Backed by PE firm Everstone, Zorawar Kalra-owned Massive Restaurants is aggressively expanding its various brands and sub-brands both in the domestic and international markets.
The company, which is eyeing revenue of ₹200 crore by the end of the year from its various brands, said real estate costs were highly prohibitive and came in the way of quick expansion.
“We are looking to invest close to ₹30 crore over the next three months in expanding three of our key restaurants – Indian-themed Masala Library in Delhi, Made in Punjab in Bengaluru and Noida and Farzi Café in Pune,” Zorawar Kalra, Founder & MD, Massive Restaurants, told BusinessLine .
Kalra said that the company will also take its Farzi Café to Dubai and London.
“The real estate cost in India is high and finding the right real estate location is a challenge. In fact, rents in Dubai are at par with key locations in Mumbai and Delhi,” said Kalra, son of celebrity chef Jiggs Kalra.
Massive Restaurants owns brands in the mid to premium segment, including Masala Library by Jiggs Kalra, Made in Punjab, Farzi Café, PaPaYa and Masala Bar in India.
Last year, Everstone arm F&B Asia Ventures Ltd bought 50 per cent of Massive Restaurants for ₹85 crore.
Massive Restaurants is currently a ₹120-crore company with nine restaurants. Everstone has been a key PE investor in India’s restaurant market.
Other notable F&B investors include CX Partners, New Silk Route, Sequoia Capital and Premji Invest.
The company said it will be expanding its brand not just in the metro markets but also in tier II cities and upcoming airports. “Our brand Made in Punjab has potential to do well not just in metros but also in second rung cities. We are looking at cities like Hyderabad and Chandigarh to begin with. We have a consumer-centric approach with our food not being too overtly priced,” Kalra added.
Asked if all its restaurants were company-owned company-operated, Kalra said “about 90 per cent of our entities are operated by us.”
“We are also looking at exploring the franchise route for expansion, particularly for the international market,” he added
As per various estimates, the Indian restaurant business is a $46-billion industry. It is slated to touch $75 billion by the end of the next one year.