Burger King India operator’s quarterly losses widen to US$7.2M in Q3 2024

INDIA – Restaurant Brands Asia, the master franchisee of Burger King in India has reported a widened net loss of INR 601.7 million (US$7.2 million) in Q3 2024, widening from INR 460.3 million (US$5.4 million) reported in Q3 2023.

The performance decline is linked to decreased demand and rising expenses. Revenue saw a modest increase of 1%, marking the slowest growth in over three years, reaching INR 6.32 billion in the reported quarter.

Same-store sales growth, an indicator of customer retention at the chain’s Indian restaurants, fell by 3%, compared to a 3.5% increase in the previous year, which Restaurant Brands Asia attributed to subdued demand.

Concurrently, expenses rose by 3% to INR 6.98 billion.

The franchisee expanded its presence by adding 60 stores in India over the past year, bringing the total store count to 464 by the end of September.

In an effort to attract customers, Burger King introduced some of the lowest-priced menu items in the industry, including two vegetarian burgers priced at INR 79 (US$1) and two pizza puffs at INR 59 this year.

These offers and discounts have resulted in a narrower net loss, as they attracted more customers to the outlets.

The company had earlier recorded a consolidated net loss decreased to INR 493.6 million (US$5.90 million) in the three months ending June 30, compared to a loss of INR 504.8 million (US$6 million) in the same quarter last year.

 Nonetheless, this marked the company’s fifteenth consecutive quarterly loss.

Fast food chains across India are encountering substantial financial difficulties, with McDonald’s India reporting a 15% decline in quarterly revenue to INR 1.2 billion (US$14.3 million), down from INR 1.4 billion (US$16.7 million) last year.

Similarly, Domino’s Pizza India recorded a 12% decrease in same-store sales, leading to an overall revenue drop of INR 1.1 billion (US$13 million).

Several factors contribute to these declines. Rising food costs have surged by approximately 18% due to persistent inflation and supply chain disruptions, which have significantly affected profitability.

Key ingredients, including vegetables and meats, have seen considerable price increases, prompting many chains to raise menu prices, negatively impacting customer demand.

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