US Entrepreneur Turns $250,000 Bet Into $23 Million Burrito Chain in India

Bert Mueller, who grew up in Silver Spring, Maryland, moved to India in December 2011 after choosing to study abroad somewhere different from typical destinations. He later launched California Burrito in October 2012 with $250,000 raised from friends and family, including two childhood friends who joined the venture.

The idea took root after Mueller watched a friend of Mexican origin cook for a host family during his college trip and saw how much they enjoyed the meal. At the time, he found few Mexican-inspired restaurant options in India, with Taco Bell being one of the only names he recognized.

The first California Burrito outlet opened in 2012 and performed well, though it took more than 12 years for the chain to grow from one restaurant to 103 stores. Revenue rose from about $500,000 in its first year to $23 million last year, roughly ₹195 crore at current exchange rates.

Much of the expansion effort went into building a reliable ingredient supply chain, since Indian tomatoes, onions and beans differ in flavor from those in the US. In 2018, the company imported about 500 Hass avocado trees from California, though roughly 60 were destroyed when elephants entered the farm.

According to Mueller's cost breakdown, food and packaging make up about 37% of revenue, followed by labor at 12%, real estate at 9%, marketing at 4% and corporate overhead at 5%, with the business operating at roughly a 10% profit margin.

Mueller said the company aims to grow to 300 stores by 2030, after which it may consider an IPO in India. He described adapting to doing business in India as a steep learning curve that required patience.