Fast-food chains accelerate store launches as business recovers to pre-COVID levels

Fast-food players like Jubilant FoodWorks and Westlife Development are now shifting focus to growth by accelerating store launches and putting a blueprint in place to expand dine-in and delivery services. The fast-food business is one of the sectors that has been recovering rapidly as India went into 'Unlock' mode and restrictions were completely lifted.

Westlife Development, which operates popular burger chain McDonald's restaurants in the west and south India, plans to use the attractive real estate prices to its advantage.

"Store openings are on. Since real estate prices have rationalised, it gives us room to lock more properties. And our strategy has been to have a diversified real estate portfolio," Amit Jatia, vice-chairman, Westlife Development told Business Standard.

Westlife Development is expected to focus on both dine-in and deliveries. "Dine-in sales for December were 83 percent of pre-COVID levels, which is a good sign. Also, sales from our convenience channels such as takeaway, delivery, and drive-throughs have remained robust. This, to me, indicates that the confidence in organised players, especially western QSRs, remains intact," Jatia added.

Meanwhile, Jubilant FoodWorks, the franchisee of Domino's Pizza and Dunkin Donuts in India, said that it has opened 57 Domino's stores in the October-December period, its highest in a single quarter.

"We turned the corner decidedly in Q3 with Domino's returning to growth, driven by strong momentum in delivery and takeaway channels," Pratik Pota, chief executive officer and whole-time director of Jubilant Food -Works, said, adding that the company is now 'preparing for an exciting period of growth ahead'.

Jubilant FoodWorks, which has 1,314 stores currently, has said that it will add three times the number in the coming years. Westlife Development presently operates 304 outlets in India and plans to raise the number to 500 by FY23.