McDonald’s India franchisee Westlife to roll out 20-minute deliveries

Core Viewpoint - Westlife Foodworld, the master franchisee for McDonald's in western and southern India, is launching a 20-minute delivery option on its app to boost sales and reduce reliance on third-party delivery platforms [1][2]. Group 1: Strategic Initiatives - The company aims to increase same-store sales by 3% to 5% by 2027 through the introduction of the 20-minute delivery service [1]. - Delivery currently accounts for approximately 40% of Westlife's total sales, indicating its significance in the business model [2]. - The accelerated delivery model has been piloted successfully, showing promising results [2]. Group 2: Financial Performance - For the quarter ending September 30, Westlife reported a consolidated loss before exceptional items and tax of Rs158.5 million, a decline from a profit of Rs7.1 million year-on-year [4]. - Same-store sales fell by 2.8% during the same period, with overall expenses increasing by 7% due to rising input and labor costs [4]. - Revenue increased by 3.8% to Rs6.42 billion, bolstered by a one-time gain of Rs581.7 million from the sale of a store property [4]. Group 3: Market Context - The quick-service restaurant sector in India is experiencing softer demand, particularly in major cities where Westlife operates [3]. - Increased competition from local outlets in metro markets is challenging established players [3]. - Rival Jubilant FoodWorks, which operates Domino's in India, has responded to market conditions by reducing prices and offering a 30-minute delivery guarantee [3]. Group 4: Future Plans - Westlife plans to open 300 additional McDonald's outlets by 2027, indicating a commitment to expansion despite current market challenges [4].