INDIA – A few months after its listing at the BSE, fast food chain restaurant Burger King India has given its first quarterly earnings announcement, reporting a profit dip and a rise in losses.
According to the results, Burger King’s net revenues for third quarter of 2020 plunged 28% to Rs 163.19 crore (about US$22.38 million) even as losses rose to Rs 29.02 crore for the quarter ended December from the Rs 21.72 crore in the previous quarter.
The company’s same-store sales, a key metric in judging the revenue performance of each store, declined 34.8 per cent in the quarter, but recovered sequentially from a decline of 48.6 per cent.
Burger King’s operating profit in the quarter declined 94.8 per cent year-on-year to Rs 25 lakh (US$34,509) while company’s operating margin stood at 0.2 per cent at the end of the quarter as against 2.1 per cent a year ago.
The company however noted that its revenues had recovered to 72 per cent of the level they were at in the same quarter year-ago, suggesting that the quick-service restaurant operator is still reeling from the impact of the Covid-19 pandemic.
During the quarter, the company managed to opened nine stores across the country, taking its total store count to 270 as on December 31.
It expects to grow its store count to 470 by the end of 2023-24 financial year, according to a report by India Economic Times.
Burger King Loyalty Program
Meanwhile, Its bigger brother Burger King US is testing a loyalty program in five U.S. markets as part of a broader push into expanding the digital experience for customers.
The Restaurant Brands International chain is the latest restaurant chain to look to rewards programs as a way to drive sales.
Loyalty programs from such names as Starbucks and Chipotle Mexican Grill help those companies grow their base of loyal customers and encourage more frequent visits.
The introduction of Burger King’s Royal Perks test follows an announcement from archrival McDonald’s that it’s entering the next phase of its own loyalty program tests.
“It’s been something that we’ve been working on for a while, that we’ve had in several different versions of beta tests,” said Burger King’s North American Chief Marketing Officer Ellie Doty.
“It’s the natural next step when you want to have digital leadership and find ways to create more personalized experiences for your guests.”
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
