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Jun, 07 2014

A 100 million and counting

There will always be success stories of internationally successful fast food chains, that have evolved out of a single food product that was hugely popular in a given region. Jumboking could well be India's first such story, especially after the way they

Back in August 2001, in a small suburb of Mumbai, an experiment to wrap and serve the vadapav began. The kitchen was modernised, electric friers with timers were installed and a standardised product was served to the millions of railway commuters that dot the metropolis of Mumbai. On 3rd April 2014, after 13 years, Jumboking, the first Indian brand to modernise the vadapav and establish a franchising program around it, sold its 100 millionth vadapav.

Franchising- a successful  business recipe

There is a dynamic change that has been witnessed among Indians' taste buds in the last decade. Whether international or homegrown, all F&B brands have infused contemporary flavours, blended with desiswaad to become a successful brands. Jumboking too has adapted the regular vadapav to global, metropolitan  flavours such as corn palak and Schezwan. Another significant ingredient besides the food factor that has made them successful is their scalable franchise business model.

Jumboking has seen a rapid growth in Mumbai via the franchise business model. The brand is all set to make a mark for India's first true global chain of food and beverage (f&b) brands that has a proven lucrative business model. They are making waves pan-India. Within India, they operate via single unit franchisees and 'city master franchisees' (CMFs). Currently, Jumboking has 60 outlets across 18 cities of India.

When asked about the profitability of taking up a franchise of the brand, Dheeraj Gupta, Founder and MD gave 12 simple reasons why a potential investor should consider franchising.

= Modern functional optimal layout.

= Standardised customer service.

= Backing of experienced, promoters and professionals.

= Opportunity to identify and tap an untouched market.

= Proven process implementation and  revenue model.

= Reduction in the process of 're-inventing the wheel.'

= Franchising legislation in many countries is leading to better conduct in franchising and we will also experience these benefits with international chains coming in.

= Franchising has emerged as a viable option to bridge the gap between an employee's short term commitment to the success of his employer and the innovative, limited resources outlook and expertise of an independent business. Almost 75 per cent of the people enter franchising because they do not want to work for someone else. Traditionally, in India, this is called awakening the 'jugaad' in the entrepreneur.

= With emergence of several organised retail opportunities and influx of foreign trade and finance, the sector has witnessed  tremendous growth. It has also generated job opportunities for millions of people across socio economic classes. The franchisees self-esteem improves as he sees himself to be a part of a retail revolution or contributing to a larger brand.

= It is not always easy and profitable for investors to build a new brand but on the other hand if investment is done in existing brands that have already proved their mettle in the market, it is more safe and profitable.

= Many entrepreneurs have a high failure rate during the initial years and most of them leave their business because of various factors such as inability to sustain financially, inability to lead, and inability to adapt and innovate. But in franchising the training guidance, continuous assistance increases the chances of success.

= Everybody is not an innovator or product developer but many are ready to invest in business as investors. Supported by strategic thinking, implementation and customer service may be a key strength. This helps in being a successful franchisee.

IQF Technology: Jumbo king’s USP

Jumboking's USP is 'ON THE GO' snacks keeping in mind the mass population and their urgency to have a quick bite on the move. Just like other reputed international chains, Jumboking also makes use of IQF technology for managing its backend operations by offering its wide range of vadapavflavours to customers. The IQF (technology) line is doing commercial trials for manufacturing the vadapav using this world  class technology since Jan 2014 and has been commissioned for commercial manufacturing from March 2014 onwards. This line is capable of manufacturing 10 tonnes per day.


“Customisation" of product or services plays a vital role for expanding brand's footprint on pan-India level.  Therefore, before moving to other markets, it's always important to do in-depth research. “Focused brands understand this well and look for satisfying the same consumer needs in other markets too. I firmly believe this is the only way to expand. Taste preferences are there, however the key is to get the product and price understanding right,” informs Dheeraj Gupta.

In terms of expanding the brand on a national level, Dheeraj adds: “We had to understand how “vadapav” is perceived in non vadapav eating markets; pricing strategy had to be decided and how will we market ourselves in markets where our presence is small, especially for the initial years. So, we decided to dive in taking best possible decisions we could, given the data we had at that given point in time. Now with relatively higher experience we are taking better decisions.”

 “Innovation is one of the keys to the brand's success. At the backend, we are working on flavours that people love, giving them a gastronomic experience. The product has to be bot, crunchy at the same time blended with the right sauces, to give the right mouth feel. Since we have a limited menu, each of our products is such that people have to  come back for the same thing, ”adds Dheeraj.


To run the brand's franchise operations effectively, Jumboking offers a complete business support and training programme to its franchisees through operational training, site selection and execution and store design. The brand offers marketing related support region wise as well as on pan India basis. The support related to supply chain and logistics is also offered. The brand gives operational support to its City Master Franchisee (CMF) also.

Says Dheeraj, “A recent survey we were a part of revealed that 70% of fathers prefer that their sons adopt the franchising route to entrepreneurship, vis-à-vis start their own business. Hence, training and induction is a must. In fact, it features prominently in factors that govern the lucrativeness of a franchise opportunity. Other important factors include.

a. Average initial investment (franchise fees plus equipment costs)- 30%

b. Total existing locations and geographies (the more the better)- 28%

c. Closure rate (the number of closings in the last three reported fiscal years divided by the total number of existing locations)-12%

d. Growth in the number of outlets in the last three years-16%

e. The number of training hours (the more support from the HO, the better)-7%

f. Marketing and advertising outlays of the franchisor-7%


Growth programme

After its humble beginning in Mumbai, Dheeraj Gupta, with its marquee brand Jumboking is now one of the front-runners in the Indian QSR segment. It has spread its presence across Mumbai, Thane, Bangalore, Aurangabad, Mysore, Delhi, Gurgaon, Amravati, Indore, Raipur, Pune and Lucknow. With a harmonious, well-accepted product range, they have proved themselves as a lucrative business opportunity to reckon with. And this is just the start.

For Jumboking, master franchisee is the feasible route to expand as they have in-depth knowledge of their city, surrounding areas, eating habits of region, potential areas and target group which help them to know the city better in terms of business and market potential. Talking about their expansion plans, Dheeraj Gupta, says:  “We have ramped up our supply chain to open about 65 to 70 additional stores in FY 2014-15.  We are grateful to our customers for helping us cross the 100 millionth mark.” Jumboking further looks ahead to expand across Mumbai, Bangalore, Delhi, Kolkata, Pune, Chennai, Nagpur, Coimbatore, Jaipur, Surat and Ahmedabad. For opening brand's stores, Jumbo King looks out for 200-300 sq. ft stores in high traffic areas, food courts at malls, railway stations, high streets, college hubs and Information Technology (IT) parks. The brand's franchisees play an integral role in menu development, regional promotions as well as bring a lot of entrepreneurial energy to the table.

So, what are you thinking? Just grab the profitable biz opportunity by hopping on the quick service restaurant (QSR) industry by tapping the king of vadapavs as it promises high returns where one can achieve a faster breakeven and returns on investment than any other industry.

For Jumboking franchise queries call at 022-29271286, 022-29271357 or log on to and fill in the franchise form.


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