After a long wait, the world-famous whopper has finally made it to India! US-based fast food chain Burger King opened its first outlet in the country in New Delhi last Sunday and from the looks of it, the burgers seem to be flying off fast!
CNBC-TV18’S Zahra Khan spoke with Burger King India head Rajeev Varman on the strategy and expansion plans for the Indian market.
Its a late entrant but US fast food major burger king is hoping its bun-patty combination will tickle Indian taste buds enough to give it a place in the USD 1.2 billion quick-service restaurant (QSR) market.
Despite being well behind global chains like Pizza Hut, Domino’s and McDonalds in establishing an India presence, Burger King says it’s confidant that India will become one of its largest markets in the world.
The beginning certainly seems to be in good taste - at its restaurant launch in Delhi, the company sold over 4,500 whoppers to around 10,000 eager customers.
"India is a very important market for Burger King,” says Varman. “Not just in the Asia-Pacific region but globally it is a significantly important market.”
The Indian menu is completely indigenous and has been completely built in the country and for Indian audiences.
Burger King’s mantra seems to be slow and steady. It will be putting up 12 restaurants in the first phase: six each in Delhi and Mumbai, and will then pause to evaluate its performance and fine tune strategy accordingly.
But late would be an understatement to describe BK's entry into India. Arch-rival McDonald's has been around in the country for close to two decades and is now making strong inroads into Tier II and III cities.
This reality however doesn't seem to bother Burger King. The fast food major will be making its Mumbai debut here at a mall in Suburban Mumbai, and it believes this time is as good as any to make a splash in the Indian market.
"The QSR market is expanding due to the increase in the dual income of families and also there is a substantial increase in the disposable income here in India. And eating out is increasing,” says Varman. “In the coming years, we will see this as a growth market for QSR. Especially for us this is a great time to enter the market.”
So how will Burger King compete in an already-crowded market? Pricing is on par with rival McDonald's and an Indianised menu seems to be the company's answer.
However, analysts say the recipe for success will be more complex than that. Burger King will have to ensure a timely store rollout and a robust supply chain set up.
Of course one thing is for sure, as the burger wars heat up, consumers are in for a tastier time.
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