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From U.S. to India: Building a $23M Burrito Empire

Summary

Quick Abstract

Embark on a journey of cultural adaptation and entrepreneurial success with Bert Mueller, founder of California Burrito! Discover the unique challenges and rewards of doing business in India, from navigating unpredictable environments to building a thriving restaurant chain.

Quick Takeaways:

  • India presents a steep learning curve but offers immense growth opportunities.

  • California Burrito grew from 1 to 103 stores in 12+ years.

  • Living expenses are relatively affordable, with a comfortable apartment costing around $1,200/month.

  • Patience is crucial for success; "India favors the patient."

  • Supply chain development is key to adapting flavors for the Indian palate.

  • Plans include reaching 300 stores by 2030 and a potential IPO.

  • Living in India provides a front-row seat to a transformative growth story.

Doing Business and Living in India: A Unique Experience

Bert Mueller shares his experiences of moving to India in 2011 and building a successful Mexican-inspired restaurant chain, California Burrito. He discusses the challenges and rewards of adapting to the Indian business environment and culture.

The Initial Learning Curve

Navigating India, both personally and professionally, presents a significant learning curve. Bert emphasizes the importance of embracing India's unpredictable nature and adjusting expectations. He notes that those who find routine unappealing will thrive in the dynamic Indian environment.

Building California Burrito

  • When Bert started California Burrito, Taco Bell was the only major Mexican restaurant chain in India.

  • Today, California Burrito has grown to 103 stores in just over 12 years.

  • The company's revenue has grown significantly, from about \$500,000 in its first financial year to \$23 million last year.

Despite the challenges, Bert never doubted his decision to start a business in India. He feels India has made him a better person.

Personal Life in Bengaluru

Bert lives in a three-bedroom duplex apartment in Bengaluru that costs around \$1,200 a month. Many of his furnishings are family heirlooms, creating a sense of home. He enjoys having coffee on his patio, overlooking his small garden with a large avocado tree.

Background and Early Exposure to India

Growing up in Silver Spring, Maryland, Bert had a traditional suburban upbringing. He attended the College of William & Mary, double majoring in music and public policy. Looking for a unique study abroad experience, he chose India over more popular destinations like Spain and Italy.

First Impressions and Adaptation

Bert's initial trip to India was a stark contrast to his upbringing. While some students on his program struggled with the culture and food, Bert thrived and felt comfortable navigating the environment.

Frugal Living and Food Preferences

Bert describes himself as frugal, spending \$150 to \$200 a month on groceries. After his time in India, he found it difficult to enjoy Indian food in the US, as the authentic flavors he experienced in India set a high standard. He spends another \$200 to \$400 a month on eating out.

Challenges and Health Considerations

One of the biggest challenges of living in India is the time and patience required to accomplish tasks. Bert believes that patience, rather than boldness, is the key to success in India. Despite being healthy for many years, he experienced dengue fever and typhoid in a single year, highlighting potential health concerns.

The Inspiration Behind California Burrito

The idea for California Burrito came from seeing a friend of Mexican origin cooking for her host family, who loved the food. This inspired Bert to bring Mexican-inspired cuisine to India.

Funding and Growth

  • When starting California Burrito, Bert and his team raised \$250,000 from friends and family, exceeding their initial \$100,000 goal.

  • Two of Bert's childhood friends joined the venture, and they opened their first store in October 2012.

  • The first store was very successful.

Supply Chain and Ingredient Sourcing

To ensure authentic flavors, California Burrito faced the challenge of sourcing ingredients that tasted like those in California or Mexico. This involved developing a complex supply chain to account for differences in the taste of local produce like tomatoes, onions, and beans. In 2018, the company imported Hass avocado trees from California and planted 500 of them. Elephants trampled 60 of the trees six months in.

Financial Breakdown and Future Plans

The company's financial breakdown includes:

  • 37% for food and packing costs

  • 12% for labor costs

  • 4% for marketing

  • 9% for real estate

  • 5% for corporate overhead

The bottom line profit is around 10%. California Burrito aims to reach 300 stores by 2030, with plans for an IPO in India.

India's Growth Story

Bert feels fortunate to be part of India's remarkable growth story. He believes India is undergoing a transformative period and finds it rewarding to witness the positive changes in people's lives. He also believes it's a wonderful place to be from a life experience perspective, and he is very happy living in India.

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