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Startup 2013-07-25

Growth Story of Organised Restaurants

India, a developing country, has less organised restaurants and more \'dhabas\'. Has the organised segment shown improvement now?

By Deputy Features Editor
Growth Story of Organised Restaurants

The current statistics of organised Indian Restaurant Industry also show encouraging numbers. The industry is growing at a rate of 11 per cent and today stands at USD 48 billion market. The industry landscape is divided into organised and unorganised segment with the organised segment securing 30 per cent of the whole market. Though the share of the organised sector is less, this segment is growing at a substantial rate.  

Despite the fragmented nature of the restaurant industry, national and International brands are expanding their outlets in different regions aggressively. A comprehensive list of major restaurant’s expansion plans confirms the same.

Date Brand Plan
June 2013 Speciality Restaurant Speciality Restaurants running fine dining chains – Mainland China and Oh! Calcutta – plans to open 30 new restaurants by FY 2016.
April 2013 McDonald’s McDonalds India has set a target of 500 stores across the country by 2015.
May 2013 Dominos Domino’s is expanding by launching 125 new stores in FY 2014.
Oct 2012 Yum! The company owing Pizza Hut, Taco Bell, and KFC is ready to invest up to $120 million and set to double its outlets in Indian sub-continent to 1,000 by 2015.
Oct 2012 Subway Subway aims to add 150 restaurants in India by 2014.
June 2012 FrescCo A venture between Lite Bite and Eat out group plans to open at least 50 restaurants of the FrescCo brand in 10 years.
Jan 2012 Quiznos American quick service restaurant brand Quiznos is expanding in India with plans to setup around 150 outlets in the northern and western regions of the country in the next five years.

Wooed by the aggressive growth of the food service industry, many international brands of restaurants and food service sectors are entering India. For instance, Starbucks, a renowned coffee outlet, entered India last October by opening its first store in Mumbai. Later, in less than six months, it has opened a store in Delhi and the company plans to have 50 outlets in India by the end of 2013. Another example is Dunkin Donuts which entered India in May 2012 and is planning to have 18 stores by March 2014.  

Also Testa Rossa, a brand from Austria, has recently opened two self-owned Testa Rossa bars in Hyderabad and is set to add two more shortly.

Red Mango, a US-based yogurt and smoothies brand, has launched India's first non-fat frozen yogurt outlet in January last year with its flagship store in Delhi and is planning to add another 10-12 outlets in Delhi-NCR within a year. It is also going to open 25-30 outlets in the metros and around 100 stores across India in the next five years.

Pizza Kitchen has moved in with some stores, hoping to target India's IT workforce and its linkages with the Silicon Valley, Bangalore.

Belgian bakery chain Le Pain Quotidien opened in South Mumbai's tony neighbourhood of Colaba, serving traditional handmade breads, salads and tartines. Le Pain, which has remained a neighbourhood bakery with only 150 outlets globally in the past 20 years, will follow a similar strategy in India and not take the mass expansion route.

International Food Innovators Entering India

In a more recent happening, as many as 30 foreign food service 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.

  • Muffin Break, an Australian bakery cafe chain, plans to open its first outlet in the next 2 to 3 months and is planning to expand its business by opening 30-40 stores in the next two years.
  • Loon Tao, a Sri Lanka-based restaurant brand, plans to open its first franchise location in the first half of 2014 in Chandigarh.
  • Ci Gusta, an Italian fast food chain for ice-creams, gelato and pastries, will be entering India by mid next year.
  • Shawarma Xpress, the Bahrain-based QSR, would be foraying into India via Master Franchise route. 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. The brand targets to launch about 150 stores in five years with an investment of over USD 200,000.
  • Kenny Rogers Roasters (KRR), a chicken brand, is also making foray into India via franchise route.
  • Sarpino’s Pizzeria, a Canada-based pizza brand, is also on the lookout for master franchisees in India.
  • Pinkberry, the world’s leading yogurt retailer, will soon join India’s booming restaurant sector.
  • Cafe Supreme, an upscale bistro with over 100 locations in Canada, is planning to setup base in Gujarat next year.
  • Dunkin' Donuts is aiming to open 100 stores in India over the next five years
  • Parisian cafe and restaurant chain, Buddha Bar, is the latest glamour brand to enter India's resto-bar business.
  • London's Hakkasan, a fine dining brand that targets upper income class, is entering Mumbai's (India) upscale western suburb Bandra.
  • Las Vegas's Le Cirque has announced plans to arrive at The Leela Palace in New Delhi.
  • New York's Japanese restaurant, Megu, and San Francisco-headquartered, Trader Vic's – a trendy Polynesian-themed restaurant chain – have finalised their India plans.
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