Kaati Zone eyes kiosk route for rapid expansion

Feb 18, 2011

Kaati Zone, a venture capital backed brand of Indian quick service restaurants, is eyeing the kiosk format to drive rapid scaling up of its business. The format is expected to enable the six year-old company to expand faster in high footfall locations.

Led by CEO Kiran Nadkarni, Kaati Zone is redrawing its strategy after focussing on providing customers with 'dining experience' through restaurants. The main drawback of a large format outlet is the investment required by the franchisee (Rs 30-40 lakh) and that, in turn, elongates the return on investment, reports IndiaRetailing.

"Kiosks require a much smaller amount of investment (Rs 8-9 lakh) and have the potential to break even in 15-20 months compared to three years for larger outlets," said Nadkarni, who started the venture capital business of ICICI and managed it during the first eight years.

Against at least five people required in the dining format, a kiosk can be run with just two people (assembler and cashier). This reduces operating expenditure to a great extent. At present, Kaati Zone has eight express stores and six dining stores spread across the country and one newly opened kiosk at a mall in Thane (Maharashtra).

While express stores are suitable for locations like airport and tech parks, a kiosk measuring 8 feet by 8 feet is a much more compact and efficient medium for most locations.

"It is quite likely that 8090 per cent of our future expansion may be the kiosk way. Between an express store and kiosk, a kiosk is much quicker to set up, within 12-24 hours once the equipment arrive. To start off, the kiosks will sell Indian rolls and beverages in tie-up with Coke. Later, grilled paratha sandwiches may also be offered," said Nadkarni.

Kaati Zone is funded by Accel India, Draper Investment Company and Ashish Gupta, a co-founder and managing director of Helion Venture Partners.