QSR chain Jumboking aims to open 250 outlets over next 5 years: Founder

New Delhi, Sep 20: Homegrown quick service restaurant (QSR)chain Jumboking is looking at opening 250 outlets in the next five years as it expands its footprints across the country, its founder Dheeraj Gupta has said.
“We plan to add 50 stores a year, every year for the next 5 years… We plan to open 250 outlets over the next 5 years. We will be opening up new markets outside of Mumbai for the same. In terms of brand positioning, we are now the chain selling the ‘the widest range of vegetarian burgers’ and this will enable our expansion plan,” Gupta told PTI.
Each store opening requires an investment of Rs 30 lakh, he said, adding that “the annual capex plan towards stores will be Rs 15 crore”.
Jumboking at present operates 108 outlets spread across Mumbai, Pune, Thane and Lucknow.
The company, which does not disclose its revenue, said the restaurant business has been severely hit this year due to the ongoing COVID-19 pandemic.
“However, our extensive investments in previous years in creating the right partnerships to outsource the back-end operations have ensured that we will bounce back strong. This year has been more about survival, however we are very optimistic that we will see a V-shaped recovery,” Gupta said.
A V-shaped recovery is a quick and sustained recovery in measures of economic performance after a sharp decline.
When asked if Jumboking is looking at raising funds to support its expansion plans, Gupta said: “We are looking to reach a critical size of 150 to 200 stores first. We are well on track, as for us Mumbai, Pune and ROM (Rest of Maharashtra) is a large market of over 300 stores, we can expand to this number from internal accruals alone.”
“However, if the opportunity arises and we find a like minded investor we will raise funds to support a national rollout in 2022,” he said.
Gupta is also looking to invest in a few promising business models in the restaurant business that have achieved at least Rs 10 crore in turnover.
“We are speaking with some entrepreneurs who wish to join us to learn from our experience. The idea here is to shorten their curve of reaching 100 stores. Typically that number is the inflection point for rapid growth for most entrepreneurs,” he said. (PTI)