New Delhi: For a chain that gave Delhi its first taste of fast food, Nirula's did not change as fast as the market did.
As Nirula's approaches middle age, it has decided to spread and perhaps acquire a companion to make its business as sizzling as the tandoori legs its serves.
Nirula's set up its first joint in 1977. It is now present at 33 locations in and around Delhi and five other North Indian cities. But it has been unable to keep up with competition from foreign chains like MacDonald's and Pizza Hut.
Prices and margins are under pressure and so the chain is rethinking about its marketing style.
"We are looking at small investment models, smaller footprint models and lower breakeven models where we can deliver profitability," Gurpreet Singh, GM (Ops), Nirula's Corner House said.
Nirula's is looking at over-the-counter outlets at malls. It has tied up with IndianOil Corporation to set up refined highway dhabas with clean washrooms to cater to people on weekend getaways.
To ensure quality control, Nirula's will opt for owned outlets, instead of franchisees of which it has 12 currently.
Meanwhile, the market is still abuzz with rumour of Nirulas' sell out. Industry watchers say that the second generation of Nirulas' famlily has lost interest in running the business.
However, Nirula's has hinted at a possibility of a strategic investor or an IPO, to fund its expansion plans.
Despite being in the business for three decades, Nirula's is still a Rs 100 crore chain. Being family owned it has not been ambitious enough.
Nor, like MacDonalds's has it invested in a supply chain or processes that can squeeze costs, supply standardised food and yield profits at low prices and hence a strategic partner could stir things up.
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