Growth Nov, 24 2015

‘Fast casual concept’ offers fine returns

Fast casual concept is fast gaining ground in India with more and more brands coming into this category and catching the pulse of the Indian consumers besides offering huge franchise opportunities. Let’s find out what this concept is all about.

By Sandeep Rana, TFW Bureau
Senior Copy Editor
‘Fast casual concept’ offers fine returns

Fast casual, which is positioned somewhere between fast food restaurants and casual dining restaurants, is the fastest growing segment in the QSR industry. The main reason is consumers are looking for food solutions on the go besides value for money and taste. Exposure to global culture, changes in the demographic profile, higher disposable income, higher propensity for consumption and experimentation and availability of multiple choices are the other key drivers of the growth in India. Moreover, with the advent of foreign QSRs in India and easy access to world class food and services at an affordable price has aided 'fast casual concept’ in the country.

Industry insight

Fast-food industry in India is expected to double in size between 2013 and 2016 to $1.12 billion, says Economist Intelligence Unit. Food and beverage sector is measured by 26% growth year-on-year.

Fast franchising

The category has seen an entry of Indian, Mexican, Italian and American brands in India and to expand further, they prefer the franchise mode. Brands like Five Star Chicken, Habanero and Burrito Boys are fast expanding their base pan-India offering franchise opportunities.

Thailand-based brand Five Star Chicken has 90% franchise and 10% company-run stores in India. “Franchise model is the most suited for faster, wider and deeper penetration. We can leverage the deep local knowledge and the entrepreneurial spirit of franchisees to reach the right sections of the target customers with success. The franchisees can benefit from the highest quality and tasty products and professional sales, marketing and training support we provide. It is a mutually beneficial partnership. We provide all the right content and the franchisees provide the local connect and the business spirit,” comments Sanjeev Pant, Senior Vice President, CP Foods, that runs 330 Five Star Chicken outlets in India. The brand eyes pan-India with a major thrust on franchise mode of expansion.

Fast casual brand Burrito Boys, which has been launched on the lines of Mexican dish called Chipotle, is also looking at opening 20-25 outlets via the franchise route. While, another brand Habanero, which offers combination of Texan and Mexican cuisines in India, is eying 40-45 outlets offering franchise opportunities.

Related: "India soon to be among the top three revenue contributors"

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