Hardcastle Restaurants, the joint venture partner of McDonald's in West and South, today said it plans to invest up to Rs 300 crore to add at least 75 outlets of the American fast food chain by FY15.
"Last year, we opened 32 new restaurants. Our stated goal is that in the next two years we will open anywhere between 75 to 100 new restaurants (in West and South). It took us 17 years to build 166 (outlets) and then in a couple of years we are looking at about 75 to 100 new restaurants," Hardcastle Restaurants vice-chairman Amit Jatia told reporters here.
"Typically, we invest Rs 2.5-3 crore in a restaurant. We are building 75 to 100 restaurants so that is anywhere between 250 to 300 crore, just on capex alone. So we are thinking of investing Rs 300 crore over the next two years," he added.
Hardcastle Restaurants is the master franchisee for west and south India operations of McDonald's Restaurants and is a direct subsidiary of Westlife Development that got re-listed on the BSE today.
In North and East regions, Connaught Plaza Restaurants is the other joint venture partner for McDonald's India.
Westlife Development had last month raised Rs 180 crore through preferential issue of shares to Arisaig India Fund, following the Bombay High Court's nod for merging Hardcastle Restaurants as its direct subsidiary.
Westlife Development has diluted its stake by 3.47 per cent, by allotting a total of 54.04 lakh fully paid equity shares to Arisaig India Fund.
The preferential allotment to Arisaig will have a lock-in period of one year from the date of allotment and consequently, the equity base of Westlife Development would expand to 15 crore shares.
Jatia said the company is in acceleration phase and will be funding the new expansion with internal accruals and the preferential share allotment.
"The QSR (quick-service restaurants) industry has become more matured now. When we first started, it was just a fad and today its a necessity. We feel that as more and more QSRs are coming in, the industry is emerging.
"It is a USD 100 billion dollar eating market of which QSR is about USD 18 billion to USD 20 billion and it is growing at 10 to 15 per cent. Which is why believe this is acceleration phase for us," Jatia said.
Westlife Development clocked a revenue of Rs 684.3 crore in FY13, Jatia said adding close to 98 per cent of the firm's business