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Oct, 16 2012

JUMBOKING TO SPREAD ITS FLAVOUR NATIONALLY

With Jumboking having already cooked its success story around vada pav, and now with new found success in Bengaluru and Aurangabad, Jumboking is all set to leverage its brand nationally.

INSPIRED by Western business formats and to fill the escalating demand in the Indian food industry, Jumbo King started its journey in 2001. It is the market leader in the category of vada pav and a household name in Maharashtra. Jumboking started franchising in the year 2004 and enjoys cult status among the college and office goers of Mumbai, who are constantly  on the move.

A pioneer in the Indian quick service restaurant category, Jumboking, which is in its 11th year of operations, follows formats of 200-300 sq.ft stores, located in high footfall areas in tier-I and tier-II cities. Presently, the company is running 45 franchise outlets across four cities, and 65% of its business is through the franchise format. After the success of the franchise format, the company is replicating the same via its master franchise model. The company has appointed its first two master franchisees (MF), in Bengaluru and Aurangabad. It is currently evaluating master franchises in Pune, Nagpur, Goa, Mangalore, Mysore, Indore, Bhopal, Hyderabad, Vizag, Surat, Baroda, Ahmedabad, Rajkot, Jaipur, Thane and Navi Mumbai.

The company is keen to partner with people who are ready to become entrepreneurs and garner profits. The company will support the franchisees from day one. Jumbo King offers its franchisees training and support in operations, store management, logistics and marketing so as to enable them to establish their business.

Jumboking has till date sold over 9 crore vada pavs.  The company aspires to grow from the current 45 stores to 200 stores by 2015. Says Dheeraj Gupta, Founder and MD, Jumboking: “We feel the Indian market can support more than 1000 Jumboking stores.  The MF brings tremendous entrepreneurial energy to the system. By getting the rights to sub-license the Jumboking system further in his area, the MF has a tremendous opportunity to expand his play in the quick service restaurant industry in India.  The MF has a say in the regional advertisement programme. The MF can also contribute tremendously to localisation and menu development.”

Says Gupta: “The success of vada pav as a product in Mumbai is not about an inexpensive local product. As cities grow and aspiration levels increase across the country, customers will be looking for 'on the go' options, located conveniently, that are value for their time and money and satisfy the need for ‘a quick snack’.  Jumboking is uniquely positioned to deliver this. Products like Schezwan and cheese Jumboking are a rage with the youth. They are priced far higher than a regular vada pav. Spending Rs 30 on a Schezwan Jumboking is considered a great value for money and a greater value for time.”

With its origins in  Mumbai, Jumboking has been the toast of Bollywood celebrities and cricketers alike, constantly establishing a strong connect with the aspirations and role models of the youth in the city.

Knitting growth

Perceived to be a Mumbai product, Jumboking has received tremendous response even from other states. In Bengaluru, where Jumboking already has 4 stores, it is adding more at 6 stores per annum. Bengaluru will support at least 60 Jumboking stores. In a small city like Aurangabad with a population of 15 lakh people, the brand is adding its fourth store and the MF there is confident of taking it up to 12-15 stores in this city. To understand why vada pav gains so much popularity, one has to fully appreciate why vada pav works in Mumbai? Vada pav, as a quick snack on the move, will work in every busy, bustling metropolis of the world. All is needs is a little bit of localisation, or a new flavor that works in that geography.

What does the Master Franchise Programme entail?

  • Every city with a population of over 1 million to have one MF.
  • The MF has to submit a business plan to demonstrate that the city he resides in and the adjoining areas can support a minimum of 10 and up to 30 Jumboking stores.
  • The 30 stores to be opened over a time period of five years. Of these 30 stores, the MF has to retain 20% (5 stores) as directly owned and operated by him.
  • Initially, the MF invests in the first two stores in his city to thoroughly understand the concept and then partners with the company to develop the specific region as the company's sole representative.
  • Each MF has the potential to earn Rs 5 - 7 lakh per month.
  • The total investment of the MF in his five stores would be in the region of Rs 60-75 lakh to be invested over five years.

Master franchisee speak

“I was considering 75 lakh investment for a sit-down restaurant franchise. But when I came across the Jumboking Business plan, I couldn’t think of a better way to spread my risk over 5 stores and at the same time have the pride of controlling the entire city, where other people in my city would come to me for a Jumboking franchise. I get to have a say in marketing and product development. It’s a complete entrepreneurial experience backed by the safety net of a brand. After I opened my stores in Aurangabad, people in my business circles expressed regret that they hadn’t thought of the same first.”

ISHWARLAL CHICHANI,

Master Franchise, -Aurangabad.

“Jumboking has carefully thought out its rollout plan. The marketing budgets are defined, the expansion plan in my region is defined, the menu development plan is defined. The rules are simple, clear and powerful. It’s like a well-oiled machine and I am proud to have won it for my city.”

SANATH BABU, Master Franchisee Bengaluru.

Partner speak

Komal Anand, Sales Director, Organized Trade, Pepsico says: "PepsiCo has been a proud partner to Jumboking since its inception. We are committed to growing with the company in all its new geographies.”

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