Yellow Tie Hospitality to bring Wrapchic to India
New Delhi: Food and beverages franchise management company Yellow Tie Hospitality, which operates brands like Genuine Broaster Chicken and Just Falafel, is all set to launch Wrapchic, a UK-based burrito fast food chain in India.
Yellow Tie is planning to invest $3-4 million in Wrapchic over the next three years, in a bid to expand the footprint and increase revenue, said restaurateur Karan Tanna.
“Wrapchic is a fusion of Indian and Mexican cuisine. It’s an Indian burrito chain and this is the first time that an Indian cuisine brand will come from outside India into the country. Our portfolio is very millennial-driven and Wrapchic fits very well into that segment. There is a lot of quirkiness associated with the brand,” said Tanna, founder and chief executive officer at Yellow Tie Hospitality Management LLP.
Wrapchic, which was founded in 2012 by Mahesh Raikar, operates 15 outlets across the UK and Dubai. Both the companies (Yellow Tie and Wrapchic) are planning to set up eight Wrapchic outlets in India this year.
Tanna added that there is a plan to turn Wrapchic into a 35-outlet chain by 2020. “By 2020, we are expecting Wrapchic to contribute $2-3 million in annual revenue. Starting with metros, we are also looking to expand in tier II and tier III cities,” he said.
A typical Wrapchic outlet will be spread over 400 to 700 square feet of area and the first outlet will be set up in Bengaluru. “Through Wrapchic, we have been able to bring Indian food beautifully into the fast casual market by keeping the core Indian flavours intact but delivering it in a format that is scalable and can compete with the veterans of the field. We have the vision to put Indian cuisine on a global platform,” said Raikar in a statement.
Launched in 2015, Yellow Tie Hospitality has added five brands in its portfolio (Wrapchic being the sixth one) over the past one year. The company had recently announced its tie-up with UAE-based street food brand Just Falafel.
For 2016-17, Yellow Tie recorded a revenue of $1 million (about Rs6.5 crore) and is expecting to earn $4-5 million (between Rs26 crore and Rs34 crore) in 2017-18.
According to a joint report published by the National Restaurants Association of India and consulting firm Technopak Advisors, the food services market in India is projected to touch Rs4.98 trillion by 2021 from Rs3.09 trillion in 2016, growing at an annual average rate of 10%.
The Indian restaurant industry was estimated to have contributed Rs22,400 crore by way of taxes and created 5.8 million direct jobs in 2016, as per the report.