Burger King indeed proved to the ruler when it comes to sales. The burger chain that came to India in 2014 registered more sales that Instagram users' favourite coffee chain, Starbucks. The company's sales were buoyed by aggressive store expansions, its pricing and its lengthy vegetarian menu, which is not usually offered by its peers.
Burger King posted a 66 per cent increase in sales at Rs 389 crore in FY18, as mentioned in a report in The Economic Times. Starbucks that came to India in 2012 grew 28 per cent at Rs 348 crore. A year ago, Burger King was tailing Starbucks' Rs 272 crore with Rs 234 crore.
Rajeev Varman, CEO of Burger King India, said that they witnessed double-digit same-store sales and traffic growth while continuing to open new restaurants. He also said that Burger King continues to be on plan as well as profitable at a restaurant level. Varman said that they have increased investments in growing brand awareness, sharpening their menu and building the infrastructure in India as the company progress to launch over 500 restaurants by FY23, as mentioned in the daily.
The company also posted higher per-store sales than Jubilant Food Works' Domino's Pizza and Dunkin' Donuts. While average sales per Burger King outlet was Rs 3 crore, for Pizza Hut and Domino's it was Rs 2.6 crore. While both Burger King and Starbucks posted per-store sales of Rs 3 crore, they were overtaken by rival Westlife Development, which runs McDonald's that had an average sale of Rs 4 crore at every outlet.
In terms of store expansion, India has been the fastest-growing market for both Burger King and Starbucks. Until March, the coffee chain had 116 outlets, while the burger chain had 129 stores across the country. The 66-year-old burger chain entered the Indian market in 2014 when most quick-service restaurants were struggling with falling sales. Burger King's partner Everstone Capital holds a majority stake in the company through its subsidiary F&B Asia Venture. The company has also lined up $100 million for expansion in the country over the next few years.
(Edited by Anwesha Madhukalya)
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