burger club

7/29/2019 Burger Club

1/6

BURGER CLUB

INDIA ENTRY

State of Indian Econo myIndia is one of the fastest growing economies of the world and on Purchasing Power Parity basis is

the third largest economy (Source: IMF Oct 2012) on earth. It has shown significant growth in past

two decades with the last decade seeing an impressive annual growth rate of more than 8% p.a.

Though during last couple of years, the economy faced a slowdown (in line with slowdown across

the globe)with growth rate slipping to the level of 5% p.a., Indian economy is now showing

bottoming out of the growth deceleration cycle and is expected to grow at the rate of 6%p.a. (Source:

Moodys may 2013) during the current financial year.

Despite the slowdown in growth rate, India remains one of the top performing economies of theworld and that is proof of the fact that if a business has to grow, it cant ignore India. During a

period when major economies of Europe are in contraction, USA is growing at an abysmally low

rate of 1% p.a., Brazil & Russia have grown at the rate of 2%, China & India still remain the growth

engines of world.

The GDP growth rate is further expected to jump to 7% p.a. in the next year. By 2030, Indias

economy is expected to reach a 30 Trillion USD mark which will represent a seven times increment

in economy size within coming two decades.


2/6

Food service Business in INDIAThe phenomenally growing food service (restaurant) sector is one of the best kept secrets of Indian

growth story. National Restaurant Association of India estimates that the food service market in

India currently stands at USD 48 Billion and is expected to reach the size of USD 78 Billion by 2018

registering a CAGR of 11% p.a. for the next 5 years. The icing on cake is that the organized sector is

expected to grow at the rate of 16% p.a. This will result into share of organized sector growing to

approx. 40% in 2018 from 30% as it stands today.

Scope for a Burger Chain in IndiaWhile the QSR market in India stands at $ 13 Billion, there is no specific burger chain in India except

McDonalds. Virtually unchallenged, McDonalds has gone on to conquer Indian QSR marketopening approx. 500 Outlets in last decade or so of its presence. Burger king has been planning to

enter India for few years now but its attempts to partner with big business houses like DLF, Master

Operators like Amrest or for that matter PE fund like Everstone have not fructified so far.

This single-operator market certainly has a lot of juice for a burger focused food chain and a new

chain can certainly make inroads at a quick pace provided its able to manage the operations

efficiently, selects price points competitively and perfects the go to market strategy.


3/6

Is it the right timeToday the Indian consumer is eating out at a much higher frequency than was the case a few years

back. Rising Income, Demographics, Nuclear Families, Young working population, Rapid

urbanization and many more other factors all have worked together to ensure the elevation in

turnover of this industry.

At the same time, Indian Food Business and QSR particularly is buzzing with activity. After

successful stock market listings of Jubilant Food (Franchisee for Dominos Pizza) & Speciality

Restaurants (A fine dining restaurant chain with brands like Mainland China, Machan, etc.) which

have rewarded their investors handsomely, money is literally pouring into the business from VC &

PE funds.

When viewed from the perspective of a single burger based QSR chain being present in India, the

market starts looking poised just for entry of another burger chain in India.


4/6

Ch allenges in IndiaWhile the market is certainly big, expanding and lucrative, India does not come without its

challenges. Operational Issues of expansion, the real estate market, an untrained work force, the

price sensitivity of Indian consumers are some of the challenges any food chain coming to India will

face and unless these challenges are managed well, expansion and that too at a fast pace may prove

quite difficult even if the market opportunity remains.

Investment R ules in IndiaFood business is one of the best sectors for a foreign investor as 100% FDI through automatic route

is allowed in India. In simple terms, there is no restriction on investment of foreign money in the

food sector either through equity or debt. India also allows full repatriation of profits provided all

the taxation liabilities have been made. Besides, India also allows Royalty Transfers, Payment for

Technical Know-how, Dividend etc. without any restrictions. There is also no bar on repatriation of

Capital Invested and during the economic history of India there is not a single case where

repatriation was disallowed.Who w e areWe are a group of professionals who come with decades of experience in the food business as well

as financial sector. The total experience of our core group is more than 100 man years. We help

enterprises in perfecting their India Entry Strategy, Expansion Strategy, Liaison with Govt. &

Regulatory authorities, Regulatory Compliance, Market study, Concept Design, Managing

Restaurant Operations, Manpower Sourcing & Training, etc.

Past & Cur rent Assoc iations (Hospitality)


5/6

CorporateStructure

CapitalStructure

Regulatory

(FEMA,

RBI

&

FIPB,

Tax)

Compliance

DesignofIndiaEntryStrategy

ExpansionStrategy

Business&RevenueModeling

MarketingStrategy

StrategicFinancialManagement

FinancialPlanning

StrategicDecisionMakingSupport

How w e can helpAs part of our business services, we offer CXO services on demand which effectively means

providing the local management team. We can help Burger Club in smooth set-up of organization in

the initial phase and also help them in managing the operations of the company on an on-going

basis.


6/6

DaytodayOperationsManagement

Restaurantprojectplanningandscheduling

FranchiseeCreation,Feasibility,Selection&Management

Vendor,Manpower&Consultantselection

Planningandimplementationofvariousoperational

processes&

manuals

required

for

running

the

Restaurant;

Planandlaunchoutlet(s)oncompletionofthesetup

activities;

FinancialplanningofRestaurantProject&Expansion;

ProfitabilityEnhancementMeasures

Implementationofrequiredcostcontrolmeasures

BudgetPreparation,CashFlowManagement,FundFlow

Management

RevenueOptimization&AssetMonetizationAdvisory

CostAccounting,CostAnalysis&ProcessImprovementConsultancy

RiskManagementAdvisory

OperationsManagementSupport

burger club

Documents