Burger chains under pressure as local competition heats up: Liladher
This trend had earlier started in the pizza space as competition intensified there, and now the same is being witnessed in the burger space
 "Burger chains under pressure as local competition heats up: Liladher")
The competition is heating up in the burger space as big chains are now feeling the pressure due to challenges posed by local players and a slow-down in demand, a report by Prabhudas Lilladher says.
While the competition has intensified, the pressure is still not to the extent witnessed in pizzas. But the brokerage believes that the local players’ intensity in the space will persist and the possibility of pressure seen on the larger players is expected to increase.
“Burgers with a patty, tomato, and onion placed inside a bun have been available in India for the last 20 years, even in small towns. However, we have seen the emergence of regional and national chains like Burger Singh, Burgrill, Hello Burger’s, and many more,” the report noted.
“Despite this, the burger category remained resilient and continued to grow faster than the pizza category until the second half of FY24,” the report stated.
The brokerage believes that the competitive intensity will continue going forward. It estimates that the number of outlets operated by McDonald’s, Burger King, Wendy’s (home delivery), Burger Singh, etc., will increase from 789 in FY20 to 1675 in FY26.
Prabhudas Liladher said that Burger Singh -- a local burger chain with more prominent presence in North India -- has a total of 175 outlets and has plans to expand in west and south. It plans to open 1,000 outlets by 2026.
Another local burger chain, Burgrill, has a total store count of 55 outlets with a presence concentrated in Haryana, Punjab and Delhi and is looking to explore international opportunities as well.