Five Star Chicken, a renowned Thailand-based quick service restaurant chain, is losing its sheen in India. The brand has decided to shut down its 133 outlets installed across the country due to the sluggish business growth. Though the company has been very actively pushing its sales in Indian corridor, but it has not managed to achieve profitable figures.
Presently, the brand has around 220 outlets in Kerala, Tamil Nadu and Karnataka, and an outlet each in Hyderabad, Goa, Pune and Mumbai. But due to the recent decline in business, it has decided to pull its hands off from the major cities hence, reducing its outlets in the country.
Elaborating on the recent closure of outlets, Sanjeev Pant, Senior Vice-President, CP Food said that the brand has shut down non-performing stores and slowed down its rate of expansion. While it was opening 10-15 stores in a month before, now it is down to three-four stores in a month.
The company is now looking at a new strategy to gain growth momentum as the Rs 6,000 crore quick service restaurants or QSR segment has been reporting single-digit or negative same-store sales growth for the past two years.
Other western style QSR and coffee chains are facing the similar scenario. Big players such as Pizza Hut, KFC, Barista etc. have either gone for downsizing their presence or slowing down on their expansion due to lack in profitability.
Owned by Charoen Pokphand Foods (CP Foods), Five Star Chicken is opening shop-in-shop stores in retail outlets, introducing private label packaged drinks and expanding its menu offerings.
Director General of Health Services (DGHS) Jagdish Prasad has called for small and big fast food chains in India to stop using antibiotics in chicken and other food products.
Prasad also called for strong guidelines for the fast food chains in India so that the burning issue of health hazards by antimicrobial resistance (AMR) can be tackled.
Jagdish Prasad said "All big and small companies should take the initiative against using antibiotics. There is a need for deadline for small and big fast food chains. In US, there is a restriction to big companies such as McDonalds against using antibiotics”.
Antimicrobial resistance (AMR) is the ability of a microbe to resist the effects of medication previously used to treat them. The term includes the more specific "antibiotic resistance", which applies only to bacteria becoming resistant to antibiotics.
As part of the government's initiative to tackle AMR, the Health Ministry on November 20 has called for suggestions and observations from all the stakeholders for the amendment to Food Safety and Standards Regulation, 2011.
According to Food Safety Security Authority of India, maximum permissible limits of 37 antibiotics and 67 other veterinary drugs are prescribed for chicken.
This notification contains maximum permissible limits of various antibiotics in meat and meat products including chicken.
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