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Food and Beverage (F & B) sector is scaling new heights in India. The growth has been phenomenal as foreign and Indian brands have come up with branded food chains in different cities of the country. Delve deeper for details for the opportunities offered
The F&B boom is witnessed not only in big cities but also in smaller towns. The growth is seen across all sectors. Indian appetite for trying new cuisines and influence of western culture even in food and beverage has added to the growth of the sector.
According to recent reports, due to lack of uniform economic growth quick service restaurants and cafés are largely located in northern, southern and western India. The National Capital Region (NCR) of Delhi alone has 408 franchise brands, according to a study, while western India has 386 brands with the majority concentrated in Mumbai. In southern India too, the 250 brands are mostly split between Bengaluru and Chennai. In comparison, eastern India has a mere 58 brands, mainly located in Kolkata. We have shortlisted a few of the leading F & B brands that have made it big in their respective segments.
Amul is one of the largest food products organisations in the country which boasts of more than 600 stock keeping units in fresh, ambient and frozen foods categories. The wide range includes fresh milk, fresh paneer, butter, cheese, ghee, chocolates, condensed milk, ice creams, frozen paneer and shrikhand.
Under its franchise formats, the brand has Amul Preferred Outlets, Amul Railway Parlour, Amul kiosk and Amul ice-cream scooping parlour. Amul Parlours are exclusive Amul outlets which stores and sells entire range of Amul products. While Café Amul is an exclusive Amul outlet where form besides all Amul pre-packed items some prepared recipes like oven fresh pizza, sandwiches, burgers, ice cream sundaes, thick shakes, dessert etc. are served to customers.
The company is going for major expansion by adding 1500 more parlours by 2014-15. Known countrywide with its popular slogan 'The Taste of India', the brand currently has 7,428 franchise units ever since it entered the franchise arena in 2001.
Investment: Rs 1.50-3.50 lakh
Current presence: 7428 franchise units
Area: 100-200 sq.ft
Expansion: Approx 9000 parlours by 2014 end
Subway is the world's popular submarine sandwich restaurant chain. It has opened more than 42,000 restaurants in 107 countries. Subway opened its first restaurant in 2001 in New Delhi and has since then been going strong with a network of 472 restaurants in over 70 cities. Subway restaurant has aggressive growth plans for the region, in line with the brand's growth ambitions for India, according to which the chain plans to have over 500 restaurants by the end of 2014 and 1000 restaurants by the end of 2017 in India. Healthy food offerings, franchise-based business model and consumer focus like adapting the menu according to the needs and demands of the operating market is the USP of the brand. It recently opened its 100th restaurant in South India in Mysore.
Investment: Rs 40-60 lakh
Area: 300-800 sq.ft
Current presence: 472
Expansion: 500 by 2014 end
Baskin Robbins is one of the largest chains of ice-cream specialty shops. It was founded in 1945 by Burton ‘Burt’ Baskin and Irvine ‘Irv’ Robbins who had a mutual love for old-fashioned ice cream and shared a dream to create an innovative ice cream store by providing customers a variety of flavours made with ingredients of the highest quality in an inviting atmosphere.
It is known for creating and marketing premium ice-cream and providing quality and value to consumers in nearly 50 countries across the globe. Baskin Robbins entered India in 1993 through a joint venture with The Graviss Group. Its first manufacturing plant outside North America was opened in Pune.
The brand is planning to open 150 new stores by the next year. It is looking forward to open parlours in 18 major cities. Sanjay Coutinho, Chief Executive Officer, Baskin Robbins, says, “We have 548 stores across 142 cities. All our stores are owned by individual franchisees.” It has three formats kiosk, parlour and lounge.
Investment: Rs 4.80 Lakh
Area: 112-500 sq.ft
Breakeven: within 2.5 years
Cookie Man is India's fresh-baked cookie chain. It opened its first outlet in Chennai in January 2000, today Cookie Man is the largest premium cookie chain in the country with over 70 stores spread across different cities of the country. Steeped in Australian tradition and exemplifying a youthful international palate, Cookie Man has a variety of cookies in various flavours. Using proprietary oven technology, these cookies have the same standard and quality across the country. Cookie Man stores are present in malls, high-street and airports.
Since its inception in India, Cookie Man has adopted the franchise route to increase presence across India. The brand feels franchising is a good way to expand presence and reach out to customers in smaller cities across India.
Current Presence: 70+ outlets
Expansion: 300 POS in next four years
KFC, a subsidiary of Yum! Brands, is the world's popular chicken restaurant chain. It runs about 350 outlets in India.
Since the opening of the first KFC restaurant in 1952 to the newest restaurants in the farthest reaches of Africa, Latin America and Asia, the brand founded by Colonel Harland Sanders is one of the most loved and fastest growing retail chains in the world.
Besides this, the brand is all set to strengthen its presence across the globe with main focus on Indonesia and other countries in Asia and some other countries like Russia, Africa and Latin America. KFC is the biggest brand of Yum! Restaurants across the globe and has over 35,000 restaurants, in over 100 countries. KFC is present in over 80 countries, with more than 13,000 outlets.
Current Presence: 350 outlets
Expansion plans: Pan-India
It was a humble beginning for the vadapav giant-Jumboking that started off in August 2001 from a small suburb of Mumbai to experiment to wrap and serve the vadapav. Jumboking is the first Indian brand to modernise the vadapav and established a franchise program for the same. Jumboking is now one of the front-runners in the Indian QSR segment. It has spread its presence across Mumbai, Thane, Bangalore, Aurangabad, Mysore, Delhi, Gurgaon, Amravati, Indore, Raipur, Pune, Lucknow and Hyderabad. For Jumboking, master franchisee is the feasible route to expand as they have in-depth knowledge of their city, surrounding areas, eating habits of region, potential areas and target group which help them to know the city better in terms of business and market potential. On its expansion plans, Dheeraj Gupta, MD of the company says: “We have ramped up our supply chain to open about 65 to 70 additional stores in FY 2014-15. We are grateful to our customers for helping us cross the 100 millionth mark.”
Investment: Rs 9 to 12 lakh
Area: 200-300 sq. ft
RoI: 30 %
Break-even: 3 years
Current presence: 66
Expansion plans (in numbers): 500 in five years
Pizza Hut, another subsidiary of Yum! Brands, is the world's popular pizza company which began 55 years ago in Wichita, Kansas, and today it is a global brand.
Pizza Hut division includes over 13,300 restaurants including over 7,800 units in the US and over 5,500 outside the US in 88 countries, excluding the Yum! China and India divisions. While in India, the brand runs about 340 Pizza Hut and Pizza Hut Delivery outlets It began building delivery carryout units in 1988 and today it is the fastest growing part of the business. With delivery, the strategy is to take advantage of the existing scale and quickly grow the brand in both developed and emerging markets.
Franchise facts: Current Presence: 340 outlets | Expansion: Pan-India