Good morning, ladies and gentlemen. Good day, and welcome to Restaurant Brands Asia Limited Q1 FY25 conference call, hosted by Motilal Oswal Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Naveen Trivedi. Thank you, and over to you, sir.
Good morning, everyone. On behalf of Motilal Oswal, I would like to welcome you all to the Restaurant Brands Asia's Q1 FY25 earnings conference call. From the management today we have Mr. Rajeev Varman, CEO, Whole Time Director; Mr. Sandeep Dey, Brand President, Indonesia; Mr. Sumit Zaveri, Group CFO and Chief Business Officer; Mr. Kapil Grover, Chief Marketing Officer; and Gaurav, the Head of Investor Relations. Now, I hand over the call to the management for the opening remarks.
Thank you. Good morning to everyone. This is Rajeev Varman, CEO of RBA. We also have today, in addition to the members already called out, Cicily Thomas, who is the President of Burger King India. We have Namrata Tiwari, who's our Chief People Officer, Dr. Sudip Tamhe, who's our Food Technologist, Head of Technology in food. And we also have Madhuri Shenoy, who is our Head of Quality. So let me take you back 10 years. You know, on November ninth of this year, we would have completed 10 years as a brand in India. We opened our first restaurant on November ninth, 2014. So this November, we will complete 10 years.
This 10 years has taken our journey to today we sit at 456 restaurants in 107 cities. That's almost 10 cities every year that we have grown in. As Sumit will go into the numbers today, you will find that all our numbers that we will report today will be in the green area. Growth in the green area, SSSG, same-store sales growth, will be green. SSSTG will be green. You will find that revenues will be in the green, gross margins will be in the green, restaurant level profitability will be in the green, company level profitability will be in the green. So, you know, the strength of brands and companies is visible in tough times.
Now, you're aware that, the market has kind of slowed down a little bit in the last few quarters, and in this environment, RBA continues to deliver positive same-store sales growth. In fact, if you look at, the last nine quarters, we have continuously reported positive same-store sales growth. So let me first take you through the 10 years that we have been as a brand, what we have done. It's a very auspicious year for us, completing the 10th year, so I just wanted to kind of walk you through the brand it has been and the brand it is going to be in the future.
Initially, as you remember, we had established this in 2014 by building a menu that was, you know, Sandeep Dey, our president in Indonesia, says, "Familiar discovery," which is build a brand that was Western, but taste of India, right? Very, very Indian taste in nature. A brand that had menu items which were very strong in the veg-focused areas. Veg value variety. I think you heard Kapil say this in the initial years of our brand, that we built the menu on veg value and variety. So we did that. We did the largest taste test ever done in India on food, which was over 3,000 people that we tested. We built the products around that, and then we launched the brand with Whopper in focus, which is our flagship burger.
Now, we continued that by bringing in a value strategy, which is, you know, a fulcrum for, for the Burger King brand across the world, that we, we believe in, in driving, you know, trials and getting people into our brand, into our business, from the value sector. So we did 2 for 50 INR, which has graduated today. Last year, you saw us do a 99 INR meal, and this year you have seen us do, 2 for 79 INR. So those strategy and value continues to be strong. It's a 10-year-old strategy. It will continue to build, it will continue to evolve as we move into the future. We also then started building restaurant footprints, you know, creating awareness, marketing, advertisement, all these things create awareness, but also building restaurants create awareness.
So we have built, you know, 456 restaurants as we stand today, in 107 cities. In addition to that, we have built 351 cafes inside of these restaurants. So, which has been a ramp-up in less than two years, actually slightly over two years, because we started in FY 2022, now we are going into FY 2024, and we have literally, you know, 351 cafes. There's about 100 restaurants that don't have cafes, which will start now getting cafes. All the new restaurants are opening with cafes. So a very strong menu strategy graduated into a very good value strategy, build up strong footprints, added day part menu, or specifically by building cafes.
And then we are graduating now as we move forward into the digital era, where we are now establishing SOKs, as we say, self-ordering kiosks, in all our restaurants. So we have completed close to around 180 restaurants that are already running with self-ordering kiosk, and we will continue to do that. By the end of this year, fiscal year, we should be at 100% of SOKs as well. So in March of 2022, we acquired the business in Indonesia, which is Burger King, and then we further on started to build Popeyes there. In August 2022, we built our first Popeyes. Sandeep will kind of bring focus on our results and how we're moving forward in Popeyes and Burger King in Indonesia and all the challenges, the geopolitical, you know, challenges over there and so forth.
So that's basically, you know, with the last 10 years in India, and RB as we graduated into the international market. Last quarter, I told you the focus areas, which haven't changed, which continue to be the focus areas for this company as we move into the next few quarters. One is to continue driving value. You've seen, and you'll see, you know, the value promotion that Kapil will be launching and has worked within the last few quarters. So he will kind of bring that to life in his piece. But 2 for INR 79 and 2 for INR 99 has been on our, you know, our communication now for several quarters and is doing very well.
We also went into new occasions, not only with cafe, but you know, launching the BK Pizza Puff, which is doing very well, which also addresses our snacking location and occasions. And in addition to that, in the past, we have launched, you know, nuggets, we have launched wraps. So there's a lot of new items, innovation that Kapil keeps bringing into the business, and he will address that as he speaks. But basically, to kind of build and grow traffic. So our focus, moving forward, continuing to bring in traffic. So this nine quarters that I told you that we were positive same-store sales, we were also positive same-store traffic. So it is important to bring SSSG with traffic.
We continue to build on that and growing traffic, which has been predominantly our focus for the last 10 years, will continue to be our focus for the next 10 years. Digital brand, a brand that is accessible digitally, not only in front of the counter where the guests are, but also behind the counter, where Cecily Thomas and she will speak more next time when we do the next quarter meeting, about how she's taking the brand digitally inside the kitchen as well. Making sure that all our processes and systems are digitally to bring efficiency, number one, and also to reduce the number of, you know, mistakes that we can make on delivery of our orders. So that will continue as well.
The last piece, which is the most important piece that we took upon a few quarters ago, is to have a laser focus on profitability. Now, yeah, one of the biggest, you know, attributes or inputs to good margins at the restaurant level is sales. And we will continue to drive traffic and sales, but also to manage our line items so that we continue to deliver a solid restaurant level profitability. That focus has been now split into two pieces. One is to focus on dine-in, which we have continuously spoken about in the last few quarters, which is continued laser focus on delivering restaurant dine-in profits. But in the last quarter, we have also started this journey of increasing our profitability at the delivery business.
So you will see and you will hear more and more as we move forward to bring the margins on our delivery business higher and higher, and we will continue that focus as we move forward. So that's on India, and then, Sumit will kind of share the results on all the, all the items on India as we move forward. Now, Indonesia. So Indonesia, you know, we kind of went into this business in 2022. And since taking this over in March of 2022, and launching Popeyes in August 2022, what we have done and where we as a brand over there.
So initially, as I've said in the past, we took over the business and we went back to basics, which is what we do as a company. Again, went back to menu. The menu was not up to our snuff. It was not up to the market standards. We got the menu up. Every single burger, every single item, every entree was tested, and reevaluated and built up with new sauces and new patties and new toppings. So we did that, and Sandeep built a fantastic menu for Popeyes as well, at the same time, fixing the Burger King menu over there. So we did that. We also went into, you know, doing the menu architecture for both the brands.
So there was a value core and a premium layer that was established. So all this work was done, and then we started a journey to actually, you know, establish and start moving sales in the right direction, which we, as you can see in slide number 6, that, you know, the red line is the current year, and you'll see that we had moved the sales significantly higher than the previous year, and we were well on our way until this geopolitical headwind started in late October. And this is, you know, a big challenge for the Indonesian market, for all QSR, that they are American, you know, brands. They all suffered from retail, down to food, down to cafes.
Everyone got the hit on that, and we were no different. We saw that the line that was way above the green line suddenly dipped below the green line. Now, we then took the next couple of months to reestablish, you know, start our business growth in our delivery business, and we did an effective job of that as we climbed from January onwards, between November to January, to reach back the previous year's sales. And we did that very effectively. And, you know, then in May, we had another challenge when there was a second bombing in Gaza, and there was another geopolitical wind that kind of took a toll on all the businesses there. So we have had challenges. We have set the business right.
We have, you know, set the menu right. We have rationalized the restaurants. We have closed about 26 restaurants that were non-profitable, which were in the low areas or areas with no growth. We have cleaned that out. We also did the same with our overheads. We brought it down, you know, we rationalized our total G&A count. We brought it down by 25%. So we have a very effective machine now in Indonesia, a very effective, you know, team, very effective assets that are ready to grow and, you know, become all they can as these geopolitical winds kind of go behind us.
I think the reflection of the community there, the business community, is that post-October, there's going to be a upbeat uptick of this traffic back into the business. So, we are hoping that that is true, and we are working towards that, getting the business ready to kind of deliver on those numbers. So that's basically the Indonesia, and Sandeep will speak a little more about it, and you will get a flavor of where we are in terms of numbers and so forth. With that said, I will turn it over to Sumit, so that he can carry you into this green page of all green numbers. Over to you, Sumit.
So thank you, Raj. I'll kind of use slide number 10 to take you through the overall performance that we have for the quarter. It also reflects some of the positive trends that we've seen, what Raj was talking about as we go through these numbers. Firstly, talking about growth. Obviously, growth has been one of our key drivers. In the current quarter, we opened 1 store. It's not that we've really kind of gone back in any manner. It's just that it is by design. We had opened a very large number of stores, almost close to 40 stores, towards last quarter of the calendar year. We're just kind of allowing some time for those stores to settle down.
Our target to get to 510 by end of financial year is on track. Currently, as we speak, almost close to around 19-odd stores are under construction. So we're kind of now phasing it out over the balance part of the period, making sure that we get to 510, being the target. As Raj mentioned, our focus is driving traffic and then driving SSSG through that route of driving traffic. We're really happy to announce that we've been positive, as you are seeing here, last 5 quarters, but we are really positive in SSG over last 9 quarters. You know, this to be positive in a market scenario which is challenging.
At the same time, being positive as we are adding reasonable amount of stores to the portfolio, actually, we've been adding close to around 80 stores on an annual basis. We feel really we've been able to kind of manage the growth, balance the growth, and the same store sales growth, really in a balanced manner without really focusing the balance or the focus on either of the, either of the side. Having said that, effectively, our revenues for the quarter, which was just a little shy, INR 10 crore shy of INR 500 crore, achieved INR 490 crore of revenue, 16% sales growth, on a year-on-year basis. Slightly favored by way of a, a higher delivery mix, moving from 59% to 42%, which we believe that this is the broad range.
38%-40% is the kind of range that it will remain, as we go along, as we continue to focus on bringing more traffic into our dining part of the business. If we really look at it from the perspective of gross profit, we've always been focused in improving our overall profitability through focus on gross profit through various initiatives on the supply chain side. Over last one year, we've been able to improve our margins by almost close to 1.2%. As far as this current quarter is concerned, we are as flat as 67.6% as we had reported last quarter. We must assure you that it's not a break in the journey to go to 69% that we've said we will achieve.
It's just that in the current quarter, we really wanted to aggressively pursue growth through traffic, and that's why it's a conscious call, to remain at, these levels of margins. Raj mentioned about it, we will very strongly focus on the delivery side of profitability. So we will see the journey coming back as we go along the later part of the year, taking us to 69% target that we've spoken, earlier. As far as overall profitability is concerned, we achieved 8.9%, store level EBITDA and a 3.6% company level EBITDA, growing to INR 43.5 crores in the current quarter at a restaurant level.
If you look at it from the company perspective, we grew to INR 17.5 crore from roughly INR 10 crore that we got year-over-year, or if you look at it sequentially, it's almost close to 70% growth in EBITDA. We did see some kind of, some challenges with respect to, on the cost line. It was more not, or more because of the external environment of the seasonality side. Extreme heat did impact us on the utility side, which is why we see some of the translation on gross profits didn't materialize as far as restaurant EBITDA is concerned. And a slight shift in delivery mix from 39% to 42%. So the translation gain or the improvement in gross profit, we did lose a little bit of that on the restaurant EBITDA side.
We've always been talking about getting the leverage benefit as we grow on the G&A side. In the current quarter, as we've grown revenue by almost close to INR 68 crore, the corporate G&A has reduced as a percentage of revenue by almost close to 4.3%. So that's the journey that we will continue to see as we, as we go along going forward. So that's the India business part of the journey. Quickly going through Indonesia, and I'll just talk a little bit and build on to what Raj was saying. Our priority is to get to a position where we are not losing cash in Indonesia. As far as what we believe, what we've done is that we've rationalized the portfolio. We've down to 149 stores.
It's a portfolio which is, which is more balanced, and based on this portfolio, at the store level, we did report positive EBITDA. As far as rent, effectively, it's an IDR 19.4 million for the quarter. It's, it is showing 5.4% negative association. We believe that as we continue to pursue the brand from the perspective of sales side, as we continue to remain focused on our product delivery, we should be able to bridge the gap as we... And go and improve over it, as we have seen in early part of the year, last year. As far as Popeyes is concerned, we are currently at 25 stores, and average daily sales of IDR 17.9 million.
It looks like a drop, but that's more like 39.4, was just representing 10 stores, and it was the launch period, the quarter immediately the launch period of the brand. So really speaking, not comparable. But having said that, not that we feel that 17.9 is a good number. We would really want to bounce back from this number. We are currently kind of waiting for some of the headwinds to start with really kind of receding, as then we will put start putting money behind this brand and grow sales. At these levels, though, we must add that that we are not losing any money at at Popeyes level. So we are at sustenance levels as far of areas as far as Popeyes is concerned.
Overall, our revenue in Indonesia was around INR 302 billion, a drop of 11% YOY, largely because of store closures. And at an EBITDA level, we lost around INR 17.3 billion. While we are at an EBITDA level, we have INR 17.3 billion. The way some of the lease constructs are built in Indonesia, actual cash outflow is almost close to INR 4 billion less as compared to EBITDA, because in Indonesia, the rent structures are built in such a way that a substantial part of rent gets paid in advance. So there is no cash outflow to that effect in the current financial year. So EBITDA file looks -INR 17.3 billion. The actual cash is INR 4 billion less.
We would continue to endeavor to get to breakeven levels or cash neutral position as far as Indonesia is concerned as we progress further into this current financial year. So that's literally from my side on India and Indonesia financial performance. The overall performance on the consolidated standalone is already shared and available, so I'm not getting into that. I just thought I'll talk a little bit more or explain the numbers to you. So I'll just put you to Kapil, who will take us through the marketing initiatives on the India side.
Okay, so thank you. Thank you, Sumit, and good morning, everyone. Just before I start the India sort of marketing update, I'll just, you know, recap the numbers that Sumit mentioned earlier. Our growth story continues. We have year-on-year added 60 stores to the base, so we're now at 456 stores. We delivered an ADS of 119,000 last quarter, and with this, was a 3.1% same-store sales growth over last year's same quarter. And as Raj mentioned, this is the ninth straight quarter of same-store sales growth. With the revenue at almost INR 491 crore, this was a 16% improvement in revenues over the same quarter last year, and this is our highest quarterly revenue ever, since we started the business.
Margins improved by 110 basis points, and they now stand at 67.6% compared to last same quarter last year. And restaurant EBITDA, as Sumit mentioned, is INR 43.5 crores, which is a 29% improvement over the same quarter last year. At a company level, with INR 17.5 crores of EBITDA, we are 72% better than same quarter last year. So that's been the summary of what Sumit mentioned to you, in terms of our results from the India business. Right. Now, to talk you through the marketing initiatives which sort of helped us, you know, in some parts to deliver this number. We've continued to focus on our value strategy, and offer consumers better value than the market.
Our lead dine-in marketing program for this quarter was two crispy veg at INR 79 and two crispy chicken burgers at INR 99. Now, this is a model which has given us great results in the past and given us good dine-in traffic growth, and it continues to be a strong platform for driving traffic into our restaurants. In addition to the two for model, we continue to offer the 99 meal. You know, the meal that we promoted all of last year is still available on the BK App, right? There are another suite of meals and add-on offers, which are also available on BK App as a platform for our guests who are seeking more deals and coupons in restaurants. While these are the price-pointed offers of two for and 99 meal, we also continue to offer great value on shareable meals.
You know, given the season, we have the monsoon meal deals for two people available as our dine-in guests to help them share a meal with their family and friends. Now I am on slide number 17. This is about our BK Cafe concept. We have spoken about expansion. Today, we stand at 352 cafes, which is almost 80% of our portfolio, and this will continue to expand as we open new stores and go back and retrofit in some of our older stores. But it's more important now see in future, we've started to now drive innovation on the layer. We've added iced coffees to the menu recently. You know, iced cappuccino, iced Americano, and iced latte have been added to the menu.
These will help us grow incidence of the layer, and you will see a lot more work on the cafe business in the coming 2, 3 quarters to grow awareness and penetration of this category in our business, right? During the course of the year, we also continued to innovate. Raj mentioned some of the innovations we've done last year and recent quarters. Our most recent launch, the BK Pizza Puff, is a favorite vegetarian snack. The product has done very well on blind product tests, and it was rolled out in the northern markets, about 8 weeks ago. We've got very encouraging results, on the product, and it's now become a part of the 2 for X platform at 2 for INR 59. And you will see more, on this program as we go forward in the future quarters.
Now, while we continue to drive traffic to our dine-in restaurants through all these promotions on value, we now have 143 stores, and as we speak, it's grown to about 180 stores, which offers a fantastic king's journey experience to all our guests. The guests are offered digital ordering through self-ordering kiosks, BK app-based ordering, or a QR code on the table, which you can scan to avoid the queue at the kiosk, and then your food will be served on the table. Thanks to some fantastic execution by our digital and operations teams, 92% of dine-in sales in these 143 stores is coming from digital channels like kiosk, app, or the mobile site. Our guests are loving the new, new experience in our stores.
On the next slide, in continuation to the point on BK App, we are now building this as a platform, you know, and a foundation for our CRM programs in the future. The BK App has a host of 9 million offers, which help us drive acquisition, and we've seen our installs grow by 70% over quarter one of last year. Even our usership has grown by about 2.7 times over quarter one of last year, and this work on the app will go a long way in establishing strong loyalty with our BK fans. Last but not the least, we continue to be one of the most engaging brands on social media, with a focus on youthful and very authentic conversation with our fans. So that's it from my side.
I will now hand over to Sandeep to share the Indonesia update.
Thank you, Kapil, and it is always inspiring to see some of the fantastic work India is doing, and it definitely helps us, you know, pick up some of the best practices for our business here. Good morning to all of you. You heard both from Raj as well as Sumit, that, you know, the environment here continues to be a little challenging due to the geopolitical crisis. You know, after a long spell of 4-5 months, since October, the business really started to get better. Towards the Ramadan festive month, which is around April and subsequently till end of May, things got better, and we reached almost the pre-crisis level sales. But unfortunately, as Raj mentioned, the last week of May is when the second crisis hit us, and we got adversely impacted once again.
However, we continue to stay focused on doing things which are in our control. So the next few minutes, I'm going to double click on some of the stuff which Raj mentioned earlier. The first six months of FY 2024, we did a great job on the basis of all the foundation work and delivered more than 11% growth in those six months compared to the previous year. Despite all the challenges we have been facing since October, we still delivered a similar sales this quarter compared to quarter one of last year. We did experience a 15% drop in dine-in sales, but we successfully pivoted our strategy towards delivery and delivered a 19% growth in that channel.
This, you know, kind of gives us the confidence that guests do continue to love our brand because of the great taste experience, because of the consistent product quality. And a very strong value proposition, which they enjoy from our brand. Moving to the next slide, where I'll be talking about the key priorities for the Burger King brand, which is chicken, burger, and winning dessert menu. In the last few quarter calls, I've been speaking about the fact that Indonesia is an extremely strong fried chicken market, and having a comprehensive portfolio in this category is going to be a competitive edge. We have two winning products in our menu: the crispy chicken and the dunk spicy, saucy version of another fried chicken.
However, we also understand that there's a massive demand for a breaded version of spicy chicken, so we developed that winning product as well, did an extensive test market for almost couple of months, and we are extremely satisfied with the result and now decided to launch it across the country in the next 2 weeks' time. In the last 3, 3.5 quarters, our volume of chicken grew by almost 50%, and now, after having the widest range of fried chicken in the entire QSR space, we are quite confident of taking our chicken share even further up. The second strategic priority is to establish leadership in burgers, and that we'll continue to do through Whopper trials and continue to do through providing taste supremacy.
You know, we developed the Whopper based on local taste preference and then offered that product to customers at a very aggressive price of IDR 17,000, which is almost a 50% discount from the original price. But that has really helped us driving trials, driving frequency, and also building the Whopper equity. We are witnessing a sustained volume of 35% over the last four quarters. However, the work really doesn't end here. We are further improving the quality and taste of this product. We have developed a better, you know, buttery, softer bun, also made the patty even more juicier. We are now setting up the backing of the supply chain so that we should be able to launch this new Whopper and scale it up across the country by the last quarter of this year.
Cold dessert is a massive market, and we have a big opportunity to gain share in this category. As a part of our dessert strategy, which is the third growth pillar, we continue to drive new and innovation around dessert category, either through co-branded desserts or through products which are inspired by local favorites. Right? And then, you know, in the last one year, we have witnessed a volume growth of almost about 2.5 times in the last one year, but our ambition is to double it. Most importantly, traffic continues to be our number one priority, and hence, we will always maintain our value leadership position, whether we provide extremely strong value propositions through our permanent value layers, through our dining business, or a very attractive entry price value layer, both for à la carte as well as combos for our delivery channel.
Now I'm on the last slide, which is slide 25. Popeyes is a new brand. We have 25 stores, so the priorities are very clear at this moment: build the product and the brand awareness, generate trials, and then continue to provide a guest a digital-first experience. We are basically a culinary brand, and not only got winning products with regard to taste, but also got enormous amount of variety to address different occasions. Our ambition is to build this brand into a chicken destination. By the way, we are the only QSR chain, be it local or international, who got chicken in both fried as well as grilled formats. Grilled chicken is our unique differentiator, and it kind of contributes almost one-third of the total, bone-in chicken volume.
Going forward, we are strengthening this portfolio by adding more varieties like grilled wings, grilled sandwiches to our signature grilled collections. This, we strongly believe, is going to be our competitive edge. We also developed a breaded spicy version, which has performed extremely well in the consumer research, and we plan to roll it out in the third quarter of this year. Now we have winning products, and the task at hand is to build awareness. In all our stores, we have digital menu board, which we are using as an ad board to create awareness and educate our guests. We also have video walls in every store which runs brand videos. You know, in fact, we have also started to participate in some key strategic events, which also helps us in generating trials and generating brand awareness.
So we have implemented our, you know, menu pricing strategy also, which will help us build the value propositions and thereby help us drive trials. We have also strengthened the digital-first experience. We launched our Popeyes app last month, and, you know, I'm also happy to report that 95% of our dine-in transactions are through self-ordering kiosks. So this will definitely help us build a very strong CRM program in future. And last but not the least, we will continue to provide elevated guest experience through 100% table service. So that's all from the Indonesia side, and I hand it back to Sumit to share the overall outlook.
Thank you, Sandeep. So I'll just quickly share the outlook. As far as restaurant count is concerned, we are currently at 458. We endeavor to get to 510 by end of the financial year and target for 700 stores by 2027 will continue. Growth, as far as gross profit is concerned, we were at 67.6%, as I mentioned during my earlier conversation. Our target to get to 69% by 2027. We firmly believe that we are on track to get to 69%. Indonesia, our immediate priority is to achieve cash break at the country level, which is what we would endeavor to get to towards if we get to the later part of the financial year. So with that, I would open up for Q&A.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, you will wait for a moment while the question queue assembles. The first question is from the line of Dhiraj Mistry from Antique. Please go ahead.
Yes, thank you, and, congratulations on very good set of number of the positive SSG and improvement in profitability. So my first question, what I understand is that you have taken some price hike in online channel. Can you split your current quarter performance between price increase and volume increase?
So, Dheeraj, as far as current quarter is concerned, the entire growth is literally come through the traffic growth, as we... as Raj initially mentioned as well, that our focus is value-led strategy. We will continue to remain focused on that side. So as far as volume part of the business is concerned, it is led by traffic. Even on the delivery side, the growth is a combination of traffic as well as average check. But its average check is something which is more trying to get customers to buy more on the platform. As we go along, we will see some correction on the pricing side, and we've, and Kapil did mention about it, that we are kind of trying to pivot our menu slightly differently on the delivery side.
We will see some price corrections going forward. We've really not seen the impact of that fully as far as the current quarter is concerned. Current quarter, the growth is traffic-led, and that is how our overall strategy going forward will also continue to be.
Got it. Got it. And second, one of the points you highlighted that going ahead, improvement of profitability will be also led by the improvement in profitability for your online channel. So can you help us with what would be the current profitability difference between online and offline channel for you?
So Dheeraj, we would really not be able to share the exact details of how the profitability tool is concerned. But as I was saying earlier as well, our endeavor to improve the overall profitability will be led over to two levers, I would say. One is reposition our delivery on the pricing side. That's one. The second is that with the launch of new categories that we've done, cafe on one side, that we've done over the last two years, and then the snacking products, we will also endeavor to improve overall attachment through these new categories. So that's how we are still kind of going to overall address the profitability part of the delivery channel, as we go along into later part of the year.
Got it. Got it. So second question is on can you highlight how the demand in India from the month-on-month perspective, whether that has been improving for you? Let's say, for the quarter, you have witnessed 119,000 of average daily sales. How that has been performed on a month-on-month basis?
Dheeraj, this is Raj. Thank you, first of all, joining this call this morning, and thank you for your questions as well. Dheeraj, you know, we think that there's going to be a strong recovery in the second half of the year. I think that's what's visible to us. But for a brand that's been positive in traffic for the last 9 quarters, you know, if you look at the industry, probably at about -4, -5, somewhere there, and we at +3. So it's, you know, all things being even, we would have probably been +7%, had you know, the market demand been a little stronger.
But I think as we look into the future, we expect that this will have a stronger second half performance, and we should be able to, you know, get a higher traffic increase as well as our SSSG. But we kind of stay put, you know, awaiting that positive trend to come in. It's been a tough, you know, this last quarter in terms of battling it out, and very good, strong value strategy is the way. And not only just value strategy, but the innovation that was put in place, you know, with cafe that was introduced, puff that came in, nuggets that came in, wraps that came in.
There's a lot of work that we have done, and we think that the next two, three years, you will find growth in RBA, in emerging India specifically, through these, you know, items that Kapil has put in place. All these instruments are, you know, going to give growth in day parts as well in traffic occasions. This company will continue to grow on this basis of traffic. As I've always said, we are a traffic-led kind of company, and we will continue to drive more people into our restaurants. Thank you for your question.
Got it. Got it. You know, we appreciate a lot in terms of your performance compared to other peers. Sir, last question, if I may, what would be the contribution of BK Cafe in our existing BK Cafe stores? That's it from my end. Thank you.
Yeah. Dheeraj, again, thank you for your question. You know, we have said this in the past, that in spite of adding, almost doubling the number of cafes in the last, you know, few months, we've got now 370-odd cafes. I mean, that's a lot of cafes that we have put in, in a span of very few months. In spite of that, we have maintained our, you know, average daily sales on cafe. We think that this average daily sales of between INR 14,000-INR 15,000 will more than double. And that's our aspiration as we go into the future years. Beyond that, you know, we don't share any specific information on that. But I think that should give you pretty much what you are looking for. Yeah?
Thank you. Thank you.
Thank you. The next question is from the line of Mayur Gathani from OHM Portfolio Equity Research Private Limited. Please go ahead.
Thank you for the question. Just wanted to understand or get clarity, is that you are saying that delivery margins will come in line with your dine-in margins, and two reasons you're saying is the traffic growth and correction in prices. Is that understanding clear?
So just correction in pricing, yes, Mayur, you are right. The second one is we will work towards improving the attachment to the invoices using the new category launches that we've recently done, which would cover cafe and some of the snacking range, puff and the chicken nuggets. So that's literally how we are going to address improving the overall profitability of the delivery side of the business, Mayur, yeah.
I mean, Mayur, you know, if you look at the broader part of your question, which is, you know, we build a brand through growth, you know, by footprints all across 107 cities and so forth. We build the cafes, we build the product line, all that stuff. Right now, it is. Since we are now working on the volume through traffic, we are also, you know, getting prepared and, you know, the economics of the restaurant, fine-tuning those. Whether it's on the dine-in side or the delivery side, both are in game, right? We want to make sure that as much efficiency is brought. If you look at our P&L, and you're all aware of all the P&Ls out in the market, if you look at our P&L, we run a tight ship.
We already run very good gross margins. Our, you know, line items below that gross margin are all very tight. And as volumes increases, those percentages will all become very positive. But we want to make it still more efficient and, you know, we are going to take a little bit pricing over the course of the next three quarters, and that will be evident for you. And it's the same for delivery business as well. We wanna make sure that the delivery flow through coming into the business continues to grow, and that's. You will see those in the coming P&Ls.
Okay. Coming to the Indonesia part, do we see more rationalization on the BK stores in there, or, you know, at 149 we are kind of stable there?
Yeah. I think we've cleaned up, we have rationalized the whole portfolio. We are there now, and we are now, you know, just kind of, you know, growing these restaurants. We, like I said, initially, you know, we have a very strong team now. It took us a year and a half to build that strong, very strong team. We've got all the right people in place over there. We have got a clean asset. We have closed down restaurants that didn't make any sense for us. We have cleaned that portfolio down. We have cleaned the menu, and we have got everything in place now.
And if the market, you know, even turns a little bit to our favor, with all the geopolitical behind us, which I think is going to be post-October, is what the industry over there is kinda contemplating, then what will happen is, you will find this business go back to its green days when, you know, it used to deliver significant restaurant level profitability. We'll get back to that. So we're just kind of prepared. We've got a good asset, we have got a good team, we have got a good product line, and we are just waiting, and we are putting things in place, instruments in place, our marketing, our delivery business. You've seen there was nonexistent of delivery business. Now we've grown it significantly over there, you know, to multiple double-digit growth.
So we've put everything in place, and as things come our way, we will make that business profitable. Not only just make it positive, but make it significantly profitable. And that's the whole plan when we took this over, we knew that this is where we are gonna take the business.
Great, sir. Thank you and all the very best.
Thank you.
Thank you. A reminder to all participants, please restrict yourself to one question. The next question is from the line of Shirish Pardeshi from Centrum Broking. Please go ahead.
Yeah. Hi, Rajeev, good morning. Thanks for the opportunity. Starting with slide 10, what I observed, that in this quarter, despite the heatwave, our delivery mix has come down from 45% to 42%.
Sorry to interrupt, sir. Could you come a bit close to the mic? You sound a bit distant.
Yeah. Am I audible now?
Yes, sir.
Yeah. So on slide 10, when I observe, the delivery mix, which used to be about 45, which has come down to 42, I assume that that should have gone up, given the heatwave. Now, the question, which is coming to my mind is that we have done, the dine-in menu, changes, which is two for INR 59 and two for INR 99 in the chicken. Is that the permanent offer which is driving our dine-in mix, and is the thing which is going to be permanent SKU? And why I'm asking this, because, you have built on a lot of questions around traffic. So can you share, if I take one year back, what is the 356 stores, the traffic growth we would have got?
Yeah, very good question. Let me try to answer this for you. You're right. You know, our traffic mix, our total percentage of delivery sales was 42%. See, our promotion, which is a nationwide promotion, working in RBA here in India is able to do because we own the brand everywhere. That national promotion was in dine-in, right? It was 2 for INR 79 and 2 for INR 99 in dine-in. So this is not available on delivery. So it drove a lot more people into our restaurants in this quarter, you know, to give us that boom in sales in dine-in. Now, your question about whether this is permanent. See, value strategy is permanent. We will always be driving, you know, traffic through to a good value proposition.
Used to be 2 for INR 50 in the past. It was an INR 99 meal in the past. It was an INR 50 S tunner Menu in the past, where we had, you know, 5 items at INR 50. So different things that we put in place from year to year, quarter to quarter, that couple, you know, likes to drive traffic. But also on the other side, you know, we have built in a lot of, for example, our King's Collection. Those 4 burgers are very, very well liked, and they grow. They continue to grow, along with the Whopper. Whopper, a burger with 7 layers on it, right? So we have a very stunning, you know, premium menu as well.
So when you drive traffic in, you don't have all that traffic end up buying the, you know, the traffic menu that you put in or the value menu that you put in. Some of them, you know, migrate and buy other items on the menu, and that's what we're seeing as we continue to do that. So yeah, the value menu, the value platform will be light. What we will sell on the value platform, we will, you know, kind of, change that from time to time, and, and you'll see that as, as we evolve. Coming down to your question on profitability. Look, yeah, we want the entire, all the channels to be, significantly profitable than where they are today, and we will continue to endeavor to do that. There are a lot of levers there.
It's not that we are kind of looking for something in the haystack. We know those levers, and we are using those levers. We are balancing our focus on value and traffic with our check and profitability. That's a big balance that we do every month, and we make sure that we are balancing that act as we move the business forward.
That's really helpful. Just quick last question you can answer over the course of time. In the Indonesian business, we said that cash break even at the country level. At what same-store sales growth this is possible?
Shirish, I'll just kind of answer. The way we look at it is that once we start reaching the levels of sales of closer to after the portfolio rationalization, reaching an overall sales closer to around IDR 20-20.5 million, is where we should start seeing the cash breaking. So currently, we are off by around IDR 2 million in terms of local Indonesian currency level. So that's what we are currently working towards as a team. We've taken all the necessary steps from the perspective of rationalizing the overall portfolio by shutting down stores, to even substantially reducing the opex, G&A from the exit levels that we had last year.
So we've taken all those four, all those steps, now working towards improving the overall sales, which, hopefully, as, as things, settle down and we see that the effect of, the geopolitical issue really kind of, starts to impact less, as we go along, we should be able to go back and see that kind of sales. And we've seen this sales last year. If you look at last quarter one, quarter two, we've already seen that kind of improvement that we've done using the portfolio. So, we believe it's a question of bringing the portfolio back to where it was towards quarter one, quarter two last year. We should be able to get to cash break even.
Thank you, Sumit, and all the best.
Bye.
Thank you. The next question is from the line of Pralay Nandu from Edelweiss Public Alternatives. Please go ahead.
Yeah. Hi, team. Thank you for taking my question. So Raj, you started this call with, you know, highlighting your ten-year journey, and in ten years, we have been one of the fastest when it comes to store expansion. So that in a way comes with a slightly cost disadvantage, so to say, in terms of lease and all. And then we are also focused on value offering. You mentioned that, you know, in this quarter, gross margin was flat because we wanted to drive more traffic, right? So my question is that, now that inflation is more manageable, when do we use price levers slightly more aggressively, and what will it be dependent on? Will it be dependent on macro conditions, or will it be dependent on what competitors do?
So where I'm coming from is that I want to understand, you know, how is our brand perceived in the mind of the customer? When we say value, is it primarily price-driven value, or is it the quality of products that we offer at a particular price point so that customers will not mind even if, you know, we take a price hike, and that will not, in a way, affect the kind of traffic growth that we have been seeing? So, yeah, slightly more granularity on how do you see the use of price levers going forward?
Thank you for your question. You know, the first comment I'll make is, yeah, it's been 10 years, but we are just getting started, to be honest with you. You know, it is not about all that we have done, but all that we need to do and we will do over the next 10 years, that I think, is more stronger. Look, you know, it's always a balanced mix. We call it menu architecture. And we don't drive our business on one tool. You know, it's always, you know, a lot of people think it's binary, and they question me on the binary nature of that. It's not very binary. It is a function of a menu architecture.
You drive people in with value, you promote them with a laddered menu. You have indulgent items on the other end, right? So you have so many different occasions, different tools, the cafe, the snacking occasions, the late-night business, the delivery business. There are so many levers, and you don't need to binarily just say: I'm gonna raise this price, and that's what's gonna change my business. There are so many things in a business that are variable, that you can keep fine-tuning as you go forward. So I'll give you an example. As we have introduced you know, this value platform several years ago, we have also built a very strong you know, King's Collection, which is our premium burger range, right? And we kept on strengthening.
While we brought in, you know, 2 for INR 79, we put in wraps on the other side. So it's a balanced way of approaching the business in long term versus doing a short-term, you know, guerrilla gimmick to drive sales in any given quarter. So you can't do 9 quarters of consistent traffic growth, 9 quarters of consistent, you know, same-store sales growth without having a strategy in place that is balanced, which continues to drive people inside, but also to prompt people going up. You know, in era where, you know, ADS, average daily sales, of the industry is falling, we are able to maintain that ADS in spite of putting 60 restaurants since this last, you know, last year, the same quarter. So, which tells you that there's a balance, there's a thought process in the strategy.
I'll tell you, whatever you will see in the future is because of this balance. It's not just because of one lever, either on the value side or one lever called cafe. It's going to be a balanced approach on how you approach this business in the long term.
No, thanks a lot, Raj, for that clarification. Let me just ask you on the similar kind of a thing, where you have mentioned that, you know, you have taken a very, you know, detailed view of every line item in terms of cost, both at the gross margin and below the gross margin level. So in that journey, where are we? I mean, are we, have we, you know, most of the efficiencies in terms of every line item, is it already there in a Q1 number, or still there are a lot of levers there which can, you know, see, which we can probably, you know, use going forward as well in terms of driving cost efficiency?
Yeah. Suresh, I would say that, you know, our focus on line items is about 25-30% there. 75%, there's a lot of structural changes that we will do in terms of, you know, how the lines, the power is delivered, and all those things are in the works. And there's a lot of work ahead of us, and you will see those efficiencies over the next several months coming into our P&L.
Great, Raj. Thanks a lot. Sorry. No, sir, Raj, thanks a lot. That's it from my side, and we really appreciate the kind of outperformance that the company is showing, and all the best for the coming quarters.
Thank you.
Thank you. Ladies and gentlemen, that was the last call for today. We have now reached the end of the question-and-answer session. I would now like to hand the conference over to the management for closing comments.
Yeah. Again, thank you everyone for taking the time to join the call this morning. I want to thank our team in Indonesia that works very hard to, you know, in this very tough environment, to deliver some magnificent, you know, turnaround results. And the team here in India that is working, you know, under the leadership of Cecily and Kapil, doing a fantastic job moving the business in this very tough environment as well. And I'd want to thank each one of you for, you know, cheering us on the sidelines and keeping us honest to our numbers and to our results. So we'll continue to work hard and deliver the best that we can. Thank you very much.
Thank you. On behalf of Restaurant Brands Asia, that concludes this conference. Thank you for joining us. You may now disconnect your lines.