After studying the market for about three years, California-based premium burger chain, Carl’s Jr -- a brand that has been endorsed by the likes of Paris Hilton, Kim Kardashian and Padma Lakshmi, is set to open its first shop in India next April. The maker of charbroiled thickburgers has also developed customised menu that would melt well in India pallets. In the long term, India would become the largest market, in terms of total outlets, outside its home market the US, says Ned Lyerly, president (international), CKE Restaurants Holdings, which runs Carl’s Jr, in an interview with Sounak Mitra. Edited excerpts:
All burger chains are entering India, making it crowded. How would you differentiate yourself from the rest?
We have been studying the market, and have invested about $1.5 million in India in consumer research, product development and tasting trials during the past three years. We take time to start operations in any country. We are already present in 33 countries now, and this would go up to 40 by 2015 end.
Every market is different, so is India. Our burgers are unique, and not like any others. It would be a bit premium, but our unique cooking and delivery makes us desirable. We have spent about two years in customising the menu. We’ll stay premium, low pricing is not on our agenda.
How different would be your offering in India?
Fir time in our history, we are introducing vegiterian burger. This, we may also take to other markets, like the West Asian countries, and even to the US. We have never spent so much time in developing veg menu. Quality, hospitality and innovation would be the key factors. But, we never change some of our core practises. That’s same everywhere, like the charbroiled burgers.
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How many outlets do you plan to open in India?
Cybiz BrightStar Restaurants, our partner for the North and West in India, will be opening at least 100 outlets in the first five years. Over the next five to seven years, India would have second most number of outlets, after Mexico, outside the US. Mexico will double in the next five years to about 400 stores, but the market has a threshold. But, the opportunity is huge in India. In the long term, India would be our largest market, in terms of total outlets, outside the US where we have 2,900 stores.
How fast are you growing in the international markets?
We have doubled our international presence in the past four years, and we would double in the next four years. Besides India, new markets include, Australia, Columbia, Bangladesh, among others.
Revenue wise, how much do international operations contribute?
At the moment, about 10 per cent of our revenue comes from international market. Over the next five years, we hope this to grow up to about 35 per cent. And eventually, revenue from international markets together would equalize with revenue from home market, in the long run.
Which are the markets giving you higher ticket size?
Markets like New Zealand, Singapore and Columbia.
Would you appoint a separate franchisee for the rest of India?
There is no plan as of now. We’ll see how the association goes with our current partner, and then decide on expansion.
You have created hype in each of the markets you entered, with your promotions, endorsements, etc. What is the plan for India?
We are evaluating certain things. But, yet to take a call. Celebrity endorsements, and other promotions would be decided closer to the launch date.