaurants instead of having them as standalone entities.