Food and Beverage Dec, 12 2011

Global F&B brands find feet in India

Diversity is what India is mainly popular for world over and Indian culture has always been appreciated for welcoming foreign concepts. Food and beverage (F&B) is one such industry that has taken maximum advantage of Indian market. The trend, however cont

By Abha Garyali
Sub Editor
Global F&B brands find feet in India

Global F&B brands find feet in India

Diversity is what India is mainly popular for world over and Indian culture has always been appreciated for welcoming foreign concepts. Food and beverage (F&B) is one such industry that has taken maximum advantage of Indian market. The trend, however continue with a lot of international brands foraying into India.

Considering the buying behavior and spending power of the Indians and their increasing preferences to use international brands, players across the globe keep on penetrating into Indian markets since time immemorial. To add to this is the Indian Government’s regulations and broadening of laws that makes it easier for foreign companies to enter the Indian market. There are number of F&B players across the globe that have already marked their presence and established themselves in India and are some brands that are due to explore India.

Established F&B brands

It can be easily said that F&B bands find India a potential market for their brands by looking at the numerous franchisors who have entered the nation. Domino’s and the more recent Dunkin’ Donuts entered via master franchising with Jubilant FoodWorks, Pizza Hut, KFC and Taco Bell via Yum! Restaurants International (YRI), Subway, Baskin Robbins, Gloria Jean’s Coffees, GFA (Global Franchise Architects) has also entered the Indian sub-continent via franchising with its various brands: The Coffee World, Pizza Corner, The Cream & Fudge Factory, Donut Baker are few of the international brands which have proved their success in our home land.

Appealing India

It is well known that India is predominantly dominated by the progressing middle class. With increasing disposable incomes due to both couples working, spending on food and other necessities is become easier. More and more people prefer to eat out. In India on an average, an individual eats out once in two weeks. Seeing this increase in eating out habits among Indians, foreign franchisors can gauge the scope of their brands. This attracts many food franchisors to enter the burgeoning Indian market.

Tony White, Regional General Manager, Gloria Jean’s Coffees International shares: “Domestic coffee consumption in India has increased significantly over the past 10 years, but there is still ample scope for growth, especially in terms of franchised operations. Gloria Jean’s Coffees world class franchise model has proved very successful, with more than 1,000 coffee houses across 39 countries today. We saw an opportunity to translate this success to the Indian market under the Master Franchise business model with Citymax Hospitality.”

Forthcoming brands

In a more recent happening as many as 30 foreign food chains are queuing up to enter India. Majority of them are Asian restaurateurs, which operate small format chains. These are mostly pizza and yogurt chains, quick service restaurants and food-on the-move concepts.

Few of those entering are Loon Tao, Berrylite, Shawarma Xpress, Ci Gusta , Kenny Roger Roasters and Sarpino's Pizzeria etc.

Loon Tao, a Sri Lanka-based restaurant brand plans to open its first franchise location in first half of 2012 in Chandigarh. As informed by Janaka Wimalananda, MD, Loon Tao: “We are seeking direct franchisees in the Indian market and will look to extend our footprints in the tier-I cities like Chennai, Mumbai, Pune, Goa, Kolkata, and Bengaluru.”

Ci Gusta, an Italian fast food chain for ice-creams, gelato and pastries, will be entering India by mid next year. To start with the company will target only metros and large cities. Happy Time Solutions, an Italy based company is the owner of the restaurant chain.  Dario Rabboni, MD, Happy Time Solutions says: “We aim to bring to India and other thriving Asian countries the possibility to enjoy and appreciate authentic Italian food. Our ultimate goal is to bring happiness combined with a unique, innovative and affordable food experience.”

Shawarma Xpress, Bahrain based QSR would be foraying into India via Master Franchise route. The brand with its specialty in meat, variety of breads and multiple sauce derivatives, also aims to take a bite out of the Indian pie. For this the company will be looking for master franchise partners for three regions i.e., North-east, south and west.

Berrylite, another international frozen yogurt brand with its headquarters in Singapore plans to enter India. Marc Ng, President and CEO, Berrylite Pte Ltd states: “We will expand in India through Master Franchise model. The brand targets to launch about 150 stores in five years.” The company would be offering kiosks and café formats in India.

Kenny Rogers Roasters (KRR), a chicken brand is also making a foray into India via franchise route. Presently, the brand has 230 restaurants worldwide with more than 100 company owned and franchised throughout Asia. Kenny Rogers Roasters International is 100 per cent wholly owned by Berjaya Corporation, which is a well diversified conglomerate in Malaysia.  The brand is one of the fastest growing chains in Asia Pacific branching out from Malaysia to Singapore, Philippines, China, Indonesia, Brunei and Bangladesh.

Sarpino’s Pizzeria, a Canada based pizza brand is also on the lookout for master franchisees in India. At present the brand has its presence in 14 countries worldwide. Sarpino’s Pizzeria offers highest quality handmade pizzas, gourmet pastas and salads.

Preferred route of entry

Majority of the foreign franchisors prefer to enter the Indian market via a master franchisee. This is done to target the local consumers via a regional partner who understands the local flavor that would attract consumers to the new brand. A master franchisee also helps the foreign franchisor in changing or adding to his menu according to the Indian needs. As mentioned Subway, Domino’s, Pizza Hut and many other successful brands have all entered the nation via a master franchise route. Highlighting the expansion plans in India, Saleh Al Khor, Vice-Chairman and Partner, Shawarma Xpress, said: “We are looking for master franchisees for three regions, including north-east, South and West India.”

Investment, another important factor in franchising, becomes less for the franchisor in case of offering Master Franchise. It is the master franchisee who gives a franchise fee for getting the brand name. However in the initial stages the investment is not fixed by the parent brand. In case of Loon Tao the investment ranges between Rs 1.5 -1.8 crore with area needed of 3,000 – 5,000 sq.ft.

Conclusion

Acknowledging the emergence of plethora of F&B brands from across borders, the industry appears to be quite lucrative and full of activity during the coming years. So, all those aspiring entrepreneurs who are looking for an opportunity in F&B industry, there are all chances of you getting confused while making a selection which is best for you.Considering the buying behavior and spending power of the Indians and their increasing preferences to use international brands, players across the globe keep on penetrating into Indian markets since time immemorial. To add to this is the Indian Government’s regulations and broadening of laws that makes it easier for foreign companies to enter the Indian market. There are number of F&B players across the globe that have already marked their presence and established themselves in India and are some brands that are due to explore India.

Considering the buying behavior and spending power of the Indians and their increasing preferences to use international brands, players across the globe keep on penetrating into Indian markets since time immemorial. To add to this is the Indian Government’s regulations and broadening of laws that makes it easier for foreign companies to enter the Indian market. There are number of F&B players across the globe that have already marked their presence and established themselves in India and are some brands that are due to explore India.

Established F&B brands

It can be easily said that F&B brands find India a potential market for their brands by looking at the numerous franchisors who have entered the nation. Domino’s and the more recent Dunkin’ Donuts entered via master franchising with Jubilant FoodWorks, Pizza Hut, KFC and Taco Bell via Yum! Restaurants International (YRI), Subway, Baskin Robbins, Gloria Jean’s Coffees, GFA (Global Franchise Architects) has also entered the Indian sub-continent via franchising with its various brands: The Coffee World, Pizza Corner, The Cream & Fudge Factory, Donut Baker are few of the international brands which have proved their success in our home land.

Appealing India

It is well known that India is predominantly dominated by the progressing middle class. With increasing disposable incomes due to both couples working, spending on food and other necessities is become easier. More and more people prefer to eat out. In India on an average, an individual eats out once in two weeks. Seeing this increase in eating out habits among Indians, foreign franchisors can gauge the scope of their brands. This attracts many food franchisors to enter the burgeoning Indian market.

Tony White, Regional General Manager, Gloria Jean’s Coffees International shares: “Domestic coffee consumption in India has increased significantly over the past 10 years, but there is still ample scope for growth, especially in terms of franchised operations. Gloria Jean’s Coffees world class franchise model has proved very successful, with more than 1,000 coffee houses across 39 countries today. We saw an opportunity to translate this success to the Indian market under the Master Franchise business model with Citymax Hospitality.”

Forthcoming brands

In a more recent happening as many as 30 foreign food chains are queuing up to enter India. Majority of them are Asian restaurateurs, which operate small format chains. These are mostly pizza and yogurt chains, quick service restaurants and food-on the-move concepts.

Few of those entering are Loon Tao, Berrylite, Shawarma Xpress, Ci Gusta , Kenny Roger Roasters and Sarpino's Pizzeria etc.

Loon Tao, a Sri Lanka-based restaurant brand plans to open its first franchise location in first half of 2012 in Chandigarh. As informed by Janaka Wimalananda, MD, Loon Tao: “We are seeking direct franchisees in the Indian market and will look to extend our footprints in the tier-I cities like Chennai, Mumbai, Pune, Goa, Kolkata, and Bengaluru.”

Ci Gusta, an Italian fast food chain for ice-creams, gelato and pastries, will be entering India by mid next year. To start with the company will target only metros and large cities. Happy Time Solutions, an Italy based company is the owner of the restaurant chain.  Dario Rabboni, MD, Happy Time Solutions says: “We aim to bring to India and other thriving Asian countries the possibility to enjoy and appreciate authentic Italian food. Our ultimate goal is to bring happiness combined with a unique, innovative and affordable food experience.”

Shawarma Xpress, Bahrain based QSR would be foraying into India via Master Franchise route. The brand with its specialty in meat, variety of breads and multiple sauce derivatives, also aims to take a bite out of the Indian pie. For this the company will be looking for master franchise partners for three regions i.e., North-east, south and west.

Berrylite, another international frozen yogurt brand with its headquarters in Singapore plans to enter India. Marc Ng, President and CEO, Berrylite Pte Ltd states: “We will expand in India through Master Franchise model. The brand targets to launch about 150 stores in five years.” The company would be offering kiosks and café formats in India.

Kenny Rogers Roasters (KRR), a chicken brand is also making a foray into India via franchise route. Presently, the brand has 230 restaurants worldwide with more than 100 company owned and franchised throughout Asia. Kenny Rogers Roasters International is 100 per cent wholly owned by Berjaya Corporation, which is a well diversified conglomerate in Malaysia.  The brand is one of the fastest growing chains in Asia Pacific branching out from Malaysia to Singapore, Philippines, China, Indonesia, Brunei and Bangladesh.

Sarpino’s Pizzeria, a Canada based pizza brand is also on the lookout for master franchisees in India. At present the brand has its presence in 14 countries worldwide. Sarpino’s Pizzeria offers highest quality handmade pizzas, gourmet pastas and salads.

Preferred route of entry

Majority of the foreign franchisors prefer to enter the Indian market via a master franchisee. This is done to target the local consumers via a regional partner who understands the local flavor that would attract consumers to the new brand. A master franchisee also helps the foreign franchisor in changing or adding to his menu according to the Indian needs. As mentioned Subway, Domino’s, Pizza Hut and many other successful brands have all entered the nation via a master franchise route. Highlighting the expansion plans in India, Saleh Al Khor, Vice-Chairman and Partner, Shawarma Xpress, said: “We are looking for master franchisees for three regions, including north-east, South and West India.”

Investment, another important factor in franchising, becomes less for the franchisor in case of offering Master Franchise. It is the master franchisee who gives a franchise fee for getting the brand name. However in the initial stages the investment is not fixed by the parent brand. In case of Loon Tao the investment ranges between Rs 1.5 -1.8 crore with area needed of 3,000 – 5,000 sq.ft.

Acknowledging the emergence of plethora of F&B brands from across borders, the industry appears to be quite lucrative and full of activity during the coming years. So, all those aspiring entrepreneurs who are looking for an opportunity in F&B industry, there are all chances of you getting confused while making a selection which is best for you.

Related: Frothy formula for franchise fraternity

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