Burger Singh Business Model: How India’s Burger Chain Redefined Fast Food
Overview of Burger Singh
Founded in 2014 by Kabir Jeet Singh, Nitin Rana, and Rahul Seth, Burger Singh has quickly become a significant player in India’s quick-service restaurant (QSR) market. Specializing in Indianized burgers, Burger Singh offers a unique twist to the traditional fast-food menu, incorporating local flavors that appeal to the Indian palate. By 2024, the company had grown to over 80 outlets across 65 cities, including Tier 2 and Tier 3 markets.
| Company Name | Burger Singh |
|---|---|
| Founded | 2014 |
| Founders | Kabir Jeet Singh, Nitin Rana, Rahul Seth |
| Headquarters | Gurugram, India |
| Revenue (FY23) | ₹58.9 crore |
| Franchise Model | 70% franchise-owned, 30% company-owned |
| Employees | 171 (2024) |
Purpose of This Blog
Understanding a company’s business model offers deep insights into how it functions, generates revenue, and serves its customers. Burger Singh’s business model is a blend of franchising, localization, and a focus on quality and innovation, making it a vital case study for those interested in the QSR space, especially given its rise in a market largely dominated by global giants.
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Founders’ Background Story
Kabir Jeet Singh, the CEO of Burger Singh, initially conceived the idea while working in the UK’s hospitality sector. His vision was to bring Indian flavors into the burger space, combining local spices and ingredients with a Western fast-food staple. Along with Nitin Rana and Rahul Seth, Kabir opened the first Burger Singh outlet in Gurugram. Their commitment to offering an Indianized burger experience set them apart from the global chains operating in the country.
Business Model Overview
Burger Singh operates on a hybrid business model that combines franchising with company-owned stores. 70% of its outlets are run by franchisees, which allows the company to expand rapidly while minimizing the financial burden of opening new stores. The franchisees pay upfront fees and ongoing royalties, making this model a key driver of Burger Singh’s growth.
Value Proposition
Customer Needs
The Indian fast-food market is unique. While global chains have standardized their menus, Indian customers still crave familiar, local flavors. Burger Singh addresses this need by offering burgers that are infused with local spices and ingredients.
Unique Selling Points
Burger Singh’s unique selling proposition (USP) lies in its ability to localize the Western burger concept for the Indian consumer. Unlike its global competitors, the company uses Indian flavors such as masala and paneer in its burgers, providing an experience that resonates with the local palate. Their ability to maintain affordable pricing while offering premium flavors has made them stand out.
Customer Segments
Target Audience
Burger Singh’s customer base includes:
- Urban millennials who appreciate fusion food.
- Working professionals looking for a quick, affordable meal.
- Families and students who seek casual dining experiences that mix global formats with local flavors.
Customer Personas
- Name: Sandeep Verma
Age: 32
Occupation: Marketing Professional
Pain Point: Looking for a quick, affordable, and flavorful lunch option.
Solution: Burger Singh’s combo meals offer Sandeep an economical yet tasty alternative to traditional fast food. - Name: Pooja Sharma
Age: 24
Occupation: College Student
Pain Point: Wants trendy food that’s social media-worthy and flavorful.
Solution: Burger Singh’s unique fusion burgers are a hit with Pooja and her friends, making it a regular post-class hangout spot.
Channels
Sales Channels
Burger Singh operates through:
- Physical outlets: Offering dine-in and takeaway services.
- Online platforms: A significant portion of its revenue comes from food delivery apps like Zomato, Swiggy, and its own mobile app.
Marketing Strategies
The company uses a digital-first marketing strategy, heavily leveraging social media platforms like Instagram and Facebook. Burger Singh also engages customers through local partnerships and festival-specific promotions, which help strengthen its brand presence.
Customer Relationships
Burger Singh builds strong customer relationships through:
- Loyalty programs: Regular customers enjoy discounts and special deals.
- Responsive customer service: Active on social media and quick to resolve issues, Burger Singh uses feedback mechanisms to improve service and menu offerings.
Feedback Mechanisms
The company frequently collects feedback through customer reviews, online polls, and social media interactions, helping it refine its menu and improve customer satisfaction.
Revenue Model
Revenue Growth (FY19–FY23)
| Fiscal Year | Revenue (₹ crore) | YoY Growth (%) |
|---|---|---|
| FY19 | 19.5 | — |
| FY20 | 22.7 | 16% |
| FY21 | 29.1 | 28% |
| FY22 | 30.9 | 6% |
| FY23 | 58.9 | 97% |
In FY23, Burger Singh reported a 97% increase in revenue, marking its most successful year to date with earnings of ₹58.9 crore. However, rising operational costs resulted in losses of ₹4.4 crore.
Primary Revenue Sources
- In-store sales: Dine-in, takeaway, and drive-through services.
- Franchise fees and royalties: Earnings from franchise-operated outlets.
- Online orders: Sales through delivery apps and Burger Singh’s website.
Additional Revenue Streams
- Catering services: Providing food for corporate events, parties, and festivals.
- Collaborations: Partnerships with influencers and beverage brands.
Key Activities
Burger Singh’s core activities include:
- Menu development: Creating new, innovative products like the Mutton Nihari Burger and the Bhartiya Veggie Burger.
- Supply chain management: Ensuring consistent delivery of fresh ingredients.
- Franchise operations: Providing franchisees with training, marketing support, and operational guidance.
Key Resources
- Physical assets: Over 80 outlets, with a mix of company-owned and franchise-owned locations.
- Human resources: A dedicated team of employees ensures smooth daily operations across outlets and delivery platforms.
- Technology: Data analytics tools to track sales, manage inventory, and analyze customer feedback.
Key Partnerships
Burger Singh collaborates with:
- Local suppliers: To source fresh ingredients at competitive prices.
- Delivery platforms: Working with Zomato and Swiggy for online orders.
- Franchisees: To expand its store network across India.
Cost Structure
Major Costs
- Raw materials: Ingredients for menu items.
- Employee salaries: A growing team across multiple locations.
- Marketing and promotions: Investments in social media and seasonal campaigns.
Cost Management
Burger Singh optimizes costs by:
- Franchising: Offloading a portion of operational expenses to franchise owners.
- Local sourcing: Keeping ingredient costs low by partnering with nearby suppliers.
SWOT Analysis
| SWOT Factors | Details |
|---|---|
| Strengths | Unique fusion burgers tailored to local tastes, scalable franchise model, and strong brand presence. |
| Weaknesses | High operational costs, profitability challenges due to expanding too quickly, dependency on franchisees. |
| Opportunities | Expansion into Tier 2 and 3 cities, new menu innovations, potential for international growth. |
| Threats | Competition from global brands, rising costs of ingredients, economic downturns affecting consumer spending. |
Future Plans of Burger Singh
We’ve recently launched a new kiosk model called “Burger Singh Express” at airports, metro stations, universities, and more. This model is already successful at 25 metro stations in Delhi NCR. We’re planning to add 16 more kiosks at airports in Tier 2 cities like Guwahati, Chandigarh, Imphal, and Varanasi.
We’ve also introduced a new meal combo called the “Inflation Mukt Combo,” priced at just INR 99. This affordable combo will be available at all Burger Singh outlets.
We’re aiming to open 120 new outlets, bringing our total to over 300. We’re targeting states like Maharashtra, Hyderabad, Bangalore, and Chennai, as well as cities like Guwahati, Chandigarh, and Varanasi. In the next 3 years, we plan to expand our presence in transit retail, including stores at train and bus stations. (source : Startuptalky)
Conclusion
In my view, Burger Singh is an excellent example of how a homegrown brand can make its mark in a competitive market by offering something distinctive. What impresses me most is how the brand has taken a global fast-food concept and made it relatable to Indian consumers. By blending local flavors into burgers, a typically Western food item, Burger Singh has created a niche for itself in India’s quick-service restaurant (QSR) market.
I find the company’s franchise model to be a smart approach to expansion. By allowing franchisees to bear some of the financial responsibility, Burger Singh has managed to scale rapidly while still maintaining control over key elements like menu quality and brand consistency. This model has allowed them to open over 80 outlets in under a decade, which is no small feat in a market that already has established global players like McDonald’s and Burger King.
However, it’s also clear that rapid expansion comes with its own set of challenges, particularly when it comes to managing operational costs. As the company continues to grow, keeping a close eye on profitability will be crucial. While Burger Singh saw a significant rise in revenue in FY23, its operational losses highlight the need to balance growth with financial sustainability.
Overall, I believe Burger Singh’s unique value proposition—offering Indian-inspired burgers at affordable prices—along with its innovative marketing strategies and smart franchise model, puts the company in a strong position for continued success. If they can navigate the challenges of rapid expansion and maintain their commitment to quality, I see a lot of potential for this brand in the years to come.
FAQ’s
What is the Burger Singh business model?
Burger Singh operates a franchise-heavy model, with 70% of its outlets being franchise-owned. This allows the brand to expand rapidly without shouldering all the costs of opening new outlets. The company also generates revenue through in-store sales, online delivery platforms, and franchise fees.
How does Burger Singh make money?
The company earns revenue from multiple sources, including in-store sales, franchise fees, and online orders through platforms like Zomato and Swiggy. Additional revenue streams include catering services and brand partnerships.
Who are Burger Singh’s competitors?
Burger Singh competes with both local and global QSR chains like McDonald’s, Burger King, Jumboking, and Wat-a-Burger.
What makes Burger Singh different from its competitors?
Burger Singh stands out due to its fusion of Indian flavors with Western fast-food formats. Their unique menu items, such as the Amritsari Murgh Burger and Paneer Patiyala Burger, cater to Indian taste preferences, making the brand relatable and attractive to local consumers.
How has the company performed financially?
Burger Singh saw a 97% revenue growth in FY23, reaching ₹58.9 crore. However, the company also faced losses due to rising operational costs, amounting to ₹4.4 crore.
What are Burger Singh’s future plans?
The company aims to expand to over 300 outlets by 2025, with a focus on Tier 2 and Tier 3 cities. It also plans to introduce more kiosk models in high-traffic areas like malls and airports to cater to on-the-go customers.
