Saturday, February 27, 2021

You want fries with that? Burger King’s India franchise pulls off whopper IPO

In the pandemic, hygiene-aware customers are choosing cheaper meals and faster delivery options.

Other News

AmBank to pay RM2.83 billion settlement over 1MDB scandal

This is in addition to the RM53.7 million penalty imposed by Bank Negara Malaysia and paid by AmBank Group.

AmBank bayar Putrajaya RM2.83 bilion disebabkan penglibatan dalam skandal 1MDB

Pembayaran ini akan menguntungkan rakyat Malaysia kata Menteri Kewangan Tengku Zafrul Aziz.

Palm oil churns trouble in Canadian ‘hard butter’ puzzle

The pandemic has increased demand for butter, so farmers are feeding extra palm oil derivatives to their cows to produce more milk fat.

Kes Covid-19 kembali melebihi 2,000, 11 kematian baru

11 lagi kematian dicatatkan menjadikan jumlah 1,111 kes.

Daily cases back over 2,000, death toll up by 11

2,253 new cases, 3,085 recoveries.

Shares in Burger King India more than doubled on its first day of trading on Monday in Mumbai.

The company, which owns the exclusive rights to launch and operate Burger King restaurants in Asia’s second most populous nation after China, raised 8.1 billion rupees (about US$110 million) in the IPO.

The IPO benefitted from the company already being a well-known brand globally and in India.

As pandemic restrictions devastate incomes and raise concerns over sanitation, a growing number of Indians are switching to cheap and clean fast-food chains.

India has the second-highest number of cases at nearly 10 million after the US, and people are reluctant to dine out and are switching to outlets that offer take-out and home delivery services.

Fast-food chains are a well-established concept in India now thanks to early entrants such as McDonald’s and KFC.

When McDonald’s launched in India in the mid-1990s, it had to adjust its prices and menu to attract consumers in a very price-sensitive market.

Local menu tweaks like introducing vegetarian options and replacing beef with more popular chicken created brand loyalty.

Another company that has grown along with the burger sector is condiment supplier Mrs Bector’s Food, which is due to have its market debut on Tuesday.

Burger King launched in India in 2015 and today has 268 in 57 cities. It has about 5% of the country’s so-called quick service restaurant market.

Although the global giant is still not profitable in India, financial experts expect that to change.

Burger King India plans to use some of the IPO funds to expand its network to about 300 restaurants by the end of next year and at least 700 locations by the end of 2026.

But the chain faces stiff competition. Other Western fast-food brands battling to win customers in India include Wendy’s, Domino’s and Subway.

This month, Wendy’s announced it would push further into the country, with plans to open 150 new outlets and 250 cloud kitchens which make food just for home delivery.

Follow us on Telegram for the latest updates: https://t.me/malaysianow

Subscribe to our newsletter

To be updated with all the latest news and analyses.

Related Articles

India, Pakistan militaries agree to Kashmir border truce in rare joint statement

Kashmir has long been a flashpoint between the neighbours, which both claim the region in full but rule only parts.

Burger King berwajah baru dalam fasa pandemik

Burger King umum rancangan mengembangkan pasarannya sebanyak 20% menjelang akhir tahun termasuk pelancaran identiti visual baru.

New look for Burger King as it announces major expansion despite pandemic

Burger King Malaysia plans to grow its restaurant base by 20% by the end of the year.

Climate activist, ‘the face of India’s crackdown on dissent’, granted bail after arrest

Activists have called her arrest a warning to those who want to show support for anti-government protests and an 'attack on democracy'.

Indian vaccine makers say they can quickly adapt jabs to tackle variants

India is the world’s biggest maker of vaccines, and its companies have promised to produce billions of doses of Covid-19 shots.