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Burger King ties up e-bay for pre-booking offer before

launch
PTI Nov 4, 2014, 10.30PM IST

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Whopper|
eBay India|
Delhi|
campaign|
Burger King

(As per the agreement, customer)

NEW DELHI: US-based global hamburger fast food restaurants chain Burger King today said that it has
entered into an agreement with online market place eBay for pre-order of its famous Whopper.
As per the agreement, customer of eBay India can pre-order the Whopper prior to the opening of the
Burger King outlet inDelhi between November 3 to 5, Burger King India, the Indian arm of QSR giant
Burger King said in a statement.
"The campaign and promotion is a limited time offer for the opening of the first restaurant of Burger King
in India. eBay India shoppers can redeem their purchase and bite into the 5-inch diameter iconic burger at
the outlet when it opens," Burger King India said.
The Whopper, famous for its flame grilled patty, is Burger King's signature burger created in Miami in
1957. It is in three variants - vegetarian, chicken and mutton which is a first in the Indian market.

Burger King, the worlds second largest burger chain after McDonalds, is aiming for
growth without a ceiling in India as it prepares to open its first store in the country
here on Sunday.
Burger King India chief executive officer Rajeev Varman told Business Standard the
Miami-based chain does not see a limit or a ceiling to the growth potential in India, as
the big numbers reflect. It has joined hands with private equity major Everstone
Capital for India entry. The plan is for 12 stores in the next two to three months.
As the concept of Burger King comes in, there will be more exposure and the market
will grow further. India as a market has no ceiling right now and thats what the big
numbers reflect. There is no ceiling as far as our brand is considered. We just need to be
sure that we dont do just a load of restaurants but profitable restaurants, Varman said
on Thursday.
The company plans to expand in Delhi and Mumbai initially, as it feels these are the key
markets to get a firm foothold in the country. This would be the 100th country for the
chain. It recently entered China and Pakistan. Pricing in India will be competitive,
keeping in mind its major rival, McDonalds.
The burger quick service restaurant (QSR) market is about two per cent of the
overall QSR market. According to trade estimates, the QSR market is expected to double
by 2018 to Rs 26,000 crore, through domestic and global entities.
Explaining Indias importance from the global perspective of Burger King, Varman said
India would be one of the largest in Asian markets. In the long run, it is going to be one
of the largest globally. In fact, it was mentioned in our recent earnings call as well. So,
the company sees India as one of the biggest opportunities. He said an annual
compounded growth rate of 35-40 per cent is expected by the company.
Interestingly, like a majority of its rivals, it has not Indianised the menu but has
developed the Indian product from scratch. We did a complete tour of several cities
with a senior team, in places like Chennai, Ahmedabad, Amritsar, Lucknow downstreets.
We started the product development process from scratch we did not carry products
from abroad but carried concepts and the cooking platform and ethos that Burger King
is known for, added Varman.

Burger King joins a list of fast-food brands that have made a beeline for India in the past
decade and a half. These include McDonalds, Yum Brands and Subway. Burger King
India wishes to innovate further and offer a new experience to consumers, which,
according to Varman, is key to success in any market. I am not worried about head
room now. We can put 300 - 400 restaurants here and not even be worried about
headroom but I think people worry too much about the size of market. A greater focus
needs to be on what we are offering to customers and if thats resonating.
GLOBAL FOOTPRINT

Founded in 1954, headquartered in Miami, Florida (United States)

Burger King Holdings Inc acquired by 3G Capital in 2010 for $4 billion

Annual revenue pegged at $1.14 billion as of 2013, against McDonalds $28


billion

Operates more than 13,000 outlets globally, against 35,000 plus locations for
McDonalds

Runs stores across North America, Carribean, Europe, Asia and Africa

About 50 per cent of its total outlets are in the US

It has about 100 stores in China


Source: Company, industry estimates

Everstone Capital, the India-focused private equity firm, has a wide exposure to the food
and beverages sector, with investments in Capital Foods, Blue Foods, F&B Asia Pte Ltd,
etc. The firm, with assets under management of $2 billion, has joined hands with Burger
King for its entry into India.Sameer Sain, co-founder and managing partner, Everstone
Capital, in an interview with Reghu Balakrishnan, talks about the rationale behind the
companys investments and its strategies. Excerpts:
Many global food brands have already established themselves here. How do
you differentiate Burger Kings entry?
Burger King is the second-largest fast-food hamburger restaurant brands in the world
and one of the most prominent and scalable quick-service restaurant brands not yet
present in India, despite strong presence in most Asia-Pacific regions. Also, Burger King
has a very distinct approach to its cooking styleit focuses more on freshness and uses
a healthier and tastier concept of char grilling. The flavour brought out through this
method of cooking has been the history and legacy of the very popular tandoor food in
India. Burger King has been a pioneer outside India, through its strategic initiatives
around menu development and catering to local palettes with understanding of
consumer tastes and preferences.
The food and beverages segment is among the most attractive sectors for
Everstone. What do you think of the potential in the sector through the next
couple of years?
In absolute terms, food consumption accounts for the most in the composition of Indian
private consumption expendituremore than 60 per cent of the retail spending in India.
Also, India has a large and growing middle class, with increasing disposable income
spent on eating out. Increasing urbanisation is driving enhanced consumer awareness
of, and demand for western brands and products. Specifically, the preference for
international food is being driven by changing lifestyles and exposure to global trends
through media and travel. We think we are just at the beginning of what will be a large
and organised food market in India. Weve seen early successes in the fast-food market
and quick-service restaurant space. However, few companies have been able to achieve
a large scale.

What are the challenges?


I see two-three major challenges in the food sector. Primarily, building the appropriate
supply chain is a very difficult task in India. There is lack of good real estate, and though
we see some modern real estate, most of it is high-street and unorganised and the set
of infrastructure required for this business is not easy to come by. We do have menu
challenges, in terms of catering to many different tastes and preferences, due to the
sheer cultural divergence in India.
What are the exit options from food and beverage investments? What are the
strategic sell-outs?
At this stage, it is too early to discuss exits. We are solely focused on building a longterm and profitable business. Historically, such businesses have seen success in capital
markets.

Burger King to open 12 outlets in


India over three months
American fast food chain Burger King will open 12 outlets in India over the next two-three months,
six each in Delhi and Mumbai. According to people familiar with the burger chains plans, the brand
will roll out its first outlet in the capital in less than a month at a prominent mall in South Delhi,
followed by the rest in the National Capital Region (NCR) and Mumbai.
The initial plan is to roll out a store every few weeks to keep the momentum going, said a person
with direct knowledge of the matter who declined to be named.
With an investment of up to Rs.2-2.5 crore per outlet, Burger King is eyeing other potential locations
like Pune, Chennai and Bangalore. To be sure, Burger King is launching in Asias third largest
economy where a spurt in disposable incomes has led to a rise in out-of-home food consumption,
pushing chains such as Dominos, McDonalds and KFC to expand.
In 2013, private equity company Everstone Capital Management announced a joint venture
with Burger King Corp., famous for its Whopper burgers, to establish its presence in India.
Everstone owns 89% stake in the venture with 11% controlled by Burger King.
For now, the food chain is looking at a company-owned and company-operated model for its stores,
which will be located in food courts and high-street locations. Thats how Burger King will develop
the India market for the first few years....without taking the franchise route, the person quoted above
added.
According to a September report by real estate consultancy CBRE South Asia Pvt. Ltd, international
food and beverage outletsboth fast food and fine dininghave continued to expand in 2014. The

first half of the year saw key malls in Delhi and Gurgaon get on board food and beverage operators
such as Fatburger and Johnny Rockets. Largely under-penetrated by global food brands, the Indian
market offers a significant opportunity for growth, the report added.
However, location is critical for food chains.
The biggest opportunity in the QSR (quick service restaurant) market is real estate. In the longer
run, it is best to block the high-footfall locations, said Gaurav Marya, chairman, Franchise India
Holdings Ltd, a franchise solutions company. In the last 12 months, Franchise India has brought

American fast food chain Fatburger and Carls Jr into the country.
Marya estimates that the top 12-14 cities have roughly 3,000 locations that are suitable for fast food
and coffee chains.
Burger King has spent the last six to eight months working on its menu that will result in some Indiaspecific modifications in dressings for Indian consumers. The company will start with its vegetarian
and chicken burgers, and subsequently add lamb burgers to its menu.
As of 31 December, the Burger King system consisted of 13,667 restaurants in 95 countries and US
territories. The worlds second largest fast food hamburger chain started as a single restaurant in
1954 in Miami, Florida.

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