Bikaji, the ethnic snacks player, is taking a cautious approach in entering the quick service restaurant (QSR) business, in contrast to its competitor Haldiram’s aggressive expansion. The company plans to roll out its QSR strategy gradually over the next 18-24 months, prioritizing the establishment of a strong base kitchen to maintain consistency across its restaurants.
Building a Strong Foundation
Rishabh Jain, CFO of Bikaji, emphasized the importance of a robust base kitchen for ensuring uniform quality across all outlets. Currently, the company operates two restaurants in Mumbai, but it aims to enhance its infrastructure by establishing a frozen plant in Bikaner. Once operational, the plant will undergo trials for all food items before the QSR expansion plan is implemented.
Focus on Quality and Expansion
Bikaji intends to expand its QSR presence initially in nearby regions like Rajasthan, leveraging its reputation for quality and taste at competitive prices. Despite facing competition from smaller, local players, the company remains confident in its ability to retain market share through a diverse product range and strategic pricing.
Addressing Market Challenges
Manoj Verma, COO of Bikaji, highlighted the company’s response to market challenges, including offering discounts on flagship products like Bikaneri Bhujia to incentivize customer loyalty and combat competition. Additionally, Bikaji aims to pass on cost savings from lower wheat and oil prices to consumers while acknowledging the persistent presence of competition in the segment.
Long-term Growth Prospects
With a focus on packaged snacks and sweets, Bikaji sees substantial growth potential in India’s estimated ₹7,000 crore snacks market. Despite its current revenue of ₹2,000 crore, the company envisions significant expansion opportunities, particularly in untapped regions and export markets. Bikaji aims to sustain its historical growth rate of 20% CAGR over the next decade, surpassing industry benchmarks and reinforcing its market leadership position.
