Sandhouse Hospitality, the parent company of the Sandburgs QSR chain, is aiming for pan-India expansion and plans to raise funds through several pre-series rounds this year.
Founded in 2015 by brothers Pankaj Alagh and Danny Alagh in Delhi NCR, Sandburgs is a premium gourmet burger brand. After a slow start until 2021, the brand has rapidly expanded from 2 outlets to 10 in the past few years.
“We currently have a presence in 5 cities in north India: Delhi, Gurugram, Chandigarh, Dehradun and Mohali. We are looking at adding 10 to 15 more outlets soon. Our target is to have 50 to 60 outlets in the next 4 years,” said Danny Alagh, co-founder and CEO of the company, who takes care of the marketing and growth strategies of the brand.
The brand currently supplies its outlets from a central kitchen in Delhi NCR, which, as per Alagh, can support more than 30 locations.
Talking about the capacity expansion and brand expansion, Alagh said that they are in “active conversations with multiple VCs” for funding.
“We are in the process of raising a pre-series A round now. After that, we will expand our central kitchen capacity to 12,000 to 15,000 square feet, which can support at least 200 outlets,” said Alagh.
He stated that their strategy is concentrating on one city at a time. They plan to strengthen the brand’s presence in Delhi NCR by adding at least 8 to 10 more outlets.
“We want to expand to cities in the south and the west – Bengaluru, Mumbai, Pune, etc,” he informed.
Discussing the brand and its promise, Alagh said they position themselves in the “premium gourmet burger space,” focusing on providing customers with a healthy snacking experience.
“All our bread, patties and sauces are prepared in-house and on a daily basis. We are not offering factory food that has been frozen for months. Even with our shakes, we do it with premium ice cream, milk, and fresh fruits. Our coffee is premium Arabica by Blue Tokai. We have been partners of Blue Tokai for 9 years now,” he said.
Regarding the business model, Alagh shared that all 10 existing outlets are currently company-owned and operated. The brand functions in three formats—food courts, dine-in, and dark kitchens. He added that they focus on premium malls, food courts, high streets, and upscale residential areas.
As a QSR brand, Alagh stated that its standard operating procedures are highly reliable and emphasise hygiene and safety.
“We are a chefless model. Everything is done in a central kitchen. Only the assembly, toasting, grilling, or frying happen at the outlet. Staff can be trained in a week’s time. We have machines which eliminate chances of error completely,” he said.
