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Bagrry’s to launch its own QSR brand ‘Bagrry’s on the go’


Focus is on North India, first outlet to launch in Delhi by Feb ’16. The health-oriented menu will include sandwiches, pastas, bagels and wraps.

Bagrry’s India, the country’s oldest breakfast cereal maker, is venturing into food retailing with quick service restaurants that will offer healthier alternatives.

To be called ‘Bagrry’s On the Go’, these stores will serve food and beverages such as oats-based sandwiches, burgers and bagels, muesli and wheat bran-based desserts and multigrain meals for lunch and dinner.

The INR 77 crore Bagrry’s, one of the biggest suppliers of wheat for Nestle India’s Maggi noodles, is tying up with third-party kitchens to source cooked food made with its own ingredients.

“The entire focus will be on healthy foods and every food or beverage we serve will have our own ingredients,“ said, Aditya Bagri, who is leading this retail business. The sandwiches, pastas, bagels and wraps will be made with multigrain options, with whole wheat and added bran or oats to enhance fibre and nutrition value.

The niche identified by New Delhi-based Bagrry’s, which has been in the cereal business for over two decades, could help it turn around investments in quick time.“The QSR format allows for faster profitability as these have comparatively lower overhead costs compared to fine dining. Smaller spaces means lesser rentals and limited staff requirements,“ said Pradeep Sehgal, founder of hospitality and financial consulting firm Single Window Consultants.

The country’s quick service or fast food industry is forecast to grow to USD 4.6 billion by 2020, more than doubling from two years ago, according to a report by researcher Technopak Advisors. Bagri said funds for the food retail venture are being raised internally and as the model evolves, the company could look at a larger footprint. To start with, Bagrry’s On the Go outlets will be restricted to the northern region of the country and the first store is scheduled to open early next month in the capital.

“The consumer trend of well-being moving towards the QSR space will accelerate with brands venturing to healthier options,“ said Rahul Singh, secretary, NRAI.

Bagrry’s share in breakfast cereals is over 17% in a market estimated at over INR 800 crore, according to researcher Euromonitor. The category is expected to grow at a compounded annual rate of 13%. The segment is dominated by multinational Kellogg, the world’s largest cereal maker, and has seen the entry of brands such as Marico’s Saffola and MTR.

Source: Economic Times

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