About -
Sapphire Foods is one of Yum’s franchisee operators in the Indian subcontinent. Sapphire’s franchisee arrangement with Yum allows it to operate, on a non-exclusive basis, under the KFC brand in several states in India & across the Maldives, the Pizza Hut brand in several
Sapphire Foods is one of Yum’s franchisee operators in the Indian subcontinent. Sapphire’s franchisee arrangement with Yum allows it to operate, on a non-exclusive basis, under the KFC brand in several states in India & across the Maldives, the Pizza Hut brand in several
states in India and across Sri Lanka & the Maldives & the Taco Bell brand across Sri Lanka, while leveraging Yum’s system and system property.
Key pillars of company’s customer proposition :
▪️ Differentiated product offerings with KFC, Pizza Hut and Taco Bell as a market leader in chicken, pizza & Mexican-inspired food, respectively.
▪️ Differentiated product offerings with KFC, Pizza Hut and Taco Bell as a market leader in chicken, pizza & Mexican-inspired food, respectively.
▪️ System-wide operating procedures and hygiene that are consistent with the global standards of KFC, Pizza Hut or Taco.
▪️ Value offerings at entry & premium price points, enabling the co to drive new customer acquisition & at the same time, upsell products through meal combos
▪️ Value offerings at entry & premium price points, enabling the co to drive new customer acquisition & at the same time, upsell products through meal combos
▪️ Easy access through the omni-channel platform consisting of dine in, takeaway, own delivery & delivery aggregators.
Using a cluster strategy, the co launches its brands from flagship locations in high traffic & high visibility locations in key metropolitan areas & cities across India & then develop new restaurants within that cluster. It also develops new restaurants in new cities.
Omni-channel strategy, focus on delivery channels :
The co has worked on improving its new restaurant economic model in consultation with Yum. It has omni-channel strategy of utilising its brickand-mortar restaurant assets & digital stores across multiple revenue channels of
The co has worked on improving its new restaurant economic model in consultation with Yum. It has omni-channel strategy of utilising its brickand-mortar restaurant assets & digital stores across multiple revenue channels of
dine-in, take-away, own delivery & aggregator delivery services.
Co intends to leverage its omni channel strategy by using its enhanced digital ecosystem & CRM program to maximise the revenue opportunity as follows:
Co intends to leverage its omni channel strategy by using its enhanced digital ecosystem & CRM program to maximise the revenue opportunity as follows:
▪️ Dine in - Continue to invest in contemporising design of restaurants, refurbishing assets, menu simplification and ease of ordering through technology.
▪️ Take away - Invest in technology such as Click & Collect, kerbside pickup & contactless payments to ease ordering.
▪️ Take away - Invest in technology such as Click & Collect, kerbside pickup & contactless payments to ease ordering.
▪️ Own Delivery - Continuously improve own digital restaurant experience & in-house delivery capability, strengthen CRM programme through analytics & targeted marketing, and differentiate product & price offerings on own website, app & call centre.
▪️ Delivery via aggregators - Collaborate with aggregators to continuously improve operational efficiency and drive transaction growth and ticket size through analytics-based marketing and innovative menu offerings.
Continuous focus on delivering great customer experience :
The co monitors the quality of customer experience through a sophisticated Guest Experience Survey (GES) system, a third-party tool used around the world to measure customer satisfaction, to give it customer feedback on
The co monitors the quality of customer experience through a sophisticated Guest Experience Survey (GES) system, a third-party tool used around the world to measure customer satisfaction, to give it customer feedback on
taste of food, speed of service, hygiene & overall satisfaction for all of its restaurants across its various channels. This allows the co to reward high performing restaurants, improve restaurants with issues & replicate best practices across restaurants.
Financials -
Q1 FY23
Revenue has roughly grown at 80% YoY
EBITDA went up by 161 % YoY
PAT went up by 246 % YoY
Q1 FY23
Revenue has roughly grown at 80% YoY
EBITDA went up by 161 % YoY
PAT went up by 246 % YoY
Key Risks :
▪️ Negative publicity of junk food like Burger, pizzas, French fries & other related products with QSRs are generally perceived as junk food. Fried chicken offerings from a QSR are also not an exception.
▪️ Negative publicity of junk food like Burger, pizzas, French fries & other related products with QSRs are generally perceived as junk food. Fried chicken offerings from a QSR are also not an exception.
▪️ The QSR chain sub-segment of the food services industry is very competitive. Brands in the casual dining restaurant and fast dining restaurant spaces are also venturing into the QSR space, intensifying competition in the QSR chain sub-segment.
Conclusion -
The increase in the quality of education, rising in come levels of the younger demographic groups, rising urbanization, growing working age population & increase in the number of middle-class households, are expected to continue to stimulate growth
The increase in the quality of education, rising in come levels of the younger demographic groups, rising urbanization, growing working age population & increase in the number of middle-class households, are expected to continue to stimulate growth
in per capita consumption. Together with increasing market proliferation of brands, these factors are expected to boost the growth of the food services sector in India. Sapphire is well placed to capitalize the growth opportunity.
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