October 25, 2010

US Fast Food Franchises are heading for India/China

Global fast food market is estimated to be round US $ 13 billion in 2009. With the western economies under pressure due to many factors the leading MNCs have been scouting around the world for new markets to sustain themselves. The global food franchise managers are no different. KFC, PizzaHut, Macdonals, Subway..etc have already found feet in the indian subcontinent, so the its natural that other food retailing major follow suit. Indian food industry is expected to touch US $ 400 billion by 2025.

Food has always been very complex business for branding as well operations. One of the major challenge to this industry is the cost of real estate. It makes it very difficult in income surplus states in India. Operations is the second major challenge. There are approximately 6 million street vendors in India that service the hunger pang in an express manner. Its not going to be easy for the global fast food giants to settle down in India sooner as the food habits are very different here but then persistence would be rewarded very highly.

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