International Franchise Food Chains In India (From Abroad), seem to be accelerating their growth in developing markets as their own countries pose stiff competition and difficult market conditions.

India has been the hot favorite for several brands including Yum (Pizza Hut, KFC, TacoBell, Costa), McDonalds, Subway and Dominos. Also in line are Starbucks, Dunkin Donuts, Krispy Kreme and Nandos.These international quick service restaurant chains (QSR), are already here while several others are already making a beeline for India. From South Africa’s Debonairs Pizza to UK’s Yo Yo Noodle, the new entrants in the QSR category find the ‘large’ Indian market more appetising compared with their shrinking markets back home.

Anuradha Makhija, master franchise and CEO, Yo Yo Noodle, said, “The Indian market is almost 13 times bigger than the UK market, and since there are not enough Chinese QSR brands in India, it is the right time to enter this market.” The 2-year-old QSR brand in the UK would be selling its Yo Yo Noodle in a box format, priced above Rs 200, with plans to launch 200 outlets across the country.

South Africa’s Famous Brands is also entering India with its Debonairs Pizza. Emulating the doorstep free-home-delivery model of pizza chains such as Dominos, Debonairs Pizza would localise its offerings to suit the Indian palate, as Kevin Hedderwick, CEO, Famous Brands, says, “We have re-engineered our brand to fit the Indian market with a strong vegetarian bias and local flavours.” Debonairs Pizza will open at least 10 outlets in its first year, with pizzas priced between Rs 75 and Rs 750.

Meanwhile, American burger chain McDonald’s, which has been present in India for the past 17 years, also plans to step up its presence through its master franchise Hardcastle Restaurants, a subsidiary of listed company, Westlife Development. Singapore based Investment firm Arisaig Partners has said to have picked up 3.5 per cent stake in Westlife Development to help McDonald’s add 100 new stores in the next two years.

Amit Jatia, Vice-Chairman, Westlife Development and India Master Franchisee Mcdonalds For West and South said, “The funds will be used to invest in the growth of our retail footprint and increasing our market share by building upon the foundation that we already have.”

Navroz Mahudawala, Managing Director, Candle Partners, a boutique advisory firm, says, “There is far less competition for international QSR chains in India compared with countries such as the US, UK and South Africa, where growth is also limited. The new QSR chains are attracted to the success of players such as Dominos and McDonald’s in India and the format will also help them expand to tier 2 cities easily than fine dining formats.”According to their report, the quick service restaurant segment is witnessing the fastest growth rates in the food industry at 20-30 per cent fuelled by an increasing women workforce, high number of nuclear families and huge jump in the number of people eating out, as well as ordering at home.

Manhattan Pizza from Ashburn has also been quietly building it Hyderabad Franchise Restaurant as it plans to open over 50 outlets across India in the coming years