Ladies and gentlemen, good day and welcome to the Restaurant Brands Asia Q4 FY20 23 earnings conference call hosted by Nuvama Institutional Equities. As a reminder, all participants' lines will be in a 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 0 on your touchtone phone. I now hand the conference over to Mr. Nihal Jham from Nuvama Institutional Equities. Thank you. Over to you, sir.
Yes. Thank you, Vikram. On behalf of Nuvama, I would like to welcome you all to the Q4 FY2023 and FY2023 earnings conference call of Restaurant Brands Asia. From the management today, we have Mr. Rajeev Varman, Full-Time Director and Group CEO; Mr. Sandeep Dey, Brand President, Indonesia; Mr. Sumit Zaveri, Group CFO and Chief Business Officer; Mr. Kapil Grover, Chief Marketing Officer; and Mr. Prashant Desai, Head of Strategy and IR. I would now like to hand over the call to Mr. Rajeev Varman for his opening remarks. Over to you, Raj.
Morning to everyone. As promised, we got Sandeep joining in from Indonesia. good morning to you, Sandeep, as well.
Good morning, everybody.
Probably good afternoon by this time, right? Welcome to the call. I will give you a very quick summary, first on India and then on Indonesia. After that, we'll hand it over to Sumit to go over the finance, then over to Kapil to go over the marketing, and then Sandeep to go over Indonesia. With that said, let me just quickly get you on the India business. For India business, we had a good year. If you look at revenues, we were up both in total revenues as well as in SSSG. Gross profit margins, we were up. Restaurant-level EBITDA, we were up. Company-level EBITDA, we were up. We, we were basically a positive kind of P&L and a positive kind of a growth story for India.
Let me start with first revenues. FY 2023, INR 14,397, versus FY 2022, which was INR 9,437, which is a growth of 52.6%. That included a SSSG of 23.1%. If you look at the Q4 numbers, Q4 FY 2023, we had INR 3,649 million. That was versus FY 2022, which was INR 2,687. Again, a growth of 35.8%, which includes SSG of 8.3%. Also the net restaurant growth was 76, which included some closures and some openings, and I'll come to that in a minute. Gross margin, again, FY 2023, we went to 66.4%.
That was against 65.8 from the previous year, which is a 60 basis points improvement. Maintained 66.4 in Q4 in terms of quarter-over-quarter in gross margin. That's despite all the inflation that was there in that quarter. Now, you know, we are happy that inflation is going in the downwards direction and you will find our outlook in the future today towards the end of the call. Going to restaurant-level EBITDA, I'm giving you post Ind AS numbers and Sumit will then give you pre-Ind AS numbers when he goes into the P&L as well.
Let's start with FY 2023 restaurant-level EBITDA, which is INR 2,483 million, 17.3%, versus FY 2022, which is at INR 15.8 million, which is 16.2%. Another 110 basis points improvement on there. Q4 FY 2023 INR 666 million. That is 18.3% versus Q4 of FY 2022, which is at INR 478 million, 17.%. Another 50 basis point improvement here. Finally, the company EBITDA, again, post Ind AS numbers here. FY 2023 INR 1,654 million, which is 11.5% against FY 2022, which is INR 902 million, which is 9.6%. 190 basis point improvement here.
Q4, this ending quarter, FY 2023, we are at INR 423 million, which is 11.6% against the Q4 FY 2022, which is at INR 302 million. Again, 11.3%, which is a 30 basis point improvement. As I highlighted, improved revenues, improved gross margin, improved restaurant EBITDA and improved company EBITDA. Just on the growth side. We ended March 31st with 391 restaurants. Great work done by our development team there. Opened 88 restaurants, we were optimizing our old portfolio, and we closed 12 restaurants that were not profitable and did not have a growth potential, giving us a net of 76. 15 restaurants are now under construction as we speak, and 38 are in the pipeline. The growth story continues.
BK Café, which is a story we started towards the beginning of FY 2022, that we have built 275 BK Cafes that are operating. We continue to build BK Cafes as we build new restaurants where appropriate, where we see the potential to do those. They are kind of integrated into our development plan as we build restaurants. BK App, again, Kapil will talk a little more about this, but wonderful job. BK App revenues grow 327% year-over-year. 6.2 million App installs, 107 growth over the last years installed.
Some progress on that side as well, and we believe that, you know, we will continue to spend on the app and we'll continue to build that business over time. And continue to work with our aggregate staff partners as well to continue servicing our consumers both on dine-in as well as delivery. Just a quick note on Indonesia business summary. Again, here we had improvements in revenues. We had improvement in gross margins. Despite all the inflation in Indonesia in the past couple of quarters, we continue to improve on gross margins. We had a little sub, you know, result on our company EBITDA, and we will talk to that.
I think Sumit will spend some time talking about, you know, the launch of Popeyes, and how that kind of, you know, do some investment and also investment in what we call Back to Basics, which Sandeep will speak about when he gets into his section. A lot of good investment was made in Indonesia. We are seeing some positive results. We continue to believe this is a very strong business, that the foundations have been laid, and well, I'll talk to it in a moment. Store count 186 over here, as of 31st of March. Revenues, and these are in IDR. IDR is Indonesian Rupiah.
FY 2023, we had IDR 1,153 billion, that was versus FY 2022, which is IDR 1,052 billion, a 9.5% improvement. Q4 FY 2023, IDR 276 billion versus Q4 of FY 2022, which was IDR 249 billion, grew another 10.5% on top of that. I don't, we have the gross margin improvement numbers. Sumit will address that. There was a gross margin improvement as well that we were able to achieve. Actually, I'll share that number with you. It's right over here. Gross margin moved up to 58% versus the previous year of 56.3%. I'm talking about the Burger King portion of the business, not including Popeyes, which is just rolled.
With that said, let me just speak a little bit about our business in Indonesia and then Sandeep, who will become a regular part of this conversation, this call. He will give you a substantially a little more details into the Indonesian business. First of all, we shared with you last call that we had launched Popeyes in Indonesia. Today in Indonesia, we have 10 very healthy stores, which are doing fantastic sales, almost two and a half to three times the volume of the Burger King business that we have over there, which we are getting back into par. Not only that, but you know, again, as I told last time, this was a record launch for Popeyes globally.
Sandeep and his team have done a phenomenal job launching that brand over there. And, you know, we are at 10 stores, and we're gonna build additional stores and move towards 25, 30 stores towards the end of this year. This will become a significant profitable business, currently doing, you know, restaurant level EBITDA in very high teens. So, good job there, Sandeep, and, you will talk more about this on your section. Just coming down to, you know, what the pillars, what are we doing in Indonesia or why we so excited about Indonesia?
First of all, you know, we took this business, and when we took this business, we wanted to obviously, you know, lay the foundation for the next 5-10 years, how we are going to build this business, how we're gonna move this business forward. Burger King, as the name says, burger and king, right? We wanted to make sure that we took the product line on the burgers. We tested the product line versus competition. We found gaps in those in terms of, you know, both affordability, likeness, taste, and so forth.
Sandeep, who's an expert in NPD as well, an expert on the supply chain as well, did a fantastic job over the last six to eight months in establishing each and every product line was taken from scores, and he can share those scores with you, but a tremendous improvement on our burger line. Tremendous taste improvement, tremendous consideration and affordability and likability of these products. We have now finished that process. It was completed between October and February this year. All products have been completed. All products have been tested. All products are now rolled into our restaurants.
Second, we spoke about this, I think, about eight months ago, nine months ago when we were on the phone with you guys, that there was a significant gap between our business over there and the industry standard, which was chicken. We were not offering chicken, or we were not building that portion of the business, which is a strong business in Indonesia. In fact, I think it's a staple food over there, rice and chicken, and we were offering one chicken offering, which also in a test showed that there was a gap between what the industry standard was and where we were. That, again, just completed this month. In fact, you know, Sandeep will talk to you about how we are taking that into the market. We have completed.
We have got now two versions of the chicken. We have a classic version and a spicy version of the chicken. This is standard. All other players have it. We think that about 60%-70% of the industry sales is in this, in this chicken area. We will start building this. In fact, Sumit will share with you the excitement about our rollout of this product. It's already rolled out, by the way, but the communication portion of this build will come in at a future date. I spoke about burgers, chicken, which was done by mid-2023. We had a gap in desserts. This Indonesia is a major dessert market.
There's a substantial amount of liking and purchase of desserts in the QSR space. We have now built a substantial menu thanks to all the work, our CMO over there, Namita, has done. She has built a fantastic dessert menu as well, which in Feb 2023 was put into the restaurant. By the way, guys, all these things, initiatives, we have not started communication yet. We have just put these things in, and we are seeing that 10%, the other numbers I shared with you, is all coming off just local, you know, communication at the restaurant level. Media investment will start in June, and then we will start talking about all these improvements moving forward.
The last piece, which is my favorite piece, which is a piece that is relevant, strong, makes sense for both markets, which is India and Indonesia, which is value. Both countries are driven by value. Both countries continue to have a very strong consumer following under the name Value. We have fixed both quality, taste of products there. Now we are, you know, going through to push this onto media investment, where we will be communicating a value proposition to bring people in to start trying the product. This is basically the strategy that we communicated to you months ago, quarters ago. Today, I'm happy to say that, you know, 80% of this strategy is already in place.
The media event and media communication will start, and we will start building this business, and we'll share our exciting results in quarters to come. With that said, I will turn it now over to Sumit, who will carry you through the India first and then the Indonesia financials and how we have performed in all the areas. Over to you, Sumit.
Thank you, Raj. The way we will, I'll try and do is to kind of cover through some of the strategies that we've always been following and how we've literally performed through this year and the way we see each of these emerging and in the coming year as well. We were always focused on growth part of our business and keeping that very strongly as one of our pillars. We've grown and opened 88 new stores. At the same time, we want to be mindful that we don't carry stores that are underperforming, and hence we had to shut down 12. A net opening of 76 and ended the year at 391.
we would continue on this growth journey, we intend to get to around 450 stores as we get towards the end of fiscal FY 2024. That journey of growth continues, and obviously it will be responsible growth so that our scale remains does not get added. As far as revenue is concerned, I'm on slide 10 of our presentation. We grew from INR 940 crores to almost close to INR 1,440 crores, a growth of 53% led by a strong portfolio level ADS moving up from 100 to 118 for the year.
As I explained, the balance part of the growth is coming for on account of the new stores that we added during the year and the annualization of the stores that we opened the previous year. Between the two years now, we've almost added 125 stores plus to this portfolio. The second part of the pillar which we've always been talking, I'm still on slide 10 talking about dine-in mix. You know, we've always been saying that our focus is going to improve the dine-in share of the business because that's where we believe the customer experience is there, is at its best. We've been able to move the needle by 9 % point, which is a substantial shift that we've done from 49% to 58%.
When Kapil talks about some of the initiatives that we are working on, we believe that we'll be able to further shift this needle more towards dine-in as we go along. That journey that we had embarked upon with a very strong confidence on it seems to now starting to play out for us. As far as store level EBITDA is concerned for the full year, we moved from by 3% point from 5.2 to 8.3%. Part of it was led by gross profit at 66.4%.
We've been able to kind of, you know, throughout these years, all of you who is tracking us on a quarter-on-quarter basis, you would realize that we've been able to maintain the gross profit margins at a very steady state of 66.4%-66.5% point range throughout the year, by various initiatives that we took and could offset the impact of inflation that we've seen, to make sure that there is no variability that comes to our margin play. That is something which we've been able to do that. Having said that, with all the challenges that we've seen in the past, we strongly believe that we should be able to improve on to this number as we get into FY 2024.
As we get to the guidance part later, you would see that we've taken an improvement on that part. Of the portfolio. Apart from gross profits, you know, some of the initiatives that we continue to work to improve efficiencies did see some results in Q3 and Q4 . If you really look at the kind of spends that we have been incurring on per store for month basis or quarter basis, if you see there is a very clear shift in some of the fixed cost lines like labor, utilities, and all that you would see. As we are able to improve the sales going forward, we should start seeing the benefits of that going forward, flowing down into our store EBITDA as well.
For the year, at a company EBITDA level, we were at 2.5%, with cash generation of INR 36 crores. Having said that, and I'm going on to slide number 14, and talk a little bit about Indonesia. Indonesia, we did an ADS, and of 17 million IDR, in Burger King as against 16 billion IDR, a marginal improvement. We've kept the portfolio at 176 stores, as far as Indonesia is concerned. On the BK side, our focus is going to be to kind of get the business back to its back to cash break-even, which is what we are going to work towards. Yeah.
Through the year, we have made certain investments which obviously are reflecting in our company EBITDA, and the number does seem large. There are good amount of investments that we've already done, you know, through the year. I'll just kind of call out some of the investments that are getting reflected in our numbers as we see. One is, we launched the brand Popeyes in Indonesia towards the later part of the year and spends in order to launch the brand, which stands at almost around INR 6-7 crores. It's something which we've kind of put there. We've had a very strong successful brand launch and Sandeep will talk about it.
We expect that brand should do high teens in terms of store level EBITDA as we go towards as we kind of see the performance in FY 2024 and start seeing meaningful numbers coming out of that brand. Apart from that, you know, we've got we have made sure that the stores start looking better and inviting as far as the customer is concerned. We had put money behind getting the stores back in shape. We've kind of worked on making sure that the stores are operational for the hour that the customer wants us to be operational. Hence effectively also took calls in terms of the availability of people to service the customer throughout the period.
These are some of the big things that we've kind of already put in place. Product development, which Sandeep will talk about. We've literally got to through the year to make sure that we are ready to roll into FY 2024, with all the things that we've already put money behind, taken the beating, if I may say, but ready to kind of make sure that from here to be able to get to cash break-even in FY 2024. That's where we stand as far as Indonesia is concerned. Obviously, because we are still working towards getting to cash break-even, the consolidated company EBITDA did see a negative INR 60 crore, which we've kind of put as money that we require to put in Indonesia to bring that market back to shape.
We, as Raj said, we still feel that that's a very strong market with a very strong consumer base on the burger side as well as on the chicken side, which and with those two brands, we should be able to achieve and report very strong performance in India as well as in Indonesia. Over to Kapil to take us through the marketing update there and talk about a little bit of some of the things that we are working on for next year as well.
Thanks. Thanks, Sumit, and good morning, everyone. I'll start with slide number 17. Slide number 17, as Raj mentioned and Sumit mentioned, it talks about our continuous focus on growing top line and specifically dine-in traffic on the back of value programs. We've shared with you in the past the Stunner campaign with an affordable veg and non-veg menu. We continue to drive that while we started testing an extension of the same items with a new meal proposition starting at INR 99. This program was tested at about 80-odd stores. We saw some very good early reads on dine-in traffic, and our consumers really liked the idea of getting a full, affordable filling meal at a very attractive price point. We've since then scaled up the promotion. Early days, we are seeing very good traction on the same.
On slide number 18, while we've taken, you know, spoken to you about the Stunner value menu, and we told you about the campaign that went viral, very happy to share that the social media campaign has won a silver award at the Clio Awards, which is next only to Cannes, and this is our first win on the global platform. Slide number 19 talks about how we continue to balance the barbell strategy on our menu. Last year, we launched the King's Collection menu with some very craveable products built on a basis of very strong consumer insights. You know, it has ingredients with like very high quality paneer, cheese, which are premium for our vegetarian guests, and also grilled and fried chicken burgers for our non-vegetarian guests.
We will continue to innovate at all ends of the menu and offer great value for money to our guests. Slide 20 talks about Whopper, our flagship product. We continue to strengthen it with a string of limited time products. Last quarter was an Indian-inspired variant called the Indie Tikka Whopper, which did very well for us. Indian business with the veg chicken and the mutton Whopper, the three variants which are designed specifically for Indian guests, continues to be amongst the highest Whopper selling markets in the Burger King world. The next slide is an initiative that we are very happy and humbled to share, that we are one of the first brands to recognize how important it is for our guests to get options of 100% veg, no onion, no garlic menu in certain religious towns or during their pilgrimages.
Let's just share some pictures of our 100% veg restaurant that serves no onion, no garlic menu in Katra on the Vaishno Devi pilgrimage. Slide 22 talks about our continuous efforts to build a youthful brand which talks and engages with Gen Z and millennials. We make sure we are part of topical conversations like cricket, you know, whether it is any event that's happening in India or international, Indian festivals like Diwali, international events like Halloween, moments like big movie releases and other events like Mother's Day and so on. We continue to engage and talk the language, you know, that is our guests understand and they connect with it. The BK Cafe on slide 23 is one of our most recent additions to the business and the menu.
It continues to expand in footprint and is now available at 275 locations. Obviously the task is to build awareness, and we have been engaging a lot of social media influencers to help get the word out. As of last quarter, we had reached out to almost 15 million of their followers via very targeted store-based content, building awareness about the fact that we now have cafe options available. Lastly, in addition to the Clio Award, the brand has won about 20+ other marketing, product innovation and digital recognitions in India. In a nutshell, a strong value strategy, lot of innovations across the menu, especially the premium end with King's Collection and limited time Whoppers, a new cafe expansion and a brand that's continuing to build relevance in India, in India with the Gen Z consumers.
I'll hand it over to Sandeep to talk you through some of the key initiatives in Indonesia.
Thank you, Kapil. Once again, a very, very good morning to all of you. You heard Raj talking about our single-minded objective, right? The single-minded objective of building back this business into a profitable company. He also spoke about the amount of ground we covered in the last few quarters on our key strategic growth pillars. In the next few minutes, I'm gonna share a little bit details about some of those strategic pillars. Before I do that, let me share the work we have done in strengthening our foundation so that we could deliver consistently a best-in-class guest experience every single day. I am on slide number 27. See, what we have done is, we looked into every single aspect of our business which impacts guest experience and launched a company-wide cross-functional project called Back to Basics.
The first thing we did was rationalize a lot of products which were not selling at all. It helped us not only eliminate a lot of SKUs, but also made the supply chain and operations much more efficient. By the way, in that process, we also made our menu board completely uncluttered, and it kind of helped our guests navigate through the menu board and make their choices much more conveniently. We took most of our core products, as Raj said, took it to consumers, got them taste it, captured their feedback, identified those improvement areas, and recreated them based on those feedbacks, and got them validated once again through the extensive consumer research process. Through that process, we created our winning products. We created our winning menu.
As a part of Back to Basics, we have gone from store to store and checked every single piece of equipment to ensure that they are all fully calibrated and in perfect working condition. We also carried out an extensive training program for 100% of our operators, 100% of our, you know, crew member, to make sure that they are retrained on product builds, ops procedures and so on and so forth, so that they are fully ready to deliver great customer experience, right? Once we strengthened our foundation, we then started implementing all our strategic initiatives. I'm moving on to the next slide now. Our first priority was to build burger leadership and build that burger leadership through taste credibility, through flavor innovations, and build that equity through Whopper.
We actually took our Whopper, took it to consumer, developed a new Whopper build based on Indonesian consumers' preference, based on their palates, right? I'm happy to share that the top-two-box taste scores are significantly better than the previous Whopper. In fact, in terms of product preference or product ranking, it scored 77% compared to 23% of the old classic Whopper build. We also at the same time developed a premium layer called Gold Collection, which to me probably is undoubtedly the best tasting burger in the QSR chain here. These are pure taste indulgence and at the same time quite affordable pricing. They also, by the way, not only got great taste scores, but also a fantastic value for money scores.
Over a period of time, we believe strongly that this Gold Collection layer will also help us in building our burger superiority in the overall QSR landscape. Now I'm moving to the next slide, which is slide number 29. While we were studying the market, we also understood, and Raj also mentioned that this is a market where fried chicken is kind of a staple food. There are two kinds of fried chicken consumers, the classic non-spicy consumers like kids and people who can't handle too much of spice, and then there are spicy lovers as well. All brands, by the way, offer two kinds of, you know, chicken, spicy and the non-spicy. BK, we had only one type of chicken, and that came out as a big opportunity area to bridge that gap and build a comprehensive bone-in chicken menu.
Again, we followed the process. We did a lot of work, created multiple options, multiple iterations, and followed the same exhaustive process of consumer validation, and eventually came up with two winning products, the spicy and the non-spicy. Both these products scored great taste scores, great purchase intent scores, and also performed better than the competition products. We are quite satisfied with this product we created, and we want as many guests to try our products at hand. We actually launched just about a week back these two products at an extremely attractive price of IDR 25,000 for a piece of chicken, rice, and a drink. Just for the perspective, it is almost about 30% cheaper than the next available pricing in the market.
We also have an extremely strong 360-degree marketing campaign in place, which includes TV, it includes social, digital, mall branding, outdoor, basically a comprehensive plan in place, and that will be live and kicking in the next few days' time. The last strategic pillar I'm going to talk about is building a strong dessert portfolio. When we are studying the market, we learn that Indonesia is a market where consumption of dessert is very high. There are many brands, by the way, local as well as chain international brands, who are doing fantastic business on this particular category. That became an opportunity area for us to build innovative, tasty, yet affordable desserts. We partnered with our dessert partner, Nestlé, and launched our first branded dessert called KitKat Fusion.
By the way, launched at quite an affordable pricing of 16,000 IDR, and then it did phenomenal business. We sold almost three times the volume and at very high incidence. As a part of our ongoing strategy, we have a very strong pipeline to launch innovative and affordable desserts throughout the year. That's all from my side on the Indonesia business, and I now hand it back to Sumit.
Thank you, Sandeep. I'll just quickly share the outlook, and then open up for questions from the participants. As we have continued our growth journey, we intend to get to 450 by FY 2024. As we've always been talking about, 700 stores by December 2026 is now our FY 2027 target stands. As far as SSG is concerned, on the back of all initiatives that Kapil spoke about, we are taking a target of 10% SSG growth from where we stand or where we ended FY 2024 to be. We believe that with the initiatives that we have, we should be able to get to an SSG growth of 8% thereafter, year-on-year.
Gross profit, you know, on the back of really the a strong performance and being able to sustain the gross margins at 66.5% range through the year, we are taking a target of 67% of gross profits for the year and then improve it by further 2% over next few years. Indonesia, our target for FY 2024 effectively is to get to cash break even. We would not look at growth as far as Burger King is concerned, but we will continue to invest behind Popeyes, and we intend to get to around 35 stores by March of 2023 as far as Popeyes is concerned.
Then as we get to 700 stores in India, Indonesia, between both the brands, we should be able to get to 335 stores. That's when we would be crossing the number of 1,000 stores at the business level over next three years there. These are basically the broad guidelines that we are working towards as a team. I would now open up for the questions from the participants.
Shanti, I would request Chorus Call guys to extend the call by about 15 minutes, given that, you know, we are already 35 minutes into the call. It will give you guys more time to ask us questions. Thank you.
Sure, sir. Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your 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, we will wait for a moment while the question queue assembles. To ask a question, please press star followed by one on your touchtone phone now. Take our first question from the line of Shirish Pardeshi from Centrum Broking. Please go ahead.
Yeah. Hi, good morning, Rajeev and team. Thanks for the opportunity and hearty congratulations for walking the talk. Two things, if I note, from the India perspective. You mentioned that on slide 11, the cost is one of the element which you are working very closely. Would you be able to help us to say that these all initiative, despite the inflation, which is hitting very hard and, we still see that inflation is not completely subsided, though we see that milk inflation will subside. In FY 2023, what is the cost element has driven in terms of efficiency extraction, in terms of gross margin? Maybe, if you can elaborate a little more. What is that target you are holding for FY 2025 in FY 2024?
Yeah. Thank you for your question. I'm gonna give you a brief outlook, and then I'll turn it over to Sumit. See, we just shared with you, or Kapil shared with you
A very aggressive promotion that we're going forward with, which is now on television. It's pasted all across the country, which is the 99 INR meal, right? Despite that 99 INR meal, our outlook, which was just shared by Sumit for next year, is to improve gross margin to 67%, right? How are we going to do this? As you recall, we just shared with you that we built net 76 new restaurants this last year. We continue to get that total up to 450 this year. We have two elements that will be just automatic. One is, you know, buying because our buying quantities continue to increase and hence we continue to drive prices down as the buying quantities increase because this is a substantial growth in our portfolio.
Second is our transportation cost continues to decrease as we, you know, put more and more stores into existing markets where there's maybe two or three stores today and go to five or six stores, then transportation costs over there goes down. On the company level side, you will find that, you know, we have kind of put the structure in place, which is now, you know, long term for the next five to 10 years is a stable structure. We don't, you know, we don't see adding any additional department or any additional leadership role. There will be small, you know, under the leadership, some changes here and there in terms of G&A.
We see that G&A is kind of a fixed cost that's gonna kind of stay there and, you know, probably go towards somewhere between 4%-5% in the future. Those are the advantages you will start seeing in the P&L. You'll also see a massive, you know, impact, positive impact on rent line because as the volumes go up. There's two components to rent. There's a fixed component and a variable component. The variable component of rent will continue to, you know, kind of be whatever percentage towards the total top line growth. The fixed rents, and there's several restaurants with just fixed rents, that fixed percentage keeps going down as the volumes increase, and that will also add on to the P&L volumes.
Those are the major kind of strings, and I'll turn it over to Sumit if he wants to add anything to this.
No. Just a couple of points I would add to that. Raj has already covered the gross margin and the rent build piece. There are two other lines which we are very actively working on to kind of make sure that we are able to bring efficiencies. One is the utility line, a line which sees the maximum inflation, and that is where we have now kind of started working with internally as well as taking support from some external consultants as well to be able to identify opportunity to bring the reduction in consumption. The early results have shown positive signs, so we should be able to kind of work towards building kind of beating the inflation there as we kind of build, you know, efficiencies that line.
The second one is where we've made some investments on the application side on the backend to be able to very closely monitor the way we budget or plan our people costs at the store level, and that's where we will also see some efficiencies to come in as compared to what we've seen last year. Secondly, last year, you know, in Q2 , you would remember that we made some investments. Now that has now started to stabilize, and we've seen the per month cost per labor to stabilize downwards on a quarter-on-quarter basis. If you just plot that number, you'll realize that we've only been spending lower as in Q3 and Q4 as compared to the previous quarters.
we will now take the benefits into subsequently on, into FY 2024.
That's really helpful, Sumit. To follow up here, when you say that we will reach towards 67% gross margin, I see that there is lot of stress across India and even in Indonesia, we have spoken that there is a media investment which is there. Would you be able to help me with two questions? One is what is the FY 2023, the media and ad spends we have incurred, and maybe that number, how it look like in 2024.
Second, would you be able to help us to say that from 11.5, 11.6% EBITDA, can we build, 12.5, 13%, or we should look at in the medium term about 11% and then build, 11.7, 11.8? Maybe some color if you can add.
Sirish Prasanth here. Our media spend marketing is governed by our MFDA, which has been at 5%, and it will continue to remain at 5%. That's true for most of the QSR in the country. You know, as far as, you know, your second question is concerned, you know, you may see a little bit of a higher media spend in Indonesia, but otherwise we will try to kind of keep this at about 5%. Sirish, as you know, from the time that we've gone public, we've refrained from giving kind of a guidance in terms of, you know, our restaurant level EBITDA and our company level EBITDA. If you are looking for a direction, I think, Raj kind of alluded this.
It's, you know, if you broadly look at it, and this is something that we've been consistently communicating in our one-on-one meeting with our investors and analysts alike, some part of our business, and the costs are very directly linked to our ADS. Unfortunately for the sector as a whole, you know, this quarter was a softer quarter in terms of the ADS. We are seeing grassroots of recovery. The quarter also met with a lot of inflationary pressure, which also we are now seeing signs of that abating.
If you put all these things into perspective, assuming that, you know, if Sumit is talking about 10% same-store guidance, you know, we ended FY 2023 at about 118,000 of ADS. You add 10% to this, if you then do your math, you will see directionally we will be north of where you are. As I said, we don't like to guide this, but directionally you will see a significantly improved FY 2024 scenario.
Just to add to what Prashant just said, see, while we continue to spend 5%, if you, if you appreciate in FY 2022, our total sales was around, you know, INR 9,437 million. That's gone up by 51%, and this year it will go further up as we continue to build restaurants. The media money, while it's only 5% of the total revenues, the total money available continues to grow. That's why you will find, you know, a company that, you know, did only maybe four or five weeks on, in advertisement on television grew to, you know, 20 weeks, grew to 30 weeks, continue to be able to do more and more of advertisement, whether it's on television now or out-of-home.
This thing will continue to grow in terms of volume of communication. The impact to the P&L will be exactly the same because we don't go beyond that 5%. We have gone in the past when we were not public, but as a company today, we have substantial amount of money within that 5% to continue promoting our restaurants. I hope between myself and Prashant we kinda address both those questions of yours. Thank you very much for your questions.
Yeah. I just have a last question. Thank you, Rajeev, for the detailed explanation. When I look at the competition and primarily from McDonald's, because McDonald's is also putting a lot of focus on India market, and they have revived the northern business also. Everybody's talking about getting their piece of sales in the market. Now, that's one part. The national competition is evolving. Second, the local competition is always there, not from direct from the burgers or pizzas or KFCs, but there is also new development which is happening from the likes of chicken sandwich and other thing. I'm just trying to draw your attention.
Do you think this competition is remain benign or stable or is increasing, or do you expect any some disruptions from the not directly from the chicken or burger format, but indirect formats?
Sirish, I'll quickly answer that and then we'll move on to the next presenter. Ever since we started business, Raj and the teams, we've viewed as every single cuisine as competition, not just competition from a category stand. From category standpoint, it's as of now a duopoly kind of an environment. People will try to get in because it's an attractive proposition. Every guidance that we have given has been given keeping in mind all the factors that you mentioned.
Okay. Thank you.
Thank you. We take our next question from the line of Harsh Shah from Dimensional Securities. Please go ahead.
Hi. Good morning, sir. Just wanted to understand that the ADS has been lingering at around INR 1,50,000, INR 1,18,000 maybe, peaked at INR 1,27,000 couple of quarters back. We are down back to INR 1,10,000-INR 1,20,000. Just wanted to understand what will drive this incremental ADS because we are taking lot of initiatives with our Stunner and value menus and we are also adding lot of cafes and one year down the line we will have nearly 250 cafes which will be a year old. Just wanted to understand that how will this ADS pan out over next couple of years?
Hi, this is Kapil. I'll take this question. See, part of what you see in the trend is seasonality. Yeah. The 127 quarter is all the school holidays, the, you know, middle of the year, which is very high seasonality. That helps us sort of, you know, increase sales along with the promotions that we are running. The future programs, I shared a little bit of that in my commentary that we are now rolling out the 99 meals program. We are seeing some good early reads. We piloted that in about 80-odd stores, and we saw some good growth in dine-in traffic. Now we are expanding that to the national promotion. We are spending money on media, you know, traditional, digital, billboards, outdoor mall branding.
We are expecting good growth on the back of this promotion.
I'll just add, Harsh, to what Kapil mentioned. One of the things that you will have to understand the nature of our business is every time we open a restaurant, it takes the restaurant to reach a certain degree of maturity over the next 24 months, 36 months. If you just see today the 391 restaurants that we have, and if you just do the simple math, the number of restaurants that we've opened over the last, two and a half, three years, you will see that close to about 40, 45% of the restaurants, of the total restaurants that we have have opened over the last two to three years.
As you move forward, as these restaurant, as these locations mature, there is a natural tendency of traffic coming into this, which is the whole geniuses behind the kind of 8%, you know, same-store growth guidance that we've given from FY 2025-2027. It's a combination of almost everything that you mentioned, not one specific factor. Product, marketing, restaurants maturing, you know, new product introduction. It's a combination of all of that, Harsh.
On the Indonesia side, if I look at the ADS, it was around IDR 89,000 this quarter. You say that you had 10 stores of Popeyes which are doing almost two to three times higher ADS than Burger King. Would it be fair to assume that the ADS for BK was even much lower than what it used to be in previous quarter? What would be the strategy? I mean, are we looking at rationalizing some of these stores here and add more of Popeyes? How do you see this business?
Harsh, let me before I hand it over to Sandeep, but I'll just correct you. The Indonesian ADS that Sumit mentioned, 117, was purely on the burger side of the business. When you look at the Popeyes ADS, where we said that we are doing almost 2.5 times of the burger, that's separate. The restaurants have just started. The impact of that you will feel in the next year. One big thing that I still want to reiterate, which Sumit and Raj mentioned, is your, you know, if you look at the numbers that we have shared, we are currently guiding that next year the Indonesian business will achieve a cash breakeven, which is a very, very big milestone from where the business that we acquired.
If you just do the math itself, that swing is close to about INR 100 crore swing, right? This encompasses everything that Sandeep mentioned, everything that Rajeev mentioned, all the initiatives including opening of Popeyes, all the work that he has done to improve the burger ADS to probably where we acquired on a pre-COVID levels.
Sandeep, you wanna add anything else or...?
No, I think, Prashant, you have covered pretty well. In the last quarter, practically all the improvement in ADS we have seen is from the burger side of the business itself. As both Raj as well as I mentioned that we have covered a lot of groundwork in terms of strengthening the foundation and then started in putting in all of our strategic pillars. You will see lot of improvement on our ADS on the burger side of the business as well.
Just a last follow-up on this. We have reduced our gross margin guidance from 68% to 67%. Is it fair to assume that we won't be taking any price cut this year? What would be the thought process behind lowering this guidance?
We just shared with you this INR 99 promotion that is going out, which is out now in the restaurants and so forth. We have adjusted, you know, we. Our goal this year is to drive traffic and specifically dine-in traffic and you will see that that's the focus area and we have shifted. Again, by the way, we are showing improvement in gross margin as well, right? We are moving from our ending 66.4 towards 67. We continue to drive that because that, those efficiencies come because of all the, you know, the transportation, the buying and so forth that I mentioned earlier. We'll continue driving that.
We kind of little mitigated because of the fact that we are on aggressive promotion to drive traffic and you will see the results of that. The impact of traffic and volumes has a complete impact on the P&L, whether it's the labor line, whether it's the rental line, the utility line, you will find all the leverages coming in on all those lines hence both on the restaurant level EBITDA. Thank you for your question.
Thank you so much. All the best.
Thank you. We take the next question from the line of Nihal Jham from Nuvama Institutional Equities. Please go ahead.
Yes, thank you so much. A couple of clarifications. One was when you're targeting the 8% SSSG for FY 2024, is it in a way factoring some improvement in the macro given you just highlighted about the regions or this is something that we believe will play out given the initiatives you're taking?
It's first of all it is 10% that we have kind of put in the guidance. It's not 8%. Remember it was 8%, someone just pointed out on the gross margin. Let me take the liberty to find out also on the SSSG. It used to be 8%. You know, we have moved that guidance to 10%. It's on the back of the aggressive year that we are planning in terms of driving dine-in traffic, getting people back into our restaurants at the dine-in level. You will find, that that's the impact that we are showing positive on 10%. It is all those programs and we kind of consider everything. The previous inquiry was on, you know, all the competition coming in.
All that is taken into perspective before we give that guidance and that guidance stands at about 10%.
Nihal, just to add to what Raj is saying, the guidance is where things stand today in terms of the environment. We as you mentioned, right, we've seen some form of first level of recovery starting in May. You know, if the environment were to get better, we come back every quarter, we'll probably up the guidance. If the environment for some reason were to worsen, we'll also have a, have a platform to be transparent and honest about it and share with you guys. But from where we, where we stand and what we see, this is where we believe is where we want to guide you guys.
That is helpful. Just one final question was on the corporate overhead bit. I think Raj highlighted that there is a target to keep it to 4%-5% for the India business. If that is the number that more or less plays out, we are looking at maybe it being flat versus where it was in FY 2023. Just your comments on the same.
Yeah, it's true. We are, if you look at my FY 2023 corporate G&A as a percentage of revenue, it's roughly about 5.8. What Raj is saying, our endeavor will be to bring this down to 5% going forward. Then the operating leverage kicks in, right? As you keep scaling and we have to scale to 700 by FY 20 27. You will see further improvement there. Yes, the endeavor is to bring it to closer to 5% next year.
That's helpful. Thank you so much.
Thank you. We take the next question from the line of Prateek Poddar from Nippon India Mutual Fund. Please go ahead.
Yeah. Hi. Just two questions. One is what are the kind of assumptions behind Indonesia breakeven which you're guiding for? If you could give us some flavor in terms of what kind of ADS are you looking at and the gross margins?
Prateek, simply put, you know, to answer your question shortly, at almost IDR 21 million we breakeven.
Oh, that is how much in Indian rupee? Sorry, Raj. Okay.
One lakh five thousand, uh-
One lakh five, one lakh ten thousand.
One lakh five to one lakh ten thousand.
Got it. Got it. That is what you are aiming for in FY 2024, right?
Yes. As we mentioned, this right even on our things generally that Indonesia, we collectively want to stabilize the business first before we put the accelerator. Which is why you will see the guidance for only 15 incremental stores of Popeyes for the current year. We will do some rationalization with respect to the Burger King stores. A lot of effort, Sandeep and team have put both on the product side. Now we are beginning to spend money on the marketing side. Which is where we believe that we should be, you know, we should be able to deliver, you know, a break-even ADS during the year. Get that swing of INR 100 crores in this year. If this goes as per plan, we'll have a very different FY 20 25.
You know, if I were to go back to pre-COVID, I think that ADS was INR 135,000.
Yeah.
Despite doing a Back to Basics kind of program, you still are targeting INR 105K at least in stage one. I would have thought at least you should have gone very close to INR 135K, isn't it? With the amount of portfolio rationalization you have done, the amount of retraining which you have just talked about, the new dessert portfolio which you have introduced.
Prateek, you know, this is Raj. Thanks for your question, by the way. It's been a while since we met. Look here, Prateek, you know, we are kind of treading slowly in Indonesia, right? We have had losses this last year. Our objective is to not... You know, we have got all these programs that we invested this last year. The last P&L, we have invested severely on whether it's the product side, whether it's the equipment readiness, whether it's, you know, introducing new products. All these things we have invested significantly, right? We go into the new year, we are going to turn on the... You know, you cannot communicate all the five pillars on day one, right?
Mm-hmm.
You're starting off with chicken communication. It's gonna come out. We'll start communicating chicken. It'll drive a lot of people into our restaurants. When those people come into our restaurants, they'll also, you know, see the burger menu. They'll also see the menu on our desserts. We're gonna tread this slowly, and it's gonna come back slowly. It does not come back immediately as you go on television. It builds up. That's the important thing, is we are now set up a machine that's going to be cumulative moving forward versus, you know, doing coupons and getting someone in with a coupon, and then until you drop the next coupon, no one's coming in. This is a cumulative machine, which is the right way to run, you know, a long-term kind of a gain program.
Yeah, I'm very gung-ho on this Indonesia business. I think this business, when it generates, when it does a IDR of, you know, about 26 million-27 million, it throws high double-digit restaurant level EBITDA. It is because of the rent structure, it's because of the cost structure over there. It is just a very, very profitable business. We need to get this IDR back. We're kind of sitting where we are at about 17, 18. We have started moving in the north direction. You know, we have given you the 21 number as a break-even number, but that break-even number could also be, you know, some cost controls. It could be some higher EBITDA or higher revenues, a combination of various things, right?
The objective is basically to be cash, you know, neutral in Indonesia and then move onto the next year to start building. By the way, at the same time, we're putting in new Popeyes restaurants, which generate, you know, three times, two to three times the volume of our Burger King business there. We'll continue to build that business. We'll continue to put back the Burger King business on the right track and then start building them together in the year following that. That's basically the majority of the plan. Thank you again. Good question.
Sure. Sure. The experience of 2x to 3x ADS, are we seeing on it on all the 10, 11 stores which we have opened till now or?
Sorry.
Sorry. Couldn't get your question.
Didn't get your question.
Sorry, am I audible?
Yeah, yeah. Yes, yes.
I was just asking the experience of 2x to 3x ADS on the Popeyes portfolio in Indonesia. Is it applicable to the entire 10 stores which you have opened till now?
Yeah, we mentioned that in the slide, Prateek. This is the launch ADS.
Yeah.
At the same time, we mentioned that at a weighted average company level, we want to be at the 21 million ADS, 21-21.5 to break even. We are factoring that this is a launch ADS, and there will be some adjustment as the restaurant moves forward. We are not guiding that, you know, all Popeyes restaurants will have 2-2.5 times what we are seeing now. Launch ADS has been 2.5 times. For the full year, collectively our endeavor is to break even or cash break even the Indonesia business.
Got it. Just last question on In-India part. you know, with this value for money offer which you have just launched, will the walk-ins now go back to pre-COVID level? Is that a fair assumption?
You're talking about Indonesia? No.
No, India. No, India. I come back to India. Just, you know, you have this value for money products, right, which you have just launched. My question was, the walk-ins today also are not at similar levels to, let's say, what they were in pre-COVID. With this, do you believe you'll go back to pre-COVID levels in terms of walk-ins?
Look here, you know, Prateek, the strive is to go back and more, because generally the market is increasing. Generally, if you look at the QSR market, the food consumer market here in India, it's growing.
I don't wanna put any guardrails whether I wanna get back to previous COVID numbers. I think our clear strategy is to move forward and grab a good share and a respectable share of this growing market. We'll continue to kind of work towards that. You will find that we are, you know, we are kind of shifting slightly our business to gain more momentum on the dine-in side. It does not mean that we are not focusing on the delivery side. We continue to build that business as well. It's a good business. Our app, I showed you numbers on the app previously. Downloads have increased. The sales through that app business is growing. There's a ample amount of business to come in, and it's just not resting on 99.
There'll be other things Kapil shared that will continue to come. Thank you for your question again.
Sure. Thanks.
Thank you. Take the next question from the line of Jay Doshi from Kotak. Please go ahead.
Hi, am I audible?
Yeah.
Yes, you are.
Hi. Thanks for the opportunity. Prashant, I want to sort of just ask a follow-up on your earlier response to the earlier question. What is the rationalization that you are permitted to do between Popeyes and Burger King in Indonesia? you know, what is allowed from RBI's standpoint, and I believe you have some store targets for BK Indonesia. If you were to replace a BK store with Popeyes, don't you have to open another BK Indonesia store elsewhere?
No, no. Both BK and Popeyes have their separate MFDA with their separate store targets. If you recall, you know, when we had acquired the Indonesia business, we had enumerated that the BK store targets and what they had opened was far ahead from a MFDA guidance perspective. Hence there is not too much of pressure on the Burger King side. Popeyes, as we had mentioned last time also, the idea is that, you know, as per MFDA, we have to open close to about 100-125 over the next five years. Which is our endeavor.
Correct. In that case, what is the room for rationalization? You mentioned that, you'll be rationalizing, you know, between Popeyes and BK Indonesia also.
The rationalization is, as Sandeep mentioned in his original commentary, right, once we acquired the business and, you know, as COVID opened up and, you know, we didn't see the, you know, pre-COVID traffic coming back post-COVID, and with this new management, we have acquired this business. Every store we have gone through to understand what are the challenges, constraints. From that perspective, if there are stores which will be required to be shut down in Burger King in Indonesia, we will take that call, keeping in mind the MFDA requirements. We will nowhere want to breach the MFDA, and we don't intend to from a guidance standpoint.
Understood. From a lease perspective, rental lease perspective, it is technically viable. Tomorrow, if you think that a particular location, BK Indonesia is not doing well and you decide to shut down, but you want to open Popeyes at the same location, you can continue to do so with the same lease rental arrangements and everything else being same. You save a significant amount on CapEx, I believe. CapEx and time to market.
Yeah. Rental is a larger concern, Jay, in India, where we are at about 13.5% rent to revenue. Indonesia...
Yeah. I understand. Indonesia is not... Okay. My bad. Thank you so much. That's it from my side.
Yeah.
Thank you. We take the next question from the line of Dhiraj Mistry from Antique Stock Broking. Please go ahead.
Hi. My question is regarding BK Café. I know it's too early to call out, but first store we added sometime around last year, and it's been more than one year. Can you spend some time on that, how much incremental sale it's been adding and what should be building going ahead?
Sorry, Dheeraj, we couldn't understand your question properly. If you could, Can you repeat your question?
Yeah. Yeah. I was asking on BK Café, that first store we added, it's been more than one year, and what kind of average daily sales has been adding to that store? I'm not asking from the stores which has been BK Café added over last six months or so, but the store cafe which has been added with more than one year, what kind of incremental sales has been adding to the store level?
Hi, this is Sumit here. One is at the BK Café level, I will kind of split this into three parts actually. One is on an average, the cafe is doing a sale of around INR 15,000 at the portfolio level. We continue to, you know, get an incremental sale of INR 7,000. You know, I'm sure you must be, Dheeraj, been hearing this number. To your question, without getting into the numbers, I would say that we've been able to maintain this incremental sales in spite of very aggressive store growth or cafe addition there.
This would have not been possible had the earlier stores that we opened as an added BK Café not been growing as a part of the portfolio. We've actually, you know, seen growth in BK Café. The early stores continue to grow into the share of revenue. I would it would not be fair to share the details of how the vintage-wise sales have been growing, but I can tell you that the earlier store that we opened has been growing. As our overall portfolio is, we've not it's not that we've reached any kind of stable state here.
As we kind of grow deeper into our current promotion, we would also parallelly, invest behind pushing or improving the share of sale of Café as we go on.
Oh, okay. Second, just to extend this question, that have you seen incremental footfall increasing because of BK Café?
Uh-
during non-meal parts?
At this point in time, you know, we are treating this as a menu extension within our store. We are still continuing to promote that part of the portfolio within the store itself. Whatever sales that we've seen is more like an attachment to the customer walking in. At this point in time, I think we are not working towards as a part of our strategy. We would and we believe that it might act as a traffic driver once we start talking about BK Café extensively as part outside the store. At this point in time, this is more like an attachment driver for us. Once we start talking about it outside, it, we do believe that it can also act as a traffic driver going forward.
That's the plan and the strategy with which we are working on Café.
Okay. Second part of my question is regarding the meal. Like, burger portfolio in with, in overall QSR segment has been relatively better placed right now. It's mainly because of the meal offering which happens in the burger. What kind of meal contribution we have in our overall portfolio in India business?
Yeah, as a matter of strategy, Dheeraj, we don't share combo percentages from a competitive standpoint.
Okay.
hope you'll understand.
Sure. Sure. Last part of my question is there any price hike taken during the quarter or previous quarter?
No. Not in the last quarter. We've not taken any price hike in the subsequent quarter. Just, you know, I just want to kind of explain the philosophy. You know, A lot of times people actually look at price hike as one product to another product. That's not how we generally take. What we do is that we actually take a complete balanced menu approach. And, you know, kind of to make sure that what is the effective price variation that we are bringing in at a overall portfolio level. When we say that, you know, we've not taken price hike, we come back from that perspective of to just make sure that at overall portfolio level, the spend that the customer would have at our store is much more stable there.
From that perspective, if you really look at it Q4 , no. There would have been portfolio level price level changes, but the product realization level, which is how we look at price hike, we've been fairly stable.
Okay. Thank you.
Thank you. We take the next question from the line of Kaustubh Pawaskar from Sharekhan by BNP Paribas. Please go ahead.
Yeah. Thanks for the opportunity, sir. Most of my questions have been answered. Just one question on Indonesia part. In the presentation you mentioned that in Indonesia, you will see around 325 stores by FY 2027. Now we have around 179 stores, and you said that you would be adding around 100-105 stores over the next five years. Is it fair to assume that you will be adding around 40-50 BK stores over the next five years in Indonesia after whatever rationalization you would be planning to do?
Two parts to that, Kaustubh. Part number one answer to that is yes. There is a assumption behind this is where the Indonesia burger business stands where we are today. As I said, next year we have a lot of work to do. Should the, you know, numbers change after next year, we will come and revisit this guidance. As of now, it's correct to assume that.
Right. The rationalization part is that 80% of your strategy is almost there in Indonesia. When do you expect things to stabilize in Indonesia in terms of strategy? From there we should expect, you know, steady kind of a growth in the business. Is it fair to assume that from FY 20 25 we should start, you know, seeing, you know, consistent kind of a growth in terms of strategy for us for Indonesia?
Short answer. Answer to that is yes. A lot depends on how this year goes. There is a lot of work that happened previous year. This year is the year of execution and now putting capital behind this, both in terms of marketing initiatives for the burger side of the business and capital allocation from a opening more Popeyes business. Give us some more time to come and answer that more specifically, Kaustubh.
And by the way, Kaustubh, just to let you know, you made a statement, 80% of our strategy is Indonesia right now. There's a Indonesia specific strategy and there's a India specific strategy. India business is doing very well. It continues to grow, it continues to build itself. What Kapil is doing is bringing in some aggressive dine-in kind of promotions to kind of build that section. He's already built the upper end. We shared with you the King's Collection, which is a premium layer. There's a value layer on the bottom, which is now on TV with. There's a strong Whopper offering. The strategy in India is the same, which is we have been consistently implementing. We have stuck to our plan in India. We continue to drive our plan.
We continue to focus on our plan. We continue to build restaurants as per plan. We continue to build sales as per plan. Nothing is gonna change. We're gonna stay true to that plan. In Indonesia, what we're doing is to get back, you know, to break even in terms of, you know, cash negative this coming year and then build it from there moving forward. That's the basic strategy. Yeah.
Thanks. Just last or just a clarification part. You just mentioned that BK Café incrementally it is adding around INR 7,000 to the EBITDA, right?
Correct.
Okay. Okay. Thanks. Thanks for the information. All the best for the future.
Thank you.
Thank you, Kaustubh. We can take the last question.
Thank you very much. Thank you. We take the last question from the line of Akshen Thakkar from Fidelity . Please go ahead.
Hi, guys. Couple of questions from my side. First on the India business. Between the restaurant level EBITDA and your, you know, reported EBITDA, I mean, if you look at it on a pre-Ind AS basis, the amount that sits over there, could you just help us refresh what all, you know, broadly line items you include? Is this just, you know, corporate office cost or, you know, are you including regional costs, et cetera, over there? That's question one. Question two was on the Indonesia strategy. Now that you know you have two brands over there, Burger King, you know, from what we had discussed is pivoting a little towards chicken and Popeyes itself are chicken sort of, known brand.
Is there any guardrails that RBA would have, you know, restaurant brand would have put on you in terms of, you know, what innovation you can and cannot do in Burger King? Or, you know, you have the flexibility to do what you want. Thanks.
Akshen, second question I will let Sandeep comment and answer that. On the first is your question reconciliation between pre and post or is it?
No, it's between restaurant EBITDA and-
That's just corporate costs. What we do is all costs get debited to the restaurant except the corporate cost which gets debited below that. Marketing and royalty all is above that.
Okay.
Sandeep, if you can take that question.
On the brand side, honestly from RBA side, there is no restriction in terms of driving the product portfolio or the menu architecture for each of the brands. There is no restriction. In fact, if you study this market, this market is an extremely strong chicken market, and I spoke about that. All the brands who are competing here have a very strong portfolio of chicken. To answer to your question, no, there is no restriction, there is no limitation. We can have our own set of chicken portfolio on the Burger King side and at the same time have a strong portfolio of chicken on the Popeyes side as well.
Thank you. Thank you so much.
Thank you.
Thank you. Ladies and gentlemen, we have reached the end of the question and answer session. I'd now like to hand the conference back over to the management for closing comments. Over to you, gentlemen.
Thank you guys, really appreciate everyone joining in. As promised, we got Sandeep and Indonesia business. We kind of focused a lot on the questions as well as on the presentation, getting everyone on speed on what we think is gonna become a very strong business in the future. We also showed you results on India side, which is a higher revenue, a higher SSSG, a higher, you know, growth margin, a higher restaurant level EBITDA and a higher, you know, EBITDA company, EBITDA both from perspective of quarters as well as year-over-year. Thank you for your support, and we really appreciate all the consumers that continue to support our business and continue to believe in our products. Thank you very much. Have a great day. Appreciate it.
Thank you, members of the management. Ladies and gentlemen, on behalf of Nuvama Institutional Equities, that concludes this conference. Thank you for joining with us. You may now disconnect your line.