2. FAASOS stands for
Fanatic Activism Against Substandard Occidental Shit
It is an growing Indian fast food chain that primarily
sells Wraps
Idea behind Faaso's is based on the Kathi rolls
As per owners :
• “it is a Desi fast-food with Western customer service in a market
dominated by sandwiches and burgers.”
• “ It‟s a bit like a pizza, except that it‟s not flat.”
They are also famous for taking order via Social networking
sites and their Sartorial marketing campaigns
3. Founded in 2004 by Jaydeep Barman, Siddharth Joshi
and Biswanath Chakraborty
Initial investment of Rs. 8 Lacs for one air conditioned
restaurant.
It attracted customers, but the overheads were high
Initial marketing was only word to mouth
Second outlet was a smaller, stripped down version of
the first store
The group broke even in year 2006.
4. The fast food industry is the fastest growing sector in the food
industry
In India, food contract and support services is a Rs9,000-crore
market
Franchise driven Indian fast food restaurant industry sales
grew at a rate of 17%-20%
Increasing youth workforce is the primary target and cities with
good youth population can be a good option for investment in
this field
With growing market foreign investors are also making
Investments in those infant organizations
5. The menu keeps it simple with a singular focus on wraps
Prices are competitive
The company uses social networks, chiefly Twitter, to take orders and also
via phone
Each outlet occupies about 200 feet which in result demands less
investment on real estate
Each outlet operates at one-fifth the cost of a fine-dining restaurant and
takes about three months to break-even
They maintain a low profit margin model
Low but effective marketing strategy targeting only low-middle income youth
population
Extensive use of social media for marketing helps in curbing the extra cost
6. Strength:
• Created a niche in Indian fast food
• Didn’t offered any privileged services
which reduced initial cost
• First mover in using social media as
a crowd puller
• Required low investments on real
estate
Weakness:
•All the founders had little or no
previous experience in managing a
food outlet
• Stiff competition from International
food chains as McDonalds, Subway
and KFC
Opportunities:
•To create a low cost but high standard
outlet
•Maintain local flavor and theme to
attract customers with low budget
•Only major marketing source was Social
media
• Establish as a local chain among local
vendors and outlets
Threats:
• Local vendors were primary threats
• With rising popularity had the risk of
losing the idea to any established food
chain
• Initial overheads were high
7. Targeted young customers with low
budget
The menu keeps it simple with a singular
focus on wraps.
8. They endorse online ordering which helps
in reducing their cost for maintaining a
dedicated call centre.
The company uses social networks, chiefly
Twitter, to take orders, though it also takes
orders on phone
They also have an official website for
taking home delivery orders
9. Represented the brand as the Marker of
current generation using sarcasm and
satire to impress the current mood
11. The packaging is kept subtle which helps
in reducing cost
The packaging also helps in defining the
nature of the company representing casual
as well as hygienic model
12. The company broke even in just 14 months after its inception
Faaso‟s had 18 outlets in 2011 when the funding came in
Currently, the company has 53 outlets across Pune(18), Mumbai (32)
and recently launched in Bangalore (3).
The company began to gather momentum around 2009, by this time,
the company was running six outlets, mostly in and around Pune
In 2009 Lunia Investment and Finance Pvt ltd came in with a Rs 50
lakh second round of angel funding
The founders also raised a term loan of Rs 1 crore from SIDBI.
In 2011 Sequoia Capitals invested $5 million for further expansion
80% of the stores become profitable in 2-3 months
13. Initially they tried expansion through Franchising
But it failed because of low brand value of the company, they were
later renamed as „Eatsome‟
Later they expanded through „Entrepreneurship in Residence
program‟
After the initial hand holding, the entrepreneur is responsible for the
entire P&L of the store
It was a hugely successful model ,more than 2000 people were
interested for the roles, mostly were engineering + MBA background
Sequoia capital promised to spend $5 million for an undisclosed
minority stake in Faaso's for expansion in new markets.
14. Currently they don‟t have a centralized kitchen which could
hamper the standard of taste they want to maintain.
While approaching for further expansion they must be wary of
the competition from different players.
Although their current system gives them ample scope for
marketing they must come up with new Ideas to avoid
stagnation.
They must keep on updating their menus for opening new
streams for revenue
They have a good customer feedback model through
Facebook, Twitter and Faasos.com which should be
maintained.
15. Material/Information from books:
• Philip Kotler & Gary Armstrong, 11th edition, Prentice Hall of India Private Limited, New Delhi,
2006
• Global Perspective Indian Context, V S Ramaswamy & S Namakumari, 3rd Edition, Macmillan
India Limited, New Delhi, 2007
• Srinivasan, R. 2nd ed PHI
Material/Information from Journals/ Magazines/Newspapers
• Economics Times, Sequoia Capital to invest $5 million in Faaso's, 12th Oct, 2011
• http://articles.economictimes.indiatimes.com/2011-10-12/news/30270949_1_gv-
ravishankar-sequoia-capital-india-paneer
Material from website
• https://www.faasos.com/menuhtml.aspx
• http://entrepreneurindia.in/start-ups/all-wrapped-up/11950/
• http://yourstory.in/2013/05/10-years-50-outlets-and-going-strong-a-look-back-at-
sequoia-funded-faasos-growth/
• http://www.scribd.com/doc/26562062/Faaso-s-Marketing-Plan
• http://www.supportbiz.com/articles/managing-growth/faasos-offers-
%E2%80%98entrepreneur-residence%E2%80%99-program.html
• http://lurnq.com/lesson/India-Inc-Startup-Success-Stories/section/FAASO-s/
Notas del editor
It’s a bit like a pizza, except that it’s not flat. And it is so versatile. You can wrap anything under the sun
All of them were IIM-L alumnus and working with different organisation when they got the Idea of the Food chain
young workforce and more and more students staying outside their home/ hometown for their graduation/post graduation
The menu keeps it simple with a singular focus on wraps. Variety is offered in the form of fillings, the ingredients for which are relatively easy to pull togetherThe company uses social networks, chiefly Twitter, to take orders. This cuts down on the cost of running a large call center, though it also takes orders on phone.