Exclusive | Westlife to Open 45–50 McDonald’s Stores Annually, Fortify Existing Markets, Says CEO Akshay Jatia

Ten years ago, the organised QSR market featured relatively few scaled players. Today, we are seeing not only global chains expanding their footprint but also the emergence of strong domestic QSR concepts and specialised burger chains. This competition has ultimately benefited consumers through greater choice, and accessibility, while expanding the overall category size.

When I first joined, delivery was a nascent part of our business, primarily driven by phone orders with limited digital integration. My first major project was actually digitising our delivery experience. Today, our off-premise business constitutes approximately 42-45% of sales, with digital ordering becoming the norm rather than the exception. The pandemic obviously accelerated this shift, but the trajectory was already established well before 2020. A decade ago, the primary drivers of QSR choice were taste, price, and convenience. Today's consumers, particularly the younger demographics, have much more sophisticated expectations around food quality, ingredient transparency, digital integration, personalization, and sustainability.

Ten years back, QSR was primarily a metropolitan phenomenon, today, we are seeing strong performance in Tier 2 and Tier 3 cities. The aspirational quality of branded QSR experiences in these markets, has created substantial growth opportunities beyond traditional urban centers. What's interesting is that despite these evolutions, the fundamental value proposition of QSR remains relevant – consistent quality, accessibility, and value for money. The success factors haven't changed; they have simply been adapted to modern customer expectations.

We launched our innovative McSavers+ campaign, fundamentally challenging the conventional rules of value with the tagline, ‘It Doesn’t Add Up.’ The campaign leveraged the intriguing math of 65+49=69 to showcase the exceptional value offered by McSavers+. Customers can now enjoy the new Chicken Surprise Burger (priced at Rs  65) and a classic Coke Float (at Rs  49) at just Rs  69, instead of the expected total amount of Rs  114.

This campaign represents a strategic evolution of our value platform that directly addresses the unique dynamics of the Indian market. The response has been encouraging and seems to be working very well for value seeking customers. Value has always been a cornerstone of McDonald's global success, but in India, we have recognized that value takes on additional dimensions beyond simple price points. Indian consumers are remarkably value-conscious, conducting sophisticated calculations to determine the ‘worth’ of their dining choices.

Our McSavers+ strategy acknowledges this customer behaviour by creating combinations that deliver genuine value surprise. We are now seeing new visit occasions, particularly during traditional snacking dayparts, attracting customer segments who previously viewed McDonald's primarily as an indulgence during lunch and dinner. This expands our addressable market while maintaining our premium positioning for core meal occasions with our premium Burger collection including our recently launched McCrispy Chicken and Crispy Veggie Burgers. The initiative also demonstrates our commitment to menu innovation even within value platforms. The inclusion of the new Chicken Surprise burger provides a compelling reason for trial beyond price alone. This combination of novelty and value creates a powerful motivation for both new and existing customers to visit.

The current consumption environment certainly presents challenges. Therefore, we have taken a longterm perspective that informs both our expansion and profitability strategies. On the expansion front, we remain committed to our Vision 2027 roadmap of reaching 580-630 restaurants. In FY 2024-25, we opened a record 47 new restaurants, and we are targeting 45-50 new restaurants annually through 2027. This expansion is not simply about adding restaurant count, it's about strategic network development that strengthens our competitive position and creates operational leverage. Several factors allow us to pursue this expansion while maintaining financial discipline.

First, our right real estate strategy where our site selection process has become increasingly sophisticated, with data analytics that incorporate over 50 variables to identify locations with strong unit economics potential. This reduces the risk profile of new openings while optimising returns. We are taking an integrated approach that recognises the interconnections between expansion and profitability. New restaurants contribute to fixed cost absorption across our network, creating operating leverage that enhances overall profitability. Meanwhile, our profitability initiatives generate the cash flow needed to fund expansion through internal accruals, creating a virtuous cycle.

At Westlife Foodworld, we recognise that loyalty in today's environment requires a multidimensional approach that goes beyond traditional frequency programs. Hence, we invest significantly in our own digital ecosystem. While we maintain strong partnerships with third-party delivery platforms that extend our reach, our McDonald's and McDelivery apps create direct relationships with our customers. This dual approach ensures we benefit from the aggregators' discovery capabilities while maintaining control over the core customer experience.

Our apps now engage with over 3 million monthly active users, providing a powerful channel for personalised communications and offerings. During the end of 2023, we also launched ‘My M Rewards’, our digital loyalty program designed specifically for the customers of today. At McDonald’s India, we are always looking at ways to enhance the value a customer gets from the brand. With over 11 million downloads, the McDonald's App has cultivated a vibrant and dynamic user community, particularly among the younger demographic. We are also doubling down on our core brand strengths that transcend delivery convenience. Our rigorous quality assurance systems ensure consistent food experiences regardless of how customers access our brand.

The recent income tax relief announced in Budget 2025 is indeed a positive development for urban consumers, particularly the middle class, who form a significant portion of our customer base. The potential increase in purchasing power is expected to stimulate consumption across sectors, including quick-service restaurants like McDonald’s.

While it is still early to draw definitive conclusions, we remain optimistic. Despite broader economic challenges, we believe that this tax relief will gradually bolster consumer sentiment and translate into increased footfall over time. At Westlife Foodworld, we remain committed to delivering value-driven offerings that resonate with our customers.

We remain firmly on track with our Vision 2027 roadmap of reaching 580-630 restaurants, having opened 47 new locations in FY 2024-25 and maintaining our target pace of 45-50 restaurants annually. We are diversifying our restaurant formats to match specific market opportunities. While traditional urban locations continue to perform well, we are seeing exceptional results from standalone formats with drive-thrus, particularly in emerging markets.

Approximately 20-22% of our current restaurants feature drive-thrus, and we expect this percentage to increase, with 30-35% of new restaurants likely to include this capability by 2027. We are also balancing market penetration and geographic expansion. About 40-45% of our new restaurants will focus on fortifying our presence in existing markets, driving marketing efficiencies, strengthening delivery reach, and optimising supply chain performance. The remaining 55-60% will be focused on South Market.

We will also continue to expand our footprint into small and emerging towns. While the West has traditionally been our stronghold, the South represents a compelling growth vector with its strong chicken preference. Our comprehensive chicken portfolio, including the McSpicy Fried Chicken, Crispy Fried Chicken, and McSpicy Chicken Wings, positions us particularly well to win the South market.