Nov 1, 2018
After replacing Coca Cola with Pepsi, Jubilant FoodWorks Ltd has started a test run of a Chinese fast food venture, its third restaurant brand in India and the Chinese Kitchen is the working name of the listed food chain’s first independent venture.
Jubilant also operates Domino’s Pizza and Dunkin’ Donuts in India.
The Chinese Kitchen is currently in test-run stage at a store in New Delhi, and is based on mass-priced Chinese cuisine. JFL is leveraging its backend synergies on the same and this will be its first home-grown brand.
Actually JFL is seeking to capture a niche in a fast-growing segment that has only a few national operators such as Mainland China owned by Speciality Restaurants and food entrepreneur Ashish Kapur-promoted Yo! China. And unlike other quick service restaurants, one can operate pizza and Chinese models at 27-30% of the food cost and yet meet per-head consumer spends expectations.
The food cost at value-pricing in other QSR formats is usually over 42%, which is a significant margin disadvantage.