Theobroma eyes 200 stores
Premium- Theobroma plans to expand its store count to 175-200 from the current 100 and hit an annual revenue of ₹600 crore by FY25
Theobroma plans to expand its store count to 175-200 from the current 100 and hit an annual revenue of ₹600 crore by FY25, a top executive at the popular cafe and patisserie chain said.
Backed by private equity firm ICICI Venture Funds, Theobroma Foods Pvt. Ltd operates in five cities, and plans to enter five more including Chandigarh and Chennai, chief executive officer Rishi Gour said. Later, it will expand into tier-2 markets.
Theobroma does not have a franchise model, and operates all its 100 stores on its own, Gour said in an interview. In the two years of the pandemic, the company, which operated about 50 outlets across Mumbai and Delhi, doubled its store count and also entered Bengaluru, Pune and Hyderabad.
“What the pandemic did was unique and unprecedented. Overall from a business perspective, we have come out ahead. We are profitable now," Gour said.
Founded by former Oberoi Hotels pastry chef Kainaz Messman, the patisserie was born as a single outlet in Mumbai’s Colaba and remained a family-run business till 2012-13, with about four outlets in the city.
Theobroma outlets sell products like brownies, crackers, cookies, pastries and sandwiches.
“In some senses, Theobroma became a destination in Mumbai, and people from all over visited the place. Around 2012-13, it was felt that the brand should be professionalized further," Gour said. That was when ICICI Venture bought a significant minority share, committing about $20 million, which was released in tranches.
Theobroma closed FY20 with a revenue of ₹120 crore, and doubled it to about ₹254 crore in FY22, Gour said, driven by several things including store expansion.
There has also been a diversification of channels, he said. Before the pandemic, delivery accounted for about 30% of sales, which has shot up to 62%. Recognizing this, the company has set up its own delivery service, apart from using network partners. It has also created cloud outlets and stocking points that are much lower in terms of capital expense, and in areas that are delivery-intensive.
Theobroma is also tying up with companies like Amazon Fresh and similar delivery services to sell its pre-packaged, longer shelf-life items which can be retailed from any platform.
According to the National Restaurant Association of India, In FY22, the Indian food services industry will reach more than 85% of pre-covid estimates to ₹4.7 trillion.
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