There is a huge growth potential for homegrown brands in QSR segment

It is a universal fact that when it comes to having a quick bite or even enjoying a stomach-filling dish that can be made in double-quick time, there is hardly any competition for burgers. Moreover, it can be had even while on the go.

Cashing in on this unique phenomenon and the vast space that is for the taking, by way of an ever-increasing demand, there is a steady and significant rise in the number of players, each of whom markets on their uniqueness. Interestingly, most of them enjoy brisk business, irrespective of whether it is a chain's outlet or the guy down the lane.

One such brand that is enjoying a consistently impressive turnover is the popular burger chain - Leon's.

According to the promoters, the fast-growing homegrown QSR (Quick Service Restaurant) brand enjoys a customer base of around 60 lakh drawn from across 27 outlets in Bangalore, Mysore and Hyderabad. Additionally, they have 10 stores and 17 master franchisees. Leon's is achieving annual sales revenue of Rs 230 crore. When taken under any yardstick, it is a remarkable track-record considering that the chain was founded only seven years back in 2015.

Leon's was conceptualised and floated by popular Chef Suresh Muppala, Madhusudhan Chandrasekar and Sudhakar, who left their respective lucrative corporate careers and joined hands to start the first outlet in 2015. The idea clicked and their offerings were an instant hit with the customers.It has been growing from strength to strength. With their thrust on quality food and unique menu, which includes burgers, salads, wings, falafels and wraps with good options under both vegetarian and non-vegetarian categories, attracting overwhelming response, expansion was the obvious next step. Thus bolstered, the founders began branching out. Having established firm roots and on having a made a name for itself in the highly competitive segment, the promoters have set for themselves a target of 300 restaurants by 2028 through master franchisees.

They aim to be the best casual dining QSR brand in the country. A completely made in India brand, they focus on fresh ingredients sourced locally encouraging local economy. The menu offers a split between American and Turkish cuisines and is structured to include local preferences. The chef continuously innovates and adds to the recipe to enhance taste.

Speaking to Bizz Buzz exclusively, Sudhakar V, co-founder and Chief Financial Officer (CFO), Leon's, shares his firm's evolution and growth along with expansion plans across the country.

Excerpts:

How is QSR business growing in India? What percentage of the country's overall restaurant or F&B business comes from QSR?

This year, the QSR market has grown by 45 per cent compared to last year; the growth is due to an increase in new customer patronization post-Covid-19. Due to increase in work from home and a hybrid work mode in play, late-night orders have grown by 25 per cent, where burger has become the quick go-to food preference. Providing quality and healthy options during late-night hunger pangs have made Leon's stand out amongst the competitors. Leon's Breakfast in the QSR segment, which we experimented with last year, has become a huge success and has contributed to almost eight per cent of the revenue. It is a tribute to Leon's Breakfast offering that it has cemented its position as the market leader in the segment. We are now planning to expand our breakfast range in the coming months with more pocket-friendly and on -the-go delicacies.

From your overseas experience, where do you see India's QSR business vis-à-vis international platter?

India's QSR journey has just started. The branded market for home grown brands has huge potential in the country. We have just started scratching the surface.

How do you position Leon's as a QSR brand - upmarket or mid-segment?

With both dine in and takeaway options,we cater to individuals on the move and those who savour dine in experience. Each burger is handmade with recipes that are suited for the Indian palate making it just right and bears uber-chic flair.

What kind of foods do you serve at Leon's?

A completely made in India brand, we focus on fresh ingredients sourced locally as a means to encourage local economy. One is spoilt for choice, so to say. The menu offers a split between American and Turkish cuisines and is structured to include local tastes. Each dish on the menu is handcrafted, lending a personal touch that comes blended with the wow factor. The freshness of the ingredients and our in-house sauces is what most of our patrons have appreciated.We offer burgers, salads, wings, falafels and wraps with good options under both vegetarian and non-vegetarian categories. We are proposing to introduce new dishes into the immediate future.

How many outlets do you currently have? Are all of them only company-owned or there any franchisee-owned?

We have currently 27 outlets in Bangalore, Mysore and Hyderabad. We own 10 stores and 17 master franchisees. Foraying into Hyderabad has been our latest addition. We plan to open at least 15 outlets within the city by the year-end.

When do you plan to go pan India and what is the number of outlets that you are looking at over the next three years? How many of them would be company-owned and how many would be franchisees?

Leon's intends to grow up to 300 restaurants by 2028 through master franchisees. Currently, we are pursuing options in Andhra Pradesh, Tamil Nadu and Maharashtra. We are evaluating franchisee partners across the country. By next March, we are aiming to cover Tamil Nadu followed by other regions by next December.

Would you follow the 'one base kitchen and multiple outlets' model or something else?

Yes, we have started our business with this model to ensure that freshness and supply chain management maintains uniformity.We will carry forward the same model in other cities as well.

What kind of revenues your company is generating?

The company generated a revenue of Rs 160 crore in the fiscal ending March 2022 and is looking at about Rs 230 crore revenue in the current fiscal.

Would you continue with the same menu across the country or do you propose to tweak the menu and introduce new dishes catering to the local tastes?

Right now, we are going with our much-loved menu, which patrons have identified us with. We also keep experimenting with new dishes.

Going forward, would you look at any new format? Do you have any plans to open fine-dining restaurants as well?

As of now, we are into casual dining where all our loyal customers are comfortable and enjoy our dishes. In the meanwhile, we are trying to explore our own delivery ecosystem, in order to reach our target customers as much as possible.