McDonald’s Faces Stiff Competition From Its Pizza Selling Rivals
The rise of the shares of Jubilant Foodworks, a company that runs Domino’s Pizza in India and the increase in quick service outlets has led to a stiff competition to McDonald’s according to a report by the Economic Times. The shares of Jubilant Foodworks in fact has grown to more than double the amount in the last year.
McDonald’s Loses Youth Attention
The growth of economy along with the demand of fast food amongst the youth has led to food chains like Dominos and Subway to gain more shares leaving McDonald’s behind says the report. “Our growth has completely petered off,” said Vikram Bakshi, managing director of Connaught Plaza Restaurants Ltd to the Economic Times. Connaught is a company that runs McDonald’s in north and east India and had terminated its contract with McDonald’s last August.
However, it’s not all bad for McDonald’s as the report goes on to say how the other franchise, Westlife Development Ltd is planning to open 500 outlets by 2022. Jubilant Foodworks on the other hand has added 30 Domino restaurants in this financial year. “There is significant potential for the pizza business in the country, and we are committed to leveraging that potential,” Chief Financial Officer Pratik Pota told analysts and investors on a conference call in January reports Economic Times.
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