California-based burger chain opening its first outlet in country in April
California-based burger chain Carl’s Jr., which is known for its premium-quality charbroiled burgers, is making a foray into the Indian market. CKE Restaurants Holdings, Inc., parent company of Carl’s Jr., has signed an agreement with Cybiz BrightStar Restaurants Pvt Ltd, owned by CybizCorp, to open 100 restaurants in India. CybizCorp will own and operate the restaurants as a master franchise. Ned Lyerly, president (International) at CKE Restaurants spoke to Forbes India. Excerpts:
Q. When will you open your first restaurant in India?
We will be launching in April 2015 with the first five outlets in the National Capital Region and Chandigarh. We expect to open our first outlet either in South Delhi or Central Delhi.
Q. How many outlets are you looking at?
We are looking at opening 100 outlets over 10 years, but it could happen within a shorter time frame as well. Initially, we are looking at tier one cities, but we will eventually move to tier two cities too.
Q. Can you share your investment plans for the India market?
There is a broad range of investment required for a restaurant, which at the lower end, is a quarter to a million for a food court kiosk; for a large, free standing restaurant, it can be over a million dollars. I think a ball park investment figure will be around $50 million for 100 restaurants.
Q. The Indian burger market has seen many new entrants. How do you plan to differentiate yourself from the other players?
We are positioned between low-priced burger players (McDonald’s, KFC, Burger King) and premium burger chains (Fat Burger, Johnny Rockets). We offer the most premium burger you can get in this space, but at the price, value and convenience of a fast food.
While our positioning is to reach the mass consumer base, we won’t be a low-priced provider. It might be priced a bit higher (10-15 percent higher than competition), but you get more value for what we offer. We will add elements that other brands don’t provide. So, we will have an all-you-can-drink beverage bar where you can pay for one beverage and have unlimited quantities of it. The beverages will include soft drinks and beer.
We will offer a modified table system where you can order at the counter, but we will deliver it to your table so that it is more personalised. Our food products are made fresh to order in such a way that it is still a fast service experience. Our typical service time is 3.5 minutes.