NEW DELHI: McDonald’s India (South and West), operated by Westlife Foodworld Limited, has appointed Starcom India as its new Agency of Record (AOR) for media. This move ends a partnership with Madison that lasted over two decades. McDonald’s aims to boost growth and deepen consumer engagement in these key regions.
Arvind R.P., Chief Marketing Officer of McDonald’s India (South & West), confirmed the change:
“We welcome Starcom India as our new Agency of Record (AOR) for media. Starcom brings a strong blend of strategic thinking and future-forward capabilities across data, digital, and tech. They are well-placed to partner with us on our growth journey. We also thank Madison for a collaborative partnership spanning over 20 years.”
Starcom won the mandate through a competitive multi-agency pitch. The agency replaces OMD India. It will handle end-to-end media duties, including media strategy, planning, and buying across TV, print, outdoor, digital, and performance marketing.
Sustained Growth Amid Operational Challenges
Westlife Foodworld, the master franchisee for McDonald’s in South and West India via its subsidiary Hardcastle Restaurants Pvt. Ltd (HRPL), reported strong growth in Q4 FY25. Revenue rose 7.3% year-on-year to ₹6.03 billion. The company added 18 new restaurants this quarter, bringing the total to 438 outlets across 69 cities.
The company maintained a healthy gross margin of about 70%. However, there were slight declines in some operational metrics. Restaurant operating margins fell by 30 basis points, and operational EBITDA margin dropped by 50 basis points year-on-year. These declines were attributed to operational deleverage but were partly offset by targeted cost efficiencies and normalized marketing spend.
Cash Profit After Tax (PAT) stood at ₹469 million, representing 7.8% of total sales. Westlife Foodworld reaffirmed its long-term target of achieving an 18–20% operating EBITDA margin by 2027. This growth will be driven by improved customer experiences and operational efficiency.
Consumer behavior remained positive, with on-premise sales increasing by 8% year-on-year and off-premise sales growing by 5%. Off-premise continues to contribute 43% to total revenue.
Rathi Gangappa, CEO of Starcom India, said:
“McDonald’s is one of the most iconic brands in the world. We are thrilled to have them onboard. Our People Powered Growth approach, combined with deep data and tech capabilities, will help deliver growth and transformation.”
The media account will be managed from Starcom’s Mumbai office. The agency plans to leverage its data-driven and integrated media expertise to help McDonald’s build brand affinity and accelerate growth in the South and West Indian markets.
About the Stakeholders:
- Starcom India is a leading media agency under Publicis Groupe, known for its data-driven media planning and digital expertise.
- Westlife Foodworld Limited operates McDonald’s restaurants in South and West India through its subsidiary Hardcastle Restaurants Pvt. Ltd (HRPL).
- McDonald’s India (South & West) is known for its regionalized menus and a strong Quick Service Restaurant (QSR) network.
This strategic agency change marks a new chapter in McDonald’s media journey in India. The brand looks to innovative media strategies to fuel growth and stronger consumer connections in two vital regions.
