Yellow Tie Hospitality Acquires Three QSR; Aims for 100 Outlets by 2019

CURRENTLY HAVING over 60 stores across Pan India, Yellow Tie Hospitality is planning to add 50 more stores by the end of 2018 and reaching 100 in the count by the end of 2019. Currently operating with numbers of brands like Genuine Broaster Chicken, Twist of Tadka, BB Jaan, Just Falafel, Dhadoom and Wrapchic, the company is planning to acquire five quick service restaurants (QSR) every year for its scalable restaurant incubator, especially from small cities having distinct brand indicators. As part of this strategy, the company recently acquired three brands-Umraan, Wok This Way and Health Juice Centre.

Looking to raise funds within this financial year, the company is planning up to build a stronger infrastructure in terms of state-of-art R&D kitchen and having their own fleet of delivery vehicles. “We’d like to invest in getting licenses of bigger, more established international brands for India,” said Karan Tanna, Founder, CEO-Yellow Tie Hospitality in an interaction with BW Hotelier.

According to Tanna, the Genuine Broaster Chicken has been the highest revenue generator for Yellow Tie until now. “This is simply because it was the first brand that was launched by us and within the first year, we expanded it to 20+ outlets across different cities in India. Being the oldest brand in YTH portfolio it still has a majority number of outlets & contributes close to 50 percent of overall sales,” he further explains

Yellow Tie was functional only in one quarter of the 2015-2016 registered revenue of one Crore with the EBITA(Earnings Before Interest Taxes Depreciation and Amortization) of 20 percent, in 2016-2017 Yellow tie registered a turnover of five Crore with EBITA of 22 percent and in 2017-2018 the company did a turnover of 8.5 Crore.

Speaking about the recent acquisitions, Tanna said, "We have a capital expenditure of Rs 25 crore for a scalable restaurant incubator, under which we will be acquiring brands. We are looking for brands from smaller cities like Siliguri or Vijayawada, which have distinct brand indicators but can be scaled up.”

Tanna feels that India being the second largest populated country in the world does not have a single restaurant brand that is grown through franchising. “The mission of the company is to establish the immense amount of franchise management capabilities so that the entrepreneur taking franchise of our brands gets all the required support. We aim to make their investment successful, sustainable and their entrepreneurial journey of a franchise owner is hassle-free as far as the intellectual property capabilities to run a restaurant is concerned,” he further added.