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Pantaloon Retail India Ltd., one of the country's top retailing company, is reportedly in talks with Burger King Holdings Inc., which might result in Burger King's entry into the Indian market, already home to McDonald's since a long time.
According to reports the two companies are likely to reach a franchise arrangement. Reports also indicate of possible talks between Pantaloon's parent company, Future Group and the coffee chain Starbucks Corp. for their entry into the Indian market.
Industry sources feel that even though McDonald's is firmly established in metros like Delhi and Mumbai, Burger King's entry is likely to start a burger war of sorts.
If the target customers are upwardly mobile kids, Burger King cannot keep away from Delhi and Mumbai. Innovation in product offerings and location of outlets would play a crucial role in drawing customers in the long run.
In the short term, McDonald's would lose some customers to Burger King out of sheer curiosity factor. However, this would happen only if both are located in the same catchment area, say an industry source.