New Delhi: More than 60 global food and beverage brands, including theme restaurant chain Planet Hollywood and pizza chain Little Caesars, are planning to enter India, investing an estimated $1 billion and opening as many as 5,000 outlets over the next five years.
These brands are seeking local partners to take advantage of the Rs3.09 trillion food services market in India, according to FranGlobal, the overseas arm of Franchise India Holdings Ltd, which helps global brands find partners in India.
Among other brands that are planning to enter India are Singapore-based gourmet pizza brand Sarpino’s Pizzeria, Dubai-based Ice Cream Lab and Finland’s fast food chain Hesburger.
“The overall investment is going to be anywhere between $500 million and $1 billion. Over the next three to five years, these brands expect to set up 3,000 to 5,000 outlets across the country," said Venus Barak, chief executive officer of FranGlobal, adding that all these brands are participating in the company’s annual expo on 7 and 8 November in Delhi.
“More than 150 brands will be participating in the event. Almost 60-70 are food and beverage brands; other categories include education, beauty, health and skills," Barak added.
One of the significant launches, Barak said, is of the 26-year-old Planet Hollywood, founded by Hollywood celebrities Robert Earl (also the chairman and chief executive of the company), Bruce Willis, Sylvester Stallone and Arnold Schwarzenegger.
“Planet Hollywood and the connection with Bollywood is a marriage made in heaven. The symmetry and compatibility between the two is very strong. We are delighted to have the opportunity to introduce our brands in this huge, exciting and dynamic marketplace," Alex Garland, managing director for Europe, Middle East and Asia at Planet Hollywood, said in an emailed response to a query.
The firm, which competes with Hard Rock Cafe and TGI Fridays globally, also sells Hollywood merchandise including t-shirts and souvenirs.
Sachin Pradhan, operations director at Ice Cream Lab, said the company is looking to open 100-150 outlets in India over the next three years.
“India is one of the most promising and progressively growing economies in the world. It’s a virgin market for a structured ice cream brand such as Ice Cream Lab. We are sure India would turn out to be one of the most successful ventures in coming years," Pradhan said.
Spokespersons for Sarpino’s Pizzeria, Little Caesars and Hesburger could not be reached immediately as they were travelling.
“All brands are addressing a different market. In a lot of cases, the brands are looking for master franchise holders," said Barak.
Experts say that this is the best time for companies operating in the food and beverage segment to enter and expand in India.
“There is a huge opportunity in the sector and further growth is expected. Most formats have worked very successfully in India as long as the quality of food is good. The investment (by the new brands planning to enter) seems to be of a reasonable size and could be much more in the long run. There couldn’t be a better time," said Aashish Kasad, partner and consumer products and retail sector tax leader at consulting firm EY India.
The food services market in India is projected to reach Rs4.98 trillion by 2021 from Rs3.09 trillion in 2016, according to a joint report published by the National Restaurants Association of India and consulting firm Technopak Advisors. The market is growing at an annual average rate of 10%.