The Indian burger landscape has transformed remarkably in recent years, driven by both international powerhouses and emerging local brands. This article delves into the leading burger brands in India, examining their distinctive location strategies and growth patterns.

Leading Brands and Their Growth Strategies

In the Indian burger sector, McDonald’s (McD)and Burger King are the top contenders, with McD having 601 stores and Burger King close behind with 450 stores. However, their expansion tactics are quite different.

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Burger King’s Northern Strategy and Focus on Smaller Cities

Burger King has aggressively expanded in the last four years, especially in Northern India, where it now boasts 20% more locations than McD. Their emphasis on Tier 2 and 3 cities has been crucial, with these cities now accounting for 44% of their outlets, up from 30% four years ago. This strategic push has helped Burger King narrow the gap with McD, which has increased its presence in these cities from 27% to 36%.

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McDonald’s Consistent Growth

McDonald’s has also grown its presence in smaller cities, though at a slower pace compared to Burger King. McD focuses on maintaining its dominance in Tier 1 cities while gradually expanding into emerging urban areas. Notably, McD has a stronger presence in Western and Southern India, particularly in the Mumbai Metropolitan area, where it operates105 locations compared to Burger King’s 53.

Emerging Indian Burger Brands: Varied Strategies

Post-COVID, several Indian burger brands have gained traction, although they still lag behind the market leaders in store count. Leading names include Burger Singh with 111 stores, Jumbo King with 123stores, and Biggies Burger with 102 stores. Other notable brands like The Burger Company, Wat a Burger, Good Flippin Burgers, Burger Man, and Burger Club also employ diverse expansion strategies.

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Focused Regional Penetration

Indian brands typically saturate specific regions before expanding further. Examples include:

• Burger Singh: Started in Delhi NCR and has expanded into Tier 2 and 3 cities across Northern India, with recent growth in Western and Eastern India.
• Biggies Burger: Originated in Bhubaneshwar and Bangalore, expanding aggressively across Tier 2/3 cities nationwide, including key Tier 1 cities like Bangalore and Pune.
• Jumbo King: Established dominance in the Mumbai Metropolitan area and is now expanding into Delhi NCR, Hyderabad, and Pune.
• Good Flippin Burgers: Initially focused on Mumbai and Delhi NCR, now expanding into Bangalore and Pune.

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Proximity and Competition Insights

In the retail sector, brands often find themselves close to competitors, which can be both advantageous and challenging. Proximity to rivals can attract more customers, creating a food hub, but also intensifies competition.

• Proximity Data: McD and Burger King share 252 locations within a 1 km radius, representing 41% of McD’s locations and 51% of Burger King’s.
• Biggies Burger’s Unique Strategy: Notably, 54% of Biggies Burger’s locations have no direct competition within a 1 km radius, indicating a strategic choice to capture untapped markets.

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Mall vs. Standalone High Streets

When examining the types of locations these brands target, particularly between malls and standalone high streets, some interesting insights emerge:

• Mall Presence: International brands like McD and Burger King have a significant share of their locations in malls. For instance, 40% of Burger King’s outlets are in malls, with 60% of their Hyderabad locations being in malls. In contrast, mid and small-sized brands have a much lower mall presence, ranging from 5-15%. For instance, Good Flippin Burgers has only 2 out of its 40 locations in a mall. High mall rentals are more manageable for well-known brands, and mall leasing teams often prefer larger, proven brands.

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• ‍Smaller City Strategy: The share of mall locations is higher in Tier 2/3 cities compared to Tier 1 cities. Brands prefer a greater share of shopping mall stores in smaller cities because foot traffic is more concentrated in major malls, and relationships with landlords and control over surroundings are better in malls.

Conclusion: Future Prospects for Burger Brands in India

The Indian burger market is dynamic and rapidly evolving. International giants like McD and Burger King continue to expand, leveraging their brand equity and strategic location choices. Meanwhile, Indian brands are innovating with regional penetration and gradual national expansion.

The under-penetration of burger brands in Tier2 and 3 cities, compared to pizza chains that have 47-65% of their stores in these areas, presents a significant growth opportunity. As Indian cities develop further, the burger market is set for continued expansion, providing ample opportunities for both established and emerging players.

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