BURGER CLUB

INDIA ENTRY
State of Indian Economy
India is one of the fastest growing economies of the world and on Purchasing Power Parity basis is the third largest economy (Source: IMF Oct 2012) on earth. It has shown significant growth in past two decades with the last decade seeing an impressive annual growth rate of more than 8% p.a. Though during last couple of years, the economy faced a slowdown (in line with slowdown across the globe)with growth rate slipping to the level of 5% p.a., Indian economy is now showing bottoming out of the growth deceleration cycle and is expected to grow at the rate of 6%p.a. (Source: Moodys may 2013) during the current financial year. Despite the slowdown in growth rate, India remains one of the top performing economies of the world and that is proof of the fact that if a business has to grow, it cant ignore India. During a period when major economies of Europe are in contraction, USA is growing at an abysmally low rate of 1% p.a., Brazil & Russia have grown at the rate of 2%, China & India still remain the growth engines of world. The GDP growth rate is further expected to jump to 7% p.a. in the next year. By 2030, Indias economy is expected to reach a 30 Trillion USD mark which will represent a seven times increment in economy size within coming two decades.

Food service Business in INDIA

The phenomenally growing food service (restaurant) sector is one of the best kept secrets of Indian growth story. National Restaurant Association of India estimates that the food service market in India currently stands at USD 48 Billion and is expected to reach the size of USD 78 Billion by 2018 registering a CAGR of 11% p.a. for the next 5 years. The icing on cake is that the organized sector is expected to grow at the rate of 16% p.a. This will result into share of organized sector growing to approx. 40% in 2018 from 30% as it stands today.

Scope for a Burger Chain in India

While the QSR market in India stands at $ 13 Billion, there is no specific burger chain in India except McDonalds. Virtually unchallenged, McDonalds has gone on to conquer Indian QSR market opening approx. 500 Outlets in last decade or so of its presence. Burger king has been planning to enter India for few years now but its attempts to partner with big business houses like DLF, Master Operators like Amrest or for that matter PE fund like Everstone have not fructified so far. This single-operator market certainly has a lot of juice for a burger focused food chain and a new chain can certainly make inroads at a quick pace provided its able to manage the operations efficiently, selects price points competitively and perfects the go to market strategy.

Is it the right time

Today the Indian consumer is eating out at a much higher frequency than was the case a few years back. Rising Income, Demographics, Nuclear Families, Young working population, Rapid urbanization and many more other factors all have worked together to ensure the elevation in turnover of this industry.

At the same time, Indian Food Business and QSR particularly is buzzing successful stock market listings of Jubilant Food (Franchisee for Dominos Restaurants (A fine dining restaurant chain with brands like Mainland China, have rewarded their investors handsomely, money is literally pouring into the PE funds.

with activity. After Pizza) & Speciality Machan, etc.) which business from VC &

When viewed from the perspective of a single burger based QSR chain being present in India, the market starts looking poised just for entry of another burger chain in India.

Challenges in India
While the market is certainly big, expanding and lucrative, India does not come without its challenges. Operational Issues of expansion, the real estate market, an untrained work force, the price sensitivity of Indian consumers are some of the challenges any food chain coming to India will face and unless these challenges are managed well, expansion and that too at a fast pace may prove quite difficult even if the market opportunity remains.

Investment Rules in India

Food business is one of the best sectors for a foreign investor as 100% FDI through automatic route is allowed in India. In simple terms, there is no restriction on investment of foreign money in the food sector either through equity or debt. India also allows full repatriation of profits provided all the taxation liabilities have been made. Besides, India also allows Royalty Transfers, Payment for Technical Know-how, Dividend etc. without any restrictions. There is also no bar on repatriation of Capital Invested and during the economic history of India there is not a single case where repatriation was disallowed.

Who we are
We are a group of professionals who come with decades of experience in the food business as well as financial sector. The total experience of our core group is more than 100 man years. We help enterprises in perfecting their India Entry Strategy, Expansion Strategy, Liaison with Govt. & Regulatory authorities, Regulatory Compliance, Market study, Concept Design, Managing Restaurant Operations, Manpower Sourcing & Training, etc.

Past & Current Associations (Hospitality)

How we can help

As part of our business services, we offer CXO services on demand which effectively means providing the local management team. We can help Burger Club in smooth set-up of organization in the initial phase and also help them in managing the operations of the company on an on-going basis.

DesignofIndiaEntryStrategy

CorporateStructure CapitalStructure Regulatory(FEMA,RBI&FIPB,Tax)Compliance

StrategicDecisionMakingSupport

ExpansionStrategy Business&RevenueModeling MarketingStrategy StrategicFinancialManagement FinancialPlanning

OperationsManagementSupport
DaytodayOperationsManagement Restaurantprojectplanningandscheduling FranchiseeCreation,Feasibility,Selection&Management Vendor,Manpower&Consultantselection Planningandimplementationofvariousoperational processes&manualsrequiredforrunningtheRestaurant; Planandlaunchoutlet(s)oncompletionofthesetup activities; FinancialplanningofRestaurantProject&Expansion; ProfitabilityEnhancementMeasures Implementationofrequiredcostcontrolmeasures BudgetPreparation,CashFlowManagement,FundFlow Management RevenueOptimization&AssetMonetizationAdvisory CostAccounting,CostAnalysis&ProcessImprovement Consultancy RiskManagementAdvisory