#Takeaway & Kiosk Model fast food

[kumbakonamdegreecoffee]

Best Low-Budget Coffee Shop Franchise Options in India: A Spotlight on Kumbakonam Degree Coffee

Starting a coffee shop franchise is a popular  business choice in India, given the rapidly growing coffee culture. For aspiring entrepreneurs seeking a profitable venture on a budget, choosing the right brand is key. Among the most promising low-budget coffee franchise options in India is Kumbakonam Degree Coffee. Let’s explore why this brand stands out along with other budget-friendly franchise choices.

Why Choose a Coffee Franchise?

Coffee shops have become a staple in both urban and semi-urban landscapes, catering to people of all ages. From the college-going crowd to working professionals, the demand for high-quality coffee served in a cozy ambiance is ever-growing. Coffee franchise businesses allow new entrepreneurs to leverage an already established brand, reducing the risks and challenges typically associated with starting a business from scratch.

Kumbakonam Degree Coffee: A Budget-Friendly and Authentic Option

Kumbakonam Degree Coffee is a franchise that has gained significant traction in recent years due to its unique positioning in the coffee market. Specializing in authentic South Indian filter coffee, this brand captures the essence of traditional coffee-making while offering it in a modern setting.

1.Authenticity and Legacy:

Kumbakonam Degree Coffee is renowned for its traditional brewing methods and high-quality ingredients. The coffee is made from pure cow's milk and high-grade coffee beans, giving it a rich taste and aromatic experience. It connects with customers who crave authentic South Indian flavors, especially those hailing from Tamil Nadu or Kerala, where filter coffee is a staple.

2.Low Investment and High Returns:

One of the biggest advantages of opting for a Kumbakonam Degree Coffee franchise is its affordability. Compared to other popular coffee brands, the initial investment required is much lower. For a budding entrepreneur looking for a low-budget franchise, this can be an attractive option.

Typically, the franchise investment for Kumbakonam Degree Coffee ranges between ₹5 lakhs to ₹10 lakhs, which includes everything from licensing to the initial setup. The brand also supports franchisees with marketing strategies, staff training, and operational guidance, ensuring a smooth launch and steady growth.

3.Flexible Business Models:

Kumbakonam Degree Coffee offers different franchise models tailored to your budget and business goals. You can opt for small kiosk setups, medium-sized takeaway outlets, or full-fledged dine-in cafes, allowing flexibility in choosing a model that aligns with your investment capacity.

 4.Growing Demand for Regional Coffee:

The trend of consuming traditional and regional coffee is gaining popularity. Kumbakonam Degree Coffee capitalizes on this trend by offering a beverage that resonates deeply with its cultural roots while still appealing to the broader coffee-drinking market. With its unique offering, this franchise provides an edge over generic coffee chains.

Other Low-Budget Coffee Franchise Options in India

While Kumbakonam Degree Coffee is a standout choice, several other low-budget coffee franchise options exist for those looking to explore alternative brands:

1.Cafe Udupi Ruchi:

This brand also focuses on South Indian filter coffee with a broader menu that includes snacks and quick bites. The investment is affordable, ranging from ₹8 lakhs to ₹12 lakhs, with a strong focus on offering value-for-money food and beverages.

2.Xotik Cafe:

Known for its affordable setup costs, Xotik Cafe offers a variety of coffee and fast food options. The brand provides a cafe experience with low investment, making it a popular choice for first-time entrepreneurs.

3. Cafe Coffee Day (CCD) Kiosk Model:

Although CCD is a well-established brand, its kiosk model is a relatively low-investment option. Ideal for high-traffic areas like malls and office complexes, it offers a recognized brand name at a lower entry cost compared to a full-scale CCD outlet.

Conclusion

For those aiming to start a coffee shop with a limited budget, Kumbakonam Degree Coffee is a leading contender, offering an authentic, culturally rich product that appeals to a broad market. With low initial investment, franchise support, and a growing demand for traditional filter coffee, this franchise can be a lucrative business option. Alongside other affordable franchises like Cafe Udupi Ruchi and Xotik Cafe, aspiring entrepreneurs have several options to choose from based on their preferences and financial capabilities.

If you're keen on entering the coffee business in India, exploring the Kumbakonam Degree Coffee franchise is a great starting point that offers a blend of tradition, taste, and profitability.

[restaurantify]

Quick Service Restaurants - How to Start a Quick-Service Restaurant

What Is a Quick-Service Restaurant (QSR)? 

A Quick-Service Restaurant, often abbreviated as QSR, is a type of fast-food establishment that specializes in serving quickly prepared meals with minimal table service. These restaurants cater to people on the go, making them perfect for individuals in a rush, students looking for a quick bite between classes, or anyone with limited time for lunch. Quick-service restaurants come in various sizes, ranging from small kiosks to major chain establishments. However, their hallmark is always speed and convenience. 

In today's fast-paced world, quick-service restaurants have become increasingly prevalent. Customers seek affordable, fast food options that can be conveniently grabbed on the go. These eateries typically feature a simple Point of Sale (POS) system, a limited menu, and orders are placed at the counter or through a drive-thru. Fast-food chains are ubiquitous in cities and towns worldwide, catering to the busy lifestyles of many consumers. 

Types of Quick-Service Restaurants  

Quick-Service Restaurants typically operate as chains or franchises, deriving profits from the volume of customers they serve. Running multiple outlets allows these businesses to capitalize on foot traffic from various locations, thus increasing the company's overall value. Examples include Starbucks, which offers complimentary food items alongside its beverages, and pizza chains like Pizza Hut and Domino's, known for fast food and light beverages. Maintaining a high level of standardization is crucial for QSRs to deliver prompt service to customers, and they fall into three categories: 

Self-Service Restaurants: Customers approach the ordering counter to place and collect their orders. They retrieve their orders from the counter once they're prepared and announced. 

Assisted Self-Service Restaurants: In these establishments, either the customer's order is delivered to their table, or a staff member serves the food directly to the customer's table. 

Full-Service Restaurants: These restaurants have table staff who take orders and serve food directly to diners. 

How QSRs Differ from Fast-Casual Restaurants 

Quick-Service Restaurants and fast-food eateries are often compared to fast-casual restaurants, and while they share some similarities, there are key differences between these restaurant formats: 

Quality and Speed: Both QSRs and fast-casual restaurants prioritize fast service, but fast-casual establishments typically prepare food to order. QSRs, on the other hand, pre-cook their menu items to ensure almost immediate food delivery. While this makes QSR service faster, food quality might be slightly lower. 

Takeout or Dine-In: QSRs and fast-casual restaurants usually offer both dine-in and takeaway options. However, fast-casual restaurant patrons are more inclined to dine in, often enjoying a more relaxed dining experience. As a result, fast-casual restaurants often invest in interior design to create a specific ambiance. 

Drive-Through: Drive-through service is rare in fast-casual restaurants but common in QSRs. Drive-throughs help QSRs free up indoor tables and reduce waiting times. 

Fast-casual restaurants prepare food fresh to order, resulting in slightly slower service compared to QSRs, where the food is ready almost instantly. This is why drive-through models are common in QSRs but not in fast-casual establishments. 

Benefits of Opening a Quick-Service Restaurant 

Owning and operating a QSR has several advantages: 

Large Market Segment: The fast-food and QSR market is substantial and continuously growing. In the United States, the QSR market size was estimated at USD 293.8 billion in 2023, projected to reach around USD 454.3 billion by 2030. This market offers substantial growth potential. 

High Customer Retention: QSRs benefit from high customer turnover rates, as many customers opt for takeout or use the drive-through. Quick service ensures that tables free up quickly, allowing for the efficient service of a large number of customers during each service period, leading to increased revenue.  

Franchising Opportunities: Many fast-food restaurants operate through franchising, allowing individuals to open QSRs under established brand names. Franchisees handle day-to-day operations while benefiting from existing branding and popular menu items, simplifying the process of building a customer base and reducing marketing costs. 

  

Low Operating Costs: QSRs typically have lower operational costs than full-service restaurants. Since many patrons opt for takeout, these restaurants can operate in smaller retail spaces with smaller staff sizes. Additionally, standardized menus with consistent ingredients can lead to cost savings, especially when ordering supplies in bulk. 

How to Start a Quick-Service Restaurant 

While the top 20 QSRs are usually large fast-food chains, most QSRs are not, and there's no need for a drive-thru, fried chicken, or ice cream machine malfunctions to run a successful QSR in 2023. Here are the steps to consider if you want to start your own quick-service restaurant: 

Create a Business Plan: Start by developing a comprehensive business plan that outlines your restaurant's unique model, including the type of QSR you plan to operate, your menu, operations, technology, and what sets you apart from competitors. 

Secure Financing: Restaurant start-up costs can be substantial, so consider various financing options available for your QSR venture. 

Obtain Licenses and Permits: Ensure you have all the necessary licenses and permits to operate your QSR legally. Consult local and state regulations for specific requirements. 

Locate and Purchase Equipment: Find an appropriate location, potentially with the assistance of a commercial real estate professional, and equip it for service. 

Create Your Menu: Develop your menu while considering food costs, supply chains, labor requirements, and the type of food you want to offer. Consider whether your QSR will offer build-your-own options. 

Hire Staff: Building an exceptional staff is crucial for success. Offer competitive pay, benefits, a distinct

For further assistance with restaurant website development and digital marketing, please don't hesitate to reach out. 

[nickgerlich]

Food To Go

This last weekend I had occasion to find myself in Taos New Mexico. I was in town to hike Wheeler Peak, the highest point in New Mexico. That all went exceedingly well, but that’s a story for another time. It was while trying to patronize a few restaurants that I experienced first hand the struggle many outlets have in finding employees, which, as it turned out, became fodder for this blog.

For example, I tried to eat at two Chinese restaurants, only to walk in and find out they do not offer in-house dining anymore, only takeaway. Not enough employees. And then there was my quick stop at the McDonald’s en route to the trail. I don’t eat at McDonald’s, but I did want to get a cup of coffee and visit the baño one last time. You know. Because McDonald’s is kind of America’s Rest Stop like that. You can almost always count on them.

Except this time. I arrived shortly after 6:30am, their opening time. I saw cars lined up for the drive-thru, but the lights were on inside and I went to the main door. Locked. Barred. None shall pass. A sign bore their message, apologizing for the inconvenience and explaining that they could not find crew members. They thus had shuttered the complete front-of-house, not just for breakfast, but for the entire day!

“Whoa,” I thought. They are now stuck with a very expensive building, of which they are using maybe half. This does not bode well for them. I have already heard of fast food chains planning new downsized buildings with little or no indoor dining, catering only to walk-up and drive-thru for in-app and online orders, as well as Door Dashers.

And then there’s the new Whataburger Digital Kitchen that just opened on the west side of Austin. It’s small. It doesn’t take cash. It doesn’t have a drive-thru. All orders must be placed in-app, online, or at onsite kiosks, all outside, of course, because you aren’t going in. There is zero human contact. Food is then delivered via secure lockers. And forget about the baño.

The new shop will be open 364 days a year, 24 hours a day, and have a crew of 50. That may sound like a lot for a place without all the trappings of a traditional fast food joint, but a typical McDonald’s employs between 90 and 120 and they are not even open 24 hours.

Whataburger has been a Texas staple for more than 70 years, a regional favorite many people will tell you is better than In-N-Out and Five Guys. It’s also a chain that did something very politically incorrect 40 years ago when it featured country crooner Mel Tillis as their spokesperson on TV ads. Tillis is a stutterer, and they made light of it by letting him stutter away. It was self-deprecating I suppose, and I guess Tillis was OK with it all, but that would never fly today.

Thinking back to the Taos McDonald’s, though, this sounds like the perfect model for them. It’s just too bad they already have such a big footprint, something that was once normal, but is now rapidly falling out of favor.

If a customer is digitally-averse, they’ll just be out of luck here. You have to have fully embraced the digital lifestyle in order to feel comfortable here, not to mention eating in your car or elsewhere. There’s probably a Circle K or QT down the street if you need to do other business.

I suspect all eyes will be on this new shop, not just internally at Whataburger, which is now owned by Chicago-based BDT Capital Partners. Whataburger has plans to reintroduce itself to Florida, and this concept could work very well there. And then there are all the other chains looking for ways to simultaneously save money, yet also address the dwindling labor pool. I see this being replicated far and wide.

Better yet, these smaller restaurants take up a lot less expensive real estate. To be frank, they have almost stolen a page from the playbook of Dutch Bros and Scooter’s Coffee chains, with their minimalist drive-up only shops. Commercial real estate, including land and building, is not cheap these days.

Interestingly, we have pretty much come full circle now. I remember the McDonald’s not far from my first childhood home. I would ride my bicycle about a mile to place my order at a window, and then sit on the curb to eat it. There was no indoor seating, no massive playgrounds, no Ronald McDonald and Hamburglar statues. It was strictly a walk-up restaurant, take it or leave it.

And I kind of like this new Whataburger. It’s a nice throwback to my much younger days, something that my students don’t have stored in their memories, but with a modern twist. What is old is suddenly new again.

While I quickly pivoted from the McDonald’s that morning to the Allsup’s down the street, I did grumble a bit about the Chinese restaurants, because I had a taste for a sit-down meal of tasty Asian food. I settled for a very nice New Mexican restaurant and zesty fajitas instead. I suspect, though, that this may new normal for a lot of places in a lot of cities, and like in all things, we’ll just have to adapt.

Change can be painful, just like climbing a mountain. But once you get over the hump, it’s all downhill from there.

Dr “We’ll Get Over It” Gerlich

Audio Blog

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U.S. QUICK SERVICE RESTAURANT (QSR) ECOSYSTEM MARKET ANALYSIS (2020-2027)

Quick service restaurant is a specific type of restaurant that aims to serve fast food to the customer quickly and on time. They are the most demanding segment in the restaurant industry and are gaining rapid adoption across developing as well as the developed region.

The U.S. quick service restaurant (QSR) ecosystem marketis estimated to account for US$ 7,324.2 Mn in terms of value by the end of 2019.

Drivers:

Increasing adoption of the data-centric business model in the QSR ecosystem is driving the market growth. Use of such business model to track voided and purchased items at the point of sale. The data-centric business model also offers a key competitive edge and due to this most of the restaurants are likely to adopt this system in the near future. For instance, McDonald's is continuously pursuing big data analysis to optimize the drive-thru experience.

Increasing preferences for fast food among X, Y, and Z generation is expected to propel the market growth of U.S. quick service restaurant. Factor such as good taste, convenience, and economical in term of time as well as cost is also acting as a catalyst in the growth of the quick-service restaurant market. Moreover, changing lifestyle of the consumer along with the increasing purchasing power is again anticipated to propel the market growth.

Figure 1. U.S. Quick Service Restaurant (QSR) Ecosystem Market Share (%) in terms of Value, By Component, in 2019

On the basis of component in 2019, the hardware has accounted the largest market share of 78.5% in terms of value, followed by software and services respectively.

Market Restraints

High costs associated with the QSR ecosystem devices are expected to restrict the market growth over the forecast period. For instance, the average price of black menu boards ranges from USD 30 to USD 140. However, the average price of digital signage systems ranges from USD 9,000 to USD 17,000.

Security concerns associated with the data breaches due to network connectivity is one of the major factor hampering the market growth of U.S. quick-service restaurant.

Request Sample Free Copy of Report here: https://www.coherentmarketinsights.com/insight/request-sample/4060

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Market Opportunities

Various restaurants have started offering various other services such as take-out, home delivery, and drive-thru which are high in demand across consumer living modern lifestyle. This factor is expected to provide potential market opportunities over the forecast period. Moreover, the shifting preferences among customer towards dinning at home is further expected to contribute to creating demand for home delivery services.

A growing number of restaurants offering vegetarian foods due to veganism is expected to offer lucrative market opportunities. Moreover, increasing adoption of advanced technology such as kitchen-display screens, touchscreen point of sales terminals, and self-order kiosks is again anticipated to foster the market growth of the U.S. quick-service restaurant. All these factors will favor the market growth over the forecast period.

Figure 2. U.S Quick Service Restaurant (QSR) Ecosystem Market– Opportunity Analysis

Market Trends/Key Takeaways

Payment through m-wallet and bitcoins is a growing trend in the quick-service restaurant industry. Rising concern over credit card safety is also anticipated to drive the demand from-wallet. This is in turn is augmenting the market growth of quick-service restaurants. Also, with the growing awareness regarding the bitcoins, there is a growing trend of adopting such virtual digital currency which is further propelling the market growth.

Changing eating habits and growing the number of independent quick service restaurants due to shifting preferences towards local taste and cuisine is propelling the market growth. Due to the high demand for local taste among local people, there is an increase in the number of quick-service restaurants in the U.S. country, thereby fueling market growth.

Figure 3. U.S Quick Service Restaurant (QSR) Ecosystem Market Share (%) in terms of Value, By Software, in 2019

On the basis of software in 2019, the billing and management has accounted the largest market share of 92.9% in terms of value, followed by analytics software solution.

Global U.S. Quick Service Restaurant (QSR) Ecosystem Market - Impact of Coronavirus (Covid-19) Pandemic

The coronavirus outbreak has caused a significant impact in the restaurant industry owing to closure of most of the restaurants across the globe due to the lockdown situation. Moreover, the quick service restaurant across the world are focusing on strategies such as introduction of own apps to deliver the food online. The above mentioned factors is expected to contribute to the growth of the QSR market over the forecast period.

Value Chain Analysis

Competitive Section:

Company Names

Panasonic Corporation

Nanonation, Inc.

NEC Display Solutions Ltd.

Cisco Systems Inc.

Hewlett-Packard Company

Omnivex Corporation

Samsung Electronics Co. Ltd.

LG Display Co. Ltd.

Keywest Technology, Inc.

REDYREF Inc.

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Coherent Market Insights is a global market intelligence and consulting organization focused on assisting our plethora of clients achieve transformational growth by helping them make critical business decisions.

What we provide:

Customized Market Research Services

Industry Analysis Services

Business Consulting Services

Market Intelligence Services

Long term Engagement Model

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Contact Us:

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Coherent Market Insights Pvt. Ltd.

Address: 1001 4th ave, #3200 Seattle, WA 98154, U.S.

Phone: +1-206-701-6702

Email: sales@coherentmarketinsights.com

Source: https://www.coherentmarketinsights.com/market-insight/us-quick-service-restaurant-ecosystem-market-4060

[planify]

Burger King IPO

Burger King IPO

Buy the IPO of the Burger King India Limited from us and get all the details and regular updates. The IPO comprises fresh issues worth Rs 400 crore and an OFS of up to six crore shares. With average ticket value of Rs 500–550, the company had 202 outlets in 47 cities as of June 2019. NEW DELHI: Quick service restaurant chain Burger King India has filed draft papers for its initial public offering (IPO).

Burger King India Limited draft papers have been filed with SEBI and the company is looking to raise ₹ 400 Crores. Burger King India Limited is planning to list its shares on NSE and BSE.

Company Summary:

The globally recognized Burger King brand, also known as the ‘HOME OF THE WHOPPER’ was founded in 1954 in the United States and is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc.

Restaurant Brands International Inc holds a portfolio of fast-food brands that are recognized around the world that include the BURGER KING, POPEYES and TIM HORTONS brands.

The Burger King brand is the second-largest fast-food burger brand globally as measured by the number of restaurants, with a global network of over 18,000 restaurants.

Burger King India Limited is the national master franchisee of the BURGER KING brand in the Quick Service Restaurant (QSR) Industry in India. The master franchisee arrangement provides them with the ability to use Burger King’s globally recognized brand name.

According to the DRHP, as at 30, June 2019 the company had 202 restaurants, including seven Sub-Franchised Burger King restaurants, across 16 states and 47 cities across India.

According to the DRHP filed by the company with SEBI, the company has plans to have approximately 325 restaurants by 31st Dec 2020.

Revenue Model:

· Revenue from operations of the company comprises:

revenue from the sale of food and beverages — revenue from sales through the restaurants directly operated by the company

revenue from sub-franchisee operations — includes royalties received from sub-franchisees

other operating income — includes income from scrap sales

Industry Overview:

· The food services market in India has been booming in recent times, owing to the rising disposable income of the middle class.

· The market was estimated at ₹ 4,096 billion in Fiscal 2019. It is projected to grow at a CAGR of 10.5% over the next five years and is expected to reach ₹ 6,753 billion by Fiscal 2024. *

Market Structure

The Indian food market is classified into two segments

·        Unorganized — includes dhabas, roadside small eateries, hawkers and street stalls

·        Organized — Chains (domestic or International outlets having more than 3 branches across the country) or standalone outlets.

·        Chains are further divided into six sub-segments

·        Fine Dining (FDR) — targets rich and upper-middle-class consumers

·        Casual Dining (CDR) — oriented towards affordable dining

·        Pub, Bar, Club, and Lounge (PBCL) — mainly serve alcohol and related beverages

·        Quick Service Restaurants (QSR) — focused on speed of service and affordability including takeaway/delivery sub formats

·        Cafes — includes coffee bars and parlors

·        Frozen Desserts Outlets (FD/IC) — small kiosk outlets of ice cream brands

Peer Analysis:

The efficiency of the company is low compared to its peers.

But the company has outperformed its closest peer Westlife, that runs McDonald’s chain.

Burger King has generated 66 percent revenue growth compared to Westlife which has generated revenue growth of only 19 percent during the year.

Burger King plans to roll out 700 restaurants by 2025 from 216 at present. In comparison to this Westlife, started operations 20 years ago had 304 restaurants until the end of September and opened only 19 stores in each of the past two years. (Source: Economic Times)

Apart from higher growth, several other factors work in favor of Burger King like Burger King India’s royalty payment to the parent company is capped at 5 percent. For Westlife, royalty payment is capped at 5 percent until 2023 and will eventually rise to 8 percent. (Source: Economic Times)

Financial Review of

Burger King India Limited

:

Total Assets of the company has been increasing at a CAGR of 64.8% from 2016 to 2019.

Total Revenue of the company has been increasing at a CAGR of 66% from 2016 to 2019.

The asset turnover ratio of Burger King is lowest among its peers which means that the company’s efficiency to use its assets to generate revenue is lowest.

Gross margin percentage of the company is also the lowest among its peers

Pros:

Exclusive Rights

The company has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India. The BURGER KING brand is the second-largest fast-food burger brand globally.

Brand positioning for millennials

The company has positioned its brand to target the large and growing millennial population in India.

Approximately 60% of Indians eating out are millennials, and the millennial population in India has grown from 418 million in FY11 to 444 million in FY19.

This trend is expected to continue as India’s population continues to grow.

Cons:

Competition

The QSR industry in India is highly competitive and is affected by various factors like consumer tastes, economic conditions and disposable income levels.

Due to increased competition the company could experience downward pressure on prices, lower demand for its products, an inability to take advantage of new business opportunities including finding suitable restaurant locations and a loss of market share.

Regulations

The company is subject to health, safety and environment laws and regulations enforced by local and national bodies.

The costs of compliance with health, safety, and environment laws might continue to increase in the future and could adversely affect a company’s gross margins.

Dependency on suppliers:

The company’s operations are highly dependent on the adequate and timely delivery of quality ingredients, packaging materials, and other necessary supplies.

If the suppliers fail to provide these supplies in a timely manner, a company’s business and financial condition could be adversely affected.

[planify]

Burger King IPO

Buy the IPO of the Burger King India Limited from us and get all the details and regular updates. The IPO comprises fresh issues worth Rs 400 crore and an OFS of up to six crore shares. With average ticket value of Rs 500–550, the company had 202 outlets in 47 cities as of June 2019. NEW DELHI: Quick service restaurant chain Burger King India has filed draft papers for its initial public offering (IPO).

Burger King India Limited draft papers have been filed with SEBI and the company is looking to raise ₹ 400 Crores. Burger King India Limited is planning to list its shares on NSE and BSE.

Company Summary:

The globally recognized Burger King brand, also known as the ‘HOME OF THE WHOPPER’ was founded in 1954 in the United States and is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc.

Restaurant Brands International Inc holds a portfolio of fast-food brands that are recognized around the world that include the BURGER KING, POPEYES and TIM HORTONS brands.

The Burger King brand is the second-largest fast-food burger brand globally as measured by the number of restaurants, with a global network of over 18,000 restaurants.

Burger King India Limited is the national master franchisee of the BURGER KING brand in the Quick Service Restaurant (QSR) Industry in India. The master franchisee arrangement provides them with the ability to use Burger King’s globally recognized brand name.

According to the DRHP, as at 30, June 2019 the company had 202 restaurants, including seven Sub-Franchised Burger King restaurants, across 16 states and 47 cities across India.

According to the DRHP filed by the company with SEBI, the company has plans to have approximately 325 restaurants by 31st Dec 2020.

Revenue Model:

· Revenue from operations of the company comprises:

revenue from the sale of food and beverages — revenue from sales through the restaurants directly operated by the company

revenue from sub-franchisee operations — includes royalties received from sub-franchisees

other operating income — includes income from scrap sales

Industry Overview:

· The food services market in India has been booming in recent times, owing to the rising disposable income of the middle class.

· The market was estimated at ₹ 4,096 billion in Fiscal 2019. It is projected to grow at a CAGR of 10.5% over the next five years and is expected to reach ₹ 6,753 billion by Fiscal 2024. *

Market Structure

The Indian food market is classified into two segments

·        Unorganized — includes dhabas, roadside small eateries, hawkers and street stalls

·        Organized — Chains (domestic or International outlets having more than 3 branches across the country) or standalone outlets.

·        Chains are further divided into six sub-segments

·        Fine Dining (FDR) — targets rich and upper-middle-class consumers

·        Casual Dining (CDR) — oriented towards affordable dining

·        Pub, Bar, Club, and Lounge (PBCL) — mainly serve alcohol and related beverages

·        Quick Service Restaurants (QSR) — focused on speed of service and affordability including takeaway/delivery sub formats

·        Cafes — includes coffee bars and parlors

·        Frozen Desserts Outlets (FD/IC) — small kiosk outlets of ice cream brands

Peer Analysis:

The efficiency of the company is low compared to its peers.

But the company has outperformed its closest peer Westlife, that runs McDonald’s chain.

Burger King has generated 66 percent revenue growth compared to Westlife which has generated revenue growth of only 19 percent during the year.

Burger King plans to roll out 700 restaurants by 2025 from 216 at present. In comparison to this Westlife, started operations 20 years ago had 304 restaurants until the end of September and opened only 19 stores in each of the past two years. (Source: Economic Times)

Apart from higher growth, several other factors work in favor of Burger King like Burger King India’s royalty payment to the parent company is capped at 5 percent. For Westlife, royalty payment is capped at 5 percent until 2023 and will eventually rise to 8 percent. (Source: Economic Times)

Financial Review of

Burger King India Limited:

Total Assets of the company has been increasing at a CAGR of 64.8% from 2016 to 2019.

Total Revenue of the company has been increasing at a CAGR of 66% from 2016 to 2019.

The asset turnover ratio of Burger King is lowest among its peers which means that the company’s efficiency to use its assets to generate revenue is lowest.

Gross margin percentage of the company is also the lowest among its peers

Pros:

Exclusive Rights

The company has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India. The BURGER KING brand is the second-largest fast-food burger brand globally.

Brand positioning for millennials

The company has positioned its brand to target the large and growing millennial population in India.

Approximately 60% of Indians eating out are millennials, and the millennial population in India has grown from 418 million in FY11 to 444 million in FY19.

This trend is expected to continue as India’s population continues to grow.

Cons:

Competition

The QSR industry in India is highly competitive and is affected by various factors like consumer tastes, economic conditions and disposable income levels.

Due to increased competition the company could experience downward pressure on prices, lower demand for its products, an inability to take advantage of new business opportunities including finding suitable restaurant locations and a loss of market share.

Regulations

The company is subject to health, safety and environment laws and regulations enforced by local and national bodies.

The costs of compliance with health, safety, and environment laws might continue to increase in the future and could adversely affect a company’s gross margins.

Dependency on suppliers:

The company’s operations are highly dependent on the adequate and timely delivery of quality ingredients, packaging materials, and other necessary supplies.

If the suppliers fail to provide these supplies in a timely manner, a company’s business and financial condition could be adversely affected.