Pizza to coffee: Why global food brands can’t ignore India's hungry consumers

US-based Peet’s Coffee is the latest chain exploring an India foray, and is seeking franchise partners, a person in the know said. The company is in talks with a big real estate advisory firm, this person added. Peet’s did not respond to Mint’s request for a comment on Friday.

Peet’s joins a growing list of foreign QSR (quick service restaurant) chains such as US-based soft serve inventor Carvel and pizza brand Papa John’s, Malaysia’s TeaLive and France’s Bagelstein, that are either mulling or have already entered the country in the past 6–12 months. The pipeline is only increasing with several more in conversations with a growing league of franchise partners in India, Industry experts and executives told Mint.

“We are seeing a lot more of global QSR brands come to India as we are at an inflection point where bulk of the consumption is disproportionately going to categories like food and fashion," Vish Narain, managing partner at Pulsar Capital, said.

Foreign QSR brands such as Shake Shack, Krispy Kreme, Pizza Hut, Subway, and McDonald’s are already quite popular in India.

Handful of choices

“We still have very few brands, as for every category there are only a handful of choices, so there is a larger opportunity to disrupt," Narain said. He added that rising disposable incomes and consumer spending have made it easier and more viable to run a business in India.

Pulsar and Dubai-based private equity firm PJP Investments are jointly bringing Papa John’s Pizza to India starting next month, nearly a decade after the chain exited the country due to poor response. The two franchisee partners will invest anywhere from $50–100 million to open 650 stores over the next decade, Narain said.

“A lot has changed since the last time they were here. Average order values have gone up from ₹200–300 to ₹500 today, in a sign that we are getting more affluent and don’t mind paying a premium for good quality products," he said.

Narain said that unit economics have improved as Swiggy and Zomato account for 60–70% of revenue, lowering dependence on high-rent locations. “Thirdly, the opportunity has become far larger beyond the metros with tier-II and -III towns also becoming aspirational."

Riding the aspiration wave

Other companies are also looking to ride the aspiration wave sweeping India. Carvel will open its first ice cream store on 4 October in Delhi, and plans to invest ₹40 crore to roll out about 100 stores in 5–6 years.

According to a Redseer report, India’s food services market, valued at $80 billion in 2024, is set to grow at a compounded annual growth rate (CAGR) of 10–11% through 2030, with the organized sector driving this expansion. As consumer preferences evolve, the rise of online food delivery and organized dine-in establishments is reshaping the industry.

Mrigank Gutgutia, a consumer partner at the consulting firm, said the monthly transacting user base for food delivery has almost doubled to 30 million over the past six years, with average order values touching ₹470 across categories as of August 2025.

Meanwhile, the US quick-service restaurant and fast-food market was valued at $254-$294 billion in 2024, and according to a report by Grand View Research, it is projected to grow significantly to over $450 billion by 2030.

US-based GoTo Foods is also aggressively bringing its bouquet of brands to India. The chain, which owns Cinnabon, Carvel (Unify Foodworks is the franchise owner in India), Jamba, said it will roll out Moe’s Casa Mexicana, a localized version of Moe’s Southwest Grill, under a 45-unit master franchise deal, with stores planned through 2033.

Steven D. Yang, senior vice-president and managing director for Asia-Pacific at GoTo Foods, said that the firm has received frequent inquiries about other brands, such as McAlister’s and Schlotzsky’s, to bring into India. “A large and young population coupled with growing GDP and rising consumer demand make India a huge opportunity," he added.

Other enablers, such as online food delivery and payment platforms, have also encouraged global brands to consider setting up shop in the country.

“Platforms like Zomato and Swiggy are doing very well, which helps international brands list and scale faster. Plus, India’s public markets are strong, so some are also exploring listing here because the market is better than most global markets," a franchise partner told Mint on the condition of anonymity.

Partnership play

The success of international brands often hinges on the strength of local partners. The franchise partner cited above told Mint, “In the last 12 months, there’s been a lot of activity. Large operators like Devyani have signed multiple international brands, and TFS (Travel Food Services) has brought big names into airports. Many global players now want to enter India, but since they can’t do it alone, they look for local partners."

Devyani, which operates QSR brands such as KFC, Pizza Hut, and Costa Coffee, is not alone. Other experienced multi-brand operators including Rebel Foods, Sapphire, CureFoods, Westlife, and Jubilant, and even domestic giants like Haldiram’s are exploring alliances to bring in and manage international brands. Queries sent to Haldiram’s did not elicit a response till press time.

Mint earlier reported that Haldiram’s is looking to expand its product offerings through acquisitions after a big-ticket investment from Singapore’s private equity firm Temasek.

Real estate developers and mall owners are also taking the initiative: Reliance, for example, brought 7-Eleven to India directly. The anonymous franchise partner added, “Groups with real estate, retail, or food experience are usually the ones who succeed in these partnerships."

Operating costs in the pizza industry have softened significantly in recent years. With delivery emerging as a large revenue contributor, there is reduced dependence on expensive prime location to set up dine-in stores. “Rent used to be around 20% of revenue; now it’s down to 8–9%, which has boosted profitability," Pulsar’s Narain estimated.

Unify’s chief executive Sumer Sethi echoed this view and noted that high real estate costs for physical outlets have held back international brands from entering India. By contrast, rent in overseas markets typically accounts for just 5–7% of revenues.

“This isn’t a QSR issue, it’s an India-specific real estate constraint, limited Grade A supply across metros drives prices up," said Sethi. “With multiple brands in your portfolio, you can approach developers more flexibly. If they already have four coffee chains, they may not want another, but they may be open to your ice cream or Mexican brand. That makes negotiations and real estate access easier."

Redseer’s Gutgutia added that density of high quality restaurants has historically been low. “Now, that is changing. India is extremely heterogeneous when it comes to cuisine. That allows a variety of these international chains to come in and scale up to a decent level," he explained. “Such conversations have only been on the rise given the large opportunity of this market. It’s hard for any international brand to ignore India today."