The company is also focusing on establishing a presence in key locations along major travel routes originating from Delhi
New Delhi: Noida-based restaurant chain Bansooriwala’s eyes an increase of over 120% at Rs 25 crore in the ongoing fiscal year 2024-25, a top executive told IndiaRetailing.
“We have set ambitious expectations for the fiscal year 2024,” said Vikrantt Singh, founder and managing director, of Bansooriwala’s. “This goal is fueled by recent developments, such as the opening of our fourth outlet on the bustling Delhi-Jaipur Expressway, and our plans for further expansion,” he added.
The chain is available on Swiggy, Zomato, as well as Magicpin and in the financial year 2023-2024, clocked approximately 47%-48% of revenue from quick commerce platforms. The company has strategically capitalized on these platforms to broaden its customer base and enhance brand visibility in the digital space. Its Greater Noida Alpha 1 outlet has outperformed nearby competitors in terms of orders received via e-commerce platforms.
In an interaction with IndiaRetailing, Vikrantt Singh, founder and managing director, Bansooriwala’s talks about the brand’s journey and future aspirations.
Edited excerpts…
What is the business model of the company?
We operate across various domains. Primarily, we engage in Business-to-Consumer (B2C) transactions through our retail outlets, catering to individual customers’ needs.
We cater to corporate clients, particularly for bulk orders related to events like weddings. Furthermore, our products are also available in cafeterias, where companies purchase them for resale in their respective regions. While the majority of our business, around 98% to 95%, is focused on direct B2C interactions, a smaller portion, approximately 2-3%, caters to smaller outlets, caterers, and event organizers who purchase our products for presentation at their events.
How was the financial year (FY) 23-24 in terms of revenue?
We started our journey in the year 2021. In the fiscal year 2023-24, we achieved a turnover of close to Rs 11 crore, a notable increase from Rs 1.51 crore and Rs 6.51 crore in FY 2021-2022 and FY 2022-2-23, respectively.
Looking ahead to the fiscal year 2024-25, we aim to further amplify our revenue by 2.2 times, demonstrating our commitment to sustained growth and success.
Have you raised funds as of now?
As of now, we have opted to remain bootstrapped and have not raised external funds. That is because at this stage it is crucial to focus on increasing the brand value without diluting ownership. If we decide to bring in investors in the future, we aim to do so while minimizing any dilution of ownership.
What was the most sold food category in 2023?
In 2023, our chaat category, featuring popular items such as Tikki, Golgappe, Dahi Bhalle, Aloo Chaat, Raj Kachori, Pav Bhaji, Samosa, Kachori Sabzi, and Chole Bhature, remained consistently popular throughout the year. Additionally, our sweets category witnessed remarkable traction during festivals and wedding seasons, comprising a substantial portion of our sales. The North Indian snacks category also made a notable contribution, accounting for approximately 20%-22% of our total revenue, largely due to its inclusion of daily essentials.
Tell us about your marketing approach.
We allocate approximately 2% of our revenue towards marketing. As we are still in the early stages, our current expenditure in this area reflects our need to establish brand awareness and attract customers. However, as our business grows and revenue increases, we anticipate scaling up our marketing efforts accordingly. As we progress, we expect our marketing budget to expand in tandem with our business volume, allowing us to reach a broader audience and further establish Bansooriwala’s presence in the market.
Any notable technology implementation at Bansooriwala’s?
One of our key initiatives is the development of a proprietary application aimed at reducing our dependency on third-party delivery platforms like Swiggy and Zomato while enhancing the overall customer experience. While significant investment in technology is currently on hold as our resources are allocated towards capital expenditure, we have ongoing discussions and planning sessions regarding our technology roadmap.
Specifically, we envision an application that allows customers, especially those in office areas or on the go, to pre-order their meals with a 15-minute preparation window, ensuring their food is ready and fresh upon arrival.
Additionally, we aim to provide a 5-minute grace period to accommodate any unforeseen delays, ensuring a hassle-free and convenient dining experience for our patrons. For example, if a customer is assigned table number 24 from 1:15 PM to 1:30 PM and arrives a little late, we will promptly serve their food at 1:20 PM, minimizing any inconvenience.
What’s the most challenging part of your business line and how do you overcome it?
The most challenging aspect of our business is navigating the fluctuating prices of raw materials. For instance, just two and a half years ago, the cost of a 15 kg tin of ghee was around Rs 4,500, but now it has more than doubled, reaching over Rs 9,000 during peak seasons. This significant increase in raw material costs puts pressure on our profit margins.
Despite that, we’ve managed to maintain our competitive pricing by increasing our selling prices by only 20%, although it meant sacrificing some of our profit margins. On the positive side, our sales volume has increased substantially over time, which helps to offset some of the impact of rising costs.
Another challenge we face is the inability to claim input tax credits on certain expenses, such as marketing and purchasing raw materials like ghee, due to the nature of the restaurant business. While this adds to our operational costs, we remain hopeful that the government will address this issue shortly, as they are actively working to support businesses like ours.
What are your expansion plans?
Our expansion strategy in India involves stepping beyond the boundaries of Delhi NCR. Currently, we’re focusing on establishing a presence in key locations along major travel routes originating from Delhi. These include routes to Jaipur, Chandigarh, Nainital via Muradabad, Dehradun via Meerut, and Lucknow via Mathura Agra. We’re actively scouting for prime locations, prioritizing accessibility and visibility and the next phase of our expansion will depend on securing suitable locations along these routes.
Additionally, while international expansion is on our radar for the future, our immediate focus remains on solidifying our position and footprint across India. Within the next few months, we anticipate making noteworthy strides in our expansion journey, with new outlets poised to enhance Bansooriwala’s presence in diverse regions and communities.
