NEW DELHI (CWBN)_Burger King’s Indian franchise soared 125 per cent following its initial public offering. Shares in Burger King India opened at ₹112.5 ($1.53) per share on their first day of trading in Mumbai, which was nearly double the IPO price of ₹60 (about ¢80). Later, the stock shot up even further, closing at 135 rupees ($1.84).
Burger King India has opened nearly 270 restaurants nationwide, since it set up its first outlet six year ago. It is reported that the company raised ₹8.1 billion (about $110 million) in the IPO, and plans to use some of the funds to expand its network, targeting about 300 restaurants by the end of next year, and at least 700 locations by the end of 2026.
India is becoming an important battleground for global fast-food chains, as Euromonitor International, a strategic market research provider, says that the domestic market for fast food and takeaway joints was worth almost $4.6 billion in 2019, and projects this amount to grow to $5.6 billion by 2024.
However, Burger King faces stiff competition, as plenty of Western fast-food brands, including McDonald’s, KFC, Subway and Domino’s, are vying to win customers in Asia’s second most populous nation after China.
Moreover, Wendy’s has also announced that it plans to open 150 new outlets and 250 cloud kitchens (facilities which only prepare food for delivery) in the country.
Nevertheless, Euromonitor says that Burger King is standing out by expanding its reach, and keeping its meals affordable. The fast-food chain has also altered its offerings based on local preferences. Burger King India does not offer beef or pork, and of the 18 burgers developed specifically for the Indian market, seven are vegetarian burgers.
