Will McDonald's South and West franchisee, Westlife, opt for a pan-India presence?

If it were to get the franchise rights, the key advantage for Westlife would be an opportunity to diversify into newer markets and scaling up from the current levels

Photo: Shutterstock

Photo: Shutterstock

Ram Prasad Sahu
Shares of Westlife Development, the McDonald’s franchisee for western and southern India, gained seven per cent on Tuesday, on expectation it could be the front runner to add the northern and eastern parts of the franchise to its existing operations. McDonald’s on Monday terminated its agreement with Connaught Plaza Restaurants (CPRL), which was operating in the two regions under a joint venture (JV).

In a note on Tuesday, CLSA said a pan-India presence would bring scale benefits for Westlife, while McDonald’s would swiftly regain its lost ground, given the ongoing dispute with the existing partners, impacting its brand and quality of service. A quick resolution would be in the company’s interest, and a delay would benefit competitors such as

First Published: Aug 23 2017 | 09:52 AM IST

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