How did this concept come to your mind?
We are into authentic Italian pizza. We use fresh Italian flour which is unique. The quality and taste is different, something which is not available in India in a mass way and is only available in high end restaurants.
When I was visiting Italy, I went to a restaurant there that serves wood-fired pizza. It was a very small place with a long queue and they only serve pizza and nothing else. So, then we thought why can’t we do something like this in India where people can get good quality wood-fired pizza at a reasonable price.
We spent about a year and half on research and found a consultant chef, Renato Viola, who helped us with all the recipes initially. He helped us build the concept. We wanted to keep it authentic and also to localize it according to the taste of India and based on that we developed a concept of make your own pizza, which is the first time in India. Customers can choose their own unlimited toppings. This is something which is unique and nobody has done it yet. Also it gives customers a very good value.
What are the marketing strategies you incorporate to advertise the brand?
We focus on social media because that is the best platform to connect with this generation. We try to focus where our target audience is and most of them are on social media like Instagram and Facebook. We reach out to a lot of bloggers and influencers to spread the word and awareness. We are also on platforms like Zomato and Swiggy.
Are you willing to cut prices to expand your customer base?
It depends on which city we are in. Currently, we are in multiple cities. In Mumbai the price point will be different compared to Jodhpur because the rentals and salaries are lower there. We cannot reduce the price point because at the end of the day, we have to look somewhere to make money. And the ingredients and quality we are offering, number of toppings that you can put on your pizza is equal to the amount of Rs 1000-Rs1500 you pay in Pizza Express or any other 5 star hotels for one person.
How has been the revenue growth so far?
We are actually looking at it from the brand’s growth. We have grown from the two outlets to currently having 13 locations and we are expanding further in this year by opening 10 other outlets.
How have been the footfalls?
In the first two years, it has been pretty good. But post the implementation of demonetization and GST along with all the regulations that happened two years ago has hampered the footfalls slightly. We hope that in this year from November and December, we get better footfalls. Currently the footfalls have been stagnant because of the monsoon and summer season.
You mentioned that you are on platforms like Zomato and Swiggy. How have been the order numbers there?
Zomato is one of the best platforms for delivery right now. Others are catching up. Zomato is about 70% of our sales, other contribute 20% and 10% comes from our in-house delivery platform. We are trying to pick up our in-house sales and hopefully by the end of the year, it should be 50% of our sales. We have launched our own app. Through that we are incentivizing the customers and trying to improve our sales through our app directly.
What are the ingredients you import?
We have our flour and tomatoes from Italy. Cheese comes from Ireland and everything else is local. The key ingredients, which make the taste and quality of the pizza, are being imported.
What are your expansion plans?
Currently we are in Mumbai, Bangalore, Pune and Jodhpur. We are planning to open up three more outlets in Mumbai this year and three more in Bangalore. We are looking to expand in cities like Surat and Ahmadabad. The challenge of opening up stores in Delhi is that it is such a large place; we are looking to franchise out the stores and all these expansions are through franchise only. We need somebody who is ready to setup five outlets in Delhi. Because there are so many areas in Delhi including the NCR region, that unless you have five outlets it does not make a big impact. So we are looking for a partner who is willing to setup a large number of outlets.
As the steward of some of Australia’s favourite franchise, retail food brands including Donut King, Brumby's Bakery, Michel's Patisserie, bb's cafe, Esquires Coffee, The Coffee Guy, Pizza Capers Gourmet Kitchen, Crust Gourmet Pizza, Gloria Jean’s Coffee and CAFE2U , looking at a strategic entry to the Indian market. In an exclusive interview to Restaurant India, Andre Nell, CEO, Retail Food Group, shares about their international business and the entry into the Indian food arena. This will be second stint of Gloria Jean’s Coffee in India. What made you look for India as the next market to enter?
We acquired Gloria Jeans’ December last year. And today, with more than 105 million customer visits per year across an outlet network which boasts over 3450 stores across Australia and internationally, RFG has built an enviable reputation founded on its ownership of renowned brand systems, robust operating procedures, innovative marketing and a commitment to provide ongoing support to its franchisee community. We see India as a strategic location to open our franchise outlet as this market has grown enormously in last few years.
What competition do you see from the local players here?
Our history is based on system and processes and it dates back to 1999 with franchisee progress and brand standards. Coffee, for us is a significant part of the growth. Patisserie focus brands with have French heritage, Donut king with coffee and donut offers wide menu range and we have two very premium pizza brand and crust pizza. The brands are focused ingredients by giving the customers very premium offers.
What are your criteria for searching the right partner into the Indian market?
We are looking to engage with the right partner and ultimately to bring the entire brand to the market. First we will see that what we launch into the Indian market is successful. We are looking for a Master franchisee partner, but we are open to JV, depending on the capability of the partner. A person with strong Food and beverages experience and capability from a management perspective with a strong financial background to grow the brand into the Indian market would be our preferred partner.
When can we see the brand entering the Indian market? And which are the top cities in your radar?
We would complete initial deal in six months. We would target Mumbai and Delhi majorly. First focus would be on these two areas, tweak the menu accordingly and then expand.
Tell us about your global operations?
We have more than 3450 outlets in 58 territories across the world. Three top performing countries are Turkey, China and Malaysia. Initially, if we find the right partners in about 6-12 months would establish the brand into the market.
How much are you afraid of entering into the Indian market?
There is no doubt that India owns some of the good brands in the world, but we believe in our brand and our brand is a premium brand and we focus on it only.
Gloria Jean’s has already closed its operations here. Don’t you think it may affect your business?
Gloria Jean’s already closed in India when we acquired the brand in December 2014. So, we can’t comment on this. But, we really are very sure that with us Gloria jean’s can achieve in this market.
Don’t you think it’s too late to enter India as we have some of the amazing brands already doing well in the country?
We are hearing that the trend towards food and beverages is really picking up and we are very correct about the timing in that perspective.
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