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The success of the first store of Kathi Junction led Navneet Sajwan to think about moving ahead towards the next step. In a world of burgers, pizzas and other fast food, Kathi Junction has pledged to take the “Kathi Roll” rolling across the country.
Kathi Junction doesn't look like a house of secrets. Its menu is vast and its outlets often attract a queue outside the store. Its USP is tasty rolls with similar taste across India. It's one of India's largest chains of QSR brands selling only kathi rolls and shawarmas.
The man behind the chain is an elusive 35-year-old named Navneet Sajwan, Founder, Kathi Junction. It all started with a hardcore foodie's urge to launch a product that is acceptable in a diverse country like India. Kathi Junction is a example of how a foodaholic's passion made him a successful entrepreneur.
When asked about the inception and inspiration behind the launch of a business concept, Navneet says: “In 2009, an intention to get into the rapidly propagating food industry gave birth to the idea of opening a fast food store. Then began the search for a lip smacking product and after an extensive research, 'Kathi Roll' was singled out.”
Also Navneet's approach towards developing a product which is economical, conducive and has value for money made him start his brand Kathi Junction. Kathi Junction is a big step towards development of such a product.
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Kathi Junction's business model is so seemingly foolproof that the company has acquired an air of invincibility, whether it's served in J&K or Chennai. Kathi Junction, a brand which sells variety of kathi rolls has been satiating the food lovers pan-India for more than five years. The brand has outlets across 16 Indian states. The product needs no customisation as it is relished in all geographies.
Hot opportunity for food lovers
Now you can also sell these tasty rolls and let the profits roll in as the brand is seeking partners. The company is on a big expansion mode and is currently working on a few master franchisee agreements as well which will take their business to a new level.
On choosing franchise business model for expansion, Amita Sajwan, Co-Founder, Kathi Junction believes: “Indian demographics are hugely 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 stores becomes smooth, right from space finalization, targeting consumers and tailored pricing. This model is a win-win situation for both.”
To become Kathi Junction's franchisee, the brand is seeking ambitious investors who can give quality time to the venture. The company prefers that the space should be located in high footfall areas preferable targeting youth
Kathi Junction aims to attain a leadership position in Indian quick service restaurant space by 2020. Their low cost biz model with high quality food products is attracting lot of new investors and they expect to develop a good number of outlets by this year end. The brand plans to increase their 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 they expect their maximum business growth to come from this geography.
Success of any franchise business model is directly proportional to the relationship between both the parties franchisor and franchisee. Kathi Junction's low cost model with moderate franchisee fee is a step towards this. Company's Life time chef management offer for the partners, is in itself a daunting task to accomplish. The versatility of the product has become the USP of the company. People with aspirations from any part of the country can approach to fulfil their entrepreneurial desires. In a world of burgers, pizzas and other fast food, Kathi Junction has pledged to take the “Roll” rolling across the world. For Navneet, the journey has begun and it seems sky is the limit.
Ingredient for success
The product has always been treasured for its unique taste which is ridden on the shoulders of a combination of different spices from across the country. Offering something which is already there in the market, with a difference led to the process of cherry picking of the best of available spices from various locations. Kathi Junction masala is the backbone of the entire Kathi Junction brand.
As attrition rate of Chefs is a 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 the food. To overcome this problem, the company provides trained chefs and is also responsible for the replacement of chefs for maintaining similar taste at all its franchisee-run outlets.
The brand strongly believes that Kathi Rolls is one complete food for Indian mass consumer, so they have made it available in every possible mixes and tailored to affordable price range.
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Navneet’s business voyage
Navneet is a Management graduate and has over 10 years of experience in the job world, He always had a strong inclination towards entrepreneurship. Despite of all the obstacles and demurs that came from a service class environment, he started Kathi Junction in 2009 by opening the first store in Dehradun, in his hometown. The concept was clearly indicated to satisfy the taste buds of food-lovers, keeping in mind that their pockets are least affected.
Like many successful entrepreneurs, Navneet also believes in the same “Behind every successful man, is a woman”. As soon as he launched his business, he was joined by his wife Amita for being another pillar in the business. With expansion mode strongly in Navneet's mind, Amita was exactly what the business wanted at that time. Being an Economics graduate and having a diversified work experience of 10 years in the job industry, Amita acquires the role of a key contributor in the company's success story.
Stepping up the franchise ladder
Living in a world of brands like McDonalds and Dominos, it did not take much time for the idea of “Franchising” to lure Navneet. It was a catalyst to his strong yearning of building his concept into a brand. The offer of lending expertise and helping other entrepreneurs through the franchise model was accepted with full heart. Kathi Junction started receiving enormous responses from different parts of the country. The concept of low-cost, quality product made his business model hit the minds of the masses in our country. In no time Kathi Junction was able to open 4-5 stores by 2010 via franchisee model. Today Kathi Junction is running at 23 locations with 53 stores and moving ahead with a target of 100 stores by 2015.
Diverse tastes, distinct profits
India is a country where people show drastically different taste patterns from one state to other. Designing a unique food product which becomes equally tempting to the entire mass, is a big art. Kathi Junction can proudly call it as an achievement in developing their main product. Kathi Rolls to suit different age groups and communities. Having presence from cities like Kashmir in the north to Tumkur in Karnataka is a proof of that.
Area Investment RoI Breakeven
Express Model 200+ sq ft Rs 7-8 lakh 30% 15 Months
Dining Model 300-600 sq ft Rs 9-12 lakh 30% 18 Months