Burger Singh, an Indian quick-service restaurant franchise, experienced a dramatic financial decline during the fiscal year ending March 2024. Despite a 34% year-on-year increase in operating revenue, the company's losses increased by more than sixfold during this period.
Burger Singh's revenue from operations increased to Rs 77.7 crore in FY24 from Rs 57.8 crore in FY23, according to its annual financial statements filed with the Registrar of Companies. The 12-year-old firm is a quick-service restaurant that serves a broad menu of burgers, sides, desserts, and beverages through both self-owned and franchised locations.
Burger Singh generates revenue from three sources: sales in its own stores, franchise goods sales, and franchise services. In FY24, sales of food and beverages from its own stores made up 48% of total operating revenue, which increased by 60% to Rs 37.66 crore. Franchise sales generated Rs 10.81 crore in revenue, while items sold to franchise outlets generated Rs 28.6 crore.
For the food and beverage startup, procurement became the largest cost center, accounting for 43% of total costs. In terms of magnitude, this expense increased by 31.3% to Rs 39.2 crore in FY24 from Rs 29.9 crore in FY23.
Burger Singh's employee benefits increased 54% to Rs 18.37 crore in FY24. Other overheads include commissions, travel, legal fees, and advertising, which increased overall expenditure by 43.7% to Rs 91.1 crore in FY24 from Rs 63.4 crore in FY23.
The 43.7% increase in total costs outpaced revenue growth, resulting in losses that increased 6.3 times to Rs 27.9 crore in FY24. Its ROCE and EBITDA margins were -94.76% and -30.94%, respectively. Burger Singh spent Rs 1.17 for rupee earned in FY24. Notably, Burger Singh's cash and bank balances were Rs 19.51 crore, with total current assets of Rs 31.3 crore in FY24.
Burger Singh raised a pre-Series A round of funding from Turner Morrison and current partners in December 2023, valued at $52 million. To date, the company has raised more than USD 12 million and runs 175 locations in 75 cities.
