Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future…
Bengaluru: HOCCO (House of Chonas Collaborative), the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India.
The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona, an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953.
Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its focus to broader food service ventures.
The HOCCO brand emerged in 2023 under the leadership of a third-generation entrepreneur, ushering in a new era of dynamic growth. In just 18 months, the company has surged ahead, positioning itself as one of India’s fastest-growing ice cream brands and aspiring to become the nation’s leading QSR chain.
Today, HOCCO operates over 150 outlets and has more than 15,000 retail touch points. The brand is gearing up for exponential expansion, with plans to scale its offline footprint, bolster manufacturing capabilities, and enter global markets.
In an exclusive conversation with IndiaRetailing, Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, vision for the future and more.
Edited excerpts…
What is the existing revenue framework of HOCCO?
After the inception of HOCCO in 2023, our primary business focus has shifted to ice creams. Around 80% of our sales come from general trade and modern trade. Another 10% is generated through our parlor business, while quick-commerce platforms like Zepto, Blinkit, and Swiggy Instamart contribute the remaining 8-10%. Based on current trends, there is a strong potential for online sales to reach nearly 20-25% in the next one to two years.
What are the different sub-brands and formats of the brand?
Our business has two verticals-
- Ice cream business: We run an ice cream factory in Ahmedabad that supplies ice cream to our own restaurant business as well as to other restaurants, kirana shops, general trade, modern trade, and quick commerce platforms.
- Restaurant business: Under this vertical, we operate multiple brands:
- 1944 is our casual dining restaurant chain, averaging 100 seats per location, with outlets spanning 3,000 to 5,000 sq. ft;
- HOCCO Eatery is a fast-food QSR chain of over 75 outlets, each around 1,000 sq. ft., offering a mix of food and ice creams;
- HOCCO Ice Cream Parlours specialise in ice cream sundaes, waffles, and frozen desserts, with more than 150 outlets;
- HOCCO Kitchen is a highway dining concept similar to 1944 but tailored for travellers.
- Huber & Holly is our premium ice cream parlor brand since 2016 with 20 locations. It also extends into modern trade and quick commerce with packaged ice creams, positioning itself as a competitor to global brands like Baskin Robbins and Häagen-Dazs.
Our business operates on a 50-50 model, with half of our stores company-owned and the other half run by franchise partners.
What is the current number of stock-keeping units (SKUs)?
We currently have around 150 SKUs, including special SKUs for online and quick commerce. Our offerings also include a sugar-free range called Healthies, along with nearly 20 varieties of cones, candies, cups, and party packs. Our product range caters to diverse price points, starting from Rs 5 and going up to over Rs 100 per serving.
Will you be launching any new categories?
We are committed to focusing on ice cream as our core category. However, under the HOCCO brand, we manufacture ready-to-eat products, including dal, chana, gravies, and more. While this is currently a smaller segment, we are looking to scale it up.
We began this line during the pandemic to support our restaurant business, but it has since gained more traction. We are already exporting these products to the US and selling them in the Indian market, and we are now strategising on expanding this vertical further.
Which market is witnessing the highest demand?
We launched our first-ever HOCCO ice cream store in Ahmedabad in November last year, and the city remains our strongest market. However, we are seeing growing traction across the state and beyond.
Currently, we rank fourth among the top ice cream players, with the top three holding a larger market share. However, we are comfortably positioned at number four and are confident that we will break into the top three within the next year.
Where is HOCCO’s manufacturing unit?
We currently have one large-scale production unit in Ahmedabad with a capacity of 1.3 lakh liters of ice cream per day. During the summer, this facility will employ over 1,000 people to keep up with demand.
We are continuously expanding, adding capacity every few days, but even with these efforts, it will only be enough to meet the existing market demand. So, we are looking at a potential launch in other parts of the country sometime after summer, probably in North India.
How are you incorporating sustainability practices into business?
Water is an invaluable resource that we deeply respect and prioritise. We are proud to be among the very few plants in the ice cream category that operate with 100% zero liquid discharge, ensuring that all the water we use is fully recycled.
Additionally, we are continuously exploring ways to reduce our environmental footprint through recyclable materials. While sustainable packaging in the ice cream industry is challenging—especially given the extreme temperature fluctuations in India—we have been experimenting with biodegradable alternatives. In some product categories, we are already transitioning to eco-friendly packaging.
Beyond sustainability, we are also committed to giving back to society. In the community where our plant is located, we actively support educational initiatives for children, helping to create a positive and lasting impact.
What is your retail expansion plan for 2025?
Our main focus is on general trade, modern trade, pushcarts, and retail distribution. As of now, we have over 15,000 retail touch points. This year, we plan to add another 15,000 outlets, aiming for a total of 30,000 to 35,000 by year-end.
When it comes to parlors and outlets, we currently have around 150 and our goal is to add another 100, bringing the total to 250 parlors by the end of the year.
Also, we are actively scouting for land in North India to set up another plant of similar size. This will ensure that North India becomes self-sufficient while our existing plant continues to supply parts of South India. Our goal is to double our total capacity from 1.3 lakh liters to 2.5 lakh liters per day before next summer, and we have 14 months to achieve this.
Are you looking at particular markets to expand into?
Looking ahead, after this summer, we plan to expand into South India, parts of Eastern India, and Uttar Pradesh, which is also a major market. Our distribution network and teams are already in place in these new regions, setting the foundation for further growth.
Do you prefer malls or high streets to open stores?
A major portion of our sales—around 40% to 50%—comes from take-home purchases and home deliveries. This makes malls a less viable option since facilitating such sales there is challenging. Additionally, mall rentals are nearly double those of high streets, making high streets and densely populated residential areas our preferred locations.
Will you be expanding to global markets?
We have a trial store in Virginia Beach that has been highly successful. As a result, we are currently fitting out more locations in New Jersey, Ohio, and South Carolina. By the end of the year, we aim to have 10 to 12 global stores in total.
We are also actively working on exporting ice cream this year. To facilitate this, we are preparing our plant by obtaining the necessary permissions for export readiness.
Our primary export markets will be North America and Canada. We plan to distribute through various channels, including general trade, modern trade, e-commerce, and quick commerce. Our products will be placed in Indian stores, and we are also working towards entering big-box retail.
Are you witnessing any challenges in the ice cream business?
The biggest challenge facing the entire industry right now is rising input costs. Dry fruit prices have remained high over the past year, and cocoa prices have skyrocketed. While dairy prices have been relatively stable, they are still on an upward trend, which is also a point of worry.
However, aside from these challenges, the demand for ice cream in India has never been stronger—it’s growing at an incredible pace. The industry as a whole is expanding rapidly, and we find ourselves in a very favorable position.
What is your approximate marketing budget?
Our marketing budget will exceed 10% of our total revenue, primarily focused on showcasing our hero products—our ice creams. We allocate a significant budget to on-ground marketing, covering brand visibility, in-store branding, billboards, and more.
Moreover, we have just wrapped up filming our first television commercial, set to air this summer. Some brand collaborations are in the pipeline, along with innovative products that India has never seen before. We plan to launch these just before summer.
Has the company raised any funding?
Yes, we have raised around Rs 150 crore, with one institutional investor along with contributions from friends, family, and high-net-worth individuals (HNIs). We are also planning a larger funding round within the next six to twelve months, likely by December, to fuel our next phase of growth and double our revenues over the next one to two years.
How is HOCCO’s financial performance in FY 2025?
Even though we launched HOCCO just 18 months ago, by the end of the current fiscal year, our ice cream business is expected to generate around Rs 200 crores in revenue. The target for the next financial year (FY 2026) is between Rs 400 – 450 crore.
Similarly, our restaurant business has generated around Rs 180 crore in system-wide sales this year. Moving forward, this segment is expected to grow at a steady pace of 15-20%.
