India’s Appetite is Growing, Platter full of Global F&B brands

Global F n B brands
 
Now, India’s platter is full of Global F&B brands. The buying behaviour and spending power of the Indians and their increasing preferences to use international brands, players across the globe keep on penetrating into Indian markets since time immemorial. There are number of F&B players across the globe that have already marked their presence and established themselves in India and are some brands that are due to explore India.
 
Coming soon: Burger King in Mumbai, NCR
 
American fast-food giant Burger King will open its first few outlets in the country by year-end as it aims to make India, along with China, its biggest market in Asia-Pacific. The outlets will come up in Mumbai and Delhi . Burger King has a joint venture with the Everstone Group, an India-focused, Singapore-based private equity and real estate group, to open a few hundred stores here over the next ten years. Having stepped up its international expansion, particularly in Asia, and post the entry of its new owner 3G Capital in 2010, the hamburger chain is banking on the new growth wave in the continent propelled by favourable demographics and consumers’ increased eating-out occasions. Burger King formed a joint venture in 2012 to open 1,000 restaurants in China by 2015. It recently started selling burgers in Pakistan and Brunei. Burger King has been expanding in newer countries amid a tough fast-food market in the US, mainly through a franchised model, which also has been a cause of concern among the investor community despite the business growing steadily. While Burger King offers vegetarian burgers and spicy bean burgers in Canada and UK, it will unveil a segregated vegetarian menu here in India, a common practice for most Western fast-food brands. Nearly two-thirds of Indians now eat out at least once a week, boosting the growth of the restaurant industry, which is expected to touch $26 billion in 2015, according to industry data.
(Source: http://timesofindia.indiatimes.com/business/india-business/Coming-soon-Burger-King-in-Mumbai-NCR/articleshow/39255151.cms )
 
Britvic plans to be in 25,000 stores around India in next three months
 
British soft drink maker Britvic plans to be in 25,000 stores around India in the next three months as it makes its entry into the Asian market, senior executives said. The company has launched its flagship Robinsons Fruit Shoot drinks in India, its first Asian market, to compete with existing player Real from Dabur India. Britvic is launching Fruit Shoot drinks in 10 Indian cities to begin with and plans to tie up with mom-and-pop stores as well as large retail chains to promote the brand.
(Source: http://articles.economictimes.indiatimes.com/2014-08-06/news/52514341_1_dabur-india-stores-drinks )
 
Marco’s sets expansion plans, signs deal in India
 
Goal: 400 new stores during next 10 years
 
Toledo-based Marco’s Pizza said Tuesday that it has signed its first franchise deal in India, where it plans to open 400 stores during the next 10 years. The pizza chain said two U.S. franchisees – D.J. Patel and Monaliza Patel, who have a combined 33 years of experience in the pizza and franchise sectors – will lead that expansion. D.J. Patel is a franchise developer who oversees 40 Marco’s Pizza units in Georgia, Maryland, Virginia, and Washington D.C. Monaliza Patel is an area representative who is a partner with D.J. Patel and co-manages Marco’s stores in Atlanta and the southern region of Georgia. Marco’s Pizza, which claims to be the only national pizza franchise chain founded by a native Italian, Pasquale ‘Pat’ Giammarco, has 500 locations in 35 states and more than 1,500 new franchise deals signed in 2013. The company said it is on track to quadruple its store count in the next five to seven years.
(Source: http://www.toledoblade.com/local/2014/08/06/Marco-s-sets-expansion-plans-signs-deal-in-India.html )
 
India’s Coffee Market Is brewing Growth
 
India’s retail coffee journey has been a bumpy one but the coffee chain business is looking up finally.
 
There is a mad rush at the Cafe© Coffee Day outlet in Delhi University. It’s the first day of college and anxious freshers mingle with seemingly confident seniors on this hot and muggy July day. It is a scene that would gratify those who believe in the vast Indian middle class consumer market. Like the outlet, the coffee retail sector too is abuzz. After fifteen years of operations by coffee chains (remember Barista?), the retail coffee market in India is at last looking up. It is riding on this demographic of India being a young country with disposable income. Translating that enticing number into profits how ever has been a long haul for the coffee chain companies. The sector is looking up primary on the back of three developments. The first is the upcoming IPO from the market leader Cafe© Coffee Day. The offering is expected in the winter and market estimates put it at nearly one billion dollar. The public issue, however, is not likely to be of Cafe© Coffee Day alone but of the holding company run by the reclusive promoter VG Siddhartha. The holding firm owns stakes in software firms, a logistics company, a wealth management business besides the coffee business.  So redemption if it comes will be limited, unless numbers sustain valuations for the core business alone. The second factor buoying up the sector is the rapid growth of US-based coffee giant Starbucks in India. Tata Starbucks Ltd, a 50:50 joint venture between the US coffee chain and Tata Global. Lastly, the commercial property prices have seen a fall over the last two years and the has helped the coffee chain firms to get some leeway in the one aspect of their business that constitutes almost 50 per cent of their enterprise cost – a well located property.
 
The Way Ahead
 
The coffee chain industry is rapidly evolving. However, to succeed in India it will have to get some of the basics right. There is still very little awareness about coffee in general. A full fifteen years after the first barista opened India remains a tea drinking nation. For growth, much more attention is needed on the food side. After all there is only so much you will spend for a Murg Kathi Wrap or a Tandoori Paneer Roll offered at Starbucks or for a Spinach and Corn Sandwich at a Cafe© coffee day. In truth these offerings don’t really go all that well with coffee. Without figuring out a value and taste proposition for food that constitute up to 30 percent of revenue on an average for the coffee chains sustaining business is likely to be a challenge. Lastly, costs involved in a evolving a viable supply chain that can give a standardized experience and money involved in real estate for store space is likely to continue impacting profitability for coffee chains. The biggest challenge however is cultural making Indian drink more tea and making them order more food while they lounge around. A bit like those students on the Delhi university campus who spent a couple of hours chilling in the air conditioned comfort of and ordered two standard cold coffees each costing Rs 250 total.
(Source: http://www.businessworld.in/news/economy/india%E2%80%99s-coffee-market-is-brewing-growth-1/1474169/page-1.html )
 
Lord of the Fries to enter India
 
Vegetarian fast food franchise, Lord of the Fries has signed an agreement that will see it open 50 stores in India within the next 10 years, if not earlier. It’s a master franchise agreement – an Indian group from Singapore have acquired the rights, they are Indian residents from Singapore. McDonnell says the company is also in talks with representatives in Pakistan, Malaysia, Singapore and the US, so there is the potential for further international expansion. There are currently eight Lord of the Fries outlets operating in Melbourne and Sydney, and additional sites are on the cards.  Lord of the Fries Indian menu will be adapted to suit the local market.(Source: http://www.franchise.net.au/news/lord-of-the-fries-to-enter-india )
 

To conclude it can be said that the presence of these international franchisors have propelled the Indian franchisors to expand via franchising. The entry of the foreign brands has added to the growth of the food franchising industry in India. Thus, in the coming years, F&B sector holds a promising future ahead.

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