InterGlobe Interested In Buying Burger King India Franchise

InterGlobe Interested In Buying Burger King India Franchise

Pritish raj
Written by Pritish raj
[email protected] | Noida | Published on: July-11-2019 02:32 PM
  • The franchise rights for Burger King are held by Singapore-based Everstone Capital.
  • Burger King has 140 outlets across the country and has recorded sales of Rs. 375 crore in Financial Year 18.

InterGlobe Group controlled by Rahul Bhatia is in advanced talks to acquire the Burger King India franchise from Private Equity Firm Everstone Capital for about Rs. 1,400 crore according to sources.

The franchise rights for the fast-food chain are held by Singapore-based Everstone Capital’s QSR Asia Pte, a holding company for its restaurant investments in the region. 

Two Buyout Firms based out of the US and a local private equity fund that was in the race to purchase the business have backed out because they were not able to match the expected price.

Operations Of Burger King

Burger King has 140 outlets across the country and has recorded sales of Rs. 375 crore in Financial Year 18. The business currently in a loss on the consolidated level but making a profit at operating levels of stores, showing that it can generate a surplus after meeting costs including staff, raw material, and lease rentals.

Currently, Bhatia is locked in a feud with his partner at Indigo Rakesh Gangwal over rights at his airline business. He has created a pool of his other business interests across hospitality, IT Services, travel booking, and luxury goods. He owns three restaurants located in the NCR Region.

Burger King has surpassed Starbucks in terms of sales despite entering two years after the Coffee Chain which has an alliance with the Tata Group.

Everstone Capital which has a $5 billion portfolio, invested in setting up the Burger King Franchise in India five years ago. It also runs some of the franchises in Indonesia although that won’t be a part of the deal negotiated with InterGlobe.

Burger King- Next big Brand

source:- The Flash Today

Burger King is spread across cities in North, West, and South India, with the northern part accounting of the most number of 60 outlets. Everstone has the rights to restaurant brands such as Coffee Bean & Tea Leaf, Copper Chimney, Bombay Blue and Noodle Bar in India, apart from owning rights to Domino’s Pizza in Indonesia. 

India’s restaurant and food services market were pegged at Rs 3.7 lakh crore as of 2018, according to a report prepared by CARE Ratings. The organized segment accounts for 35% of the market. 

The industry is expected to grow at over 10% over the next five years. Growth is being driven by a young working population with high disposable incomes, the report said. 

With ongoing feud between Bhati and Gangwal, this moves looks like an expansion of the company’s portfolio.

#burgerking #interglobe #indigo

About the author

Pritish raj

Pritish raj

Born and brought up in Bihar.
An engineer by education, the content creator, photographer and writer by profession and traveler and poet by passion.

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