Jubilant FoodWorks' Popeyes - Right Ingredients For Significant Ramp-Up: ICICI Securities

ICICI Securities Report

We returned impressed from Popeyes first store in Chennai (Phoenix Mall, Velachery), which marks its entry into Chennai and expansion from Bangalore (12 stores), in the fried chicken market.

The store atmosphere is appealing with vibrant colours and a contemporary look and feel, self-ordering kiosk, good lighting and highest seating capacity amongst Popeyes India outlets (with a separate section for ‘open to sky’ table seating).

These features differentiate the store look with a superior proposition (picture of the store, menu details, etc. on pages 3-4).

Its Cajun flavour offerings are unique in India quick service restaurant and we reckon it has high probability of consumer acceptance. A casual positioning (set between fast food and casual dining) fits well with Jubilant FoodWorks Ltd.’s strengths – focusing on for-money and delivery.

We forecast Jubilant FoodWorks to add more than 100 stores in FY24. The market may eventually expand to accommodate both brands - Popeyes and KFC; however, KFC does have an air-pocket to tackle for now as we assign high probability of new Popeyes stores in same catchment as KFC. Devyani International Ltd. and Sapphire Foods India Ltd. may potentially face some growth headwinds in interim.

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