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People 28 Oct 2013

India calling Western restaurants!!!

Progressive middle class and experiment are the reason for restaurant coming to India.

By Nusra Deputy Features Editor

With Indian cuisines rapidly picking up and becoming global, the foreign restaurant chains are also creating a success platform in India. 

Indian customer becoming more recipient towards the international cuisines as we see a good number of international restaurant chains doing well in India.  Brands like KFC, Mc Donald’s, Domino’s, Pizza Hut and Subway have already created a success story in India. But this never stops restaurants chains like Yautcha, a Michelin star restaurant in London, Johny Rockets, a US based burger chain is all set to open restaurant in India.

Duane Messerschmidt, Director- International Sales, Johny Rockets says, “India continues to emerge as a consumer-driven economy. It presents franchising opportunities based on its large and rapidly expanding consumer market. It also represents the largest under-35 age demographic in the world and has a growing upper-middle class population. All three of these conditions are particularly attractive to retailers, like us.  It’s also a benefit that rural populations are moving into cities and newly established towns, which has created more concentrated economic development, throughout the country. For restaurants, this means that more people with more disposable income are dining out much more often than before.”

Talking about the difficulties and legalities involved, Messerschmidt also adds, that “The difficulties involved in opening a restaurant in a foreign country go well beyond the legalities; there are legalities to deal with even in the USA. The primary difficulties are more involved with logistics, timing and culture. Sourcing the correct building materials, equipment and food products can prove to be quite challenging when dealing with new countries. Once the proper products are sourced, establishing an effective supply chain is the next hurdle to overcome. Beyond these, there are challenges of ensuring that the Johnny Rockets brand will be culturally acceptable to the new country. This requires an extensive amount of consideration in India, for example, serving beef will not be appropriate”

“Progressive middle class, knowledge for food brand, experimentation for different cuisine, trying new recipes, formats and variable foods are the reasons for the foreign restaurant chain coming and being a hit in the country,” says Sharad Sachdeva, COO, Lite Bite Foods Ltd.

Many restaurant chains also believe that franchising for food in India is a good deal and hence franchising also contribute to the expansion of the foreign brands in India. It is believed that a restaurant should go in to franchising, meeting people until you get the right kind of partner and brand and India is a good place to franchise as it has large consumer market.

Eagle Boys pizza, an Australian Pizza brand’s master franchisee, Vishnu Reddy L, COO, Fusion Taste Pvt Ltd, said, “We are targeting towards having around 10 outlets by the end of this year. With our improvisation and urge for delivering the best in menu, ambience and service, we are certain that the coming year will be much more successful for the company in India.” 

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