I Left The U.S. For India And Built A $23M Burrito Business

Summary

Bert Mueller, an adventurous entrepreneur, shares his journey of moving from the U.S. to India in 2011 and establishing California Burrito, a thriving Mexican-inspired restaurant chain with 103 stores generating $23 million in revenue. Despite challenges, from adapting to India's unpredictable business climate to navigating health issues, Bert's decision to let India be India has paid off. His unique approach to business includes growing his own ingredients, such as avocado trees, and his aspiration to expand to 300 stores by 2030. Bert celebrates India's growth and his personal journey of embracing change, all while savoring the vibrancy and opportunities of his life in Bengaluru.

Highlights

• Bert Mueller adapted to India's learning curve by letting India be India. 🇮🇳
• Moved to India in 2011 and started California Burrito to fill the Mexican food market gap. 🌯
• Grew from 1 store to 103 stores, now generating $23 million annually. 💰
• Embraced India's unpredictability, finding success by remaining patient. ⏳
• Grows his own avocados despite challenges, like elephants trampling his trees! 🥑
• Breaking down $23 million: labor, ingredients, marketing, real estate, and overhead expenses. 🧾
• Dreams of 300 stores by 2030 with a potential IPO. 📊
• Loves the vibrant life and growth stories in India. 🌟

Key Takeaways

• Embrace the unpredictability of India for personal and professional growth. 🇮🇳
• Starting a Mexican restaurant chain in India has unique challenges and opportunities. 🌮
• From a single store to 103, California Burrito's journey is inspiring. 🚀
• Navigating India requires patience – a key ingredient for success. 🧘‍♂️
• Personal health and patience are important in a new cultural environment. 🏥
• Growing unique, local ingredients helps maintain authentic flavors. 🌿
• Aiming for 300 stores and an IPO by 2030 is an ambitious goal. 📈
• Living in India offers a one-of-a-kind life experience. 🌏

Overview

Bert Mueller's adventurous spirit led him to India in 2011. Seeking a life less ordinary, he left his U.S. roots to explore personal and professional horizons in the bustling city of Bengaluru. Embracing India's vibrant unpredictability, Bert noted, is key to thriving in a landscape where every day is different and full of opportunity.

With a spark of inspiration and a taste for Mexican cuisine, Bert founded California Burrito. What started as a single restaurant quickly expanded into 103 locations across India, generating an impressive $23 million in revenue. Bert's journey highlights the entrepreneurial spirit of adapting to new cultures, overcoming logistical hurdles, and tapping into uncharted markets.

Bert's life in India is not without challenges, from sourcing authentic ingredients, like planting imported avocado trees, to navigating the local business environment with patience. Yet, these challenges are part of the larger adventure he treasures as India transforms. With plans to scale his business to 300 stores and potentially go public, Bert's story is a testament to bold dreams and the vibrant life experiences India offers.

Chapters

• 00:00 - 00:30: Introduction to Doing Business in India Doing business in India presents significant challenges, highlighted by its unpredictability and the need to embrace its unique characteristics. The author reflects on personal experiences, emphasizing the dual learning curves of adapting to India and conducting business there, advocating for a mindset that embraces diversity and non-conformity.
• 00:30 - 01:00: Bert Mueller's Background and Move to India The chapter discusses Bert Mueller, a 35-year-old living in Bengaluru, India, who moved there in December 2011. Bert shares his experience of starting a Mexican-inspired restaurant in India. At the time of his venture, the only major Mexican restaurant was Taco Bell, and even 13 years later, there are still only a few Mexican restaurants in the country. The narrative highlights the challenges and adjustments Bert faced to achieve success in the Indian market.
• 01:00 - 01:30: California Burrito - Business Growth The chapter discusses the growth journey of California Burrito from its inception to having 103 stores over a span of more than 12 years. Initially, in its first financial year, the business generated about half a million dollars, whereas in the most recent year it achieved $23 million in revenue, with the exchange rate approximately ₹85 to the dollar.
• 01:30 - 02:00: Life in India and Personal Reflections In this chapter, the narrator shares their personal experiences and reflections on living in India. They describe the initial challenges but affirm their satisfaction with the decision to move. Living in India has stretched them as a person and they express contentment with their life there. The narrator discusses their living situation, mentioning their three-bedroom duplex apartment which costs $1,200 a month. Many of the furniture pieces are family heirlooms, giving the place a sense of familiarity and comfort reminiscent of their previous home in the US.
• 02:00 - 02:30: Early Experiences and Education The chapter titled 'Early Experiences and Education' provides an insight into the author's morning routine in India, specifically mentioning their practice of drinking coffee while overlooking a garden with a notable avocado tree. The narrative contrasts the current setting in Bangalore, India, with the unseasonal rain, against the author's upbringing in Silver Spring, Maryland. This contrast highlights the author's traditional suburban, middle-class American childhood in close proximity to Washington, DC.
• 02:30 - 03:00: First Visit to India and Initial Impressions The narrator, who attended the College of William & Mary in Virginia with a double major in music and public policy, chose to study abroad in India. Unlike many peers who opted for Spain or Italy, the narrator wanted a radically different experience than the U.S., thus deciding on India.
• 03:00 - 04:00: Cost of Living and Personal Life In this chapter, the author describes their first experience traveling to India as part of a study abroad program with 20 other people. The experience was quite different from what they were accustomed to growing up. While some people in the group fell ill or had difficulties adapting to the local cuisine, the author felt at ease and flourished in the new environment, indicating a personal resilience and adaptability that set them apart from their peers.
• 04:00 - 05:00: Challenges and Health in India In this chapter, the author discusses the challenges and nuances of living in India, particularly focusing on the cost of living and the quality of food. The author shares a personal anecdote about grocery expenses, which are typically between $150 to $200 a month. They also reflect on an experience in India that set a high standard for Indian cuisine, making it difficult to enjoy Indian food in the US thereafter. Additionally, the author mentions the typical cost of dining out, which can range from $200 to $400 monthly, depending on activity levels.
• 05:00 - 05:30: Inspiration for Mexican Cuisine in India The chapter discusses the challenges and realities of living in India, particularly focusing on the need for patience. The saying 'fortune favors the bold' is contrasted with the idea that in India, patience is key. The author shares a personal experience of dealing with health issues like dengue and typhoid after 13 years without any problems, highlighting the potential health risks in the country.
• 05:30 - 06:00: Raising Funds and Opening the First Store The chapter discusses the challenges and cultural differences faced while raising funds and opening the first store in India, such as unexpected issues that wouldn't occur in the US. It highlights a personal story where the narrator gets inspired by a friend's success with Mexican cuisine, leading to the idea of introducing Mexican-inspired dishes to the Indian market.
• 06:00 - 07:00: Challenges in Ingredient Sourcing and Supply Chain The chapter discusses the financial challenges in starting a business, illustrated through the experience of raising money for a store. Initially, $100,000 was estimated to be required, but $250,000 was raised with the help of friends and family. With the opening of the first store in October 2012, the unexpected success highlighted the need for business expansion.
• 07:00 - 08:00: Financial Breakdown and Future Plans The chapter titled 'Financial Breakdown and Future Plans' discusses the company's initiative to grow their own ingredients to maintain authentic taste for their food products. In 2018, they began by importing 500 Hass Avocado Trees from California. However, the venture faced challenges when elephants destroyed 60 of the trees. Over the past 13 years, the company has been dedicated to ensuring their food tastes like it would in California or Mexico, emphasizing the distinct flavors of tomatoes and onions used in different countries.
• 08:00 - 09:00: Conclusion: Living in and Contributing to India's Growth The chapter discusses the intricacies of developing a supply chain tailored to the Indian palate, focusing on achieving a balance between approachability and flavor differentiation. It also breaks down financial aspects, highlighting that 37% of the revenue goes to food and packing costs, while 12% is allocated to labor costs.

I Left The U.S. For India And Built A $23M Burrito Business Transcription

• 00:00 - 00:30 Coming to India to do business is a big learning curve. First, India is a learning curve. Then business in India is a further learning curve. For me, it was all about letting India be India. If you find monotony dull, if you find comfort boring, then India is a perfect place to be. Nothing is predictable. Every day is different. I took it as par for the course that I would just
• 00:30 - 01:00 have to adjust to this in order to be successful here. My name is Bert Mueller. I'm 35 years old. I live in Bengaluru, India and I moved here in December 2011. So when I looked at starting a Mexican inspired restaurant in India, there was just Taco Bell. Even now, 13 years in the future, very few people have started Mexican restaurants.
• 01:00 - 01:30 So today with California Burrito, we have 103 stores. This journey from 1 to 103 stores has taken us almost 12 plus years. When we started our first store in our first financial year, we did about half $1 million. Last year we did $23 million. It's at about ₹85 to the dollar.
• 01:30 - 02:00 We started out in India was very challenging, but I never doubted that I had made the right decision. And I think India's stretched me as a person, and it's really a wonderful place to be. I'm very happy living here. The apartment I stay in has three bedrooms. It's a duplex, and it costs me about $1,200 a month. And a lot of these furnitures also were my grandparents. So it's passed through the family and now really feels like my old house in the US here in
• 02:00 - 02:30 India. This is where I take my coffee in the morning and look out over the small garden I have. This is my small garden, my patio. I have a large avocado tree right over here. Now, it's not usually raining in Bangalore right now. This is very unseasonal. I grew up in Silver Spring, Maryland, right outside Washington, DC, a very traditional suburban, middle class American childhood,
• 02:30 - 03:00 I would say. I went to the College of William & Mary in Virginia. I had a double major in music and public policy. I had the opportunity to study abroad, and I saw most people were going to Spain or Italy. And I'm a bit of a contrarian, and I wanted to go somewhere that was radically different than the U.S.. 8348. So I decided that India was the place to be.
• 03:00 - 03:30 Gosh, my first trip to India was just crazy in a sense. And it was so different than what I had grown up with. I came out here with about 20 people on the study abroad program. Some people got sick. Some people, you know, didn't like the food. It didn't treat their system well. I was certainly someone who blossomed and was very comfortable navigating India, whereas most other people in the program weren't. As an individual, I've always been somebody
• 03:30 - 04:00 who's extremely frugal. Uh, what do I spend in terms of groceries? I spend anywhere between 150 to $200 a month. Once I came to India and then I went back. I never wanted to have Indian food in the US again, because whatever I'd had in India was so good, you know? Everything else paled in comparison. On eating out. It's probably another $200 a month, maybe $400 if it's a very active month.
• 04:00 - 04:30 The challenges of living here is it's it can be frustrating to get things done. Patience is is kind of the right strategy. Usually, you know, they say fortune favors the bold. I would say India favors the patient. The other thing is, you know, knock on wood, I had actually not had any health issues. But last year I got dengue in, uh, in August. And then I got typhoid in January. So I'd gone for 13 years with no problems. And then last year I got two. So, you know, there are health issues that
• 04:30 - 05:00 can arise that would not happen in the US. And these are not small, uh, issues. All the people in our program were living with families. One of my friends was of Mexican origin. And one day I came over to her house and I saw she'd made this food for. For her, the family she was living with. And they were loving the food. As soon as I saw that, I thought, you know, that maybe this was something I could do. I could bring Mexican inspired cuisine to India.
• 05:00 - 05:30 When we were raising money for our first store, we estimated we needed about $100,000 to do it. We raised $250,000. So that was from friends family. Two of my childhood friends decided to join and we opened in October 2012, our first tour. The store did extremely well. All of a sudden it was clear that we needed to grow our
• 05:30 - 06:00 own ingredients. So in 2018, we ordered Hass Avocado Trees from California. We imported them and we planted them about 500 of them. Six months in, some elephants came through the avocado farm and trampled 60 of the trees past, you know, 13 years we've worked hard to make the food taste like you would get it in California, or taste like you get it in Mexico. If you use the tomatoes from India, they taste very different than the tomatoes you'd get in the US. And the onions taste very different.
• 06:00 - 06:30 The beans taste different, so it takes a lot of time to develop the supply chain that leads to a food that, well is it approachable for someone who's from India? Is also differentiated from a flavor perspective. So when we break down that $23 million revenue, our food costs are about 37% food and packing cost. Our labor costs would be about 12% and approximately
• 06:30 - 07:00 4% on marketing. Real estate would be about 9%, and then corporate overhead would be about 5%. And we have other operating expenses. So at the bottom line you could say it's around 10%. Our plan is to reach 300 stores by 2030, at which point we would probably list the company and do an IPO in India and we'll see what happens.
• 07:00 - 07:30 For me, living in India feels like I'm a part of this incredible once in a lifetime growth story. India is on a growth story that other countries have already gone through, and to be able to witness the transformation and change that people's lives are experiencing is really powerful. I think it's also just a wonderful place to be from a life experience perspective,
• 07:30 - 08:00 and I couldn't be happier to be here.