The recent shut down of McDonald’s restaurants in North India has proved to be a boon for other burger restaurants. According to a recent statement shared by Indianised burger chain Burger Singh, the homegrown burger brand has grown up to 36 per cent at most of the outlets located closer to McDonald’s.
The QSR chain has seen an average about 27 per cent increase in the overall sale after the burger giant McDonald’s closed its outlet in North and East India for a revival.
Burger Singh also did aggressive advertising and promotions to draw this growth and new customers.
The company hired a clown like promoter to hand over Burger Singh cards to people around McDonald’s which looked almost similar to the McDonald’s clown.
“This short window (of the stores being closed) was a big opportunity for all the burger players to acquire market share and get new customers to try our product. When the elephant dies, the entire forrest feeds. We just got there first,” shares Rahul Seth, Chief of Staff at Burger Singh.
Burger Singh also did active social media promotions including Instagram and Facebook.
McDonald’s Global earlier this May acquired the ownership from Vikram Bakshi and had announced the closure of the restaurants to come back with a fresh look and menu.
McDonald's and Vikram Bakshi had signed a partnership agreement in 1995 to open outlets of the US food service retailer in northern and eastern India for a 25-year period and formed the joint venture CRPL, with both having 50 per cent stake.
In 2017, McDonald's ended the franchise agreement with CPRL over non-payment of royalties which resulted in a legal battle eventually culminating in an out-of-court settlement earlier this month.
The restaurants were partially reopened in North India by opening around 13 restaurants in Delhi with more customized hospitality, refreshed menu boards, merchandising and packaging.
On the other hand, Burger Singh is the largest chain of homegrown Indian flavour burgers in the QSR category in India, with a strong presence in West & North India with 27 outlets in Delhi NCR, Jaipur, Dehradun, Nagpur and Pune.
The brand has also ventured in the UK with two outlets in London and has emerged as the most popular brand of Indian burgers in the state.
Burger Singh raised over $4 Million in two rounds of pre-seed funding and Series A funding from both strategic & angel investors.