99 Pancakes eyes sales jump amidst Indian expansion

The restaurant’s growth will be financed by its most recent funding round.

Mumbai-based 99 Pancakes expects revenue to jump 60% to $4.74m (₹400m) this year, whilst planning to expand its branches in India to 300 stores in the next three years from about 50 now, according to its founder.

The company expects to hit 200 branches by 2025, Vikesh Shah, founder of 99 Pancakes, told QSR Media, adding that expansion would mostly be funded by the $2.37m (₹200m) Series A funding it raised in August.

99 Pancakes had 70 branches before a global COVID-19 pandemic shut almost half of its stores. 

Shah did not expect to hit the jackpot when he started his mini-pancake house in Mumbai in 2017. After all, Indians are not really that crazy about the thin, round and fried breakfast pastry.

He got the idea during a trip to Amsterdam, where he saw a street vendor selling freshly made mini-pancakes. “I was amazed at the concept, so in 2017, I launched a neighbourhood café, one of the first brands to launch mini-pancakes in India,” Shah told QSR Media.

The early days were very tough, he said. Since the concept was new in India and social media marketing was still in its infancy, he had trouble getting customers through the door. He knew he had to take matters into his own hands.

“We started calling 10 to 15 friends every day and I would offer them free pancakes just to sit inside the shop to make it seem like it was full of people,” Sah said. “We did that for 15 days. Then, people started to notice how there were always people in the shop and started coming in.”

It didn’t take long for customers to take notice and become regulars; they started coming back two to three times a week, and 99 Pancakes became a hit in Mumbai in just a couple of months, he added.

Within three to five months, copycats started popping up.

Though reluctant at first, Shah decided to franchise the business because he did not have enough funds to open more company-owned branches.

After six months, as many as four franchised branches were set up. “That’s how we started expanding. By 2020, before the pandemic, we had reached 70 stores,” Shah said.

With so many competitors, it isn’t enough for 99 Pancakes to keep its growth momentum by just opening more restaurants. 
Shah said the heart of the business is its pre-mix, which he himself created, based on his experience in catering desserts. Also part of 99 Pancakes' charm is its ever-changing menu.

The company launches as many as three new products every quarter to keep the menu interesting, he said. “Then, the next quarter, we remove them and add new products in different categories. If they are really popular, we keep them permanently.”

99 Pancakes started selling waffles after they became a trending food item in India. It also has crepes, brownies, iced tea, and shakes. Some of its most popular products are cheesecake pancakes and pancakes made with strawberries and chocolate.

With the strategy, the company doubled sales in 2023 to $2.96m (₹250m) from a year earlier, Shah said.

The entrepreneur said it is important to keep his workers motivated. “Communicating with the team is key. You need to keep them motivated, address issues, and sometimes make tough decisions, like letting go of those who aren't ready to change.”

He said he has shifted from being involved in daily operations “to looking at the bigger picture.” “I believe it’s crucial to still maintain open communications. People may notice when the boss isn’t as present, but I truly believe that talking to the team helps keep everything on track.”