Written By Devika Singh

The entry of Jubilant FoodWorks will intensify competition in the fried chicken segment, where KFC so far has maintained its stronghold.

Popeyes, founded in 1972 in New Orleans, Louisiana, has over 3,400 restaurants in over 25 countries around the world. Popeyes (Wikimedia Commons)

Jubilant FoodWorks, the franchisee for Domino’s Pizza, will launch the iconic US-based fried chicken brand Popeyes, known for spicy New Orleans-style fried chicken and chicken sandwiches, in India on January 19 with the unveiling of the first outlet in Bengaluru.

“Popeyes was founded in 1972 and has been one of America’s most popular and fastest-growing chicken brands. Popeyes aims to delight Indian guests with the bold and delicious flavours of its Louisiana-style chicken,” the company said in a filing to stock exchanges.

“The success of the brand lies in its traditional and unique technique of hand breading, battering, and marinating its fresh chicken for 12 hours in bold Cajun seasonings,” the company added.

Popeyes runs over 3,400 restaurants in 25 countries.

With the entry of Jubilant FoodWorks, the competition is set to intensify in the fried chicken segment, where KFC has maintained leadership in the country so far.

“KFC has enjoyed a free run in the fried chicken market. There are some local players in this segment but no large QSR (quick service restaurant) player had a presence in it until now. With Popeyes as a competitor, now Jubilant FoodWorks is stepping into that opportunity,” said Devangshu Dutta, chief executive at consulting firm Third Eyesight.

While launching its initial public offering (IPO) last year, Devyani International, the largest franchisee of Yum! Brands (which owns KFC), had stressed the advantage it has over other QSRs in the country.

“We have no competition for KFC in India,” Ravi Kant Jaipuria, chairman, Devyani International, had said at the time. Devyani International runs 284 KFC India stores across 107 cities and the brand contributes more than half of its revenues. Sapphire Foods, which too launched its IPO last year, is another major franchise for KFC in India.

Both the companies already compete with Jubilant FoodWorks in the pizza segment as they also operate Yum! Brands-owned Pizza Hut in India. Jubilant FoodWorks with Domino’s Pizza, however, has clear leadership in the pizza market. Sample this: Pizza Hut currently has 500 stores in India, of which 317 are run by Devyani International; Jubilant FoodWorks, on the other hand, already has 1,335 outlets of Domino’s Pizza in India.

Now with the launch of Popeyes, Jubilant FoodWorks, it seems, wants a chunk of the fried chicken pie too.

Westlife Development, which holds the master franchise for McDonald’s in southern and western India, also has set its sight on the fried chicken segment in India. In an interview with Moneycontrol in September last year, Smita Jatia, managing director of Westlife Development, shared an ambitious plan to become a market leader in the segment. The company has already introduced fried chicken in its 125 stores in South India and plans to soon launch the food item in the western region too.

Clearly, the fried chicken market is certainly headed for interesting times as several new QSR players vie for a share of it. According to experts, the segment also offers the next avenue for growth for QSR players. “While fried chicken was the first to take off in Southeast Asia, in India, pizza and burgers found takers given the preference towards wheat-based cuisine in some parts of the country,” said Rajat Tuli, partner at global management consulting firm Kearney.

“However, as Indians become more experimental with food and trying out different cuisines, the fried chicken segment offers the next arena for growth to QSR companies,” he added.

Tuli also believes that the segment has enough space for a couple of players. “The QSR space is poised for over 20 percent growth in the next five-six years and hence there is enough headroom for multiple players to grow in it,” he said.

‘Veg options and no MSG’

The Popeyes India menu will feature the signature Cajun-flavoured Chicken Sandwich and Popeyes signature Chicken in Classic and Spicy flavours. The Indian menu will also feature an array of vegetarian options and will also have rice bowls and wraps. The entire India menu has no flavour enhancer monosodium glutamate (MSG), and the chicken is antibiotic-free, said Jubilant FoodWorks.

In a statement, Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant FoodWorks, said, “We are excited to introduce the Popeyes Louisiana Kitchen brand to chicken-loving Indian consumers. We are confident that Popeyes will not only delight guests but also strategically complement our portfolio and fortify JFL’s leadership in the QSR domain.”

Popeyes will start with its flagship store in Bengaluru’s Koramangala on January 19, followed by stores in New BEL Road and Kammanahalli soon thereafter. The brand will have its own app (Android and iOS) and mobile website.

To ensure a smooth and seamless delivery experience, Jubilant FoodWorks has built its in-house delivery fleet with e-bikes to enable zero-emission delivery. The company is also taking precautions given the pandemic situation.

“Safety protocols like daily temperature screening for all employees and frequent sanitisation of the restaurant are being implemented and frequent sanitisation of bikes will be conducted. All delivery riders will be compulsorily wearing face masks and gloves while following the frequent hand sanitisation protocol,” it added.

Source: moneycontrol

Indian tea brands want a piece of this steaming hot business.

Written By Devika Singh

The company now plans to expand to the North Indian cities of Gurugram, Chandigarh, Amritsar and Lucknow, among others.

Homegrown tea makers are foraying into quick-service restaurants (QSRs) to tap into the ‘eating out’ culture in India and grow the business. But competition is aplenty — global brands have a formidable presence in India’s QSR scene, even as start-up brands such as Chai Point and Chaayos are gaining traction. According to a report by CARE Ratings, the total market size of QSRs in India is approximately Rs 25,900 crore. The overall restaurant and food service industry is expected to grow at a CAGR of 10.4% between 2018 and 2020.

Indian tea brands want a piece of this steaming hot business. Society Tea, a brand predominantly present in Maharashtra, recently opened its first tea café in Mumbai. Goodricke Group has tied up with the Tea Board of India to launch tea lounges in Mumbai and Kolkata on the latter’s premises. Gujarat-based Wagh Bakri, which was among the first movers, plans to expand its tea lounge presence to 50 large and small format outlets, from the current 13, over the next four years.

What’s brewing?

When Wagh Bakri opened its first tea lounge in Ahmedabad in 2007, the company saw it only as another experiential marketing tool. “Initially, it was a place where people could explore different kinds of tea. But, over the years, we saw a demand for these lounges,” says Parag Desai, executive director, Wagh Bakri Tea Group. The company claims to receive a footfall of 300-400 people per day on an average in stores present in high-street locations.

“We have deliberately stepped out of food courts to keep our offering premium,” Desai adds. A Wagh Bakri tea lounge could entail an investment of Rs 50-75 lakh. The company now plans to expand to the North Indian cities of Gurugram, Chandigarh, Amritsar and Lucknow, among others.

Society Tea, meanwhile, plans to open 10 more stores — mid-size stores around corporate offices — in Maharashtra. Pricing will be its key differentiator. “We are not pricing the product at Rs 300 like other players, but offering a full glass of chai at Rs 50,” says Karan Shah, director, Society Tea.

Goodricke Group has five operational tea lounges in the country, with plans to open one more, its second, in Darjeeling by the year end. The aim is to first foster brand awareness via its presence in locations of high tourist interest.

Blending in

Is a QSR foray really their cup of tea?

According to Devangshu Dutta, chief executive, Third Eyesight, each player could be backed by a different motivation to enter this space. Some may want to use it purely as a marketing tool, while some others may look at it as an alternative source of revenue.

QSRs can be an effective marketing tool especially for brands that have limited access to customers through retail. “Such stores help increase visibility and offer insights about their customers, their spending patterns, etc,” says Pinakiranjan Mishra, partner and leader, consumer products and retail, EY India.

However, expanding footprint in the market and eyeing revenue from the QSR chain could entail substantial investments for tea brands. “If tea companies look at QSRs as an additional business stream, then besides tea, there are food items and cold beverages to be served, which cannot be sourced just from the gardens,” says Dutta.

Furthermore, it will be an uphill task in the presence of biggies Starbucks, Café Coffee Day and Costa Coffee, that are established names in the market, in addition to other upstarts like Chaayos, which has over 50 cafés across Delhi-NCR, Mumbai and Chandigarh, and Chai Point which has 100 cafés in eight cities.

To get an edge, Harsha Razdan, partner and head – life sciences and consumer markets, KPMG India, says that new entrants would have to go beyond metros “and should ensure competitive pricing as the market is price sensitive”.

Source: financialexpress