Junior Kuppanna Kitchens Pvt Ltd, a popular south Indian non-vegetarian restaurant chain specialising in Kongu cuisine, seeks to raise about $10 million -- a move that will fuel its journey into uncharted international markets while also doubling its footprint within the domestic landscape.
As the hospitality industry rebounds post-COVID, Junior Kuppanna’s expansion strategy aims to capture the growing demand for authentic regional cuisine, while staying true to its roots in Kongu cuisine.
This new phase of expansion not only seeks to strengthen its presence domestically but also introduce the rich, distinctive taste of Kongu cuisine to an even broader audience.
“We will be raising about $10 million from family offices, and institutions over the next 24 months. We may evaluate the IPO option after three years. The $10 million funds will go toward opening more outlets, working capital, building our team, brand development, and investing in innovation and technology,” R Balachandar, Executive Director, Junior Kuppanna Kitchens, told businessline.
Currently operating 49 outlets across Tamil Nadu, the restaurant brand has set an ambitious goal of reaching 100 outlets by 2028.
The company is focused on expanding its operations in Tamil Nadu, and cities with large Tamil-speaking populations such as Bangalore.
“For us, Tamil Nadu, Kerala, and Bangalore are like playing on home turf. We are intimately familiar with these markets, and our immediate focus is on achieving 100 outlets here before expanding into other states,” he said.
Moreover, it has been operating restaurants in Dubai, Malaysia, Sri Lanka, and Singapore and will be opening outlets in Paris (France), Seattle (U.S.), and Sydney (Australia) by 2025.
The Chennai-headquartrered company employs a tailored, three-pronged approach to its network expansion. In major cities like Chennai, Coimbatore, and Madurai, Junior Kuppanna operates its own outlets.
For instance, it currently manages 20 company-operated outlets in Chennai alone. “Operating in clusters in larger cities allows us to streamline operations more effectively,” Balachandar explained.
In smaller towns such as Kovilpatti or Sivakasi, where the brand might only have a single outlet, a full corporate model isn’t feasible.
“In such locations, we are looking for franchise partners. The strategy is that if we have five or more outlets in a cluster, we operate them ourselves; otherwise, we collaborate with local partners,” he added.
For international expansion, Balachandar said that the company prefers joint ventures (JVs) with franchise partners. In these partnerships, local franchisees manage operations, marketing, and customer service, while Junior Kuppanna provides expertise in recipes and production, ensuring that the brand’s essence remains intact.
“This complementary relationship allows us to maintain quality while the partner handles the local day-to-day operations,” said Balachandar.
With a current brand turnover of ₹140 crore, the restaurant expects to grow to ₹400 crore in revenue when its 100-outlet milestone is achieved.
Despite the post-pandemic recovery being positive, the company faces challenges in maintaining service and quality, given the labour-intensive nature of the restaurant industry.
“The food industry is evergreen. There will always be demand, but the challenge lies in managing growth and people. Even with the potential to operate 100 outlets, it’s impossible to scale while maintaining quality without effective people management. Brands that excel in this aspect will flourish, while those that don’t will remain small,” he stated.
Reflecting on the company’s 25-year journey, Balachandar explained that Junior Kuppanna’s transition from a family-run business to a professionally managed one required embracing technology, hiring skilled professionals, improving corporate governance, and securing external capital.
“This transformation is essential for sustainable growth,” he affirmed.
Tamil Nadu, with its non-vegetarian consumer base exceeding 90 per cent, has always provided a fertile market for the brand. While there is a temporary dip in demand during the Puratasi season, he noted that the subsequent “revenge eating” phase sees a significant spike in consumption, ultimately balancing out any decline in sales.