QSR chain Jumboking brings its first-ever seat-in store in Lucknow

Ace investor Ashish Kacholia has acquired a 17.2% stake in the popular Indian burger chain Jumboking.

Kacholia's share now makes him the second-largest shareholder in the company. The exact amount of the investment has not been disclosed, but it was made through a secondary market transaction following the exit of Triton Fund, an earlier investor in Jumboking, in 2018.

According to market experts, the transaction is estimated to be valued between ₹70 crore and ₹80 crore, placing the valuation of Jumboking at around ₹400-500 crore.

Jumboking that operates 170 stores across Mumbai, Delhi, Hyderabad and Pune, recorded sales of ₹110 crore in the last fiscal year.

With these figures, it became the third-largest burger chain in India, after McDonald's and Burger King.

Founded by Dheeraj Gupta and Reeta Gupta in August 23, 2001, Jumboking drew inspiration from the successful fast-food business models of international giants like McDonald's and Burger King. The company has established delivery partnerships with popular platforms like Swiggy and Zomato to cater to out-of-store orders.

Jumboking offers a vegetarian menu featuring a variety of burgers, thick shakes, softies and fries, catering to the preferences of college students and young professionals. In 2023, the company introduced a program called JK Burger Rewards to enhance customer loyalty. Jumboking is focused on delivering top-notch execution and exceptional customer service.

"Jumboking represents a promising opportunity in the QSR (Quick Service Restaurant) segment with its commitment to excellence and customer satisfaction," shared Kacholia.

Dheeraj Gupta, the Founder of Jumboking, expressed his delight in having Kacholia on board, highlighting the company's ambitious goal of expanding to 1000 stores while maintaining profitable growth.

Pradyumna Dalmia of Triton Fund also expressed satisfaction with their association with Jumboking, anticipating promising returns for incoming investors. With Kacholia's strategic investment and the company's strong growth trajectory, Jumboking is poised to further solidify its position in India's competitive fast-food market.

Home-grown vegetarian burger chain Jumboking has launched new Mac and Cheese burger.

Bringing the flavours of the iconic macaroni and cheese, the burger will be available from 14^th Feb 2021 across it’s 115+ outlets.

Also Read: Jumboking partners with IRSDC, opens food truck at Pune railway station

"We like to innovate continuously and create the best of global flavours locally, for our customers. In 2020, we launched the Big Crunch and the Tangy Mexican flavours. The Mac and Cheese is a truly sinful, fusion product,” said Dheeraj Gupta, Founder and MD of Jumboking.

The all new Mac and Cheese Burger promises you a burst of flavours till the very last bite. Other than the flavourful patty, the burger is dressed up with a creamy chilli cheese sauce, a layer of fresh veggies and delicious red bell pepper on the top. 

The product is priced at Rs.75/- (JK of the day on Sunday priced at Rs. 60).

May Interest: Jumboking launches a new ‘Tangy Mexican JK’ burger

Keeping safety in mind, Jumboking has introduced several measures for walk-in customers. Its 100% touch free delivery service ensures safe delivery of food from its delivery partners SWIGGY and Zomato.

Homegrown QSR chain Jumboking has opened its food truck at the Pune railway station premises.

The brands’ interesting and varied choice of menu suits all tastes.

“The vision of the IRSDC and Indian Railways has always been to serve the passengers.  Indian Railway Stations Development Cooperation Ltd. (IRSDC) has been at the forefront of transforming the landscape of Indian Railways. Going further, we hope to be of service to the IRSDC, which promises to be an integral force in launching many more unique initiatives and services for the improved satisfaction of the passengers,” shared Dheeraj Gupta, founder of Jumboking.

Also Read: Restaurants Unlock 2020

The passengers can choose from the best of combo deals, burgers, fries, wraps, coke and thick shakes. Also, the JK super saver combo and JK loaded sides are a must have.

"We are proud of what IRSDC has achieved so far in Facility management segment. Going further, we are committed to work for passenger satisfaction and offer them best of amenities at affordable prices. We are also working steadfastly towards station re/development i.e. building rail malls across the country. With the support of MoR, we shall achieve our mission in near future,” added Sanjeev Lohia, Managing Director and CEO, IRSDC.

With 115+ outlets in Mumbai, New Bombay, Thane & Pune, Lucknow became a new market for the company in 2019.

May Interest: QSR chain Jumboking brings its first-ever seat-in store in Lucknow

The company leverages technology to propel its customer facing and internal control systems, and has delivery tie-ups with Swiggy and Zomato to service out -of-store orders.

There is good news for all the vegetarian lovers. Jumboking, India’s leading QSR company has launched the Tangy Mexican burger on March 1, 2020 across 117 stores.

The Tangy Mexican burger is part of the fast-food chain’s seasonal product launch calendar for Q4 FY 2019-20.The burger comes with a delicious patty made of Latino greens, cooked chickpeas and black chana and is topped with fresh tomatoes, onion slices and crisp cabbage. Not just this, it is well bathed in a special Mexican bread spread between freshly baked buns.

“The Tangy Mexican burger is a welcome addition to the other flavours, and a good option to try out this summer,” says Poonam Singh, a marketing executive in Mumbai.

Advent of fast foods in India

In India, the changing lifestyle has in turn increased the frequency of dinning out. With the onset of big fast food chains like McDonald’s in 1996, and soon other big outlets like Dominos, Pizza Hut, KFC started the fast food chain in India and ever since then, its popularity has only been growing among people of every age group.  

As per a report, Indian fast food market is expected to grow at a compound annual growth rate (CAGR) of 18 per cent by the end of this year due tothe change in consumer behaviour and demography.

This is surely indicative of the fact that India and the US are almost the same when it comes to people’s love for fast food. This might be good for the fast food business but studies have shown that in order to live a healthy life, it is important to keep a check on our fast food consumption. A healthy balance is always important to maintain when it comes to our health. 

Jumboking Foods Pvt Ltd, western India’s largest QSR chain, has announced Hindustan Coca-Cola Beverages Pvt Ltd as its beverage partner. Under the partnership, the portfolio of carbonated beverages of Coca-Cola and Sprite and also of the water product Kinley will be sold across all Jumboking’s stores in India.

Jumboking is the single largest quick service restaurant chain in western India, with more than 115 stores in Mumbai, Pune, and Thane.

A Coca-Cola India spokesperson said, “Consumer buying habits and preferences are rapidly evolving and at the same time Coca-Cola is also evolving into a total beverage company. In India, we provide a larger choice to the consumer and we also ensure we are present across all segments and channels. We are also constantly evaluating opportunities to partner accounts across the country to drive consumption.”

Dheeraj Gupta, Managing Director of Jumboking, stated, “We see an alignment with Coca-Cola’s sharp positioning, fun vibe and choice of young and progressive ambassadors. We are looking to provide a captive consumer base for them via our stores.” 

Also Read: Five Reasons Why QSR is an Evergreen Business

QSR’s Statistical View

As per a recent report, the food Industry is no doubt booming at a fast rate, with Full-service restaurants and Quick Service Restaurant (QSR) together accounting for around 73% of the total restaurant industry.

According to the report by the National Restaurant Association of India, the overall restaurant market will touch Rs 510 billion in the next four years, from the current Rs 205 billion. It said that QSR space would be amongst the fastest-growing, touching nearly Rs 250 billion of the overall market in the next few years.

Popularity of QSR in India

QSRs have gained popularity with evolving lifestyles, urbanisation, and growing nuclear families. They are growing faster than the full-service restaurants across the globe due to their quick deliveries and competitive pricing that attract consumers. McDonald’s was the first QSR in India followed by various others such as KFC and Dominos.

QSRs have always been a zone of attraction for both consumers and business investors, making its franchises a lucrative segment for investment. QSR can be a one-stop destination for budding entrepreneurs that are stepping in this industry for the first time.

Also Read: Four Trends QSRs Shouldn't Ignore in 2019

The Changing Behavior of Customers

Standardization across food outlet chains in terms of ambiance, hygiene, easy accessibility, and service has caused an instant interest in the mind of the customers, increasing the QSR’s footfall. QSR’s are helping Indians to warm up the western cuisines.

Despite Indian food being the ultimate winner, cuisines like Chinese, Mexican, Italian, and American are gaining significant popularity because of the curious customers who are willing to experiment with their taste buds.

Seeing the potential of the Indian food industry, more franchisors could be seen entering the QSR segment for marking their existence as a brand.

Typical QSR Business Model

Investment range: Rs 5-50 lakhs

Area Required: 60-1200 sq. ft.

ROI: 30-70% annually

Note that the above statistics could vary depending upon different QSR brands and their offerings.

IRCTC is in talks with food majors in India, like Cafe Coffee Day, Pizza Hut, Barista, Subway and Jumboking to open outlets at stations.

The group is also planning to take its annual earnings to Rs 50 crore from the current earning which is 30 crore annually.

"To begin with, Mapple hotels have been selected to run the food plaza at Hardiwar station. There are 106 other food plazas and fast food units that are at various stages of commissioning at places like Bhavnagar, Delhi Cantonment, Kanpur Central and others,” said R N Kalita, Director, Catering Services, IRCTC.

IRCTC is also planning to open about 56 food outlets at Delhi Metro stations across New Delhi.

Travel Food Services (TFS), a Mumbai-based brand which is running restaurants, cafes, food courts and manages lounges across major airports in the country, will launch similar executive lounges across railway stations like Vijayawada, Howrah and Jaipur by next April. These lounges would be anything between 1,500 sq ft and 3,500 sq ft.

"We share the common vision of changing the travel experience of passengers with the Indian Railways. Our big challenge is to organise the scattered F&B services that are available at railway stations," said Gaurav Deewan, COO, Travel Food Services.

Keeping in mind the heterogeneous consumers in railway stations, food items of all price range would be served at the railway and metro stations by the food companies.

Meanwhile, JumboKing, which operates more than 70 outlets in India has proposed 20 outlets across stations in New Delhi in places like IFFCO Chowk metro station and HUDA City Centre metro station.