Burger chain Burgrill plans pivot from franchise model, new stores, and hot dog kiosks
QSR brand to exit franchise model, expand in metros, open 15 new stores, and launch hot dog kiosks by year-end.
India’s homegrown burger chain Burgrill is looking to raise $4 million (about ₹34 crore) as it gears up to transition from a fully franchised model to company-owned and operated stores, co-founder Shreh Madan told Mint in an exclusive conversation. The company is also entering the under-penetrated hot dog segment with kiosk formats, he added.
The move signals the brand's shift towards greater control over operations and deeper play in the quick service restaurant (QSR) category. Founded in 2016 by brothers Ankur and Shreh Madan and Rajat Bawa, Burgrill has positioned itself as a mass-premium burger brand built around fresh ingredients.
“There was a gap in the market for grilled burgers when we started, which not many businesses were offering. The market was either focused on super premium burger businesses or quick service chains like McDonald's and KFC," Shreh told Mint.
Also read: Biryani on the menu, can one dish revive a QSR giant?
Franchise to company-owned pivot
The nine-year-old burger chain, which currently operates about 70 stores across India, is preparing to convert its entire store network to company-owned outlets, marking a significant strategic pivot.
“Burgrill has crossed ₹55 crore in revenue, including what our franchises make, and we are profitable at a company level and maintain a double-digit Ebitda margin. Next, it will add stores in Pune, Bengaluru, and also go deeper into existing markets of north India," said Shreh, adding that the company’s financials are reported under Eat Hearty Pvt. Ltd.
Eat Hearty Private Limited posted ₹22.3 crore in operational revenue in FY24, up from ₹14.22 crore the previous year. However, profit after tax dropped to ₹5.7 lakh from ₹94.5 lakh, largely due to higher employee and other operational expenses, according to their filings with the Ministry of Corporate Affairs, accessed exclusively through the business information platform Tofler.
While franchise revenues are reported separately in their respective financials, Burgrill earns a commission of around 7% on each franchise’s earnings. On average, each franchise outlet generates between ₹1.2 crore and ₹1.4 crore annually, depending on the location.
Burgrill has opened about 65 outlets so far in Delhi, Punjab, Rajasthan, Uttar Pradesh, Hyderabad, and Telangana, and recently entered Maharashtra and Gujarat. It now plans to scale its footprint to 80 stores by year-end, including expansion into Pune and Bengaluru. Additional outlets are planned in Zirakpur (Punjab), parts of Uttar Pradesh, and other high-traffic regions, particularly along highways as domestic travel picks up.
“We also see a lot of business coming from highway outlets as domestic travel picks up and many more travellers are using their cars to drive to holidays," he added.
New hot dog concept coming
Alongside its burger business, Burgrill is also working on a kiosk-based hot dog chain.
“We're in the mass-premium category where we think there is a lot of room to grow still. Hot dogs are an under-penetrated category where there are no organised players yet. We are already in the process of launching our first kiosk in a mall in Delhi and will be scaling this business towards the second half of the year," Shreh added.
Also read: Is quick commerce eating into the food delivery market?
Delivery challenges persist
While demand for fast casual dining continues to grow, Burgrill is cautious about rising costs of online delivery.
"During the off-peak season, discounts can go as high as 20-30% with aggregators asking us to reduce our margins and also offering additional discounts to consumers on their own as well. That often times makes the business not viable. At present, we are focused on dine-ins more, with a majority—60%—coming in from those who come to our stores to eat," said Shreh.
Also read: Daryaganj Hospitality aims to more than triple restaurant count to 50 by FY30
Industry outlook
The homegrown burger space has seen growing investor interest, particularly across the mass to premium spectrum. In 2024, Biggies Burger raised an undisclosed sum at a ₹210 crore valuation in a pre-Series A round, with a network of around 130 outlets at the time. Burger Singh, meanwhile, secured ₹30 crore in a pre-Series B round earlier in 2023.
A wave of local burger brands has also gained ground since 2020, including names like Wat-a-Burger!, Boss Burger by Rebel Foods, Good Flippin’ Burgers, The Burger Club, Burgerama, and Cheeseburgers, among others.
Also read: Rebel Foods to boost Wendy’s India presence with ₹150 crore investment
According to the National Restaurant Association of India's Food Services Report 2024, the QSR segment is poised to grow 123%, from ₹57,500 crore in FY23 to ₹1.29 trillion by FY28. The casual dining category, in comparison, is projected to grow by 56%, from ₹1.11 trillion to ₹1.74 trillion over the same period.
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