From those early days of long queues at Nirula’s to McDonald’s to now gourmet burgers which can be ordered on Swiggy and Zomato – the burger market in India seems to have grown by leaps and bounds. To aptly put it, we have made a long journey from Burger King to Burger Singh! “Indian consumers’ fast food preferences have significantly shifted due to urbanisation, rising incomes, and changing lifestyles. Initially, western-style fast food faced resistance due to cultural preferences for home-cooked meals and a lack of vegetarian options. Post-liberalisation in the ’90s, international fast-food chains entered the market, adapting menus to include vegetarian options like McAloo Tikki burgers and Veg Pizzas. The economic boom and globalisation spurred demand for convenient and tasty fast food, with a TIFAC study indicating that a third of youths aged 14-19 consumed fast food daily,” Anand Ramanathan, partner and consumer products and retail leader, Deloitte India, told BrandWagon Online.
The quick service restaurant market in India was valued at about Rs 171.9 billion in FY22, as per market research firm Statista. This is further estimated to grow to over Rs 431 billion by FY27. Yet India is also home to an unorganised sector. The report further stated that roadside eateries, Dhabas, and food stalls, the traditional fast food formats formed a major part of the unorganised sector. The organised fast-food sector in India is dominated by global food chains like Domino’s, McDonald’s, KFC and Pizza Hut.
According to GlobalData’s menu intelligence database, burgers are part of food categories available in restaurants, alongside salads and sides and curry categories. GlobalData’s analysis of the burgers category in India reveals that it accounts for a 19% share among all types of restaurants in the Indian food service market.
Queries sent to McDonald’s and Burger King remained unanswered, till the time of publishing this story.
Bunbelievable!
According to a National Restaurant Association of India (NRAI) report, the Indian burger market is projected to reach Rs 1,581.4 billion ($20.4 billion) by 2025, with a significant portion coming from homegrown brands. “Our journey as the third largest Burger chain in India with over 115 stores in Mumbai has been marked by resilience and steady growth, achieving a 26% to 40% CAGR. Our emphasis on dependability, integrity, and sustained customer satisfaction has led to exceptional ROCE (return-on-capital-employed) through efficient capital deployment and innovative customer-centricity, “Dheeraj Gupta, founder, Jumboking, said.
Experts believe that the rise of homegrown burger brands in India can be attributed to several factors that cater to the evolving preferences of Indian consumers. One key factor is the localisation of flavours. Indian consumers enjoy familiar tastes, and homegrown brands have tapped into this by offering unique burger options that blend international influences with Indian spices and ingredients. Another significant aspect is the emphasis on value for money. Price sensitivity is crucial for Indian consumers, and homegrown brands typically offer competitive pricing compared to international chains. Additionally, these brands are believed to provide larger portion sizes, catering to the Indian preference for value-based meals. “There’s a growing demand for freshness and quality among consumers. Homegrown brands often highlight their use of fresh, high-quality ingredients such as local and seasonal produce or freshly prepared sauces to differentiate themselves in the market. Brand identity and ambience play a vital role as well. Homegrown brands can create a strong brand identity that resonates with local sensibilities, attracting consumers seeking a more personalised experience,” Ramanathan said.
It is believed that marketing and social media presence are other factors contributing to the success of homegrown burger brands. These brands leverage social media effectively to connect with young, tech-savvy consumers. They may use relatable humour or adopt influencer marketing strategies to build brand loyalty and engage with their target audience. Furthermore, industry experts assert that data-driven marketing and targeting will also play a crucial role in customer acquisition are also crucial strategies. International brands utilise data analytics to target specific demographics and personalise marketing campaigns, while homegrown brands excel at leveraging social media for targeted ad campaigns and building strong customer relationships.
Lettuce be frank!
According to industry experts, in the ’20s, consumer preferences have evolved to emphasise variety, healthier options, and convenience. Indian consumers are now exploring new cuisines and flavours, seeking healthier fast-food choices with fresh ingredients, salads, and grilled items. The rise of online food delivery platforms such as Zomato and Swiggy has further driven fast-food consumption, with the online food delivery market in India valued at $4.2 billion in 2021, according to RedSeer Consulting. Experts highlight that offline stores hold value for many due to the in-person experience. However, burger brands typically prioritise offering quick and value meals over creating a rich dining ambience. Unlike other restaurants, brands such as McDonald’s, Burger King The Burger Club brands such as Burger Singh, and Wat-a-Burger do not focus extensively on providing a high-end restaurant experience. WanderBurgs, a homegrown Indian burger brand that operates as a cloud kitchen-based b claims that online accounts for 80% of its distribution while takeaways or self-pickups drive accounts for 20% of sales. In contrast, Jumboking which has stores throughout Mumbai, Delhi-NCR, Hyderabad, and Pune claims that offline stores account for 80% of its sales and the remaining 20% comes from online. Meanwhile, yet another burger brand Beyondburg’s claims to focus on dine-in experiences. The company stated that as a result, approximately 60% of sales occur offline at restaurants. The remaining 40% comes from online ordering platforms. “At Beyondburg, we prioritise quality while optimising costs and offering value-driven pricing. Our commitment to using the finest ingredients, minimising waste, ensuring operational efficiency, and providing affordable yet delicious options reflects our dedication to delivering a superior dining experience. With menu options starting at Rs 140, we strive to maintain both the margin and market share without compromising on our standards of excellence,” Mohammed Anas, co-founder, Beyondburg Inc., said.
For example, the starting selling price for brands like McDonald’s is about Rs 70, for an Aloo tikki burger. Interestingly, Burger King’s Crispy Veg also costs Rs 70. Burger Singh’s veg snacker burger is priced at Rs 79, while Burger Club’s veg club burger costs Rs 69.
Given that the prices of these food items remain almost constant despite the inflation in raw materials, maintaining a profit margin may be a challenge for these brands.“We optimise costs by sourcing high-quality ingredients locally, streamlining our supply chain, and leveraging technology to improve operational efficiency. This approach not only helps us maintain margins but also supports small vendors. Additionally, we offer value deals and combo meals to provide more for less, ensuring our customers receive great value without compromising on quality,” Sukriti, chief marketing officer, WanderBurgs, said.
Meanwhile, as the burger market continues to grow it is believed that both international and homegrown brands will constantly tweak strategies to stay competitive. “One major trend is the increased focus on customisation to cater to consumers seeking personalised experiences. International brands may invest in kiosks or apps for greater burger customisation, while homegrown brands leverage their understanding of local tastes to offer unique ingredient options and regional flavour variations,” Ramanathan said.