"Jumbo King has found its niche"

11 Nov 2008

1

Dheeraj Gupta, managing director, Jumbo King Foods Pvt Ltd What is your response to other vada pao brands like Goli entering the market? How does it feel to have competition?
Goli has recently started and will go through its own learning curve. The first mover advantage of being the pioneer will always firmly be with Jumbo King.

The real competition for Jumbo King is from the multinationals as they offer the real challenges.

We have to grow quickly and smartly because these multinationals are systems which have been in the making for more than 50 years. Jumbo King has found its niche to do well in the face of such strong brands. What we have to do is make our niche larger and more relevant to the target audience.

What has the response been to Jumbo King outside Maharashtra, considering that vada pao is well-known only in Maharashtra?
Gujarat has taken it up well. It is all about marketing. While our USP in Maharashtra is hygiene, outside of Mumbai, we are promoting our vadapav as Mumbai's favourite food.

With so many malls coming up, will we see a Jumbo King at most of them?
Malls as a business will take time to mature. There are only three to four malls that have done well in Mumbai.

Fortunately, Jumbo King is more of a high street brand and it is there that we can add more than 200 stores without having to be present in any mall at all. Malls for us are more important for the image building point of view.

Do you plan to have a chain like dosas plazas and go abroad?
For us, India is a market of more than 1,000 stores. We currently have 52 operational stores thus there is a lot of work to do here itself.

We would rather concentrate in India, which is anyway the best market to be in today's times.

 Going abroad will happen when the right time comes and that is the time when Jumbo King will represent India and Indian food just the way burgers and pizzas represent America.

In case of your outlets, is it the people or the area that make it a success? Which is your highest selling outlet?
Actually both. We are doing well in Dadar, Andheri, Malad - along almost the entire Western Railway line.

Initially we thought that vada pao was a food for the masses and we set up most of our outlets outside railway stations.

But we were mistaken. Our research found that our target clientele is 65 per cent youth. We are now moving away from railway stations and all our outlets are doing well.

Since your target clientele is the youth, do you plan to introduce health food for elders?
I wouldn't want to do it as vada pao is not as healthy as eating fruit everyday. We promote it as a sin food and the fact that its okay to sin once in a while.

What are the plans for the future?
In the next 12 months we want to touch 100 outlets in Mumbai and 30-40 outlets in Gujarat. We don't want to spread ourselves thin as there is enough to do in Mumbai itself.

We have plans to upgrade and need to improvise a lot. I keep comparing ourselves with McDonalds and we do need to do a lot of work.

You have recruited from other upmarket chains. How does it help your business?
It is our people who are the back bone of the company and Jumbo King provides the kind of growth environment which excites most young professionals. Jumbo King is a place for entrepreneurs who like taking risks and now that the thrill of creation is really worth the risk.

What has been your best feedback or worst criticism?
People said: "He is trying to sell a burger as a vada pao." 'The bread is too perfect!'

How does the vada pao rate versus other fast foods available?
The burger is America's vada pao. A vada pao is a non-messy product that's easy to eat. To eat a pizza, one needs a fork or spoon, plate; similarly for idli. But vada pao can just be picked up with your fingers and eaten.

We came on the scene seven years ago. Before that the concept of a hygienic vada pao was non-existent.

Though people go back to their favourite vada pao vendor because of old times sake, we came on the scene and offered college going kids, who are hygiene-conscious, have ample pocket money for a 'good' vada pao.

We are very strongly priced as we give 25 per cent more as compared to the roadside vendor.

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