Ghost Kitchens India secures $5 Million in series A funding to expand operations and launch retail stores

February 22, 2024

Cloud kitchen startup Ghost Kitchens India has secured $5 million (around INR 41 crore) in its Series A funding round. The investment was spearheaded by GVFL (formerly Gujarat Venture Finance Ltd), with contributions from NB Ventures, LetsVenture, and Lead Angels.

Existing investors Yuj Ventures, Dholakia Ventures, and actor Rana Daggubati also participated in the funding round, which involves a mix of both equity and debt infusion.

The startup plans to utilize the new funds to expand its business operations and venture into retail stores for both its existing and upcoming brands. Additionally, the proceeds will be allocated towards enhancing the partner program and expanding the presence of company-owned and operated cloud kitchens and Quick Service Restaurants (QSR) stores.

Established in 2019 by Karan Tanna, Ghost Kitchens is a platform that provides a virtual restaurant network for food businesses. The platform aims to enhance incremental sales and improve margins by offering affordable, low-risk expansion opportunities. Additionally, it provides a complimentary tech platform to monitor sales and operational metrics, facilitating organic order growth.

The platform features various food brands such as Wakka Makka, SpeakBurgers By Chef Vicky Ratnani, New York Waffles, and Starboy Pizza.

Presently, it operates more than 15 self-owned and operated cloud kitchens in Mumbai and Ahmedabad, along with partnering with over 1,200 restaurants across 40 cities in India.

The startup’s food brands are available on food delivery apps Swiggy and Zomato, as stated by founder and CEO Tanna.

Continue Exploring: Cloud kitchen startup Kitchens@ secures $65 Million in Series C funding led by Finnest

With a focus on expanding both its in-house and partnership footprint, the startup aims to achieve an annualized revenue of around INR 200 Cr in the next two years.

Tanna said, “We have created 10X value for our earlier investors and we are sure to continue with this performance for new backers. We are excited for the coming years where we will focus on building iconic brands through customer loyalty and love for our food.”

In 2022, Ghost Kitchens India acquired the technology company WTF to develop proprietary technology for streamlined operations. Utilizing this in-house SaaS platform, the company aims to achieve profitability within the next 12-15 months by focusing on strengthening its flagship brands and forging new partnerships with celebrities.

Last year, it acquired SpeakBurgers for an undisclosed amount. With the acquisition, the startup plans to grow the partnership through 25 offline retail stores in the next 18-24 months.

Continue Exploring: Salad Days expands into Mumbai with first cloud kitchen launch in Chandivali; plans for aggressive growth across high-demand areas

No impact on The Body Shop India amid UK restructuring, assures Quest Retail

SnackTeam

February 22, 2024

The Indian operations of cosmetics firm The Body Shop will remain unaffected by the restructuring in the UK, as affirmed by the company’s partner Quest Retail Pvt Ltd. Last week, the UK arm of the cosmetics company, grappling with financial crisis, entered administration, with experts from FRP Advisory appointed to oversee the process.

“This administration process does not impact The Body Shop India as it is a head franchise market. All our stores are open as usual,” Quest Retail Group CEO Shriti Malhotra said in a statement.

Continue Exploring: Iconic brand The Body Shop’s UK arm files for bankruptcy, job losses loom

She mentioned that all stores in India are operating under normal hours, with customers able to shop both in-store and online. Furthermore, she highlighted that The Body Shop boasts nearly 200 stores across the nation, extending its reach to over 1,500 cities through its online platform.

“India is one of the top markets for The Body Shop globally, and our consistent growth reflects the popularity of The Body Shop and the immense opportunities we are tapping into,” Malhotra said.

Further, she said The Body Shop India will continue to scale up and focus on omni-channel expansion while leveraging newer opportunities in retail, quick commerce and high convenience formats so that the strong brand affinity built in India is well supported by easy and expansive access to customers.

The Body Shop India was launched in 2006 and is under the umbrella of Quest Retail Pvt Ltd, a beauty specialty company for marketing, retailing and distribution of global brands in India.

Last week, the Directors of The Body Shop International Ltd appointed Tony Wright, Geoff Rowley, and Alastair Massey of business advisory firm FRP as Joint Administrators of the company, which operates The Body Shop’s UK business.

Continue Exploring: Fashion apparel startup Blissclub lays off 18% of workforce amid funding challenges

Jubilant FoodWorks ramps up Domino’s value offerings amidst QSR downturn

SnackTeam

February 22, 2024

Jubilant FoodWorks is looking to ramp up its focus on Domino’s value offerings as the QSR sector experiences sluggishness in the dine-in segment. As the leading food services company that introduced Popeyes to the National Capital Region, it expects the brand to emerge as the fastest QSR chain to cross the INR 1,000 crore-mark in the next 4-5 years.

Sameer Khetarpal, CEO & MD, Jubilant FoodWorks Ltd, said, “I think it is a time where we need to pass more value to consumers. In high-inflation environment, consumer tighten their purse strings and conserve cash. For Domino’s delivery is growing faster than we expected and delivery is positive in terms of like-for-like. We are bringing in some better value propositions for our dine-in customers.”

He further stated that the emphasis will be on introducing “more value-conscious meals and combos” for Domino’s dine-in patrons in the current quarter.

This comes at a time when delivery sales growth have been outpacing dine-in sales for the QSR sector.

Continue Exploring: Indian appetite for pizzas and burgers wanes: Domino’s and McDonald’s franchisee results reflect decline in dining out trends

“India has the cheapest price per delivery and so it is very economical to order at home. With rapid urbanisation and people having less time, it is convenient to order food at home. With the emergence of the aggregators, delivery has been more democratised. Therefore one is seeing compression in dine-in, which is consistent with trends being seen globally,” Khetarpal explained. He added whenever there are festival occasions consumers do come out and loosen their purse strings but otherwise they have been focusing on conserving cash.

The company inaugurated its 33rd Popeyes store on Wednesday. We want to get to about 250 Popeyes stores in the next 4-5 years. We want it to be the fastest QSR to get to INR 1,000 crore in India in that timeframe,” Khetarpal added.

Continue Exploring: Jubilant Foods expects Popeyes to hit INR 1,000 Crore sales mark in 3-4 years, plans rapid expansion

The company plans to add four more stores in the Delhi-NCR region.

Responding to a query on inflationary pressures, he said, “Inflation has been on a decadal high especially for the ingredients that we buy for Domino’s. But we do see softening in inflation as government has taken measures to keep it benign.”

He further mentioned that the company’s gross margins have grown year-on-year due to several cost-saving measures.

Continue Exploring: Jubilant FoodWorks launches aggressive 360-degree rebranding for Domino’s

ITC mulls 47% stake acquisition in Prataap Snacks, eyes market share growth

SnackTeam

February 22, 2024

ITC is currently evaluating the acquisition of a 47% stake previously held by Peak XV Partners (formerly Sequoia Capital) in the publicly traded Prataap Snacks, as reported by ET. This comes after unsuccessful talks with Haldiram’s due to a valuation mismatch. Prataap Snacks, renowned for its Yellow Diamond chips and traditional Indian namkeen under the Avadh brand, has piqued the interest of ITC. Additionally, negotiations with listed Bikaji Foods, another major player in the snacks industry, also failed to materialize, according to sources familiar with the matter.

Other buyout funds such as KKR, TA Associates, and Apax have been engaged following Peak XV’s decision to fully divest its nearly 13-year-old investment in Prataap. Peak XV enlisted Deutsche Bank to manage the sale of the company.

Continue Exploring: Haldiram’s sets sights on rival Prataap Snacks, explores controlling stake for market domination

If the transaction succeeds, it will trigger an open offer for an additional 26% of the Indore-based company. Since its stock market debut in 2017, during which it listed at a 33% premium, the company has been underperforming. Prataap closed 1% lower at INR 1,174.45, with a market value of INR 2,802.19 crore on Wednesday.

ITC, renowned for its sale of Bingo chips and namkeen alongside other products, finds Prataap offering substantial leverage in specific regional markets. This is particularly evident where ITC’s own brands struggle to gain traction against formidable local competitors.

An ITC spokesperson said, “We do not comment on market speculation.”

Amit Kumar, the managing director of Prataap Snacks, did not provide any responses to inquiries, nor did TA Associates. KKR opted not to comment.

An email query sent to Peak XV remained unanswered.

As per the FY23 annual report, Prataap Snacks operates a total of 15 manufacturing facilities, with seven being owned by the company itself and eight operated by contract manufacturers.

Continue Exploring: ITC sees untapped market potential for YiPPee! Noodles, aims for further growth in the North region

According to a report from market research firm IMARC Group, the Indian snacks market was estimated at INR 42,694.9 crore last year, with projections indicating it will more than double to INR 95,521.8 crore by 2032. Despite this rapid growth, the snacking industry remains fragmented and fiercely competitive.

Among the national players are PepsiCo, renowned for marketing Lay’s, Doritos, and Kurkure, alongside ITC, Haldiram’s, Bikaji Foods, Balaji Wafers, Too Yum, and the recent entrant Reliance Consumer Products, which has collaborated with General Mills to distribute Alan’s Bugles snacks.

Private equity funds, on the other hand, are reportedly showing tepid interest due to the company’s lack of growth in the premium segment.

“It operates in the INR 5 segment where the margins are wafer thin. Unless you hit the sweet spot, INR 10 per packet and above, there is not much juice left for a fund to buy a listed company and transform it,” said a PE executive who has been approached. “It’s losing market share and distribution too and it’s an unhealthy category for a PE to bite into.”

In the quarter ended December 2023, Prataap Snacks reported standalone net sales of INR 408.31 crore, up 8% from INR 377.79 crore in the year-ago quarter. The snack maker’s quarterly net profit more than trebled to INR 10.79 crore from INR 3.42 crore. It clocked sales of INR 1,652.93 crore in FY23 and net profit of INR 20.26 crore.

Executives citing NielsenIQ data stated that ITC Foods overtook Britannia, Parle Products, and Britannia to become the country’s largest foods maker in the nine months to September 2023. It clocked food FMCG sales of Rs 17,100 crore in the duration, ahead of Britannia, Adani Wilmar, Parle Products, and Mondelez.

ITC’s portfolio of foods and staples encompasses popular brands such as Yippee noodles, Sunfeast biscuits, Bingo chips, Aashirvaad atta, and MasterChef frozen foods. Similar to Tata Consumer, ITC has also been exploring acquisitions, having acquired Yoga Bar last year.

Chairman Sanjiv Puri’s ITC Next strategy emphasizes a portfolio of products tailored to meet evolving consumer demands. According to insiders, while Yoga Bar represented one aspect of this strategy, ITC is poised to leverage its robust distribution network to promote Prataap’s brand portfolio.

Continue Exploring: ITC ramps up cloud kitchen operations, targets major Indian cities

Oyo launches Wizard Shark loyalty program following Ritesh Agarwal’s Shark Tank appearance

SnackTeam

February 21, 2024

On Wednesday, Oyo announced the introduction of Wizard Shark, a novel ‘limited-edition’ loyalty program. This initiative comes on the heels of its founder and group CEO, Ritesh Agarwal‘s appearance on the reality series Shark Tank India.

Priced at INR 1, the program offers various benefits such as assured discounts, upgrades, and rewards, the company highlighted.

Customers can avail a free night’s stay after seven room nights, along with an additional 5% discount on Oyo’s network of over 3,800 Wizard hotels in India, as well as other rewards in the form of Oyo money under Wizard Shark. Valid for three months, the programme offers free membership renewal.

Originally introduced in August 2018, Oyo’s Wizard program, with more than 4.4 million active members, is touted by the company as one of the largest loyalty programs in the Indian hospitality industry.

Continue Exploring: OYO executives hold talks with SEBI to expedite IPO approval process

“Customer-centricity has always been at the heart of Oyo’s endeavours. Our Wizard programme has emerged as a major pull for customers, and Wizard Shark, with its attractive pricing and wide range of benefits, will hopefully prove to be equally appealing to our loyal customers,” said Ritesh Agarwal.

“Designed especially for business travellers, Wizard Shark is a smarter, more efficient way to book your stays at the best prices. We take great pride in a majority of our guests being repeat customers and Wizard Shark is yet another initiative to offer them the best-in-class experience,” he added.

Agarwal made his debut on Shark Tank India for its third season, earning the distinction of being the youngest-ever judge on the show.

Apart from Wizard Shark, the program extends to three other tiers: Blue, Silver, and Gold. Gold members earn one complimentary stay annually after staying for five nights at Oyo. Meanwhile, Wizard Blue and Silver customers can redeem a reward stay after their eighth and seventh nights, respectively.

Continue Exploring: Oyo Hotels in advanced talks with Khazanah Nasional Berhad for $400 Million funding boost

Gold members also enjoy the perk of unlimited ‘Pay at Hotel’ bookings, eliminating the need for prepayment. Additionally, they receive exclusive benefits such as priority customer support.

Wizard Blue membership is priced at INR 99, while Silver and Gold memberships are available for INR 199 and INR 399, respectively.

Baccarose partners with Alexandre.J to bring French perfume elegance to Indian consumers

SnackTeam

February 21, 2024

Mumbai-based luxury beauty brand Baccarose has expanded its fragrance portfolio by introducing Alexandre.J, a prestigious French luxury perfume brand, to the Indian market.

“We are thrilled to launch Alexandre.J Perfumes in India, offering a perfect blend of artistry and accessibility in niche perfumery. This collaboration resonates with the increasing demand for luxury fragrances in India,” said Kadambari Lakhani, director, Baccarose Perfumes & Beauty Products Pvt. Ltd.

As part of this collaboration, Baccarose will present Alexandre.J’s unique collections, including The Collector, Art Deco, and Art Nouveau, to consumers in India.

Continue Exploring: French apparel brand Kiabi partners with Myntra for Indian debut

“Entering the vibrant and diverse Indian market is an exhilarating moment for Alexandre.J. Our partnership with Baccarose showcases our unwavering dedication to delivering an unparalleled olfactory experience to the Indian consumer,” said Amelie Jabban, visionary Global Brand Director of Alexandre.J.

Launched in France in 2012, Alexandre.J boasts a 100% made-in-France production. Perfumes are meticulously crafted in Honfleur, Normandy, while oil fabrication occurs in Grasse. With a footprint in more than 85 countries, the brand’s reach is extensive.

Founded in 1984 by Hemansu Kotecha, Baccarose asserts its position as a premier distributor of international luxury beauty brands in India. As per the company’s website, it manages a multi-tier distribution network spanning 16 warehouses across the country. Collaborating with prominent retailers such as Sephora, Nykaa, Shopper Stop, and Lifestyle, Baccarose maintains a significant presence in the market.

Baccarose oversees over 5,000 points of sale and handles a portfolio of over 65 brands on prominent e-commerce platforms.

Continue Exploring: French fashion brand Maison Margiela marks its Indian debut in collaboration with Shoppers Stop and L’Oréal International Distribution

Amul to celebrate golden jubilee on Thursday, discuss vision for next 25 years: GCMMF Chief

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SnackTeam

February 21, 2024

Amul — Jayen Mehta, the managing director of GCMMF

On Thursday, Prime Minister Narendra Modi will participate in the golden jubilee festivities of the Gujarat Cooperative Milk Marketing Federation (GCMMF), renowned for its ‘Amul‘ brand. As per an official statement by a representative of the dairy giant, the Prime Minister will also unveil five projects amounting to INR 1,200 crore. Jayen Mehta, the managing director of GCMMF, mentioned that the federation will deliberate on its vision for the forthcoming 25 years during the event.

More than 1.25 lakh dairy farmers, including representatives from approximately 18,600 villages in Gujarat, are expected to attend the event at the Narendra Modi Stadium in the Motera area of Ahmedabad. Mehta mentioned that 40-45 percent of the dairy farmers in attendance will be women.

Mehta said that the federation was established in 1973, with an annual turnover of INR 20 crore.

Continue Exploring: Amul secures top spot as world’s strongest dairy brand and second strongest food brand globally

“In the last 50 years, it has emerged as the country’s number one FMCG (fast-moving consumer goods) organisation, with the Amul brand set to achieve a turnover of INR 80,000 crore, and Amul Federation a turnover of INR 61,000 crore this financial year,” he said.

Apart from PM Modi, Union Home and Cooperation Minister Amit Shah, Union Animal Husbandry Minister Parshottam Rupala and Chief Minister Bhupendra Patel will also remain present during the golden jubilee celebrations, he said.

During his visit, Modi will inaugurate five new dairy projects, including a modern cheese plant of Sabar Dairy, which has come up with an investment of INR 600 crore, a long-life tetra pak milk plant of Amul Dairy at Anand and the expansion of its chocolate plant, he said.

The PM will also inaugurate a 50,000-litre ice cream plant of Sarhad Dairy in Kutch, a unit of Bharuch Dairy coming up in Mumbai, along with various dairy development works under government schemes in the state’s Saurashtra-Kutch region.

“The total investment of the projects is INR 1,000-1,200 crore. On February 23, during his Varanasi visit, Modi will inaugurate a plant of Banas Dairy which has come up there with an investment of INR 600-700 crore,” he said.

Amul’s vision for the next 25 years will also be discussed on Thursday, he said.

Even as each of GCMMF’s 18 milk cooperative members takes the initiative to raise its milk handling capacity, they are expanding by setting up new plants in the state and other parts of the country, Mehta said.

Amul plans to invest INR 11,500 crore in the next 2-2.5 years as part of the MoUs (memorandums of undertaking) signed at the World Food India event organised in New Delhi in November last year, Mehta said.

Continue Exploring: Amul forecasts 20% rise in revenue for FY24; No immediate plans to increase milk prices

“At the event, organisations from different countries made investments of INR 33,000 crore, out of which MoUs for investment of INR 11,500 crore were signed by Amul alone. We will make investments in the dairy processing and collection system as well as setting up ultra modern processing plants, among others,” Mehta said.

He said the investments will largely be made in Gujarat. Member cooperatives will also invest in Varanasi, Rohtak, Ujjain, Mumbai, Goa, Pune, and Kolkata, he added.

Jubilant Foods expects Popeyes to hit INR 1,000 Crore sales mark in 3-4 years, plans rapid expansion

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SnackTeam

February 21, 2024

QSR chain operator Jubilant Foods Ltd (JFL) expects its fried chicken brand Popeyes to reach INR 1,000 crore in sales within the next 3-4 years, as mentioned by its CEO and MD Sameer Khetarpal on Wednesday. Additionally, JFL, which is also a master franchisor of Domino’s, is expanding its reach and is expected to have around 3,000 outlets in the medium term.

The company plans to “swiftly broaden its presence” across its QSR brands, placing particular emphasis on Domino’s, given India’s status as a “rapidly expanding market” characterized by increasing discretionary income and urbanization spurred by its growing economy.

When asked about its latest addition Popeyes, Khetarpal said, “We have got an outstanding response from Popeyes as a brand here.”

JFL, which opened its first store in Delhi on Wednesday and its 33rd store pan-India, has plans to add four more stores in the national capital region next week.

“We are rapidly expanding and Popeyes will be the fastest QSR chain to get INR 1,000 crore in sales,” Khetarpal said.

He further stated that on average, a QSR chain typically requires 11-15 years to achieve such a scale.

“We are opening stores very rapidly. We will do 30 to 50 stores this financial year they’re already there,” Khetarpal said, adding that the company will continue to expand rapidly next year as well.

On the timeframe for Popeyes reaching INR 1,000 crore in sales, Khetarpal said, “It will take 3 to 4 years. By FY28, it would absolutely reach there.”

Continue Exploring: Domino’s Pizza takes on upscale pizzerias in India with premium offerings and hyper-localized approach

JFL plans to expand Popeyes’ presence to the National Capital Region (NCR) and other prominent cities in North India.

Launched by JFL in January 2022, the brand is presently operational in 10 cities across South India, with Delhi marking the eleventh city.

For the current fiscal year, the company has plans to invest similarly around INR 750 crore on expansion and opening of new stores, he added.

JFL is also in the process of expanding its food factories. Presently, there are two factories in operation: the first located in Noida and the second recently inaugurated in Bangalore. Additionally, work is underway for the establishment of a third factory.

The recently commissioned Jubilant Food Park Bangalore is the largest food processing unit. This facility is designed to serve 750-plus Domino’s stores, and 300 stores of Popeyes, Hong’s Kitchen, and Dunkin’, according to the company.

About the expansion of Domino’s, the largest brand in its kitty, Khetarpal said it is expanding rapidly both in metro and smaller towns and gaining market shares from the competitors.

Continue Exploring: Jubilant FoodWorks launches aggressive 360-degree rebranding for Domino’s

“When we started…Domino’s 27 years ago, we would have not imagined we would get to 2,000 stores. Our medium-term outlook remains 3,000 outlets in the next 4 years,” he said.

The potential is far greater than 3,000 stores, with over 1,000 colleges having more than 5,000 students, yet Domino’s is not present.

“There are so many metro stations and airports that are being built, where we are not present. Opportunities are for beyond 3,000 outlets, but our medium-term outlook is to open 250 stores every year…” Khetarpal added.

Besides Domino’s, JFL which is part of the Jubilant Bhartia Group, also has franchise rights to Dunkin’ and Hong’s Kitchen!

“Expansion is on the way for all the brands,” he added.

The expansion would be through company-owned stores but it is also trying for a franchise model, Khetarpal said.

As of December 30, 2023, JFL was operating 1,928 Domino’s stores, 25 stores of Dunkin’ and 22 stores of Hong’s Kitchen.

Continue Exploring: Popeyes sets sights on Italian market expansion, inks master franchise deal with RB Iberia

BigBasket rebrands slotted delivery to ‘bigbasket supersaver’, targets 1-hour service for faster deliveries

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SnackTeam

February 21, 2024

BigBasket, the Tata Group-owned online retailer, has revamped and rebranded its slotted delivery business, which contributes the largest chunk to its overall revenues. It has decided to rebrand it as “bigbasket supersaver“ with a sharper focus on faster deliveries made within two hours.

“This is not just a rebranding, but we have also made the slotted delivery business faster and more efficient. It contributes significantly to the overall business. It already has a strong customer base, who are essentially buying large orders of groceries, which were being typically delivered on the same or the next day. We have done re-engineering of our systems and processes to be able to offer extensive assortment of groceries at the same kind of value pricing within two hours,” said Hari Menon, Co-Founder and CEO, bigbasket.

He further mentioned that over the next three to six months, the primary emphasis will be on achieving even faster product deliveries within a one-hour timeframe.

Apart from its slotted delivery service, India’s earliest grocery delivery company is renowned for its instant grocery service, bbnow, and its subscription-based service, bbdaily. The slotted delivery business contributes to around 60-65 percent of the e-grocery player’s revenue.

The bigbasket supersaver program has already rolled out in more than 40 of the 70-odd cities where the platform operates and will expand to encompass all these cities by mid-March. Additionally, it will provide an extra 5 percent savings on various products. Customers will still have the choice to select their preferred delivery slot.

“With the launch of the new model, we expect to see quarter-on-quarter growth of about 35 per cent for this business,” he added.

Menon stated that the range of products available via the slotted delivery service is three to four times broader and more economical compared to those offered through its quick commerce delivery services.

Earlier, the assortment of products was stored in dark stores and warehouses. Elaborating on the re-engineering of processes, he added, “We now carry the entire range of 25,000-30,000 products in dark stores. We are also delivering all the orders through bikes and are doing away with van-based deliveries. We have tested the new model for consistently being able to deliver within two hours, while maintaining the average order value, which is a critical piece. It has tested well for all these parameters. We have also ensured we maintain the value pricing.”

The average order value for the slotted delivery business is estimated to be around INR 1,250-1,300, whereas for quick commerce, it typically ranges between INR 400-500.

Continue Exploring: Bigbasket joins ONDC as a seller, expanding the platform’s reach in the grocery retail space

Devyani International surges 6% amid reports of block deal; Yum Restaurants likely seller

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SnackTeam

February 21, 2024

On February 21, Devyani International Ltd, the largest domestic franchisee for Yum Brands (including KFC & Pizza Hut) and the sole franchisee for Costa Coffee, saw its shares surge by 6%. This uptick came as 5.3 crore shares, representing a 4.4 percent stake in the quick service restaurant operator, changed hands in a block deal.

The stake was divested at a floor price of INR 164 each, representing a slight discount of 1.2 percent compared to the previous closing price.

Although the buyers and sellers couldn’t be confirmed, a CNBC-TV18 report suggests that Yum Restaurant India Private Ltd is likely divesting its entire 4.4 percent stake in the KFC operator. Citigroup Global Markets India is the sole book-running lead manager in this transaction.

Continue Exploring: Devyani International set to operate KFC outlets in Thailand after $128.9 Million deal

The report came at a time when the QSR industry is experiencing weak unit economics, across both dine-in and delivery formats. Despite these industry-wide difficulties, KFC has shown resilience in managing the crisis effectively, as noted by Motilal Oswal Securities in a recent statement.

“On the other hand, PH has been struggling, partly attributed to intense competition in the market. Store expansion plans remain buoyant for Devyani despite near-term industry challenges. The overall guidance of reaching 2,000 stores by FY24 remains on track. We maintain a cautious stance due to the ongoing demand challenges in the near term. The recent correction in the stock partially covers up the near-term pressure,” it said. We reiterate our BUY rating on the stock with a target of INR 195,” it said.

Continue Exploring: Indian appetite for pizzas and burgers wanes: Domino’s and McDonald’s franchisee results reflect decline in dining out trends

The Yum stake sale is reportedly valued at INR 814.80 crore, with Citigroup Global Markets India presumed to be the sole book-running lead manager (BRLM).

According to a recent report by Elara Securities, Devyani International was actively focused on improving its delivery performance and strengthening ties between its stores and delivery services. The company aimed to broaden the presence of Pizza Hut and KFC outlets with a specific emphasis on delivery. This strategy involved extensive collaboration with delivery aggregators to capitalize on the rapidly expanding online delivery segment.

“In case of Pizza Hut India, it has shifted focus toward a delivery-centric model while maintaining strategically located dine-in and flagship stores. The accelerated expansion of delivery-focused stores has resulted in significantly improved delivery times, which, in turn, has enhanced overall consumer experience. This transition from large dining-oriented stores to smaller, delivery-focused formats has not only positively affected unit-level performance but also has facilitated a faster nationwide expansion,” it said.

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