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BACKGROUND "When the People of West Can Sell Their Burgers

BACKGROUND "When the People of West Can Sell Their Burgers

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Published by praveen1510

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Published by: praveen1510 on Dec 22, 2009
Copyright:Attribution Non-commercial


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"When the people of west can sell their burgers worldwide, when theItalians can market their pizza” So can we sell AMCHI “vada pao” saysthe managing director Mr Dheeraj gupta, being Inspired by the fast-food burger chain McDonald's, Gupta decided to sell Mumbai's favoriteand poor man's food as a brand. He came up with the idea of brandedVADA PAV,he initially started experimenting at the local stations basedupon the response ,Gupta has changed the rules of business byintroducing automation, packaging, a larger size, different cheese,round bread (otherwise the pav is square) and flat patties instead of round. and has grown from one outlet outside a suburban local station,to fifty two in the city.Jumbo king's value proposition is the”HYGIENE” factor which othermakers of the vada pav lacked. The name JUMBO KING is derived fromthe size of the snack, which is slightly bigger than the usual vada pavand packaging,
Jumbo King is run like the Western style fast food giants and it has processes andsystems in place. They have functional areas of operations, business development,franchisee relations and marketing. Operations looks into store running, logistics andtraining. The head office at Jumbo King is the Support Centre, which supports thefranchisee network and their staff to run the stores as per the guidelines laid down by thefranchising system of Jumbo King. The company has a turnover of Rs 8 crore (under $2million). The company has plans to open outlets in Pune and Surat, besides other placesin Mumbai. It’s is eyeing a turnover of Rs 22-25 crore and 120 outlets this year.
Jumbokingplans to open 250 Stores this fiscal year 
Marketing looks after the media, promotions, branding etc.
Jumbo King followed an exclusive franchisee model with networking and stringent quality control. With a one-time investment of Rs 15-18lakh, the franchisee can acheive an annual revenue of nearly Rs 40lakh, and can break even in the first three to four months. Jumbo Kingis not setting up any company-owned stores as the franchisee storestend to break-even faster, To strengthen its supply chain and otherlogistics such as central kitchens in major cities, the company haspartnered with potato suppliers from Uttar Pradesh to procure thetuber at a constant price of Rs 7.30 per kg throughout the-year as itrequires 60,000 kg of potato per month (7.20 lakh kg per annum) for

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