Burger Singh, a homegrown quick-service restaurant chain, showcased remarkable revenue growth but faced substantial financial challenges in FY24. Despite a 34% year-on-year increase in revenue, the company reported a sharp 6.3X surge in losses for the fiscal year ending March 2024.
The company’s operating revenue climbed to Rs 77.7 crore in FY24, up from Rs 57.8 crore in FY23, according to financial data sourced from the Registrar of Companies. Established 12 years ago, Burger Singh offers a menu of burgers, sides, desserts, and beverages across self-owned and franchise outlets.
The company earns its revenue from three primary sources: direct sales from its own stores, franchise goods sales, and franchise services. In FY24, food and beverage sales from its owned outlets accounted for 48% of the total revenue, increasing by 60% to Rs 37.66 crore. Franchise sales and goods contributed Rs 10.81 crore and Rs 28.6 crore, respectively.
Procurement costs remained the highest expense category, making up 43% of total costs. This expenditure rose by 31.3% to Rs 39.2 crore in FY24 from Rs 29.9 crore in FY23. Employee benefit expenses surged 54% to Rs 18.37 crore during the same period. Additional overheads, including commissions, travel, legal, and advertising costs, drove the company’s total expenditure up by 43.7%, reaching Rs 91.1 crore in FY24 compared to Rs 63.4 crore in FY23.
The rising costs outpaced revenue growth, resulting in a 6.3X increase in losses to Rs 27.9 crore in FY24. Burger Singh’s Return on Capital Employed (ROCE) and EBITDA margin stood at -94.76% and -30.94%, respectively. On average, the company spent Rs 1.17 to earn every rupee during FY24.
As of FY24, Burger Singh reported cash and bank balances of Rs 19.51 crore, with total current assets amounting to Rs 31.3 crore. In December 2023, the company secured a pre-Series A funding round at a $52 million valuation, led by Turner Morrison and existing investors. To date, Burger Singh has raised over $12 million and operates more than 175 outlets across 75 cities.