Westlife Development reported a 553% jump in its net profit at Rs 7.75 crore during the December quarter.
The master franchisee for McDonald's quick-service restaurant (QSR) chain across West and South India also reported highest-ever quarterly sales of Rs 305.19 crore, a growth of 26.2% compared to the same quarter last year that also witnessed demonetisation.
Amit Jatia, vice-chairman, Westlife Development Ltd (WDL), said the overall margins have expanded over 280 basis points for the third quarter of fiscal 2018.
"Same-store sales growth at 20.7% has also been the highest in almost five years in the Indian QSR industry. Our cash flow has also grown 85%. Our initiative to bring unique and innovative fusion products aided in increasing footfalls. We have also been able to optimise our crew and utility costs, resulting in a healthy operating leverage to the P&L (profit and loss)," said Jatia, adding that brand extensions like McCafe and McDelivery have also been contributing significantly with average volume increasing by 60% to 70%.
During the quarter, the company launched 12 new products under 'Flavours without Borders' in addition to five products specifically for the Bengaluru market. McCafe also added three new beverages in the December quarter and now serves a mix of 35 hot and cold beverages.
The QSR chain operator has been increasing its footprint by way of tie-ups with key aggregators and payment networks, which has contributed significantly to its business growth.
Operating 271 restaurants under the McDonald's brand and 141 outlets under the McCafe brand (as of December 31, 2017), the company management said it is on track with expansion plans of adding 25 to 30 stores every year. In the December quarter, the company opened nine new McDonald's restaurants and five new McCafes. The company has managed significant savings on the back of its new restaurant operating platform (ROP) 2.0 that allows faster break-even for newer restaurants and improved profitability/cash flow.
WDL had earlier introduced a new concept that offered customers a futuristic experience. Positioned as Experience of the Future (EOTF), these stores have been a focus area in terms of expansion and the company has 10 such stores operational between Mumbai and Bengaluru in a span of two years, of which five new EOTFs were opened in Bengaluru in the October to December quarter.
Expanding its beverage options with Happy Meals, the QSR chain has begun offering a hot chocolate milk Babyccino, which makes for a wholesome beverage for children.
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