There is no doubt an atmosphere of uncertainty because of the current situation, however, we see this as an opportunity for the following reasons:
a) Food Delivery is still on and rising daily:
While retail has been completely locked down and is likely to stay locked down for a long time to come, food delivery is still on. Even after the lockdown period ends, it will be a long time before retail locations are open for business again. As options for entertainment are reduced to things one can do at home, businesses like delivery will recover a lot quicker than others. China is a case in point where the delivery business has increased since social distancing has become the norm.
b) Lower competition and expertise in Delivery:
A majority of businesses listed with the online food-tech aggregators like Zomato and Swiggy are dine-in first, delivery second restaurants. With dine-in affected, a large portion of these restaurants will shut down as they will find it difficult to sustain heavy rentals and staff salaries. The aggregators anticipate at least a 30% reduction in the total number of restaurants this reducing competition and increasing market share. Burger Singh, being a delivery first brand already has the expertise that puts us at an advantage.
c) Brand reliability:
In an atmosphere, where hygiene is a primary concern, both consumers, as well as (Third Party Aggregators) TPA's trust established brands a lot more than un-organised local kitchens.
d) Heavily Discounted Limited Period Investment:
The Burger Singh franchise has been discounted heavily, specifically keeping the current situation in mind. The cloud kitchen model has been made available at half the price of a regular Burger Singh franchise for a limited time period only! You can now open two Burger Singh Franchises for the price of one!
e) Non-prime, low rental, real estate is really cheap right now:
There is currently a huge inventory of 2nd and 3rd floor shops, not to mention the now non-operational retail spaces, available at very low rentals. Where most restaurant franchise deals require you to have a public facing outlet, a cloud kitchen can be set up anywhere. We are ideally looking for an area of 300-600 sq ft. It will be possible to sign up for rentals at heavily discounted prices. Our ideal rent bracket is 20-35k.
f) Multiple Brand options:
Tipping Mr Pink Pvt Ltd, the parent company of BS, also runs two other brands Bowl Hub (17 brands) and a new Biryani Brand. Between these three brands, we cover 4 out of the 5 highest sold cuisines in online delivery. Having these layers allows you to diversify your risk and serve multiple cuisines from the same kitchen. For a very small cost (under 2 lacs) a franchisee can increase the number of brands they operate from the same kitchen (with no additional franchise fee).
The things to keep in mind while looking for a location opportunity are:
a) High Residential Density Delivery area:
Our target audience is the average middle-class Indian between the age of 14-50. A high density of population with that demographic is the most ideally suited for Burger Singh delivery.
b) High Student population density:
Any area with a high number of PG's and residential students.
c) High demand, low supply:
Delivery areas that have medium to low options available in food delivery whilst having a reasonable spending capacity make extremely good delivery areas
d) Low Rentals:
Look for non-prime rentals with good delivery area. Special focus on 1st, 2nd, 3rd floor spaces that are typically not used for FNB.
e) Restaurant buy outs:
There are a lot of restaurant spaces that are shutting down. They will provide opportunities to take over existing spaces with equipment at very low prices.
f) Existing Restaurant co-sharing:
Existing dine-in restaurants with large kitchens that are not able to continue operations in this environment can also be ideal targets. They can add our equipment or utilize current equipment where possible to save costs and start operating as a Burger Singh delivery kitchen
d) Burger Singh list of recommended locations:
In major cities and where we have already mapped the geography Burger Singh will be able to provide a list of locations we have already scouted for opening outlets.
e) LOW RENTALS:
Most Important!! Look for locations with rentals between 20-35k per month. The lower the rental, the better your chances of making a bigger profit!
The minimum amount of space needed to open a kitchen that incorporates both operations and a good storage space is 300 sq ft of carpet area. However, we recommend looking for options with up between 500-800 sq ft delivery area as this gives us the future option of adding multiple brands and essential services delivery.
In the areas where Burger Singh outlets are open, they are doing between 80 and 180 orders per day. These numbers have been increasing every day and are expected to pick up quite a lot as time progresses. Bowl Hub is currently doing between 30 and 60 orders per day.
Restaurants can be started once they have an applied for status. These can be applied by making the applications online. This can be done easily and is not a problem.
Our first preference will be to have the lease in our (TMP) Name and sign our regular sub leasing contract with the franchisee. In case this is not possible right now, we are ok with franchisees having the lease in their name and we will reorganize this at a later state. Speak to Rahul, Paresh or Sanchit if you have doubts about this.
No. This is a special offer which is available only given the current situation and is already been made available at a very heavy discount. You can currently open two Burger Singh Franchises at the cost of one. Given the costs we incur for opening a franchise outlet, a further discount will not be possible.