BURGER KING INDIA LIMITED
The Quick Service Restaurant Industry in India has seen dominant international players like Domino’s Pizza, McDonald’s and Burger King India enter the Indian Food Business. According to a report by Edelweiss Securities, the QSR chain segment will grow by 23% over FY20-FY25. Fast-food chains are still less than 5% of India’s food services market—the global average rests at 20%. This is what makes it a lucrative opportunity for Burger King India to grow.
Burger King India Ltd. engages in the operation of restaurant. It offers burgers, breakfast, cravers, beverages, and desserts. The company’s business was founded in 1954 and is headquartered in Mumbai, India. In November 2014, India became the 100th country in which Burger King set up its shop. From 2014 to 2020, Burger King opened 200 restaurants across India. This made it one of the fastest growing quick service international restaurant in India.
The CEO Rajeev Varman, is using the strategy they call the – “cluster approach” and penetration strategy which drives down costs and helps in better management of operations. Currently, it has six main clusters in India: around Delhi-NCR, Mumbai, Punjab, Bengaluru, Hyderabad, and Kolkata.
In 2015, Burger King launched 6 varieties in Vegetarian options, for the Indian Market. They specialised in non-vegetarian whoopers in rest of the world, hence this was a milestone for them. The firm, became a public firm on September 25, 2019 and became a EBITDA positive company. With sales of 644 Cr in FY19, reducing its losses to 16 Cr.
Burger King is setting the stage to meet an ambitious target of opening 700 outlets by December 31, 2026. This is a part of Burger King’s exclusive National Master Franchisee Rights agreement, which provides it with the ability to use its globally recognised brand name to expand in India.
In May 2020,Burger King India partnered with Project Mumbai, a non-profit organisation, to distribute over 8,000 burgers to frontline doctors, nurses and other staff of hospitals in Mumbai. As part of this initiative, Burger King is delivering freshly-prepared burgers to the medical staff of JJ Hospital, St. George Hospital, Cama Hospital and to the control room staff of Mantralaya.
As per the quarter four results, the Revenue from operations has increased 20% to Rs.196.05 Crores compared to the previous quarter of this year which was Rs,163.1 Crore. We also see a reduction in the total losses for the quarter from the earlier negative Rs. 29.02 Crores it now stands at negative Rs.25.94 Crores. The annual PAT has fallen further to a negative Rs.173.81 crore which is 126.9% lower than the FY2019-2020 Pat of negative Rs.76.57 Crores. The positive sign we have is, the increase in assets from the 1197.8 Crores in the previous year to 1428.21 Crores this year. This increase in assets is in line with its plans for expansion.
Overall, the quarterly results were satisfactory compared to last quarter, though the annual numbers look weak.
