Mumbai-based QSR startup Charcoal Eats is gearing up for its next phase of growth following a fresh infusion of INR 45 crore in funding. Co-founded in 2015 by Anurag Mehrotra and Krishnakant Thakur, the company currently operates around 40 outlets across Mumbai, Pune, and Delhi-NCR. The brand, known for its biryanis and burgers, has plans to push its annualized run rate to INR 150 crore over the next 9-12 months, fuelled by expanding distribution formats and new product offerings.
Charcoal Eats’ Co-Founder, Thakur shared that they plan to penetrate deeper into its existing geographies and grow by over 100% by March 2025. “We’re targeting INR 150 crore in annualized run rate over the next 9-12 months, supported by tailwinds in the industry and a strong ordering season from October through May,” he said.
To achieve the revenue target, Charcoal Eats is focused on new product launches, enhancing internal efficiencies and operations thereby improving the customer experience, setting the stage for more significant brand building and scaling opportunities.
Continue Exploring: QSR chain Charcoal Eats secures INR 45 Cr funding, eyes rapid expansion and international growth
New Products and Doubling Numbers
According to their roadmap, a significant part of this growth will come from new product innovations. “You need to constantly refresh your menu to avoid fatigue among consumers. We have a lot of exciting innovations and new categories coming up for both of our brands,” Thakur hinted.
One of the interesting category launch is into the sugar-free dessert space. “We’re introducing a range of completely sugar-free desserts that will also be vegan and gluten-free,” Thakur revealed. “This is a premium offering, and we believe the market hasn’t seen anything like it yet.”
Move Towards Hybrid Distribution Formats
While Charcoal Eats has been heavily reliant on delivery, Thakur revealed plans to diversify. “Currently, the business is pre dominantly towards the delivery channel, but over the next three to five years, we expect that to shift closer to 50% as we expand into other distribution formats,” he explained. “We’re experimenting with small kiosk models in corporate parks, IT parks, and high streets. We’re also in food courts and other consumption-heavy areas.”
The brand is also exploring various customer-facing distribution points, reducing dependence on aggregators while growing its presence in corporate parks and highways. “The market is massive, and while exact numbers vary, we’re seeing sustainable growth patterns in delivery and a clear shift from unorganized to organized players,” Thakur noted.
Tapping into Changing Consumer Preferences
Charcoal Eats is also leveraging its growing brand presence to cater to evolving consumer preferences. Biryani remains the company’s flagship offering, with Thakur highlighting its rising popularity. “Biryani has become a mainstay, whether it’s corporate lunches or residential dining. We’re delivering over 120 biryanis per minute across the country,” he said.
However, the company is also pushing into new categories, particularly with its second brand, B Burger. “B Burger contributes about 30% to our overall sales, and while biryani continues to lead, we see strong growth potential in the burger segment as well,” he added. Thakur pointed out that changing customer expectations, driven by international travel and exposure to different cuisines, have fuelled demand for more premium offerings.
Despite the rapid expansion, Thakur emphasized that Charcoal Eats is not just focused on opening more outlets but on sustainable growth through operational efficiencies and same-store sales growth. “The objective is to double our numbers from the same distribution formats, focusing on deep penetration into our key geographies of Mumbai, Pune, and Delhi-NCR,” he said.
