Friday, September 22, 2017
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   

INTERVIEW

"We are growing at 35% YoY; consolidating in every market"
Monday, 06 April, 2015, 08 : 00 AM [IST]
fiogf49gjkf0d
Started in the year 2001, Jumboking Pvt. Ltd, Mumbai, today is a well known QSR outlet in Maharashtra and many other states. By offering a branded version of common man’s food - Vada Pav - as its key product, the chain has been flourishing and expanding each year. Dheeraj Gupta, founder-MD, Jumboking Pvt. Ltd, delves deeper into aspects such as use of IQF technology for manufacturing the product and pan-India expansion plans, in an email interaction with Harcha Bhaskar. Excerpts:

When was the company established and where? What prompted you to set up an outlet with vada pav as core product ?
Jumboking is India’s premium QSR (Quick Service Restaurant) chain that focusses on systems and innovation. We standardised the vada pav, made franchising a scalable model, and have now taken it to markets outside of Mumbai, giving it a national presence.

Back in August 2001, in a small suburb (Malad) of Mumbai, an experiment to wrap and serve the vada pav began. Fresh from my MBA and some failed ideas, I set out to do something that hadn’t been done before - brand the vada pav.

In 2003, we launched our second outlet at Kandivli — another north Mumbai suburb. By 2005, we had five outlets in Mumbai. Around that time, we started receiving franchise-related queries.

The traditional notion has been that vada pav is a product that is had by people who don’t have money. Our breakthrough thought was that vada pav is had by people who don’t have time. This was a result of my extensive readings on entrepreneurship. I was particularly inspired by a book on the founder of McDonald's, Ray Kroc called Behind the Arches. Thus began the journey of Jumboking, a name that came to me like benzene to Kekule.

Currently you have how many outlets in Maharashtra and other states? How is the response for the products from other states?
We have a total of 73 outlets in India and 42 outlets in Maharashtra (Mumbai, Pune, Aurangabad,  Amravati and we have recently launched our first outlet in Nagpur).

Outside Maharashtra, Jumboking has its outlets in Bangalore, Mysore, Delhi, Gurgaon, Indore, Raipur, Hyderabad and  Lucknow. We are also planning to additionally open 10 more stores by December 2015 in Nagpur.

Jumboking is strategically located where people are on the move, and we have perfected the art of the store location to an exact science. We have received very encouraging response from stores outside of Maharashtra as well. E.g., Bangalore has 12 stores. Delhi is another big market for us.

What is the USP of your  products? What are the variants that you offer?
Jumboking serves Mumbai’s iconic food, the vada pav and various fusion versions of the vada pav, namely Butter Jumboking, Cheese Jumboking, Grill Jumboking and Schezwan Jumboking. Further we add flavours and offer about 16 varieties of vada pav. For instance, our butter range offers Butter Jumboking, Butter Grilled Jumboking, and Butter Schezwan Jumboking. Our Corn Palak Jumboking is a rage, and we also have a selection of delicious wraps and soft drinks.

In Mumbai there are over 20,000 local vada pav sellers. It is a large market, and every vendor has his own customer base. People who eat at Jumboking value the hygiene and standardisation we bring in. We attract newer customers with our innovative products, and develop faith among existing customers through hygiene and quality service.
 
What are the hygiene and food safety precautions that are taken in each outlet?
We have integrated our manufacturing and supply chain with the biggest international food brands that have made India their base. They are HACCP-certified kitchens that maintain the highest quality and food production standards.

From where are the pavs (bread rolls) procured? How safe and nutritious are they to consume?
The pav is currently been sourced locally. We get daily fresh delivery of the bread at the outlet. The recipe is provided by HO and Jumboking approves the bakery, prior appointment locally, after due audit of the same.
 
What is the technology used for manufacturing the product?
Just like other reputed international chains, Jumboking makes use of IQF (Individual Quick Frozen) technology for managing its backend operations by offering wide range of vada pav flavours to customers.

The IQF (technology) line is doing commercial trials for manufacturing the vada pav using this world-class technology since January 2014 and has been commissioned for commercial manufacturing from March 2014 onwards. This line is capable of manufacturing 10 tonne per day.

How much vada pav is sold per day/month in Maharashtra and other states?
We sell 12,500 vada pavs per day in Maharashtra and 7,500 vada pavs in other states.

Are any expansion plans / new product launch on the anvil?
 “Customisation" of products or services plays a vital role for expanding brand's footprint on pan-India level. Therefore, before moving to other markets, it's always important to do in-depth research.

Focussed brands understand this well and look for satisfying the same consumer needs in other markets too. I firmly believe this is the only way to expand. Taste preferences are there, however, the key is to get the product and price understanding right.

In terms of expanding the brand on a national level, we have a sense of how “vada pav” is perceived in non-vada pav eating markets; our pricing strategy is in place, and we have the experience to now enter newer markets.

Innovation is one of the keys to the brand's success. At the backend, we are working on flavours that people love, giving them a gastronomic experience. The product has to be hot, crunchy at the same time blended with the right sauces, to give the right mouth feel. Since we have a limited menu, each of our products is such that people have to come back for the standardisation and the quality of what we serve.

Is there a franchise option available for business? How does the franchise model work?
Yes, we are India’s premium QSR franchise chain.

The most successful fast food chains (QSR) in the world have evolved out of a single food product that was hugely popular in a given region.

Jumboking follows the same model and has taken vada pav pan-India. The franchisees play an integral role in menu development, regional promotions as well as bring a lot of entrepreneurial energy to the table. We’re always on the lookout for 150-300 sq feet stores in high traffic areas, mall food courts, railway stations, high streets, college hubs and IT parks.
  • Investment: 12-15 lakh per store
  • Area: 200-300 sqft
  • Return-on-investment: 3 yrs (in 80% cases)
  • Break-even: First month onwards (in 80% cases)
  • Who is your target franchisee? Any person fulfilling following criteria
1)    Willing to invest 8 hrs of personal time daily to the business
2)    Having 1-2 yrs of prior business experience
3)    Having the money readily available for investment

Any advice that you would like to give to prospective franchisees?  
1)    Speak with existing franshisees before signing up with the brand. Existing franchisees will always give you the best advice

Currently how big is the QSR industry in India? At what rate is it growing?

There are many estimates. A September 2013 report by CRISIL Research, India’s largest independent and integrated research house, estimates that the QSR market will double to around Rs 70 billion in 2015-16 from Rs 34 billion in 2012-13, driven largely by new store additions.
 
What are the current challenges faced by your company in regards to regulations, space, manpower, technology, and competition from international brands?
There cannot be a business without challenges.

How much is the expected turnover of the company for the year 2014-15? At what rate the company is growing?
We do not disclose our turnover. We are growing at 35% year-on-year and we are looking at consolidating in every market we enter, through a programme of deep partnership with our regional partner.
 
Print Article Back FNB News Twitter
Post Your commentsPost Your Comment
* Name :    
* Email :    
  Website :  
Comments :  
   
 

 
 
Food and Beverage News ePaper
 
 
 
 
 
 
 
Advertise Here
 
 
Interview
“Customers ready to pay premium prices”
Past News...
 
FORTHCOMING EVENTS
 

FNB NEWS SPECIALS
 
Overview
Packaged wheat flour market growth 19% CAGR; may reach Rs 7500 cr: Ikon
Past News...
 
Advertise Here
 
Advertise Here
 
Recipe for Success
Ability to connect dots great strength, says consultant Munshaw Ghildiyal
Past News...



Home | About Us | Contact Us | Feedback | Disclaimer
Copyright © Food And Beverage News. All rights reserved.
Designed & Maintained by Saffron Media Pvt Ltd