Hyderabad: Hyderabad-based smoothie outlet chain, Drunken Monkey, which has established 50 outlets in 12 Indian cities, is planning to expand its presence further by adding another 100 outlets by 2019.
The company which is strengthening its presence in the country is exploring to enter overseas markets such as Belgium, Canada, US, UK, Australia, Singapore and Vietnam.
The company has created its outlets ranging from small kiosks to bigger quick-service cafe style outlets in multiple cities. Drunken Monkey is founded by Samrat Reddy in February 2016, a serial entrepreneur with a dream to create a ‘smoothie culture’ in tier-1 and tier-2 cities.
The company has so far invested Rs 10 crore in the last two years. It is now investing in research and development and logistics while the franchise owners take care of the capital cost in creating an outlet. Of the 50 existing outlets, the company owns four. The startup has 12 stores in Hyderabad.
Drunken Monkey founder and CEO Samrat Reddy told Telangana Today, “We would invest Rs 15-20 crore in foraying into each country. Starting with two countries this year, we will be in five countries by next year, and would have invested around Rs 100 crore. We are talking to potential investors now. There will be multiple stores in each of the cities we would foray overseas. Within India, we are planning to cap the number of outlets at 250.”
The startup is keen to tap the franchisee route and will base its entire business model around it, going forward. The company, which began its operations in 2016, has set up four outlets in its first year of operations, and then took the total to 50 now. It aims to grow its franchise chain to 150 by March 2019 in India and is also gearing up to increase its headcount from present 500 to 1,000 by the end of 2018.
Samrat says, “Drunken Monkey was set up to find an alternative to the cafe culture. I wanted to do to smoothies what Starbucks did to coffee. The new generation, the millennials want to be catered to and are more willing than ever to experiment with new brands. Consumption patterns are changing in the country and people are becoming health conscious.”
“We are looking at creating outlets both on standalone and mall kiosk model. We are going to have 70 per cent of cafes and 30 per cent of takeaways in our portfolio. We are investing significantly in logistics and cold storage,” he informed.
The company delivers blended fresh-fruit smoothies and juices in over 170 special combinations. “We primarily focus on localisation, in-store customer surveys, product formula development, smoothies focus group testing, quality control testing, store audits, operational process, store concepts, marketing design and development testing,” Samrat said.
Currently, the brand has outlets at Hyderabad, Delhi NCR, Bengaluru, Pune, Vijayawada, Indore, Kolkata, Visakhapatnam, Chennai, Ahmedabad, Chandigarh and Jalandhar besides other major cities. The company is currently self-funded and may explore fresh investments once it achieves 150 bars target and attains certain valuation. Right now, the company has positive cash on its balance sheet, no debt and ample capital to pursue growth opportunities.
The company also wants to tap the online ordering platforms. “We do get a lot of sales through mobile ordering. We have built partnerships with platforms such as Swiggy, Ubereats, Zomato and Food Panda to tap mobile deliveries and consumers. Our R&D team is creating an online platform, which could be ready in next six months that will help serving customers,” says Samrat.
The global Smoothies market is projected to reach $17 Billion in 2024 and to grow at a compound annual growth rate (CAGR) of 8.59 per cent during the period 2017-2021.