Nepal's multinational conglomerate Chaudhary Group (CG) is now going all out to grab a sizeable pie of the country's quick service restaurant (QSR) market.
CG Corp Global, the maker of Wai Wai branded noodles that sells in 34 countries globally, has launched a chain of noodle bars under the banner 'Wai Wai City'. The company, which has already opened 30 outlets in the past over 12 months, plans to invest Rs 250 crore in taking the total restaurant count to 500 outlets over the next two to three years.
Varun Chaudhary, managing director, Wai Wai City, told DNA Money, approximately Rs 50 crore has been invested already in the QSR business. “The money has been invested in putting together the proof of concept. The current footprint of 30 outlets has been established using the franchising route. The plan is to expand the noodle bar chain all over the country and reach 500 outlets by December 2020. Additional investments of Rs 250 crore will be for building the back-end required to support these outlets,” he said, adding the company eyes Rs 1,000 crore in revenues from the Wai Wai City QSR chain operations by the end of 2025.
The company will also launch the QSR brand in international markets. These outlets will come up across the 34 countries where it already sells Wai Wai noodles. “It will initially happen through existing business partners distributing the instant noodles in their respective countries. These channel partners may also take up master franchise for those countries and chalk out expansion,” said Chaudhary.
The international markets being looked at initially include the US, Canada, Middle-East region, Kazakhstan, Serbia and Bangladesh. The plan is to open 100 outlets initially and expand aggressively thereafter.
The QSR outlets offer a variety of vegetarian and non-vegetarian noodle recipes with specialties from India like Southern Siren, which is rasam-inspired while Shanghai and Thai Sonnet, cooked using gravies and flavours from China and Thailand, respectively. While momos and a variety of noodles, ice cream and drinks will be standard menu items, for now, the company is working on expanding it with a range of other items as well.
“With base products already in the menu, we will soon be adding shakes and sandwiches in addition to four to five other verticals. While offerings will increase, the format will continue to be QSR as we don't want to change the ethos of the brand,” said Chaudhary.
The QSR business, he added, would complement the group's fast moving consumer goods (FMCG) business. Wai Wai noodles currently does a business of Rs 600 crore and has a market share of 27% in the estimated Rs 2,400 crore instant noodle market in India.
Wai Wai City Noodle Bar outlets are currently being offered in three formats - standalone, mall/food court and kiosk. The company is also planning to launch a cart format that will mainly operate inside commercial complexes. Food trucks and highways are a few other formats that the company is working on and is likely to introduce it in the market gradually. “The idea is to make a cluster of four to five different outlets across various formats that will help tap market opportunities across potential locations in the country,” said Chaudhary.
The company has appointed 34 development agents across India who will work with potential franchisee partners to achieve the targeted expansion. Franchisees will have to invest between Rs 25 lakh and Rs 40 lakh, depending on the format of the outlet for an agreement ranging between five and seven years. The minimum space required to set up an outlet will be 120 square feet. The break-even for the kiosk and mall/food court formats is 12 to 14 months while the standalone outlets will take at least two years.
“Our development agents have already signed 490 outlets as we speak. Now the focus will be on getting these outlets up and operational over the next two years. Currently, our smallest outlet measures 110 square feet and the largest opens on Sunday, April 22, 2018, in Patna. The franchisee partner there is a traditional jewellery business family whose second generation wants to get into the food business. The outlet is spread across two floors an measures around 1,400 square feet,” said Pankaj Neeraj, chief executive officer, Wai Wai City.
FAST FOOD
- The company plans to have 500 outlets over the next two to three years
- It eyes Rs 1,000 crore in revenues from the QSR chain by the end of 2025
- US, Middle-East region, US, Canada, Kazakhstan, Serbia, Bangladesh among overseas markets being looked at
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Varun Chaudhary")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}