Westlife Foodworld – the operator of McDonald's franchises in Southern and Western India – was hammered by rising inflation and weak consumer demand in FY13.
As a result, the company had turned operationally loss-making.
However, the company embarked on a strategic turnaround in 2016. It executed four strategies that helped them bounce back.
Inspired by its global success, Westlife introduced McCafe in India in 2013. It is a premium (and a higher-margin) beverage brand, offering specialty coffee.
The company also added a variety of desserts to its menu. Addition of beverages and desserts more than doubled their revenues between FY14 and FY23.
Through its McDelivery service and tie-ups with various online food delivery platforms, the company witnessed a whopping 51% average store sales growth from FY16 to FY23.
McDonald’s introduced Fried Chicken, which increased the sales in the southern region by 8%.
That said, there’s a young contender out there, threatening to take McDonald’s throne. Plus, the company faces another road bump. Read the full story to get the full information.