Theobroma plans to increase its store count from the current 100 to 175-200 and has achieved an annual revenue of 600 crore by FY25, said a top executive of the popular cafe and patisserie chain.
Backed by private equity firm ICICI Venture Funds, Theobroma Foods Pvt. Ltd. operates in five cities, and plans to enter five more, including Chandigarh and Chennai, Chief Executive Officer Rishi Gaur said. Later it will expand to Tier-II markets.
Theobroma has no franchise model, Gaur said in an interview, and operates all 100 of its stores on its own. In the two years after the pandemic, the company, which operated around 50 outlets in Mumbai and Delhi, doubled its number of stores and also entered Bengaluru, Pune and Hyderabad.
“What the pandemic did was unique and unprecedented. Overall, we have come out ahead from the business point of view. We are profitable now,” Gaur said.
Founded by Kainaz Messman, former pastry chef of the Oberoi Hotel, Patisserie was born as a single outlet in Colaba, Mumbai and remained a family-run business with around four outlets in the city till 2012-13.
Theobroma Outlets sell products such as brownies, crackers, cookies, pastries and sandwiches.
“In some sense, Theobroma became a destination in Mumbai, and people from all over the place visited the place. Around 2012-13, it was felt that the brand should be made more professional,” said Gaur. . That was when ICICI Venture bought a significant minority share, investing around $20 million, which was issued in tranches.
Theobroma closed FY20 with revenue of Rs. 120 crores, and almost doubling it 254 crore in FY22, Gaur said, driven by several things including store expansion.
There has also been diversification of channels, he added. Before the pandemic, deliveries accounted for about 30% of sales, which has increased to 62%. Keeping this in mind, the company has also started its own delivery service apart from using network partners. It has also created cloud outlets and stocking points that are very low in terms of capital expenditure, and in areas that are distribution-intensive.
Theobroma is also tying up with companies like Amazon Fresh and similar delivery services to sell its pre-packaged, longer shelf-life items, which can be retailed from either platform.
According to the National Restaurant Association of India, in FY 2012, the Indian food service industry will reach over 85% of the pre-Covid estimates. 4.7 trillion.
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