Lecture Notes: Doing Business in India

Introduction to Doing Business in India

• Speaker: Bert Mueller
• Age: 35 years old
• Location: Lives in Bengaluru, India (since December 2011)
• Business: Mexican-inspired restaurant chain, California Burrito

Initial Experience

• India as a learning curve:
  • Unpredictable and different daily
  • Adjusting to the unpredictability essential for success
• Starting a restaurant was challenging due to limited presence of Mexican cuisine in India

California Burrito's Growth

• Initial Presence: Only Taco Bell as a competitor
• Current Status: 103 stores over 12+ years
• Financial Growth: From $0.5 million in the first year to $23 million last year
• Currency Exchange: $1 equates to ₹85

Personal Life and Living in India

• Residence: Three-bedroom duplex costing $1,200/month
• Furnishings: Inherited from grandparents
• Daily Routine: Enjoys morning coffee in a small garden

Background

• Hometown: Silver Spring, Maryland
• Education: Double major in music and public policy from the College of William & Mary
• Study Abroad: Chose India for its radical difference from the U.S.

Challenges and Adaptations

• Living in India:
  • Frustrations in getting things done
  • Patience is crucial
  • Health challenges: Dengue and typhoid after 13 years of no issues
• Business Challenges:
  • Need for high-quality ingredients
  • Importing Hass Avocado Trees from California
  • Wildlife challenges: Elephants trampling avocado farm

Financial Breakdown of the Business

• Revenue: $23 million
• Expenses:
  • Food and packaging: 37%
  • Labor: 12%
  • Marketing: 4%
  • Real estate: 9%
  • Corporate overhead: 5%
  • Other operating expenses lead to a 10% bottom line

Future Plans

• Expansion: Aim to reach 300 stores by 2030
• Strategic Goals: Plan to list the company for an IPO in India
• Personal Fulfillment:
  • Witnessing India’s growth story
  • Enjoyment and contentment living in India