To Kathi Junction’s credit is the fact that it has given the quick-bite kathi rolls acceptance across India. With 80+ outlets spanning more than 23+ cities, Kathi Junction’s founders, Navneet Sajwan and Amita Sajwan, have now set their eyes on tapping the biggest share in the QSR kathi rolls’ market by offering franchise opportunities pan-India
Kathi Junction is just the beginning of an organised restaurant industry revolution that its founders Navneet and Amita Sajwan has in mind. This is due to the fact that Indian food brands have now begun to believe in themselves and are gaining rapid popularity. While the husband-wife duo have steered Kathi Junction to become a national brand, what is important is that they represent a breed that understands the dynamics of the restaurant industry in India.
Taking a retrospective view of their experience over the past several years, the duo feel that every food entrepreneur they meet is going through the same learning curve, making similar mistakes and that there is a need to help them. Says Navneet, “In 2009, an intention to get into the rapidly propagating food industry gave birth to the idea of opening a fast food store. While building the brand I had little help because we were the pioneers in selling kathi rolls in an organised way. There are so many critical pieces like format, market segmentation, real estate strategy, supply chain strategy, product development, and menu expansion strategy. We had to figure things out along the way.”
The management is now using their operational expertise to mentor aspirational entrepreneurs who want to run a successful food venture. He believes that the kathi rolls segment is a winner in itself, with different strengths and different leverages, across India to start with.
QSRs Promise a Bright Future
QSR (Quick Service Restaurant) has remained a key segment of the Indian food service market and has grown over the years. A number of QSR chains have flocked into India over the past few years with specific cuisines and product offerings fuelling the market growth. From metros and mini-metros, QSR brands are now expanding into smaller cities with smaller formats. The overall market for QSR is estimated to be around Rs 92,000 crore and has the potential to grow at an annual rate of 16%. Indian entrepreneurs will capitalize on the opportunity and it is likely that this will lead to the emergence of more organised chains in the next decade.
Looking at the immense potential, Navneet, “The opportunity is immense in the food and beverage industry. For Kathi Junction, we are exploring better opportunities for entrepreneurs by keeping it as simple as possible. The strategy of our brand is to offer the best product in terms of taste and quality that is affordable and provides more value for money.”
Hot Franchise Opportunity
With a strong first-mover advantage and fantastic recall, Kathi Junction has now inspired several QSRs across formats – from pure-play franchising to company-owned stores. The QSR brands of Indian origin, although much younger than the established foreign brands, are growing much faster due to better acceptance by Indian consumers and also localisation of tastes and preferences. Riding this trend, Kathi Junction has found its niche. And now, via franchising, they may just have a food conglomerate in the making.
On choosing a franchise business model for expansion, Amita says, “The Indian demographics are vast and every market is different from the other. The franchise model helps in faster growth as it involves investors’ interest directly. Since an investor has better knowledge of his or her local market dynamics, the operation of the stores becomes smooth, right from space finalisation to targeting consumers to tailored pricing. This model is a win-win situation for both.”
Partner for Tasty Profits
To become Kathi Junction’s franchisee, the brand is seeking ambitious investors who can give quality time to the venture. The company prefers that the space should be located in high footfall areas. Its low-cost model with moderate franchisee fee is a step towards its growth and the company’s lifetime chef management offer for the partners is an advantage for investors. The versatility of the product has become the USP of the company. People with aspirations from any part of the country can approach them to fulfill their entrepreneurial desires. In a world of burgers, pizzas and other fast food products, Kathi Junction has pledged to take the ‘roll’ rolling across the world.
Post association with the brand, the franchisee would be assisted with trained chef support as chefs are the most important assets of the QSR or food industry. Besides this, a partner would get immediate backup/replacement of chefs, dedicated relationship management for end-to-end support for setting up the store, startup material and ongoing support for day-to-day operations.
The brand plans to increase their number of outlets from 80 to 100 by March 2018. The concept of malls and organised shopping arcades is growing fast in small and medium towns across India and they expect their maximum business growth to come from this geography.
Interview: Recipe for Success
Read on to know Navneet Sajwan’s professional and entrepreneurial success recipe and the brand’s expansion plans
Could you elaborate about professional journey?
I am a management graduate and hardcore marketing professional. I was always inclined towards entrepreneurship. This led to the opening of our first Kathi Junction store in 2009. My wife Amita is a graduate in Economics with 10 years’ experience in the service sector. She has strong customer relationship experience.
What was the ‘wow’ moment of your entrepreneurial journey?
I would say that it was moving into the franchising world from my own outlet in 2009 that turned out to be a ‘wow’ moment. When people appreciated a product started by my own skills and said that they too would like to start a business like mine, it certainly was a high for me.
QSR is not an easy ballgame. How does your brand beat the odds in this evolving industry?
We just keep it as simple as possible – make it tastier, affordable and big value for money.
What role does location play in franchise success?
Location is very important for us. We look forward to locations with students, youngsters around. Our low-cost model is such that we focus just on the potential of footfalls in the area where we get queries from. Rest, it’s all the same for us.
What kind of future potential do you see in Tier IV and V towns?
We see good potential in the near future where bigger brands do not enter. Our low-cost model will be the key.
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