Fast-Food Slowdown Catches Up With McDonald's India Franchisee
NDTV
Prices of essentials in India have shot up in recent months, prompting companies like Coca-Cola to roll out smaller packs
Shares in India's Westlife Foodworld fell as much as 7.7% on Friday, a day after the McDonald's operator reported a surprise drop in quarterly profit and indicated high inflation was squeezing consumer spending in the current festive quarter. Prices of essentials in India have shot up in recent months, prompting companies like Coca-Cola to roll out smaller packs and restaurants to launch cheaper pizzas and burgers.
"All around you are seeing pressure on macro spending," Westlife Executive Director Akshay Jatia said, adding the informal eat out category as well as Western fast food are under pressure in terms of growth.
"Eating out frequency remains low," he said.
