Why Burger King Should NOT

enter the “Vegan” food market

By - 3 Leaf Clover
 Market study
Burger Market in India Key Players in Market Vegan Food Market in India

● Has been growing at a steady ● McDonalds ● Revenue is constantly growing

pace ● Burger King ● Rate of growth has slowed
● Was hit heavily by the ● KFC down
pandemic ● Jumbo King ● We however need to keep the
● Burger King has quickly caught base effect in mind, the Vegan
up to McD in terms of Revenue Key Trends in Industry market is relatively new in India
(McD Rs 15.77 Billion, BK Rs ● Burger Industry growing at
15.127 Billion) CAGR 4.6%
● Online food delivery is
developing a symbiotic
relationship with Fast foods like
Burgers
● New Players like Wendy’s are
entering the market

Consumer Preferences

● India as always is looking

towards “Value for Money”
● Vegetarian options unique to
India are high in demand
 The Problem of “Veganism” in India
The Vegan Philosophy The Vegetarians Small Vegan Market in India

● Veganism in a layman's ● Can’t do without dairy, ● There are around 5 million

term, is having nothing Vegans in India
Paneer is a mainstay in veg
to do with animals. ● That’s 0.3% of the country’s
food population
● This includes Dairy
● Even Jains Consume Dairy Absence of Vegan Supply Chain
Products
The Non-Vegetarians
● Key Ingredients for Vegan
● Already do have no qualms
Burgers like Heme are not
of “animal life”
produced in India
Different philosophy in India Pricing

● Veganism isn’t popular in ● India is a ‘price sensitive’

India market, Vegan Burgers are
expensive
Note: Vegans also refrain from wearing Fur/ Wool ● Religion often dictates food
preferences in India
 Alternate solution - New “Vegetarian” Launches
Proposed Solution
● BK can expand its vegetarian offerings.
● If BK launches a new vegetarian line at the same
time as McD, consumers will perceive them as
competitive products and compare the new
offerings.
● The lack of Cheese and Paneer in McD’s
Vegan lineup will stand out and give BK a
competitive edge.
Plan of Action
● Make a team of Chefs to work on new flavours
Eg - Masala Paneer Inspired by regional Indian
spices.
● Make a focus group to evaluate new food items
● Make an SOP for operations required for new
products
● Market the new launches, BK vs McD ads have
often garnered attention.
Possible Failures and Contingency
● Vegan Market will magically boom
○ Highly Unlikely, very small segment of
society is currently vegan and their
philosophy has few takers.
○ Incase it does, BK will face worst case
scenario of having to deliver vegan
products in a very short period of time.
● Large number of products can make operations
difficult
○ BK will have to be efficient in designing
SoPs, using common ingredients will help
● People will not like the new items
○ BK has to ensure highest quality and best
tasting products, testing in smaller markets
has to be done first
○ BK should prepare measurable
parameters which will indicate when to
count losses and leave
Appendix A - Data Sources

● https://www.businesstoday.in/amp/markets/ipo-corner/story/burger-king-ipo-a-
tasty-treat-that-investors-may-buy-280164-2020-12-01
● Mordor Intelligence
● Euromonitor International
● https://lifestyle.livemint.com/food/whats-driving-the-burger-boom-in-india-
111642758555754.html