Yellow Tie Hospitality, India’s first professional food and beverage franchise management company, was started by Karan Tanna in January 2016. The company is known for providing comprehensive support to franchise owners to scale profitability. Apart from this, Yellow Tie Hospitality is also credited for bringing Genuine Broaster Chicken to India.
Yellow Tie Hospitality has on Wednesday announced that it has partnered with UAE based street food brand Just Falafel. The company is investing US $3 million on Just Falafel and plans to open its first store in Mumbai.
Going forward, Yellow Tie will open five stores in metros and in Tier- II cities.
“We are excited to bring the celebrated street food brand from UAE to India. International brands do see a lot of potential in India and are ready to explore Indian terrains without compromising on their brand value. We at Yellow Tie not only facilitate these brands to enter India but also constantly work towards expanding them without undermining the quality and experience,” said Founder & CEO, Yellow Tie Hospitality Management LLP, Karan Tanna.
Indiaretailing’s Charu Lamba spoke to Tanna to find out what are the future plans of the company, which are the new brands they are planning to introduce to India and a lot more. Read on to find the deets on the existing restaurants, their expansion plans and where YTH sees itself five years from now.
Throw some light on the business model of Yellow Tie Hospitality.
Yellow Tie Hospitality develops and regionalizes international brand or creates their own brands to grow them through professional franchise management. YTH provides all the back hand support like civil contracts, staff recruitment and training, mobile application based store management, raw material door step delivery, comprehensive SOPs, marketing support to the franchise owners, making them better equipped to focus on last mile customer experience and a lot more.
Elaborate on the brand portfolio of Yellow Tie Hospitality.
Yellow Tie Hospitality is a progressive food and beverages (F&B) franchise management company. Our expertise is to design and manage scalable restaurant concepts by optimizing outlet level economics, smart menu engineering, vendor sourcing, managing supply chain/logistics, increasing efficiencies at outlets and focusing on marketing and brand building. Yellow Tie believes in giving a sense of partnership to franchise owners and making them owners to drive brand’s growth.
Yellow Tie Hospitality owns India license rights for America’s Heritage Genuine Broaster Chicken and is on track to open 50 outlets by end of 2017.
In 2017, the company aims to have 10 leading F&B brands in its portfolio. With aggressive franchise growth plans, Yellow Tie Hospitality is all set to register quick and strong growth in India’s fast growing F&B industry.
How many outlets do you have of each brand? Any plans to expand them further?
Genuine Broaster Chicken’s first outlet was opened in August 2016 in Mumbai. And since then five outlets have been opened in Kolkata and one each in Raipur, Surat, Hyderabad, Patna and Lucknow.
We will be soon opening restaurants of our in-house brands Dhadoom in Ahmedabad and Bengaluru.
As far as expansion plans are concerned, we plan to open 50 outlets of Genuine Broaster Chicken, three outlets of Twist of Tadka and 20 outlets of Dhadoom by end of 2017.
We are also planning to introduce one more international brand in India with 5 outlets spread across various cities by the end of June and will take BB Jaan to SouthEast Asia by this year end.
How much are you planning to spend to aid the expansion plans?
We will be spending around US $3 million to expand Dhadoom and Twist of Tadka and to launch the new international brand. Apart from this, we will be investing US $2 million to expand Genuine Broaster Chicken in 2017-18.
Any plans to raise the funds?
Yes, we are talking to family offices for a raising approx US $5 million. We are expecting to raise the funds by third quarter of this year.
Share your future plans.
We will soon be opening two outlets of Genuine Broaster Chicken in Delhi and Bengaluru and one each in Gangtok, Imphal, Guwahati , Bhubneshwar, Pune and Varanasi.
Share your total sales projection for current financial year.
Total sales projection for this financial year is Rs 25 crore.
Throw some light on the revenue that the brand clocked in the previous financial year and projections for current financial year.
We closed last financial year at a healthy EBITA of 25 per cent and we are expecting 5 fold growth in revenue this year. Last the revenue of the company stood at Rs 6 crore.
Where do you see Yellow Tie Hospitality five years from now?
After 5 years, we see YTH as a one of the leading F&B franchise management companies of the world having over 1,000 stores under management. We will be the first company to take Indian brands to global markets through organized franchise management. YTH will be recognized as leading Indian company go to franchise management brand for any global company to expand in India and any Indian company to expand globally.