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At a time when Dabur is focusing on rural India after witnessing a growth rate double that in the urban market over the past few quarters, its vice-chairman Amit Burman is eyeing a market outside India to boost revenues for Lite Bite Foods, his restaurant business. (Dabur does not hold any stake in Lite Bite Foods).
Burman is planning to open outlets of restaurant chain Punjab Grill — the flagship brand that accounts for 40 per cent of Lite Bite’s total revenue — in the UK, US, Canada, Australia, Hong Kong, Thailand and Abu Dhabi besides some other West Asian countries over next year.
“We are talking to potential partners for joint ventures (JVs) and franchising. Having a local partner reduces operational hazards,” Burman, who is the chairman of Lite Bite Foods, said. The company has not engaged any consultant to find partners. “In fact, people came to us with JV proposals from all these countries; we have not approached anybody so far,” he said, adding Lite Bite Foods would only explore cities with Indian migrants where Punjab Grill could easily get acceptance.
He did not give investment details, but said the company would open an outlet in each of the countries mentioned to start with. Further expansion would depend on success. Lite Bite aims to cross the Rs 500-crore mark by 2014, with more than 300 outlets in India and outside.
It currently operates 65 outlets under three verticals — quick service, casual dining and fine dining restaurant concepts. It also operates under brands like Zambar, Asia Seven, FrescCo, Pinos, Baker Street, Pollo Campero and Street Foods of India, besides about 10 Subway outlets in the national capital region.
To expand presence in India, Burman has decided to extend the franchise model to all restaurant brands. “So far, we offered franchise for the flagship Punjab Grill. We recently signed five-seven franchise agreements for other brands,” he said.
By September 2013, the company will open 14 outlets at the Mumbai airport — and 16 more by September 2014. So far, it has been operating seven outlets at the Delhi airport.
Depending on the company’s performance over next year, Burman said, the company might plan an initial public offering in three years.
Duty-free business
Lite Bite Foods recently tied up with Hamburg-based Heinemann to enter into the duty-free business. “The duty-free business is just starting in India. This is a volume game,” said Director Rohit Aggarwal. Heinemann, which operates at 22 airports across Europe, would now open shops at Indian airports through its JV with Lite Bite.
