India’s fast food chains defy gloom

In India, where many sectors are struggling with slowdown, there’s one sector bucking the trend: the fast food sector.

According to research firm Crisil, the fast food business will double in size from 34 billion rupees in 2012 to around 70 billion rupees ($1.1 billion) by 2015 to 2016.

“A quantum jump in quick service restaurant spend in urban areas will be propelled by the increase in nuclear families and working women, steady growth in incomes, changing lifestyle and eating patterns and – importantly – greater accessibility to QSR outlets,” says senior director Prasad Koparkar of Crisil.

The market’s vast potential is fuelling fast food chains to expand.

McDonald’s, operated by Hardcastle Restaurants, plans to add up to 100 new outlets by 2015 to its existing 166 in west and south India.

Yum! Brands, which owns KFC, Pizza Hut and Taco Bell, also plans to increase its total restaurants in India to 1000 by 2015.

Domino’s Pizza, which recently opened its 600th restaurant in India, sees the country as one of its most important markets.

“Domino’s India operations are the second-largest single country operations today for Domino’s Pizza global franchise network, outside of the US,” said VP for Asia Pacific Steven Pizziol.

If global franchises are taking advantage of the market’s huge opportunity, so are the local players such as Faaso’s, Jumbo King and Kaati Zone.

Faaso’s, which offers Indian wraps through its 52 outlets, plans growing its chain to compete with the global franchises.

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