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McDonald's starts futuristic outlets, says demand back to pre-note ban levels

Operating in the country for 21 years now, WDL has introduced a new concept that basically gives customers a futuristic experience

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Business at the quick-service restaurant (QSR) chain McDonald's is almost back to the pre-demonetization levels. In fact, the recovery started showing up a few weeks from the date of note ban, said Amit Jatia, vice-chairman, Westlife Development Ltd (WDL) - the master franchisee for McDonald's restaurants across West and South India.

Jatia told DNA Money that even after demonetization, customer sentiments were not bad. "It's not about demonetization but a general feeling in the market. I had felt it (demonetization) was a move in the right direction. It (the business) did flatten out for a bit," he said on the sidelines of opening the 2.0 version of McDonald's restaurant at the CR2 Mall, Nariman Point, Mumbai.

Operating in the country for 21 years now, WDL has introduced a new concept that basically gives customers a futuristic experience. "The restaurant features enhanced digital capabilities and uses technology to elevate the customer experience. With the self-ordering kiosks, customers will be able to customise their order while also skipping the front counter entirely and food getting served at their table," said Jatia.

Of the 252 outlets in the network today, new features have been incorporated in four restaurants already. And between next 6-12 months, the company will have seven restaurants of this type. "Over a three-year period, we would want 30% of our restaurants to have all these features. Among restaurants already sporting all or some of the technologically-advanced features include McDonald's outlets at Nariman Point, Colaba, Hill Road Bandra and drive-in at Kalamboli (in Mumbai). We also have two restaurants under construction that will have some of these features when operational," said Jatia.

The new features will add 10-15% to the overall cost of setting up a restaurant. However the benefits, according to Jatia, are significantly higher compared to the costs. "The setup cost per outlet is anything between Rs 2.3 crore to Rs 2.5 crore. So that will go up by another 15%. But it's worth the investment looking at the differentiation these features give to our outlets and to top it all, a completely new experience to our customers," he said.

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