Home Food Service South Indian Restaurant Chain Sagar Ratna to Create a Separate QSR Entity

South Indian Restaurant Chain Sagar Ratna to Create a Separate QSR Entity


South Indian Restaurant chain Sagar Ratna plans to create a separate QSR entity this fiscal under the umbrella of the parent brand. The groundwork for the big shift has already begun as the chain tries to spot out the products for the QSR model, says Murali Krishna Parna, CEO, Sagar Ratna. The QSRs may range between 400-500 sq.ft. ideally on high streets.

Commenting on the planned move, Parna says: “For QSR we need to understand what kind of product can be made ready at the counter to deliver the moment a customer orders. It could be something to do with packaging modification, innovation or a take away. For e.g. we are looking at how to wrap a dosa to keep it crispy, make it a roll and not make it soggy till the customer eats it. The main challenge is the accompaniments, i.e. the chutneys and the sambar which is served with our food. We have to spot out 4-5 products that can be worked upon for the QSR model.”

“We are getting some college students to understand the kind of timelines that customers look for today and do some market research for us in NCR. Our QSR format will be piloted in NCR,” adds Parna.

For its existing casual dining format, the restaurant chain will open 15 to 18 restaurants this financial year; majorly franchised and kiosk format and only 3 to 5 company operated outlets. Most of the The expected investment for the planned casual dining expansion is approx. Rs 2 crore to Rs 3 crore. “Our immediate focus is on achieving a 15 percent same store sales growth in the coming year. For this fiscal, we may close the year with Rs 75 crore to Rs 80 crore revenue (only from 49 company-owned restaurants,)” he mentions.

Parna reveals that currently the chain is trying to find all the possibilities for the QSR format while consolidation of current business, expansion, and experiment remains the immediate focus and priority.