Jubilant Foodworks Score: Purchase, execution to be key to pact with Popeyes


JUBI has signed an unique Grasp Franchise Settlement with Restaurant Manufacturers Worldwide (RBI), to personal and function Popeyes shops in India, Bangladesh, Nepal and Bhutan.

JUBI has received unique franchise rights for Popeyes model in India, Bangladesh, Nepal and Bhutan. Popeyes is a number one QSR Rooster model with 3,400 shops globally. JUBI would now faucet into the fast-growing, under-penetrated QSR hen market in India that’s dominated by KFC at current. We anticipate JUBI to open 250 Popeyes shops in 5 years; if executed nicely, it might probably garner valuation of about $1 bn in 5 years. We like JUBI’s new-found aggression and portfolio strategy and can regulate investments in expertise and expertise to make a profitable transition.
JUBI baggage unique franchise rights for Popeyes model

JUBI has signed an unique Grasp Franchise Settlement with Restaurant Manufacturers Worldwide (RBI), to personal and function Popeyes shops in India, Bangladesh, Nepal and Bhutan. Additional particulars round tenure of MFA, royalty/charges and retailer opening dedication aren’t disclosed. Popeyes is the world’s third largest QSR Rooster model with system gross sales of $5.1 bn in 2020 throughout 3,400+ shops globally.

Popeyes menu contains of fried hen, fried shrimp and a signature hen sandwich. Launched in Aug 2019, Popeyes hen sandwich was offered out within the US in two weeks. Popeyes has, since then, launched into an aggressive world footprint enlargement spanning China, UK, Mexico and South Asia.

Popeyes would enable JUBI to faucet into the fast-growing QSR Rooster market

The market alternative for QSR Rooster in India is 70% that of Pizza/Burger QSRs as class’s core positioning doesn’t cater/attraction to the nation’s ~25% vegetarian inhabitants. That stated, KFC India considerably competes in opposition to Burger and Biryani (via rice bowls). KFC India dominates the class with 460 shops and system gross sales of ~`14 bn (FY2020). KFC’s unit economics and payback interval is a notch under Domino’s however significantly better than Burger chains. QSR hen is a excessive progress, under-penetrated class with low aggressive depth. It stays to be seen how nicely JUBI efficiently localises the menu to efficiently compete in opposition to KFC.

We like JUBI’s new-found aggression and portfolio strategy

JUBI is on an aggressive portfolio augmentation journey with the launch of in-house manufacturers (HK and Ekdum!), strategic/monetary investments in DP Eurasia and Barbeque Nation and MFA with Popeyes. If executed nicely, JUBI could finally take pleasure in an unparalleled platform/community advantages (widespread ordering platform (Tremendous App), higher defence in opposition to meals supply aggregators, procurement and supply synergies). We’ll regulate initiatives JUBI takes to strengthen organisation capabilities (funding in expertise, expertise and processes) to make this transition.

 

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