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“Several key factors contributed to Rs 160 cr turnover”
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Monday, 04 November, 2024, 08 : 00 AM [IST]
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 Leon’s, the erstwhile Leon Grill is making impressive strides in the quick-service restaurant (QSR) industry. With a turnover of Rs 160 crore and plans for expansion into Chennai and Pune, we are poised for significant growth, stated Chandrasekaran Cothakotta, Suresh Muppala, Madhusudhan Chandrasekhar and Sudhakar V, four partners, Leon’s, in an email interaction with Nandita Vijayasimha. Excerpts:
How would you describe the current scene for QSR in India?
India’s QSR industry is experiencing rapid growth and transformation in 2024. With the rise of young, urban population and increasing demand for convenience, the QSRs are booming. What’s exciting is that Indian consumers are seeking out not just fast food, but high-quality, fresh, and diverse options. This shift is a clear reflection of changing lifestyles and preferences, driven by busy schedules but also a desire for healthier choices. The competition is intense, with global giants and local players innovating to stand out. However, what is really interesting is the growing appreciation for Indian-origin brands, as customers increasingly favour local flavours and authentic food experiences. Delivery platforms have expanded the reach of QSRs, making fast food more accessible. Today’s customers demand not just speed but also quality, transparency, and authenticity, creating opportunities for brands like Leon’s to lead with our commitment to fresh, unadulterated food.
What are the visible trends?
In 2024, several key trends are shaping India’s QSR industry. There is a clear shift towards health-conscious dining, with consumers prioritising fresh, natural ingredients over processed foods. The rise of plant-based options and sustainable sourcing reflects this demand. Additionally, regional flavours are gaining popularity, as people seek familiar, comforting tastes with a modern twist.
Another noticeable trend is the increasing reliance on delivery and takeaway services, driven by convenience and the growth of food tech platforms. Tech integration such as digital ordering, contactless payments, and personalised loyalty programmes, is redefining the customer experience.
What are the challenges encountered in this space?
Rising food costs with inflation and supply chain disruptions make it harder to maintain affordability without compromising on quality. Competition is intense, with both global and local brands constantly innovating to capture market share. Ensuring consistency across outlets, especially as brands scale, is another significant hurdle. Moreover, meeting the growing demand for fresh, unprocessed ingredients while maintaining speed and efficiency can be challenging. With focus on sustainability, QSRs need to find ways to minimise waste and adopt eco-friendly practices. Despite these challenges, Leon’s continues to thrive by staying true to its core values of quality, freshness, and authenticity, which resonate deeply with our customers.
How receptive are private equity and venture capitalists to the QSR model for funding?
PEs and VCs are increasingly receptive to the QSR model in India, particularly in 2024. With the growing demand for convenient, high-quality food, brands like Leon's have caught their attention. Our focus on fresh, unadulterated ingredients, combined with a solid expansion plan, makes us an attractive investment opportunity.
Investors are drawn to QSRs with strong scalability, and Leon’s has demonstrated consistent growth with over 40 outlets and plans to expand further. Our integration with delivery platforms and loyal customer base also offer diversified revenue streams, positioning us well for potential funding.
Coming to Leon’s why did you opt for a name change from Leon Grill?
The decision to rebrand from Leon Grill to Leon’s in 2021 was driven to reflect our broader vision for the future. While Leon Grill was synonymous with our early success and the love for our grills, wings, and burgers, we felt it was time to evolve. The name Leon’s represents not just a place for grills, but a more versatile and dynamic dining experience.
As we expanded into new markets and introduced diverse offerings like biryani, salads, snacks, we wanted a name that reflected our growth and resonated with a wider audience. Leon’s is more inclusive, and innovative while staying true to the core of fresh, quality food with bold flavours.
What is the brand recognition among your clientele post the name change?
The name change from Leon Grill to Leon’s initially caused some confusion among our clientele. Many were unsure if we were the same brand, and a few even assumed we had been bought out by another company, leading to the misconception that our food had changed. While this was an unexpected challenge, we quickly realised that brand transitions take time, and clarity is key.
Despite these initial hurdles, our loyal customer base remains strong, and many of our regulars continue to support us, recognising that our quality, and flavours have not changed. Moving forward, we are working on reinforcing the message that while the name may have evolved, Leon’s commitment to serving fresh, delicious food is as strong as ever. We see this as an opportunity to reconnect with our customers and grow our community even further.
How have you fared since 2015?
Since 2015, we have experienced significant growth and transformation. What started as a single outlet in the backstreets of Jeevan Bima Nagar, Bangalore, has now expanded into a well-recognised QSR brand with 40+ outlets across Bangalore, Hyderabad, and Mysore.
Over the years, our fresh, unadulterated food has earned us a loyal customer base. Our, 100% real ingredients, and regional flavours have helped us stand out in an increasingly competitive market. We’ve also adapted to changing consumer preferences, introducing delivery options and expanding our menu offerings to cater to diverse tastes.
What age-groups come to your restaurant?
Our primary demographic is the 18-30 age group, which enjoys our fresh, flavourful meals. However, we also see a steady stream of families who appreciate the variety in our menu. Kids love our burgers and wings, making us a popular choice for outings as well.
How important are the interiors of QSRs to attract customers even as food is the biggest draw?
While food remains the core attraction for any QSR, interiors play a crucial role in enhancing the overall dining experience and attracting customers. In today’s market, especially with younger audiences, people are not just looking for great food, they want an inviting atmosphere to hang out. A well-designed space creates an emotional connection and adds to the brand experience. Eye-catching interiors can turn casual diners into repeat customers, and in the age of social media, a visually appealing space can be as powerful as a good meal.
What was the Covid-19 pandemic impact like and how did you kickstart your operations after that?
The Covid-19 pandemic posed significant challenges for QSRs. With strict lockdowns and social distancing measures, in-store dining came to a halt. During that period, we expanded our delivery operations to home deliveries. We also streamlined our menu and introduced hygiene protocols. As restrictions eased, contactless service, maintaining rigorous safety standards, and takeaway-delivery-friendly model were opted. What stood out during this period was the loyalty of our customer base, which helped us weather the storm. Today, as dine-in returns, we have managed to grow stronger, be more flexible and responsive to changing customer needs.
What factors contributed to your turnover of Rs 160 crore?
Several key factors contributed to the Rs 160 crore turnover. Our commitment to quality, with 100% real chicken and fresh produce, earning us loyal and repeat customers. Expansion into Bangalore, Hyderabad, and Mysore helped to tap new markets, while delivery platforms increased our reach. Menu innovation, with gourmet burgers and wings, kept customers engaged, and our team of 700+ employees ensured consistent service.
Which of the markets are the fastest growing: 36+ outlets across Bangalore, Hyderabad, and Mysore?
Among our 40+ outlets, Bengaluru continues to be our strongest and fastest-growing market, as it’s where we first began and where we’ve built a loyal customer base over the years. The market’s growing demand for fresh, quality fast food has fueled our success there. While Mysore is smaller in comparison, it has shown steady growth, and we see great potential as we expand further.
When is your foray to Pune and Chennai? What factors in your market survey assess the need for these entries?
We are set to enter Chennai next month, followed by Pune next year. Both cities have been strategically chosen based on our market research, which identified them as fast-growing foodie hubs with a high demand for fresh, innovative, and high-quality QSR options.
You aim to expand into north India next year, with the goal of reaching 100+ stores by the end of 2025. Elaborate.
Our expansion into north India next year is a significant step in our growth strategy. The northern market presents immense potential, especially with cities that are fast emerging as food-centric hubs. We plan to open outlets, starting with Delhi NCR, which has high demand for innovative, fast-casual dining experiences. By reaching 100+ stores by the end of 2026, we aim to build a truly pan-India presence.
Would you be looking at raising funds to expand outlets?
Yes, as we expand to 100+ outlets by 2026, options for raising funds will be needed for infrastructure, supply chain management and technology integration to maintain the quality and consistency. Earlier expansions have been through internal funding. External funding will accelerate expansion into new markets like north India.
How easy it is to get the right workforce?
Finding the right workforce in the QSR industry can be challenging, especially as we expand to new locations. The key is balancing both skill and attitude, we look for team members who are not only efficient in food preparation and service but also share our commitment to quality and customer satisfaction. Hiring for roles that require specific expertise, such as kitchen staff or store managers, can be more difficult due to the demand for experienced individuals. However, investing in training and development helps build a strong, dedicated team.
You focus on using only 100% real chicken patties (no soy), antibiotic-free chicken, and fresh vegetables. How are these convincing to your customers as Karnataka FSSAI inspection team is seizing adulterated menus across outlets?
Our commitment to using 100% real chicken patties (no soy), antibiotic-free chicken, and fresh vegetables is more than just a claim. It is a core value that we uphold in every aspect of our operations. With growing concerns around food quality, especially amid recent FSSAI inspections, customers want transparency and assurance about what they consume.
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