In the last two decades, India has seen a sea change in its foreign investment policy making the country one of the most preferred destination to be in. Globalisation and lifestyle changes have contributed a lot in creating brand awareness among Indian customers.
According to FAI-KPMG franchising report estimates, the franchising industry is expected to quadruple between 2012 and 2017. There is scope for franchising industry to contribute almost 4 per cent of India GDP in 2017 (assuming 6% Y-o-Y GDP growth between 2012 and 2017). This is also expected to create job opportunities (including both direct and indirect) for an additional 11 million people by 2017.
Being geographically vast and culturally diverse, there is lots of bludgeoning opportunity in the food franchising in the country. With a huge consumer market driven by millennial as a market leader in deciding where and what to eat out, India offers the most favourable franchising environment with a huge consumer market. And, this has created lots of international as well as franchising opportunities for local successful business module for home grown brands in the country. There are few trends and concepts that is catching up both franchisors and investors attention in the last few years:
The Tech-play: Technology has driven new type of consumerism in India. In today’s day and age when both the partners are working day and night for better life style technology has played a bigger role in meeting their daily necessities. The rise of food delivery business has brought a tremendous result to only tech players but businesses at restaurants have also gone up with Domino’s being the largest players.
Innovation is the Key: People these days look out for customised options when eating out or planning a meal. Restaurants which has something for everybody is gaining ground. “Franchising these days is becoming specialised especially in the food business,” shares Toy Franklin, COO, International Franchise Associates who believes that western oriented franchising has paved a new way into the Indian food business scenario.
Measuring Health: Health and wellness has taken a new shape among diners these days. Restaurants like Chili’s, Broaster Chicken and even KFC and McDonald’s have customised and kept a healthy portion in their menu for the wellness lovers. Calorie count has became the centre point in menu designing.
Understanding Customer: “Customer centric brands are the biggest performers today,” says Tony White, Franchise Expert. Restaurants which focus on what their customer want and which continue to change according to the market demand will keep ruling the food market.
Communicating a Story: Food connection is the biggest emotional connect that a person holds. Brand stories that remains together or that connect people is creating the biggest demand in the industry as it is inter connected between the two markets.
And, as globalization and modernization has redefined the Indian fast food industry with people consuming food out of their homes moving towards superior and convenient options. there is an uptrend in the demand.