Mc Donald's India : West Life

Mc Donald's is synonymous with Burgers. And the brand is familiar across age groups across the globe. You walk into any Mc restaurants, you can expect standard menu. These Quick Service Restaurants (QSR) or fast food format is expanding fast in this fast paced life style.

In India too, the Mc Donald's restaurants are popular. With popularity the sales grows and with sales the profit grows. That's simple economics. As a typical investor, if you are able to buy Mc Donald's shares - you are bound to grow with the company.

Many of these global giants, also called as Multi National Companies operate in India through Master Franchisee format. Meaning they are given the licencing to set up all the stores in India. For instance JOCKEY is an American innerware brand with PAGE industries as its Indian franchisee. Similarly DOMINOS Pizza has JUBILIANT FOOD WORKS as its Indian franchisee.

Similarly Mc Donald's has two companies as its franchisee.

Among these 2 franchisee's the one held by Mr.Amit Jatia is responsible for opening up Mc Donald stores in South and Western India. And this is listed in the stock market under the name WESTLIFE.

Few interesting facts about Mc Donald's India are:

• The "eating out frequency" per month for a person in Mumbai is 100.
• Of this only 8 times he/she drops into Mc Donald's. That's 8%.
• Hence the potential for growth is really huge in India.
• West Life has 215 outlets in West and South, serving 325 million customers per day.
• West Life plans to invest another 750 Crore and double its number of stores.
• The coffee business market in India is Rs.1800 Crore worth and it is project to go up to Rs.5000 Crore.
• Mc Café has the additional, high margin business of by selling coffee along with burgers.

So next time you bit a Mc Burger, don't forger to buy Westlife shares.

You would not only be biting Mc but be owning Mc Donald's then!

That's probably what they call 'Have a Cake and eat it too'

I'm Sorry : "Have a Burger and eat it too!"

To read an interview with Mr.Amit Jatia, MD of West Life, Click here.

And to watch an interview with Mr.Amit Jatia, do click here.