Like this article? PLEASE +1 it! Evan Signature
Evan Carmichael Top Header
Share for a Cause









Food franchising come of age in India: FICCI

Written by: Dhawal Shah

Article Overview: Food franchising has come of age in India. Northern India boast of having 70% brands of 408 brand franchisors, Western India with 386 brands, Southern India with 250 brands and the Eastern India with 58 brands. Over 30% of new food outlets which are coming up in almost all the cities across the country are through franchise system, 17% share of food and beverages in the organized sector is operated by franchisors in the country. There are 1200 franchisors at present, out of which 150 are exclusively dealing in food and beverage retail 75% of which are of Indian origin and rest are international.

Free Download - GordonMax, Creators of the World's Finest Diamond Simulants, expand their India Operations in 2011 By Dhawal Shah
Name: Email:

Food franchising come of age in India: FICCI

There are around 18,000 franchised restaurants in the country as compared to only 2500 run by company owned by these 150 food franchise companies, according to a survey carried out recently by Confederation of Indian Food Trade and Industry (CIFTI) food wing of Federation of Indian Chambers of Commerce and Industry (FICCI) Report states that the Indian franchising sector is growing at the rate of 38% per annum with a market size of US$ 7.2 billion and is expected to reach US$ 20 billion by 2013. There are 1200 active franchise concepts in India and over 100,000 franchisees.

It forecasts that Indian food service entrepreneur is ready with massive expansion plans, which provide thrust to the sector to grow at 48% in the next two years. International Food Service brands are gazing Indian markets as a profitable investment destination and many among them have already started their operations. The report gives insights of food service sector in India. It has calculated that size of India's food service sector is $11 billion but organized players enjoy less than 8 per cent of the market share.

There are 10 million street vendors in India, of which six million sell ready to eat food. Consumer foodservice value sales grew at a strong 20% in 2007-2008 in India, second only to that of Vietnam and Indonesia There are 200 food and beverage franchises concepts across the country forming 17% of the total pie. 51% of the consumer wallet share is dedicated to food (54% in rural areas and 42% in urban areas), the report says.

Food Franchise Opportunities are the second most popular amongst franchisees after education franchise opportunities. Not all international brands are franchising, McDonalds in India has decided to open only company owned outlets across India.

Related Articles
  Food Franchising In India
  The Future Is Bright for Franchising in India
  The potential of International Franchising in India
  Restaurant Franchising
  Complexities Of Franchising Your Business In India, The Easiest Country To Franchise In The World.

Home > Franchises > Dhawal Shah > Food franchising come of age in India FICCI
Article Tags: chambers of commerce, chambers of commerce and industry, consumer wallet, education franchise, food franchise, food service sector, food trade, franchise companies, franchise concepts, franchise opportunities, franchising mcdonalds, indian chambers of commerce, indian markets, international brands, investment destination, massive expansion, profitable investment, service brands, service sector in india, wallet share

About the Author: Dhawal Shah
RSS for Dhawal's articles - Visit Dhawal's website

Dhawal Shah has now launched his franchise brand, www.FranchiseExpo.in, www.ArabianFranchise.com and www.FranchiseSG.com which is an internet resource for Indian Franchising Industry. He previously worked with the the Franchising Association of India for over five years. He is a qualified franchise professional with Certified Franchise Executive degree from the International Franchise Association, a well known and an international speaker for Indian Franchising, his sites have generated over 25000+ Leads and have helped thousands of entrepreneurs decide the most ideal of all businesses. To know more Dhawal Shah may be reached at Dhawal.Shah@way2franchise.com

Click here to visit Dhawal's website
Dashed Line

More from Dhawal Shah
Shoprite calls off India Franchise Agreement with Nirmal Lifestyle
AILEEN CROWE NANDI INTERVIEW PRINCIPAL COMMERCIAL OFFICER PCO FOR SOUTH INDIA MS AILEEN CROWE NANDI
Tatas Trent UKs Arcadia may set up 15 apparel stores in India
Lite Bite intends to become Rs 500 crore brand by 2015
The Little Gym USA Signs Master Franchise Agreement For Middle East


Related Forum Posts
Any franchising horror story? Any franchising horror story? - I am always writing about the benefits of franchising in this forum. Although I don't own a franchise I do believe in franchising is a great business model. Do any of you have horror stories to share about franchising?
INTRESTED IN INTRESTED IN - Hi Shesagiri here form India. Can you mail me the details to shesagiri@consultant.com, Would be interested in doing the business. We got rich Quality cashew nuts here in India and many more .Lets discuss and move forward.
Re: STARBUCK - Licensing vs Joint venture Re: STARBUCK - Licensing vs Joint venture - [quote="bmueller47":czemqiul]I often come here to learn something, therefore I would like to know what is the real practical difference between licensing and franchising. I might have an answer, but you are at the forefront with your knowledge.[/quote:czemqiul] Very good question. Although I am not an attorney, I will do my best to highlight what I believe are the main differences between franchising and licensing. First, here in the US, franchising is very regulated buy the Federal Trade Commission. Not anyone can franchise, you have to go through various steps. Licensing doesn't come with as much regulation. The franchisee can expect to have a very close relationship with his franchisor. In most cases, the franchisor will offer training, and on-going support. The franchisee will be able to use the franchisor's copyrights, trademarks, logo and so on. The franchisee is like the public face of the franchisor. This is I think the high value of franchising. Also, a franchise agreement will most likely define territories. The relationship between the licensee and the licensing company is much looser. In most cases, the licensee won't be able to retain the rights to trademarks, company name, etc and will have to establish his own identity in the marketplace. Licensees rarely get a protected territory which means you next door neighbor could be your competitor... Obviously, franchising is more expensive than licensing because you get a certain "safety". Again, franchising is highly regulated whereas licensing is not. There are many other differences between franchising and licensing but I think these are the main ones.
Franchising is not a "no-cost" expansion model Franchising is not a "no-cost" expansion model - Don's point above was right, and, if he only lost $5,000 getting into franchising, he got off very cheap. Getting into franchising is a serious business. We estimate that you need [u:32pu99ec]at least [/u:32pu99ec] $50,000 to do it right -- and it can cost five times that much for an aggressive expansion plan. Jim was right on. If you choose to franchise, you are getting into a new business -- the business of selling and servicing franchises. Mark
Re: Welcome New Moderators in Addition to Our Fine Team! Re: Welcome New Moderators in Addition to Our Fine Team! - Hi Folks, My specialty is franchising. I have sold franchises for a living for quite some time. (I even sold one to a relative!!) I currently own a franchise consulting company. We match people up with the franchise that fits the business model they are looking for. Hope to contribute to the forums here. If anyone has questions about franchising let me know. I like helping others. Talk soon, John .


Recommended Article for You close

  Food Franchising In India

Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.



Featured Article


Bottom Footer
Share for a Cause












Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

The Golden Rule of Communications

Promoting your company and self with verve

Four Secrets to Earning Income as an Author

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.