Tuesday 1 August 2017

Why food franchise opportunities in Indian is profitable as compared to rest of world

The Indian population is increasing year-by-year and may touch Chinese within next five years. Moreover, almost half of population is aged below 40, favouring the nation as well. International as well as national investors are looking for peak time to penetrate local food market. The food industry is highly fragmented with 30% market is falls under organized and rest is comprised of unorganized professionals. With the introduction of new players in industry, organized sector is expanding exponentially at an annual rate of over 20%. QSR (quick service restaurants) are latest formats almost used by every new food franchise operators. Food franchise opportunities in India are remarkably observed by investors, tryout new concepts to attract large number of customers.
Food franchise business is always profitable in Indian because people here are food lovers want to spend money and believe in exploring more new concepts. Profits are driven by:
1.    Rising income
When per capita income of citizens improved then living standard also enhanced. People likely to spend more money thereby cash-flow get increases. Food providing brands are targeting young professionals as they are spending more money on foods available outside home.

2.    Working population
Both men and women are busy with corporate responsibilities. On average Indian families visit luxurious food service places once or twice in a week thus a vast market opportunity for food franchise operators in India.

3.    Good profit margins
Traditional Indian cuisines are easily prepared by using natural ingredients, no need to buy expensive spices from markets. Thus food preparation cost is low which enable restaurant owners to collect more profits.

4.    Adequate resources
India is blessed with amazing climatic condition favourable for companies that operate food services chains. Moreover, supply of manpower at low wages also cut down prices, resulted in more profits. It becomes easy to start new food service chain in India.

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