Mr. Vynkatesh Iyar with Shiv Menon found big opportunity in selling affordable, clean. Ethnic fast food to lower-income group of customers in 2004.
Mr. Vynkatesh, now CEO of Goli Vadapav has targeted 500m Indian young adults and teen agers as his potential customers. Goli Vadapav would occupy a potentially lucrative spot between traditional street-food and global chains.
Company opens its first outlet at Kalyan in 2004. Later on Mr. Vynkatesh focuses on the Goli Vadapav brand and outsources much of the supply chain and operations. Vista Processed Food Company agreed to supply frozen patties to Goli Vadapav but it soon become a problem due to inconsistent supply and short self-life. With many ups and down in business he receives blow to business when five of his investors withdraw from business in 2008 and Goli Vadapav was on the verge of collapse. In such situation he found that trying to sell vadapav in Mumbai is like selling pizza in Italy. He decided to focus on western and southern part of India. These cities had cheaper real estate, less competition from global chains and pent-up demand for branded food. Goli vadapav had enjoyed relatively high brand awareness thanks to local media coverage.
The result, Goli Vadapav has 156 stores up from 20 to at the end of 2009. It sells 75000-100000 vada pavs daily. Profitable and with revenues expected to reach $ 3.2 m this year. It has plan to open 500 outlets till 2015 and it has been achieved due to reliable, well- known, ethnic fast –food brand.
A founder has to be both persistent and adaptable. Mr. Vyanktesh was prepared to change the offering, to use contacts and to change geographical locations.
Sandip Institute of Technology & Research Centre
Department of Management Studies