Yellow Tie Hospitality, a home-grown food and beverage franchise management company, with a portfolio of 12 brands under its belt, is set to acquire couple of brands.
While it expands network and portfolio of brands, it has also created a platform to incubate start ups and a model where micro entrepreneurs can set up a franchise outlet for about Rs 3.5 lakh.
Karan Tanna, Founder of Yellow Tie Hospitality, said “the company now operates 60 outlets across various brands through the franchise model and this number will go up to about 150 by the year end.”
“While we expand, we have also acquired couple of brands last year and are in the process of growing them. As we speak, we are in talks with about 9-10 companies and may close at least three acquisitions in areas where we do not have presence,” he told Business Line.
“The company recently launched Teddy’s an exciting soft serve kiosk concept with the idea of tapping the trending and ever increasing market for innovative ice creams. The brand has plans to take Teddy’s network to over 25 within three months and over 100 by the year end,” he said.
For a large country like India, the franchise network in food and beverages has hardly grown. As against this, in the US there are more than 300 brands with 500 plus outlets each, he said.
The company portfolio of brands includes Genuine Broaster Chicken, Umraan Regional, Billboard, Wrapchic, Twist of Tadka. among others.
It had acquired Umraan Regional and Bombay Blue with the latter acquired from Everstone Capital.
“One of the ways to rapidly expand is bring new brands under the portfolio while consolidating our existing brands. The other is to make some acquisitions. We are pursuing both,” he said.
Referring to the growing mall culture and changing patterns, Tanna said “the company set up its first Yellow Tie Branded Foodcourt in Sonipet and plans to gradually expand with similar ones food courts in other malls where we get to operate.”
On funding, Tanna said “We might consider raising funds in the second half of the year to sustain the growth momentum.”