Fast-food chains push more value meals as in-store footfall remains weak
₹99 for customers in Gujarat, Madhya Pradesh and Chhattisgarh, and ₹149 for customers in other parts of west and south India. The company is also promoting the offer with two new television commercials. Earlier, the McVeggie meal was priced at ₹321—now it is available for Rs149, while the Aloo Tikki meal, earlier priced at ₹230, can now be had at ₹99.
The offers are here to stay and not for a limited period, confirmed a company spokesperson. With the McSaver Meals, customers can now indulge in their favourite McDonald's meals without “straining their wallets", the fast-food chain said in a statement. In the December quarter, Westlife Foodworld witnessed a year-on-year decline of 9% in same-store sales growth (SSSG).
“This decline was a result of subdued consumer sentiments, floods in Chennai, and reasons beyond our control. These challenges had a notable impact on stores, resulting in lower foot traffic and a year-on-year decline of 5% in the on-premises business," the company that operates over 380 McDonald’s restaurants across 62 cities in south and west India said in its December quarter earnings announced last month. Khetarpal said in-store sales across fast food chains are on a decline globally.
The trend has been more pronounced since the pandemic when customers took to ordering in more frequently. “India has the cheapest price per delivery at about ₹40—it is actually very economical to order at home. And with rapid urbanization, people on the move, less time, it is more convenient to order food on the app.
Delivery has been more democratized, technology and startups have added to the tailwinds of delivery. Therefore, you see compression in dine-in," Khetarpal said. Consumers are still conserving cash, he added.
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