Burger King blooming QSR in India during FY17
Leading quick-service restaurants have seen low same-store sales growth (SSG) since the past two years with consumers cutting back on discretionary spending. In addition, the segment also saw the entry of global companies including Wendy’s and Johnny R
Tags: SALESDecember 04, 2017 | comments ( 0 ) |
In the second year of its Indian operations, American fast-food chain Burger King grew 69% to post sales of Rs 237 crore during FY17. While during last fiscal, Burger King’s losses rose to Rs 62 crore compared with Rs 38 crore a year ago, doubling the store count. Now Burger King is running almost 100 profitable stores in India at both the store and company level.
“Our restaurant EBIDTA (earnings before interest, taxes, depreciation, and amortization) has been positive since last July,” said Rajeev Varman, CEO, Burger King India. “Sales grew mainly due to three reasons — all our burgers are grilled similar to an Indian-stye tandoor which is healthy, our focus on entry level pricing, and we offer the largest vegetarian menu within QSR.”
Burger King, however, notched up higher numbers than Jubilant when most quick-service restaurants were struggling with stagnant sales. In the 2016-17 fiscal, the company generated average sales of Rs 2.7 crore from each of its 88 outlets opened till March, while its rival Westlife Development, that runs McDonald’s in the south and west, posted average sales of Rs 3.6 crore from each outlet.
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