The Amit Jatia owned Westlife Development Ltd (WLDL) which operates the McDonald’s restaurant franchise across western and southern India has drawn up a vision 2020, where the company plans to increase sales by close to 3 times and improve its margin profile to the mid-teens by the year 2022. This will be led by a two-pronged strategy which means the company is targeting revenues of close to Rs. 3.5 billion from McCafe, its in-store beverage offering, and an improvement in restaurant operating margins.
Home delivery service, McDelivery, is also targeted to achieve revenues of Rs. 3.5 billion. Both segments require low capex but provide significant operating leverage. WLDL follows a cluster approach for opening new stores. Lease rental deals made by WLDL are generally long term in nature for 20-35 years. This is in contrast to other QSR players which generally have nine-year deals.
