Burger King sale raises by 66% in FY19
US-based fast-food brand Burger King had posted a 66 per cent growth in sales in India in the year 2019 and significantly narrowed the losses on the back of aggressive expansion, entry level pricing and largest vegetarian menu within global quick service restaurant chains.
A year ago, it had sales of Rs 389 crore with net loss of Rs 63 crore, data sourced from Veratech Intelligence showed.
The US chain that entered the Indian market in 2014 posted sales of Rs 644 crore in FY18-19 while its losses reduced to Rs 16 crore, Economic Times reported.
For Burger King, India has been the fastest growing market in terms of store expansion. Last fiscal, it added about 58 stores, taking the store count to 187.
“Even before we started the first restaurant, we were clear that Burger King’s offerings need to be truly Indian. Our menu width means we are able to offer burgers that cater to the Indian palate and attract customers looking for everyday value,” said Rajeev Varman, CEO, Burger King India to Economic Times, claiming that it has turned Ebitda positive during the fiscal.
“In the last five years, we have focused on a strong expansion plan through strategic investment in brand building and national supply chain development and operational efficiencies,” Varman added.
This aggression helped Burger King outpace US rival Starbucks in terms of revenues despite a two-year lag in India entry.
According to Economic Times, a month ago, it received a fresh capital infusion of Rs 45 crore and a loan facility of Rs 150 crore from parent Everstone Group. The firm raised Rs 612 crore till now, of which Rs 100 crore was raised last fiscal.
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