One of the reasons for Maroosh's success is that we were at the right location at the right price. I do not believe in aggressive growth for the sake of growth.
I won't go for a 400 sq ft store at Linking Road at Rs. 1000 per sq ft. It's not about having a presence, a mistake that many brands make, especially yogurt and coffee chains. They think its an advertising cost for brand building. Many have had to shut down their outlets because sales were poor. What's the point of owning 200 stores if 20 of them bleed you financially?
The rent should not exceed 9 to 11 percent of the outlet sales. For instance, if the outlet has a potential to generate Rs 20 lakh revenue, then the rent should not exceed Rs 2 lakhs.
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