The Goli Vada Pav Success Story

Reading Time: 3 minutes

This post has been written by Sparsh Jain. Follow him on Twitter here for more interesting Twitter threads.

What is your favorite Street food? Mine is the Vada Pav!

Here is a very interesting story on India’s biggest Vada Pav selling company – “Goli Vada Pav

Goli Vada Pav was founded by Venkatesh Iyer in 2004 . It is an Indian fast food restaurant chain originated from Mumbai, Maharashtra, India.

He chose vada pav because of the convenience it offers to make, deliver and eat. It’s finger food, so you don’t need a plate, spoon, or table. It’s a mobile food which you can drive and eat, or hang in a bus and eat.

The chain started operations in early 2004 with a single ‘Quick service restaurant’.

The first outlet was set up at Kalyan, a suburban locality in Mumbai, but soon ran into problems. The handmade patties varied in quality and had a short shelf life, and some were pilfered.

He always believed that the food served should be automated which brought more hygiene in the standards. He approached a friend who was CEO of Vista Processed Foods, a US company that supplied frozen vegetable and chicken patties to McDonald’s in India.

Also Read on FinMedium:  TCS COMPANY - What's The Future After COVID-19?

Vista agreed to supply frozen patties to them which solved the problem of inconsistent quality and short shelf-life.

Soon they introduced various types of vada pav like cheese vada pav, schezwan vada pav, etc.

Another interesting thing about them was the style in which they served. they used to say a dialog of a movie and relate it to their product. For Eg; from the movie sholey – “Hamne aapka namak khaya hai sardar, Aab Goli ka vada pav kha“.

Mr Venkatesh was trying to raise funds in late 2008, the global financial crisis prompted five potential investors to withdraw. This left Goli Vada Pav close to collapse.

There were times when the company was at the threat of bankruptcy. But the hardworking by all the employees and the chairman, then never left hopes and worked hard.

Soon this patience, hard work brought glories. Goli Vada Pav has 156 stores, up from 20 at the end of 2009. It sells 75,000-100,000 vada pavs daily.

Profitable and with revenues expected to reach $3.2m this year, it plans to have 500 outlets by 2015.

Also Read on FinMedium:  Why a NDA loss might actually be good for the Stock Markets, Investors and India

They adopted a very interesting strategy for their advertisements . They tied up with the movie directors and asked them to shoot a scene in their shop and they will stick the movie banner in their shop which was viewed by thousands of people in a day.

He also wrote his autobiography. The book is named “My Journey With Vada Pav”.

Goli Vada Pav Autobiography
My Journey with Vada Pav | Source: passey.info

Lessons:
1. Goli Vada Pav has grown rapidly by focusing on what it does best and finding good partners to do the rest.

2. A founder has to be both persistent and adaptable. Mr. Venkatesh was prepared to change the offering, to use contacts and to change geographical location

Source: Book ” My Journey With Vadapav

Cover Image: DRM Bengaluru Twitter Handle

This post has been written by Sparsh Jain. Follow him on Twitter here for more interesting Twitter threads.

Every Wednesday and Saturday, we send Info-Graphic and FinMedium Weekly Digest newsletters to our 25000+ Subscribers.

Join Them Now!


Sparsh Jain

Sparsh Jain

Sparsh has a passion for learning. He aims for early financial independence, loves to read, write, cycle, and play tennis.
Please Share Now :)