Australian pizza chain Eagle Boys, which entered India in 2012, is picking up pace in India. Currently, there are 14 Eagle Boys outlets in India (six in Mumbai, three each in Pune and Hyderabad and one each in Chennai and Coimbatore). All the outlets are owned by the Krsna Foods, the master franchise for Eagle Boys in India. Outlets in other locations, including in Delhi, Hyderabad, Chennai, Kolkata and Bangalore are under development.
Eagle Boys plans to scale up to 50 outlets by end of this year and cross the 100 mark by mid-2016. Most of the outlets will be franchisee operated.
“The pizza market in India is very small with good international pizzas chains accounting for just around 1,500 outlets. But it’s growing very fast and the current number will exceed 3,000 smaller and bigger/international and local outlets,” says Rakesh Nanda, Director, Krsna Foods.
According to retail consultancy Technopak Advisors’ Saloni Nangia, pizza-centric chains have the highest market share among international quick service restaurants in India, and has the widest acceptance across consumer segments. “Both international and Indian pizza companies have developed the market for pizzas in India over the past two decades. While the market potential is strong, brands entering or re-entering the market will need a strong differentiated value proposition to be able to create an impact in the market,” she says.
In India, Eagle Boys outlets operate under three models: Express, Delivery; Dine-in. While the models have been created to cater to different customer segments, all of them follow a clear-cut location strategy. “We look for independent locations with front visibility. It has to be on the main road, close to corporate houses and student community with ample parking,” explains Nanda about the location strategy. The Express model is 400 to 500 sq ft and caters only for takeaways and deliveries. This model has 12 employees including managers. The expected monthly revenue is between Rs 5 – 8 lakh. The Delivery model outlet is typically around 600 to 800 sq ft and is designed for takeaways and deliveries with a small dine in. The outlet is manned by 15 employees and the monthly turn over for this model is Rs 7 to 12 lakh. The dine-in model is 800 to 1600 sq ft or more and is manned by a staff of 20 to 30. These outlets are catered for proper dine in (crockery and cutlery etc, more like a fine dine) deliveries and takeaways. The monthly sales expected is between Rs 12-40 lakh. The average investment in an express model is Rs 22 lakh; Rs 35-40 lakh for delivery model and up to Rs 60 lakh for the dine-in.
“In a year’s time we plan to enter several tier II and III cities. The goal is to be the number one pizza player in two years’ time,” Nanda claims. Eagle Boys’ sales turnover is India has jumped from Rs 50 lakh per month in 2014 to Rs 2 crore this year and the store count set to reach 25 next month from a mere five stores in 2014.
To read the longer version of the story, see the May-June issue of Food Service India