Outlets for wraps and rolls have become a melting pot of international cultures and flavours. With increasing popularity among the young generation and working-class, a rolls outlet makes for good business sense
From a modest ‘roti’ or ‘paratha’ rolled with vegetables, butter or jam featured in lunch-boxes, wraps and rolls have come a long way with most of the QSRs offering Mexican, Lebanese and Chinese variants with delectable fillings, including leafy salads, roasted chicken or meat, and grilled vegetables. In fact, rolls have become a melting pot of various cultures and flavours.
“Burritos and falafel pockets are readily becoming popular among the rolls lovers. While in our Wrapchic outlets burritos contribute 35% of the revenues, in our Just Falafel stores falafel pockets and wraps contribute 65% of the sales,” adds Karan Tanna, CEO, Yellow Tie Hospitality, which runs Wrapchic and Just Falafel brands.
BUSINESS MODEL
A rolls’ QSR requires minimum investment of Rs 10-15 lakhs for 150-300 sq. feet area in a high-street location. Startup cost may go up to Rs 18-23 lakhs for bigger area of 500 sq. feet at prime mall location. The startup cost includes interiors worth Rs 4-8 lakhs, kitchen equipment at Rs 4-6 lakhs, and license and miscellaneous expenses at Rs 50,000-1 lakh. Brands may charge a franchise fee of Rs 4-6 lakhs. A minimum of 3-4 people would be required to run a 150-300 sq. feet outlet; hence accounting for salaries of Rs 40,000-65,000.
Rentals of high-street locations could be around Rs 40,000-60,000. Raw material could cost 30%, miscellaneous expenses another 5-8%, and brands charge 5-10% of the monthly revenues as royalty, which take the typical operational expenses to Rs 3-4.5 lakhs. Tanna says that typical sales may be in the range of Rs 6-8 lakhs per month after the outlet completes 3-6 months of operations. While the profit margins are 40-50%, the net profit comes to 25-35%.
EXPANSION PLANS
Rolls Mania, which has over 110 outlets, is planning to reach 400 by 2020. The brand is also setting up outlet in the Middle East. On the other hand, Yellow Tie, which currently runs five stores, is adding outlets in cities like Bengaluru, New Delhi and Sonipat.
STARTUP COST` 10-15 lakhs
OPERATIONAL EXPENSES` 3-4.5 lakhs
MONTHLY REVENUES` 6-8 lakhs
GROSS PROFITS` 2.8-3.5 lakhs
BREAK-EVEN TIME12-18 months
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