McDonald’s franchise Westlife Development commences operation at 229 restaurants2 min read . Updated: 12 Jun 2020, 01:15 PM IST
- The operator of quick service restaurants said a large part of its restaurant business could not be made operational due to lockdown in March and that adversely impacted its revenues for the quarter
NEW DELHI: Westlife Development Ltd, which operates McDonald’s restaurants in western and southern India, has resumed operations in 229 of its 319 outlets, serving consumers through various channels such as takeaways, dine-in and home deliveries as the fast food chain recovers from the covid-19 induced lockdown.
In the short-term, the company expects lower demand of its products and services, the company said in an update to the stock exchange on 11 June, detailing the material impact of covid-19 on its business during the March quarter. For the March quarter, the company posted a 0.86% year-on-year dip in total revenues to ₹336.35 crore, the company said in its earnings announcement.
The operator of quick service restaurants said a large part of its restaurant business could not be made operational due to lockdown in March and that adversely impacted its revenues for the quarter; especially as dine-in facilities remained suspended.
However, it has now resumed dine-in in over 100 restaurants with a strong hygiene and safety check-list in place since India moved to the "unlock" phase easier this month permitting restaurants to open albeit with limited seating capacity.
Restaurants have been severely disrupted during the lockdown as the government moved to announce a nationwide closure. Restaurants were, however, allowed to open for online deliveries, but remained shut in shopping centres, malls and areas where strict state directives hindered their operations. They were also barred form opening up for dine-in that significantly impacted sales.
In the interim, Westlife moved to commence its own fleet of deliveries as and where it got permissions and even opened up some of its restaurants for drive through facilities.
“As per directive issued by relevant authorities, our restaurants were closed for operations
(dine in) during the lockdown. However taking the advantage of diversified portfolio and strong external partnerships, the company has been able to serve customers through McDelivery, maintaining highest standards of health and hygiene and contactless deliveries. Further, as and when restrictions were relaxed as per various state and city directives, the company could also serve its customers in its drive thru facilities and with its take away facilities," it said in its update.
However, as India has moved to the "unlock" phase earlier this month, businesses are now resuming albeit with new SoPs in place.
In the short-term, however, the company has warned of lower demand as covid-19 keep consumers away from crowded places. "Though we do hope the business situation will normalize soon, it is too early to assess the future impact of covid-19 with reasonable certainty," it said in its update.
It is also working closely with suppliers to ensure availability of fresh ingredients to ensure business continuity.
It, however, said that its has witnessed encouraging customer traction through our food deliveries and convenience channels.