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Food and Beverage 2014-07-18

Rolling out benefits in QSR biz

Rolling out benefits in QSR biz

Kathi Junction, the well known QSR has surely tingled the taste buds of the epicures since its inception. Now, that the delectable rolls are well accepted by food lovers of every age group, the brand is fast spreading its flavours across India. Ekta Sharma Verma did a candid chat with Navneet Sajwan, Director, Kathi Junction and explored how the brand is maintaining its standards.

What is your brand’s USP?

We did a lot of research on Indian food industry, consumer taste and preferences before going for this concept, so we are aware of Indian taste and craving for good food. We use our own secret masala recipes across all outlets which comprise of the best spices from across the world. Trained chefs are provided from the company. Attrition of chefs is the major concern in the food industry and this factor not only hampers a good running biz, but hiring new chef changes the quality and taste of food too. To overcome this problem, we provide replacement of chefs. Kathi Roll is one complete food for Indian mass consumer, so we have made it available in every possible mixes and tailored to affordable price range.

 What strategies do you employ to maintain the standards of your company?

Being in the food industry, it becomes imperative to maintain the quality standards across all outlets at affordable price range. Indian mass consumer is very conscious on quality and pricing. Keeping this in mind, we have grown on a mantra of serving fresh cooked food to the consumers with minimal use of frozen, packed and preserved ingredients. Trained chefs are provided by the company, in order to maintain similar taste and quality across all stores. These chefs are not only trained in available food range, but they have expertise in making different kind of sauces used in rolls.  Above all, we guarantee chefs replacement which helps in maintaining quality standards and taste across all stores in India

What are the major challenges in your industry?

Firstly, Indian consumer is highly price conscious and fluctuating raw material prices at times bring margin pressures. The real estate prices in metros and tier I cities are still on the higher side keeping in mind the realisations from new start-ups. This factor will put pressure on all new biz ventures till the time economy shows signs of revival. We are very positive that even small revival in the economy from here on will increase the disposable incomes and will eventually see a boom in this industry.

Why did you opt for franchise route for business expansion?

Indian demographics are vast and every market is different from other. Franchise model helps in faster growth as it involves investor’s interest directly. Since investor has better knowledge of his local market dynamics, the operation of the store becomes smooth, right from space finalisation, targeting consumers and tailored pricing. This model is a win-win situation for both.

Future plans for next five years.

We aim to attain a leadership position in Indian quick service restaurant space by 2020. Our low-cost biz model with high quality food products is attracting lot of new investors and we expect to end this year by being India’s fastest growing QSR Chain.  We have plans to increase our number of outlet from 52 to 75 by 2014. Malls and organised shopping arcades concept is growing fast in small and medium towns across India and we expect the next boom in this sector to come from these geographies.

Franchise facts:

Area

Investment

RoI

Breakeven

Express Model- 200+ sq ft

Dining Model- 300-600 sq ft

Rs 7-8 lakh

Rs 9-12 lakh

30%

30%

15 Months

18 Months

Comment
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