Yellow Tie Hospitality, a restaurant franchise management company, is planning to acquire five quick service restaurants (QSR) in small cities every year to scale up its operations, a top company executive said.
“We have a capex [capital expenditure plan] of ₹25 crore and we will be acquiring brands,” said Karan Tanna, founder and chief executive, Yellow Tie Hospitality.
“We are looking for brands from smaller cities like Siliguri or Vijayawada, which have distinct brand indicators but can be scaled up,” he said.
As part of this strategy, the company recently acquired three brands — Umraan, Wok This Way and Health Juice Centre. It is also planning to set up 100 QSRs in the next three years.
“We will have 15 outlets of Umraan, a kiosk and casual dining format, 15 outlets of Wok This Way, a kiosk and casual dining format and 25 outlets of Health Juice Centre, a kiosk, by the end of the year,” said.
“We have earmarked ₹15 crore to ₹17 crore for acquisition and expansion of these three brands,” added Mr. Tanna.
Overseas expansion
He said by 2019, the company would enter overseas market with Umraan in the Middle East and Wok This Way in South-East Asia.
Currently, the firm had in-house brands like Dhadoom and Twist of Tadka and BB Jaan, and had exclusive licence agreements for international brands like Genuine Broaster Chicken from U.S., Just Falalfel from Dubai and Wrapchic from England.
The company is now scouting for more global brands to become their master franchise. “We are in talks for rights with an American music club brand,” said Mr. Tanna.