Factors that favours growth of food franchise in India

Targeting to India’s young consumer market, the food franchise brands enjoy phenomenal growth rate in course of last five years. Food and beverage sector is overwhelming due to entrance of various international and national players, in fact franchising is regarded as profitable path to expand in local markets. As per reports, there are around 50 world-famous brands running successfully in India out of these 50 maximum operators were of global origin. Slow growth has been observed in global marketplace hence QSR chains emphasize hugely on Indian markets to take advantage of fast growing population. 

Underlying factors

1.     Wealth of young population: For every nation, young generation is pillar of economic growth. People belong to age 20 to 30 are more energetic, creative, enthusiastic and looks to explore new things. Food operators want to target Indian youth as they saw huge potential in foreseeable future.

2.     Fast growing economy: According to recent updates, Indian economy by 2025 would count among top 10. Foreign as well as local investors have also evaluated market growth and have started investment especially in food franchise. Apart from this, government policies towards FDI (Foreign Direct investment) arequite flexible to encourage international investors. S

3.     Stress-free entry: Have you ever thought why international restaurant chains easily established large franchise network in quick succession of time? In fact, there are no specific lawsimposed by Indian government on food franchises. As compared to United States, rules and regulations in India are not too complex.

4.     Low manpower cost:Several well established food franchises revealed that manpower cost is low when it comes to India. When starting a new store, approx. 5 to 10 employees will require. Thus it is essential to focus on marketplace where manpower cost is low.

5.     Lifestyle: Globalization, urbanization and digitalization impact lifestyle of millennial. Food franchise players enjoy quick lifestyle of consumers because they when people get busy consumption will increase,that means eating-out culture will develop.These days’ people prefer varieties in cuisines rather than eating traditional recipes.

6.     Availability of resources: Food franchise sector is highly competitive, prominent brands like ChatarPatar has huge impression on consumers. In addition, wide range of natural ingredients and low set up cost attracts number of companies to penetrate local markets.

To add more, in coming future Indian franchisors will definitely outperformed international brands in terms of popularity. As majority of people demand fresh and nutritious foods particularly made from finest ingredients.