In the rapidly evolving landscape of India’s organized Quick Service Restaurant (QSR) sector, Wow! Momo, a home-grown brand, is carving out a unique niche by championing local flavours and expanding its presence both domestically and globally. Despite the dominance of international giants like McDonald’s, KFC, Domino’s, Pizza Hut, Burger King, and Taco Bell in the QSR industry, Wow! Momo has been steadily gaining ground.
Founded in 2008, Kolkata-based Wow! Momo has witnessed remarkable growth over the past year, with its revenues surging from Rs 222 crore in FY22 to over Rs 400 crore in FY23, as reported by Tracxn. During this period, the chain has expanded its footprint, increasing the number of outlets and its reach across more than 30 cities.
Murali Krishnan, co-founder and CMO of Wow! Momo, sets an ambitious target, stating, “Our goal is to reach a top-line revenue of Rs. 650–700 crores this year, up from Rs 435 crores last year.”
What began as a humble venture with just Rs 30,000 in initial investment, one table, and two part-time cooks has now transformed into a Rs 2,000 crore enterprise. The brand name, Wow! Momo, was chosen with the aim of delighting customers.
Krishnan emphasizes the brand’s evolution beyond being solely product-focused, highlighting their transformation into a logistics powerhouse. This transition ensures the timely delivery of momos and other ingredients to their 620 stores every day.
Expanding Horizons: While Wow! Momo initially specialized exclusively in momos, it has strategically broadened its horizons. In 2021, the company entered the FMCG segment by introducing frozen and ready-to-eat momos, available on major e-commerce platforms and through 1,000 touchpoints in modern retail outlets.
To further diversify, Wow! Momo launched Wow! China in 2019 and Wow! Chicken in 2022. In 2023, the brand unveiled Wow! Eats, bringing together all three brands under one roof. The first Wow! Eats store was inaugurated in March 2023 in Chennai, followed by another in Hyderabad, with plans for a flagship store in Kolkata.
Additionally, Wow! Momo is gearing up to introduce Wow! Kulfi as a new vertical. While Wow! Momo remains the primary revenue driver, Sagar Daryani, co-founder and CEO, envisions significant potential in its diverse verticals.
Key Developments to Anticipate: Wow! Eats will encompass all four verticals: Wow! Momo, Wow! China, Wow! Chicken, and Wow! Kulfi. The first quarter of FY24 will witness an increase in the number of physical Eats stores to 10 across major metro cities. An upcoming Wow! Eats app will facilitate online ordering for dine-in and delivery from all three brands.
Market Potential: The Indian momo market is divided into two segments, with 97% remaining unorganized, served by local street vendors, and 3% being in the organized sector. Despite the small market share, the organized momo chains have an estimated value of $2.7 billion. With continued expansion and innovation, they are poised to capture a larger portion of this market, challenging unorganized vendors.
Krishnan notes, Wow! Momo’s efforts have transformed the snacking experience from unorganized to organized, making momos a mainstream snack.
Emulating Maggi’s Success: Wow! Momo aspires to become India’s next beloved snack, akin to the iconic Maggi. The brand introduced the “Momo burger,” known as “Moburg,” which has become a significant part of its product mix, contributing 12 to 18% of sales. Additionally, Wow! Momo aimed to change snacking habits from a “plate mentality” to a “tray mentality” to offer a complete meal experience.
Digital Marketing Dominance: Wow! Momo’s success has been driven primarily by digital and signage marketing, with distinctive yellow signs becoming synonymous with the brand. Approximately 60% of the marketing budget is allocated to digital channels, with a focus on vernacular ads and outdoor advertising. While television advertising hasn’t been explored yet, it’s in the brand’s future plans.
Expanding Reach: Wow! Momo’s business spans smaller metros and Tier 1 cities, with Kolkata leading as the largest market, closely followed by Chennai as the second-largest. Revenue sources include cities like Kolkata, Hyderabad, Ahmedabad, Kanpur, and Chennai. The brand has also made inroads into Tier 2 and Tier 3 markets, including Bhubaneswar, Lucknow, Indore, and Bhopal, where it has found success.
Distinguishing Factors and Global Ambitions:What Sets Wow! Apart from international fast-food chains, Momo’s status as one of India’s largest homegrown “Made in India” success stories All stores are company-owned, and the founders are actively involved in every aspect of the business. This hands-on approach, tailored to local consumers, differentiates Wow! Momo and contributes to its success.
Wow! Momo is now eyeing global expansion over the next three to four years, aiming to replicate its domestic success on a global scale.