With an aim to organise the market for Quick Service Restaurants (QSRs) in India, take a look at how regional Vadapav chains are spreading their nationwide presence via franchise way.
“Regional QSR cuisine chains are likely to bring the next level of growth as the segment grew by 37% in terms of outlets in the last two years,” reveals Franchise Forecast 2015-16 report. Also, as per the current market trends, QSRs topped the charts as this segment has about 45% share in the overall F&B space. Besides, topmost national chains, regional players have been able to create franchise opportunities and robust footprint on a national scale, which is commendable. These brands have gone beyond their limits and have created their market presence successfully by organising the way they sell Vadapavs in an organised QSRs format.
Strategies followed by Vadapav chains
Take a look ahead to know what strategies vadapav chains are tapping to organise the market of QSRs in India. By making vadapav as the best snacking option in the country, Mumbai based brands Goli Vada Pav and Jumboking have been spreading their presence on national scale by tapping the replicable model of franchising.
When asked about their strategy towards sustaining profits, bringing in-store footfalls and beating the rivals with distinction, Venkatesh Iyer, Co-founder and CEO, Goli Vada Pav, clearly says, “Our strategy has always been listening to the customer, delivering him a vast variety of vadapavs at his convenience. We have been getting active in the tech space and believe that we should be present where our customers are. If our customers are spending nearly 10 hours a day on their smartphones then, we should be there too. Keeping in line with this thought, we have tied up with Food Panda and Swiggy to initiate home deliveries in Mumbai and Bangalore. We have also signed up with Opinio, a hyper local player, in order to make more deliveries in these cities. In addition to this, we have also been rolling out Goli’s Android app in select stores in Bangalore and Mumbai. We will continue to explore more such partnerships and roll out franchise led stores will continue as we aim to touch 1,000 stores by 2020.”
On the other side, Dheeraj Gupta, Founder & MD, Jumboking says, “I had little help while I was building my brand because we were the first ones to sell vadapav in organised way. There are so many critical pieces like format, market segmentation, real estate strategy, supply chain strategy, product development and menu expansion strategy. We had to figure things out along the way.” He is now using his insights and operational expertise to mentor other restaurant brands to scale up.
Growth story & target plans
Goli Vada Pav which launched its first store in 2004, is currently operating close to 350 stores in 88 cities covering 19 states. On the expansion front, Goli Vada Pav has plans to open 100 stores by the year end. On confirming his plans ahead, Venkatesh Iyer says, “We will be consolidating our position in the markets that we are currently present in. You will see more Goli stores opening in the North and Eastern region of the country, in addition to this, store roll out will also continue in Kerala, Tamil Nadu, Telangana and Andhra Pradesh.”
Whereas, Jumboking started its journey in 2001 and operates 103+ company-owned and franchise stores. Anyone who has prior retail business experience of 1-2 years and can devote 10hrs/day to the business will be the preferred for taking up Jumboking’s franchise. “As far our expansion plans are concerned, we are on course to have 1,000 stores,” says Dheeraj Gupta.
Moving ahead, experts feel that industry is slated to scale new heights as QSR market in India represents a massive growth potential and franchising model is certainly going to rev up revenues for regional brands that are aiming to have national footprint.
Take a look at how much growth these brands’ have achieved since their inception:
|Brand||Year of inception||Current presence||Target plans|
|Jumboking||2001 from a small suburb in Mumbai||103+||On course to have 1,000 stores|
|Goli Vada Pav||2004||Close to 350 stores in 88 cities covering 19 states||Aims to touch 1,000 stores by 2020|