Wow! Momo Foods that operates three brands – Wow! Momo, Wow! China and Wow! Chicken – is bringing all these three brands under one roof with the launch of its new format – Wow! Eats to become a unified platform from the multi-brand approach.
The company launched the first Wow! Eats outlet in Chennai and the plan is to extend it to 10 such super specialty restaurants within the next 3 months. The company is planning to open one more in Chennai and two in Hyderabad, two in Kolkata, one in Bhubaneshwar, and a few more lined up across key metro cities of the country.
Commenting on the announcement, Sagar Daryani, CEO & Co-Founder, Wow! Momo Foods, said, “We believe that consumers want diversity of taste through unity of window and the future is not about owning a share of the marketplace rather it is going to be owning a share of the stomach through multiple branded occasions and Wow! Eats brings these multiple occasions of eating out to a single place.”
“The pilot is targeted at two regions – East India and South India as these two are our strongest markets are we are highly profitable in these markets,” stated Daryani while talking to ETRetail.
The average size of the Wow! Eats will be between 1,000-2,000 sq.ft. The company is also opening a flagship 200-seater outlet in Kolkata spanning across 6,000 sq.ft in Q1 next financial year and it will be the 600th outlet from Wow! Momo Foods.
The CAPEX for opening these outlets will be between Rs 15 crore to Rs 20 crore and it is expecting the return on investments in next 18-24 months.
Wow! Eats will also planning to extend online as the Wow! Eats App where the consumers can place an order for both in dine-in and delivery from all 3 brands.
“The app will be launched around the end of Q1 in the next financial year. The consumers will be able to earn and burn loyalty points both online and offline after the launch of the app,” he said.
At present, the company operates 400 outlets of Wow! Momo, 130 outlets of Wow! China and 135 outlets of Wow! Chicken. These outlets are spread across 27 cities. Currently, Wow! Momo contributes 35 per cent to the overall revenue, 8 per cent comes from Wow! China and the rest 57 per cent comes from Wow! Chicken.
“In the next 24 months, we plan to open 250 more outlets and we will be entering 5-7 new cities. Apart from this, in the next fiscal year, our focus will be more on profitability. At the moment, the company is on single-digit profitability, we want to extend that to double-digit profitability in the next 24 months,” he stated.
Wow! Momo Foods is poised to end the financial year with a topline of over Rs 450 core as opposed to Rs 220 crore recorded in the last fiscal year. Going ahead, the company is targeting Rs 700 crore for the next fiscal year.
Going ahead, the company is planning to raise a couple of more rounds to aid its growth plans.