Lockdowns Again Hurt McDonald’s But Not Like Last Year
Westlife Development plans to open 20-30 McDonald’s stores in FY22.
Online orders of burgers to fries at McDonald's didn't stop as states imposed restrictions to curb the second wave of the pandemic, unlike the 2020 lockdown that completely disrupted business.
“Last year, in the first wave in April-May-June, consumers were scared to order as they were worried if delivery could get Covid to their doorstep,” said Amit Jatia, vice-chairman of Westlife Development Ltd., operator of McDonald's outlets in the south and west India. Safety and hygiene promise, and contactless delivery, he said in an interview with BloombergQuint, gave consumers confidence. "We did not see any drop in the delivery business in the second wave".
Most stores, however, are shut for dine-in customers because of local lockdowns. Still, Westlife Development intends to open 20-30 stores this year, Jatia said, against the five last year.
In the quarter ended March, the company’s revenue rose 10% sequentially to Rs 357.5 crore. Its net profit, however, tumbled 69% to Rs 2.5 crore sequentially.
While the company didn't disclose sequential growth, same-store sales rose 10.5% year-on-year.
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