Everstone seeks listing for Burger King India
Everstone Capital, which set up the Indian franchise of US fast food giant Burger King in 2013, has filed to list the company on the domestic markets.
Burger King India is looking to raise up to INR4 billion ($56.4 million) through the issue of new shares, according to a prospectus. Everstone controls 99% of the company via an entity called QSR Asia, which will seek a partial exit at a yet to be determined price.
Everstone opened the first Burger King in India in November 2014 and has since developed the company into a nationwide chain with 216 restaurants, including eight sub-franchised restaurants, across 16 states and union territories and 47 cities.
Plans for the proceeds include spending INR2.9 billion on the rollout of new restaurant locations during 2020 and 2021. Each location is estimated to require a total investment of INR27.5 million. The company is required to develop and open at least 700 restaurants by year-end 2025 as per its master franchise arrangement.
Burger King India is notable as a greenfield buy-and-build play in a sector known for long development timelines and unpredictable marketing and real estate challenges. Everstone says average revenue per outlet is on a par with McDonald’s locally. By comparison, Burger King revenues are 50% lower than those of McDonald’s in the US.
Revenue improved 50% during financial 2019 to INR6.4 billion, with the company citing an important influence from brand marketing and advertising efforts. It said it will pursue sustained investment in social media and mass media channels, such as regular TV commercials and big-ticket and high-impact media properties. Millennials will also be specifically targeted through in-restaurant design and messaging and in the packaging of products.
Localization has also been an important strategy. Half the burgers are vegetarian, and the signature menu item, the Whopper, is served with a chicken, lamb or vegetarian patty, rather than beef. India is the only Burger Kind franchise globally to allow a deviation from the standard Whopper recipe. Pricing strategy focuses on affordability with meal costs less than half of those in the US, in US-dollar terms, and burger prices as low as $0.40.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.