'Wow' factor of the Wow Momos

Greetings friends of Steemit and Steemit Iron Chef

Today I have brought a powerful case study of Wow Momos and I will tell you that how a small stall became such a big brand.

I am going to cover many important points. today I will share how it became a 1000 Crore (US$ 10 billion) company.

I will discuss 5 strategies, bit by bit and we will discuss in detail that how a small stall that started with just 2 x 4 area and today it is a 1000 Crore (US$ 10 billion) company and one of the biggest QSR of India.

If we talk about the founders of Wow Momos then it was established by two college students. His name is Mr. Sagar Daryani who is also current CEO of the Wow group and his partner is Mr. Binod Homagai who is from Nepal and Mr. Sagar belongs to Sindhi community. Now Mr. Sagar handles complete marketing in Wow Momos group, all the "Wow' factor of the Wow Momos group is entirely because of Sagar Darvani.

Binod ji as he handles the operations, he is CEO of the company, he manages all the operations.

They had started in 2008 in Kolkata when they were studying in 3rd year of St. Xavier's College. During college days, they had an idea why not start a brand of momos and take it abroad as momos are trending.

Now how all this was made possible?

They started with small stall and today they have grown so nicely that they have close to 320 outlets operational in almost all the cities of India. They have outlets everywhere and sales are high.

Today their revenue is Rs. 200 Crore (US$ 25 Million) and valuation of Rs. 1000 Crore (US$ 125 million).

Now, how? How does a food brand grew so much?

We are going to discuss about it.

So the first principle is Financial Alternative. When you have less money then start searching for financial alternative.They started with a loan of Rs. 30000 (357.66 USD) and started a small kiosk, and they chose such a location for kiosk where footfall was high.

So they approached Spencers retail which is very big retail chain. Now Spencers demanded huge rent and they did not have that much of money.

So how did they overcome this?

They offered 18% revenue share to Spencers.

They agreed but asked for the sample first. So for sample they approached an aunt who cooked momos and they got the content from there and fed them and they liked the taste very much and they agreed. Their first day income was Rs. 2200 (US$26.23).

After that they needed a cook to make good momos, so how to hire that cook?

They hired a part time cook named Ramji for Rs. 3000 (35.76USD) per month. Because they had very little money.

Resourceful without Resources.

Means how to be resourceful when you don't have money and resources. Sagar Daryani used to wake up at 5 am and bring raw material for their business.

And within no time their small stall made a revenue of Rs. 60000 {$71.59 (USD)}.

When Spencer retail saw their growth then they asked them, brother, why are you having stall?

Shift to a shop, we will provide you a shop.

As soon as they shifted to shop, their revenue reached to Rs. 2 Lakh (2,385 USD) per month and it jumped to Rs. 7 to 8 Lakh (8,942 USD).

This is a good example of how to grow.

Great product plus great marketing, when both of them are good then you get growth in business.

Second principle - Innovation is the new game. If you don't innovate then you would be outdated in business. How do you innovate? See in order to innovate you need love, not that type of love, you should be in love with your business, with your products. They studied their consumer behavior observed that their consumer is from middle & high income level group which has slightly more money to spend since their disposable income is high.

So they started innovating & introduced a concept of Pan fried momos which was not offered by many at that time, then they brought the concept of cheese momos, everyone likes cheese. After that they brought the concept of baked momos which was then not served by anyone else in India.

You also have to offer the desserts, so
they brought the concept of chocolate momos which was very much liked by people.

Most of their business runs on pre-cooked and auto-process which means food is already cooked you just need to do some work on it.

They operate on hub and spoke model, entire food is cooked in a hub and then it is distributed to various branches through their cold chain logistics network.

They've created the standard operating procedure so any guy who cooks momos they will be same in taste.

They introduced game changing products which were very beneficial for them. Firstly they brought the sizzler momos,

People in mall saw that and they liked it very much and people started buying it. Their sales increased then they brought momo burger.

Incash every opportunity, money is around.

Sagar Daryani always says that I would love to own 10% of 1000 Crores rather than 100% of 10 Crores.

Focus on how big the pie is. It is very important to share the wealth. Next principle is Revenue Up scaling.

I will tell you two powerful points in this, Listen carefully, first is - Location. Not the one you are thinking about. They focused on location viability. They introduced multi mobile model. Now what is this multi mobile model? Multi means many, mobile means smallest.

Understand this, where even small stall will work they would open it, because rent will be less. Where big shop is required, means more rent so no big shop there, small shop there and where rent is less.

Even the smallest of their stalls generates a revenue of Rs. 20 to 30 Lakh { US$ 25000-37000 } today. And since they are paying less rent so cash out flow is small and in flow is large.

Profitability automatically increases; & this is the multi mobile model of their business.

They didn't raise any funding till 2015, survived on zero funding; now how did they do it?

They opened one store, all the profit from that store was saved and this whole profit was reinvested in opening new store.

At start the growth is slow but then suddenly compounding effect was there. Understand the Transactional & Organizational Profitability.

They raised funds for the first time in 2015; no funding till that time. They created an entire base, they raised the first funding from IAN-Indian Angel Network worth Rs. 10 Crore (1.25 million USD) in 2015.

Afterwards they used that funding for 2 long years; didn't raise any funding till 2018 when Rs. 44 Crores (5.28 million USD) were raised from TG global to enter Delhi market.

Then again raised funds from Tiger Global after 2 years worth Rs. 165 Crore (1650 million inr) in 2019. And they raised funding in 2020 which was not actually equity funding but it was debt funding of Rs. 45 Crores (5.35 Million USD) since they needed it during pandemic.

Now see friends, Sagar Daryani has simple concept Customers are my biggest investors & Employees are my asset.

Once, an employee's father was detected with cancer & he was treated poorly in government hospital, then he swore that now we will open cancer hospitals; the momos that you eat at Wow momo its one rupee is donated automatically for cancer hospital construction.

Source

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