McDonald’s experienced a challenging conclusion to what initially seemed like a promising year, facing declining sales in numerous markets attributed to the impact of the conflict in Gaza.
In the October-December period, global comparable-store sales, or sales from restaurants open for at least a year, increased by 3.4 percent. This figure was below the 4.7 percent growth expected by Wall Street analysts surveyed by FactSet.
Customers in West Asia expressed dissatisfaction when McDonald’s Israel, operated by a local franchisee, announced in October that it would offer complimentary meals to Israeli soldiers. In response, some franchisees, like McDonald’s Oman, announced donations to relief efforts in Gaza.
Last month, McDonald’s President and CEO Chris Kempczinski issued a warning, stating that misinformation in West Asia and other regions was adversely affecting sales. Alongside customer boycotts, McDonald’s found itself compelled to temporarily adjust store hours or close specific locations due to ongoing protests.
We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to anyone, Kempczinski said in a LinkedIn post.
The conclusion was unforeseen for the burger giant, marking an unexpected turn in an otherwise robust year. McDonald’s reported a notable 9 percent increase in global same-store sales for 2023. The success of viral marketing campaigns, such as last spring’s Grimace shakes, along with enhanced menu offerings, contributed to a substantial 10 percent rise in full-year revenue, reaching nearly USD 25 billion.
McDonald’s was not the sole US company grappling with repercussions from the recent war. Just last week, Starbucks revealed that it, too, encountered boycotts in West Asia and other regions, stemming from perceived support for Israel.
In the fourth quarter, McDonald’s saw an 8 percent increase in revenue, reaching USD 6.4 billion, aligning with analyst expectations. Simultaneously, net income experienced a 7 percent rise, reaching USD 2 billion.
Excluding one-time items, such as a USD 66 million restructuring charge, the company outperformed analysts’ expectations by earning USD 2.95 per share, surpassing the forecasted per-share profit of USD 2.83.
McDonald’s Corp. shares were flat in pre-market trading Monday.
Hamza Farooqui with Pano Christou. (Credit: Millat Holdings)
Pret A Manger, a UK-based cafe chain, has joined forces with Millat Group to enter the South African market.
Pret A Manger and the Millat Group have finalized a development agreement, granting Millat Group exclusive rights to operate Pret stores across the entire nation.
The deal comes after their successful introduction of the Circle K convenience store brand into the country.
The accord is in line with Millat’s overarching strategy to expand into the foodservice industry, offering customers a range of fresh, organic, and sustainable choices in accordance with their long-term vision.
Pret A Manger currently operates 650 shops across 18 countries and plans significant expansion in South Africa in the ten years to 2033.
Pret A Manger CEO Pano Christou said, “Bringing Pret’s freshly made food and organic coffee to the African continent for the first time marks a major milestone in our international expansion. Partnering with the Millat Group to launch Pret in South Africa is hugely exciting, with our Johannesburg shop set to be the first of many in the South African market.
“The partnership aligns with Millat’s vision of fostering entrepreneurship within South Africa, driving economic growth and providing a service that will enhance the daily lives of South Africans. We look forward to welcoming customers right across the country in the coming months and years.”
Pret A Manger aims to duplicate its international success, as witnessed in markets like the UK, India, and France, and solidify its position in the food-to-go sector.
The first Pret A Manger store is set to launch in Johannesburg, with a focus on the urban population.
Following that, the brand intends to set up additional stores in prominent locations throughout major South African cities like Cape Town, Durban, and Pretoria.
Millat Group CEO Hamza Farooqui said, “Pret A Manger has the best in class offering of organic grab and go and a food service offering that stands out. This partnership is in line with Millat’s strategy of bringing global brands into South Africa.”
“We also believe that this is an important step in elevating the consumer experience in South Africa and appreciate the confidence shown by Pret to partner with Millat.”
Farooqui continued, “Pret’s decision to venture into South Africa is a reflection of the country’s vibrant economic potential. I am thrilled to partner with such a powerful brand that not only offers high-quality products but also aligns with our core values of community and service.”
GOPIZZA, Korea’s largest pizza brand, has announced the opening of its 50th store in India, marking the achievement of 200 stores globally. The new flagship store, located in the vibrant district of Koramangala, Bengaluru, is set to showcase a menu that embodies the essence of Korean flavors, aromas, and tastes.
“This launch marks an important milestone that commemorates three years in India and highlights the company’s long-term commitment to growth with 200 stores globally and more expansion in one of GOPIZZA’s fastest-growing markets, India,” said Jae-Won (Jay) Lim, CEO, GOPIZZA Global.
“Our menu has been carefully curated, to introduce the diverse and rich flavours of Korean cuisine,” he added.
Distinguished by its inventive design, the flagship establishment in Koramangala introduces a unique semi-dine-in concept, capturing the authentic atmosphere of eateries in Seoul. This distinctive ambiance is crafted to elevate the enjoyment of GOPIZZA’s celebrated Korean menu, showcasing the brand’s gourmet pizzas and pasta specials infused with a Korean twist. Highlights include the fiery Buldak Volcano Pizza, the delightful Seoul Snow Pizza, and the savory Gangnam Bulgogi Pizza. In addition to these offerings, the menu aims to provide patrons with an authentic Korean culinary experience, featuring starters reminiscent of the bustling food streets of South Korea, such as K-fried chicken, Corn dogs, an array of signature Ramyun Bowls, and delightful Korean-inspired desserts.
Speaking on the brand’s expansion plans, Mahesh Reddy, CEO, GOPIZZA India said, “GOPIZZA embraces a versatile business model adaptable to spaces as compact as 50 sq ft, suitable for even placements in convenient stores. Through this malleability, we plan to open over 100 outlets by the end of 2024 in different regions of India and surpass the milestone of 500 stores worldwide, standing true to our commitment to accessibility and diversity.
“GOPIZZA’s aggressive expansion strategy extends beyond traditional formats. Operating across diverse verticals and locations, the brand has its presence in the formats of brick-and-mortar stores, shipment container stores, soon to also be in the form of a dessert cafe, and a food truck around the city. Located in malls, popular shopping streets, and airports, GOPIZZA is also looking into highways,” added Reddy.
Haryana Deputy Chief Minister Dushyant Chautala announced on Sunday that, beginning March 1, country-made liquor would no longer be sold in plastic bottles.
This move makes Haryana the first state in the country to enforce a ban on the use of plastic.
Chautala, who oversees the Excise and Taxation portfolio, stated that the government attained a 16 per cent growth this fiscal, with GST collection witnessing a 30 per cent increase over the past four years. The total tax collection reached INR 32,456 crore.
Despite initially setting a target of INR 36,000 crore for GST collection, Chautala expressed confidence in meeting the target in time.
In the fiscal year 2019-2020, the state government received a sum of INR 6,361 crore in excise duty tax, as stated by him.
In 2023 until July, the excise tax collection amounted to INR 9,687 crore. As of January 28, 2024, the total has already reached INR 9,232 crore. Despite the initial target being INR. 10,500 crore for the excise year, there is optimism that the government will exceed expectations, with the anticipation of a final tax collection of INR 11,500 crore by the end of the excise year.
Barbeque Nation, a Bengaluru-based restaurant chain, has recently launched a new establishment at Nexus Ahmedabad, as mentioned in a social media post by a mall official.
“Super stoked to announce the association of two major forces. Today, Barbeque Nation opened its doors for customers at Nexus Ahmedabad One in a grand manner with a larger-than-life architecture & design. Looking forward to a successful and lip-smacking journey,” said Karna Pandey, Manager Operations, Nexus Malls in a LinkedIn post.
This marks Barbeque Nation’s fourth venture in Ahmedabad, Gujarat, with previous locations established in Prahlad Nagar, Saral Xperia Mall, and Fiesta TRP Mall in Bopal.
Established in 2006 under the all-you-can-eat concept, the casual dining chain manages more than 200 outlets across India, with an additional four in the United Arab Emirates (UAE), and one each in Malaysia and Oman, as outlined on its official website.
The dining establishment presents patrons with a grill embedded in their table, offering a minimum of five vegetarian and five non-vegetarian mostly pre-cooked appetizers. Alongside this, there is a main course buffet and a variety of dessert options.
It is the only company in the retail sector to achieve a position among the top 10 and is ranked 13th among the best large workplaces in Asia by the Great Places to Work Institute, as stated on the company’s website.
Papa Pawsome, a pet care brand, secured $400,000 in seed funding in a round led by the Indian Angel Network. Notable investors from IAN, including Ajay Rajgarhia, KRS Jamwal, Jayant Mehrotra, and Rohit Rajput, also joined in the funding.
The startup will utilize the funds to scale operations, expand its offerings, and enhance the overall customer experience. Additionally, the infusion of capital will expedite the development of cutting-edge products, ensuring that Papa Pawsome remains at the forefront of the evolving pet care landscape.
Established by Nishita Agarwal, Papa Pawsome provides an extensive array of products tailored to meet the distinctive needs of contemporary pet-centric households. The startup asserts a portfolio of over 25 SKUs, encompassing hygiene essentials such as shampoos, serums, massage oils, training sprays, and grooming services.
Speaking on the funding, Nishita Agarwal, Co-Founder of the company said, “This funding will help Papa Pawsome realise its vision to become the platform for pet parents seeking quality and convenient pet care solutions.”
With the acceleration of urbanization and the expanding DINK (Double Income, No Kids) population, coupled with an increased desire for companionship post-pandemic, the adoption of dogs has emerged as a prevalent trend, as stated by the company.
“The pet industry is evolving rapidly post the pandemic and is going to be the next baby care industry (the industry isn’t creating babies.. Papa Pawsome is a D2C brand that offers natural petcare products which meet the evolving needs of pet parents and they are building a strong community of Fur Mom and Fur Dad,” said Ajay Rajgarhia, Lead Investor.
Before this funding round, the brand had raised $250,000 in its seed round, with New York-based 93 East Capital taking the lead. OpenbookVC and prominent investors such as Peebuddy founder Deep Bajaj, KRS Jamwal, Mandar Joshi, and Naveen Gupta also participated in the round.
Fresh Signature, the experiential supermarket chain from Reliance Retail, inaugurated its newest flagship store in Mumbai. This marks the 141st outlet of the upscale chain for the nation’s largest retailer. The recently opened store covers an expansive 9,000 sq. ft. and is located at Infiniti Mall, Oshiwara, Andheri West, Mumbai, as announced in the company’s press release on Monday.
Fresh Signature outlets showcase a diverse range of 17 live food stations, encompassing offerings such as fresh dairy, ethnic sweets, a zero-waste organic zone, Turkish delights, patisserie, premium dry fruits and nuts, ethnic snacks, live khakra, fudge and chikki, an ice-cream sundae parlor, noodle bar, health café, artisanal honey bar, and various other culinary delights.
The store opening was graced by the presence of pastry chef Pooja Dhingra and Bollywood actress Shilpa Shetty, as mentioned in the press release.
At present, Reliance Retail manages 141 Fresh Signature stores nationwide, with each store covering a retail area of 3,000–5,000 sq. ft. The brand provides a diverse range of everyday grocery essentials, chocolates, confectionaries, processed food, juices, beverages, home and personal care products. Additionally, it offers international cuisine ingredients and local snacks.
The release mentioned that the grocery retail chain intends to broaden its presence by expanding to additional locations in the upcoming months.
Reliance Retail Ltd, a subsidiary of Reliance Retail Ventures Ltd (RRVL), serves as the holding company for all retail entities within Reliance Industries Ltd. RRL, alongside other subsidiaries and affiliates of RRVL, manages an integrated omni-channel network comprising over 18,650 stores and digital commerce platforms.
In the third quarter of the fiscal year 2023-2024, which ended in December 2023, RRVL reported a net profit of INR 3,165 crore and a revenue of INR 74,373 crore.
Mumbai-based burger brand Good Flippin’ Burgers marked its entry into Pune with the inauguration of three new stores in the city, as announced by a company official on social media on Friday.
The burger chain inaugurated its initial city store at Pavilion Mall in Shivaji Nagar on 1 February. This establishment also stands as the brand’s premier food court store in India.
“Our first food court store! Our first Pune store! Thank you team Nexus for giving us this opportunity,” said Sid Marchant, Co-Founder of Good Flippin Foods Pvt. Ltd. in a LinkedIn post.
The next day, the second Pune store was revealed at Kopa Mall in Koregaon Park, representing the burger chain’s inaugural dine-in express in the city. Following this, the company proceeded to inaugurate its third store in Pune at Shroff Suyas in Baner.
Established in 2019 by Co-Founders Viren DSilva, Sijo Mathew, and Marchant, Good Flippin’ Burgers currently maintains a staff of over 350 employees.
Operating in three cities—Mumbai, Delhi, and Pune—Good Flippin’ Burgers has solidified its presence with 20 stores exclusively in Mumbai. Furthermore, the brand has expanded its footprint in the Delhi-NCR region, boasting 11 outlets, and in Pune, it has established 3 outlets.
As per its official website, the brand is presently focused on geographical expansion in Delhi, Pune, and Bengaluru. The expansion plan includes diverse formats such as cloud kitchens, dine-in establishments, hybrid models, presence in malls, and airport locations.
On Monday, Varun Beverages, the bottler for Pepsi in India, reported a 77% surge in its quarterly profit. This increase was driven by double-digit volume expansion in both domestic and international markets, despite consumers facing higher costs of essential items.
The consolidated net profit for the fourth quarter ending on December 31 surged to 1.32 billion rupees ($15.9 million), marking a notable increase from the 747.5 million rupees recorded in the corresponding period of the previous year.
Urban consumers, with higher average incomes in comparison to their counterparts in rural areas, have played a pivotal role in driving substantial sales for packaged goods manufacturers. This trend persists despite the challenges posed by increased prices of essential commodities.
The Gurugram-based company, with operations spanning across six countries, holds a prominent position as one of PepsiCo’s largest franchisees outside the United States. It specializes in packaging and distributing beverages under the Pepsi, Mirinda, and Tropicana labels.
As per its investor presentation, Varun Beverages reported a 21% increase in revenue from operations, reaching 27.31 billion rupees during the stated period. Additionally, the company noted positive volume growth.
The quarter witnessed a 1.8% increase in the cost of raw materials, encompassing flavored concentrate, packaging material, and sugar.
Varun Beverages experienced an expansion in its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, rising to 15.7% from the previous year’s 13.9%. This growth was supported by reduced packaging costs despite an increase in sugar prices.
Last year, the company ventured into the South African markets by acquiring The Beverage Company, a strategic move that analysts predict will be advantageous for the Indian bottler.
Furthermore, Varun Beverages sanctioned a final dividend of 1.25 rupees per share for the fiscal year concluding on Dec. 31.
The company’s shares, which experienced a surge of over 30% in the December quarter, showed little change in trading following the release of the results.
PepsiCo Inc is scheduled to announce its quarterly results on February 9th.
IKEA, the Swedish furniture retailer, is exploring further investment opportunities in India as it approaches the next phase of funding. The company initially committed INR 10,500 crore when it entered the Indian market a decade ago, as stated by Susanne Pulverer, the CEO of IKEA India.
Having initiated its retail operations in India by opening its first store in Hyderabad in August 2018, the company is presently in the process of establishing projects in Delhi-NCR. These projects are anticipated to be operational by 2025, marking the completion of the company’s committed 10-year investment in the country.
“This first investment that we committed is booked with the projects in NCR. So with that, we have exhausted the INR 10,500 crore and we are looking at the next level of investment to further build IKEA presence in India, to expand volumes and increase sourcing. So that is in the plan making and we will announce more when we are ready. The plans are being formulated, and we will make announcements when ready,” Pulverer conveyed.
In 2013, the government granted approval for Ikea’s INR 10,500 crore FDI proposal, aimed at establishing 10 stores with associated infrastructure within a decade. Following this, the company expressed intentions to further expand by opening an additional 15 stores.
Currently, single-brand retail trading allows for 100 percent foreign direct investment through the automatic route.
Presently, Ikea has operational stores in Hyderabad, Mumbai, and Bengaluru, with an investment of approximately INR 7,000 crore as it ventures into the National Capital Region, planning to establish two stores in Gurugram and Noida.
When inquired about the scale of the next investment tranche, whether it would be similar or potentially higher, Pulverer mentioned that the decision on this matter would be made by its parent company, Ingka Group.
Nevertheless, she also emphasized that the upcoming round of investment would be characterized by being “big and bold,” considering the growth potential of India.
There is “a lot of belief in India as it is coming into its growth decade. As a market, it is very dynamic. Many young people are upgrading their lives and are investing in their homes. So it is a huge opportunity market for Ikea,” Pulverer added.
As a strategic move, Ikea is directing its attention to the markets in the South and West regions, employing an omnichannel approach.
Nevertheless, as it prepares to open stores in Delhi-NCR, Ikea is contemplating the possibility of extending its presence to other cities like Lucknow and Chandigarh in North India, recognizing the promising opportunities they present. However, she mentioned that it is premature to disclose any plans beyond the Delhi-NCR at this point.
“Beyond the NCR (National Capital Region), Pune and Chennai are of interest. Kolkata is also on our radar, but it will be a stepwise approach,” she added.
Furthermore, Ikea is actively engaged in enhancing its sourcing from Indian markets to support its global retail operations. This presents opportunities for diversification, particularly in sectors such as furniture.
“While India has the potential to further develop its production capacities, the current export of furniture from India remains relatively small. Exploring opportunities for regionalised and global sourcing from India is part of IKEA’s ongoing strategy,” she added.
For its operations within India, Ikea is currently sourcing approximately 33 percent of retailed products in accordance with regulations and has intentions to further increase this percentage.
“Our intention is to continue increasing this percentage, as it makes sense to produce more locally and explore India’s potential to supply other IKEA markets. Growing volumes in the country, with more stores and online markets, will facilitate the next level of local sourcing,” she added.
She emphasized the importance of sustainability and affordability for Indian consumers, highlighting the necessity to concentrate on specific product categories.
“Textiles, plastics, metals, stainless steel, mixed materials, handicrafts, bulky furniture like mattresses and sofas, and local production of wood-based furniture are areas where we see the potential for growth,” Pulverer added.
Foreign retailers with more than 51 per cent FDI in this sector have to source a minimum of 30 per cent of the value of purchased goods domestically, preferably from MSME, village and cottage industries, artisans and craftsmen, in all sectors.
Presently Ikea is getting one-fourth of its sales in India from online platforms from its own channels such as its app, and e-commerce portal. It also introduced Shop By Phone assistance service and increased doorstep delivery facility in 62 new markets in India.
According to RoC filings, Ikea India sales were up 61 per cent to INR 1,768 crore for the financial year which ended on March 31, 2023. However, its loss was at INR 1,134 crore, on account of expansion in new markets and investments in infrastructure.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
