Few brands in India have successfully blended franchise growth with affordable gourmet retailing. Akshay Kumar and Kurush Dadabhoy, the visionary co-founders of Bombay Gourmet Market, have achieved just that. What began as an online pivot during the pandemic has grown into a network of 18 neighborhood gourmet stores across six cities in western and southern India. Their strategic shift to offline retail not only revitalized local economies but also brought high-quality, affordable gourmet products to communities eager for premium flavors. With a sharp focus on product curation and customer satisfaction, Bombay Gourmet Market is reshaping the gourmet retail landscape, one neighborhood at a time.
Business Model and Growth Strategy
Bombay Gourmet Market is redefining retail by focusing on small to medium-sized stores with carefully curated inventory tailored to the unique demographics of each locality. Recognizing that consumer preferences vary—what resonates in Rajkot may not appeal in Goa—the company ensures every store offers a bespoke assortment designed to meet the specific needs of its community.
The brand embraces premium products priced above Rs. 1,000 but ensures accessibility by offering smaller-sized SKUs. This approach allows customers to experiment at an affordable price point before committing to larger packs. Moreover, the brand remains committed to its offline-first model, with online operations serving as an extension to facilitate last-mile delivery. The company acknowledges the challenges of profitability in the online FMCG sector, where achieving a high Average Order Value (AOV) and a 30% aggregate margin is difficult.
A key factor in the company’s four years of success is its ability to adapt to evolving market trends while maintaining inventory consistency. By aligning its offerings with local demand and introducing premium versions of popular products through experiential initiatives like sampling and promotions, the brand has built strong customer loyalty.
Operational excellence is credited to the dedication of franchise partners, whose personal involvement and alignment with the company’s vision ensure seamless store management. The franchise model, with its emphasis on localized ownership and personalized service, has been instrumental in driving sustained growth and customer satisfaction.
Franchise Model Viability
BGM maintains a highly selective approach to franchise partnerships, prioritizing individuals who share its vision and demonstrate a genuine commitment to the business. Rather than seeking passive investors focused solely on ROI, they value partners who are actively involved and aligned with the customer-centric ethos.
Operational challenges, such as last-mile delivery to remote locations, are addressed through innovative solutions. The company leverages AI-powered tools from Crest to optimize inventory management based on sales trends, which ensures efficient ordering while accounting for product shelf life and demand fluctuations.
The emphasis on sustainable expansion without reliance on external funding is an integral part of the growth strategy. While company-owned stores provided essential operational insights, franchising has proven more effective for scaling. The transition allowed the company to grow from three stores in its first year to 18 stores within two years, demonstrating the efficiency of the ever-so-popular franchise model.
Franchise selection is guided by three key factors: alignment with the business model, active operational involvement, and a thorough understanding of the product portfolio. Only after these criteria are met does the company evaluate financial expectations to ensure practical and achievable outcomes. The company’s transparent and ethical practices have cultivated a respectful and supportive network of franchise partners, enabling sustainable growth while maintaining high standards of operation and customer satisfaction.
Key Business Metrics, Operational Excellence and Technological Advancement
Bombay Gourmet Market relies on a robust network of distributors and channel partners to ensure efficient inventory management across its stores. The company emphasizes selecting reliable partners for last-mile delivery and adheres to disciplined payment practices, fostering mutual trust and motivation.
Each challenge is viewed as an opportunity to learn and grow, fueling the team’s enthusiasm and deeper commitment to the business. With a vision of expanding to over 300 stores, the company plans to onboard industry leaders to drive growth while maintaining the charm and quality that have been its hallmark since inception.
Bombay Gourmet Market is committed to delivering an ever-evolving customer experience. As the brand shifts its focus towards expanding its inventory under its own label, customers can look forward to more exclusive, responsibly sourced products from artisanal manufacturers. This strategic move not only enhances product exclusivity but also provides BGM with greater control over margins and a unique market edge.
On the technological front, Yango Tech has been instrumental in supporting Bombay Gourmet Market’s journey to create a new digital version of its store through a mobile app. This initiative aims to strengthen customer engagement in an era of rapid digital transformation. With impressive backend capabilities, Bombay Gourmet Market can ensure a seamless front-end experience, optimizing operations with a minimal team while maximizing efficiency. The partnership, which began a year ago, progressed swiftly and has laid a strong foundation for the company’s digital growth.
Long-Term Vision
Bombay Gourmet Market’s distinctive business model is its cornerstone for thriving in challenging times. By focusing on compact, inviting stores in prime neighborhoods and expanding aggressively into Tier-2 and Tier-3 cities, the brand has mastered the art of local relevance. Its curated inventory, tailored to meet specific regional demands, combined with optimized staffing and efficient inventory management, ensures a sustainable and resilient retail approach.
Operating in seven cities, including tier-2 and tier-3 markets like Rajkot, Goa, and Nashik, the brand success lies in its commitment to local insights. Before opening in Rajkot, the team conducted in-depth market research, visiting competitors like Magsons and Chandan supermarkets to understand customer profiles and product demand. A bold decision to include non-vegetarian products, driven by Franchise Partner Dhiren, proved to be a significant success.
Franchise partners play a pivotal role in the business. In Thane, Anita actively tests new product additions, ensuring alignment with customer preferences before rollout. In Bengaluru, Franchise Partner Varun Chawla dedicates 10 hours daily to operations, contributing critical insights that enhance the business.
The brand emphasizes the importance of adapting to evolving trends, whether through technology integration or health-focused products, ensuring customers always find something fresh and relevant. Franchise collaboration and a culture of innovation remain key drivers of growth, guided by the principle: “Try and fail, but never fail to try.”
