McD’s bets on ‘value for money’ menu amid inflation – Times of India

NEW DELHI: Inflation is always a cause of concern for consumer-centric businesses, but the comparatively affordable pricing offered by quick service restaurants (QSR) keeps the segment fairly shielded, Amit Jatia, vice-chairman at Westlife Foodworld that runs the McDonald’s chain of outlets in west and south India, told TOI.
“When the informal eating space comes under pressure, the frequency of consumer purchases does come down sometimes but what we feel is that the fine dining category bears the bulk of the impact. The share of QSR goes up. We are the most ‘value for money’ option in the informal eating out space,” Jatia said.
Despite price hikes of 3-5% in recent months, the maker of fries and McAloo Tikki burgers managed to get customers to loosen their purse strings. “That has been possible because of portfolio expansion strategy and offering of a wider choice of menu to customers. We now get incremental customer visits to the store for our coffee selection. And when they come for a cup of coffee, they also end up buying, say fries,” said Jatia.
Besides, consumers are seeking indulgence; “that’s a big shift,” said Jatia, adding that they are willing to spend even on slightly expensive items if they think them to be a value for money proposition. “Consumers are gorging on both Aloo Tikki burgers that can be available for as low as Rs 50 and gourmet burgers that cost upwards of Rs 200,” said Jatia.
Westlife plans to add 250-300 McDonald’s outlets in the next five years.

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