Nirula’s Aims to Expand to 300 Outlets in the Next 2 Years, Expanding Its Presence in Tier I Cities

Nirula’s is a fast food chain that started its journey in 1977, popularizing pizzas, burgers and ice creams when food giants and pizza and burger QSR chains were not present in the country.

The brand was particularly known for its iconic Hot Chocolate Fudge and fast-food offerings, which continue to enjoy strong consumer appeal even today. The brand’s enduring popularity reflects its ability to build a sustainable business model that has stood the test of time while retaining consumer interest across generations.

‘‘In 2018, the fast-food chain was acquired by BanyanTree Growth Capital, a Mumbai-based private equity (PE) fund, and some of the members of this company shifted from Mumbai to Delhi to run the brand in an effective and efficient way. I was a part of this team,’’ says Sumedha Singhal, Chief Operating Officer, Nirula’s

Retail Footprint and Sub Brands

Post-acquisition, the brand expanded its presence across Delhi-NCR, reaching 150 outlets. The brand is present in 10-plus states, and has expanded its presence in states like Bihar, Karnataka, UttarPradesh, Haryana, Punjab, Uttarakhand and Rajasthan, predominantly covering North and West India.

Apart from that BanyanTree Growth Capital also handles Angels in My Kitchen, Bizibean, and Groovy, other foodservice brands in the domain.

Nirula’s also has created a specialized sub brand and culinary spin off Big Boy Burger Co. by Nirula's that is rooted in the massive 1990s nostalgia of the original chain's famous "Big Boy Mutton Burger." This standalone brand focuses entirely on elevating the gourmet burger experience with an authentic American diner vibe. Apart from that, Nirula’s also launched a fast food concept for chicken lovers named Jus Chkn By Nirula’s that focuses on American Style fried chicken, expanding the brand’s menu and offering greater customer preference.

‘‘In terms of expansion, we're actively looking to expand our footprint in Mumbai and Hyderabad, gradually expanding our footprint pan-India,’’ says Sumedha.

Franchising Ecosystem in the Foray and Remaining True to the Core DNA

Talking about the franchising ecosystem and how it helps the young entrepreneurs to grow their business, Sumedha says,‘‘The franchise ecosystem helps young entrepreneurs get a kickstart their careers because they’re expanding a well-known brand that has a name in the market rather than starting from scratch.’’ She adds, ‘‘It's a good way to kickstart a career, but obviously requires a lot of work to sustain.’’

She further emphasizes that one of the reasons that Nirula’s maintains its position for decades is because the brand has stayed true to its DNA.

‘‘Our recipe is still the same and so is our quality. Our ice creams have 100% milk and cream and no palm oil,’’ says Sumedha. ‘‘I have seen a lot of brands that are the ‘flavor of the season’ but then two years later, they become non-existent as the customers’ don't want to go back to the brand as they have drifted away from its core products and quality. I think today a lot of new fast food chains are spending a lot more time and capital on marketing their brand rather than the product itself and this led to failures over time.’’

Evolving Trends in the Food Service Industry

‘‘I think one of the new trends in the market is ‘going healthy’,’’ says Sumedha. However, when the brand started Cafe Healthy High by Nirula's, it was too early for the market and we did not benefit from the move. We eventually had to pivot the brand, making it healthier.’’

She further highlights that the trends keep changing. Currently, there is a lot of hype for whey protein or plant based protein. We started the whey protein ice cream way back when such healthy innovations were not introduced by any brand. But it took some time for the market to reach there.

How is Influential Marketing Impacting the Food Service Industry?

Further discussing the influential marketing and its role in the foodservice industry, Sumedha says, ‘‘I think when this type of marketing just started, it was a very good way to promote the brand. The reviews or the content put out there were genuine. But today it has become a medium for biased or stalling consumer preference that the brand finds very hard to keep pace with. I think, in the foodservice industry, ‘word of mouth’ works has much more potential than influential marketing or ratings.''

Brand’s Omnichannel Strategy

Nirula currently has dine-in, takeaway formats, operational call center, its own website and online aggregators. The brand has also expanded its presence into Universities and Corporates like Amity University, HCL, and EY. But Sumedha feels that the brand still has a long way to go in the delivery and quick commerce segment as compared to other brands.

‘‘I think we've lagged in quick-commerce, as it is a very different ball game compared to the offline strategy. One has to take platform commission and discounts into account before entering this arena, which could lead to P&L bleed. So, one has to analyze the opportunity cost before making such a decision’’ says Sumedha. ‘‘We are also into catering, but have not gone full-fledged in that channel as well.’’

Future Plans

Looking ahead, the brand aims to expand to 300 outlets in the next 2 years, expanding its presence in Tier I cities like Mumbai, Bangalore, and Hyderabad. The ice cream brand also wants to grow my quick-commerce and B2B business, and expand its presence in international markets like the Middle East and the UK in the time to come.