India is favorite destination to food franchise companies. Every year dozens of global operators enter through franchise model and generate great revenues. Indian is ranked in top five countries in terms of revenues and production. However, fast-growing food outlet franchise in India is beneficial for economy. The industry is adding value to national income through tax. GST (goods and service tax) implementation has transformed whole food service sector, now tax is levy on the basis of services. For example, restaurants with ACs have to pay more tax as compared to non-AC restaurants and luxurious food destination give 18% tax. This new tax regime definitely impact industry but its result will be reflected after a quarter.
Factors responsible for vast growth
Expansion of rural market
Rural markets are trying to compete with urban areas; consumers living in rural regions know how to market their products or services. Organised retailers realized vast opportunities to sell products or services to rural consumers. Some food franchise retailer has started commercial activities to expand business into rural India.
Involvement of middle class
Out of 1.2 billion population almost 50% people from middle class; consumers from this section of society demand quality and fresh products. Modern-day retailers often target middle class families to reach every citizen of India.
Entry of professional players
Large multinational Indian corporations have entered food sector, provide top-quality products to consumers. For example, chatar patar foods offered branded panipuri (organised format) and other snacks. Now everybody wants health hygiene foods prepared as per food and safety standards.
Technological advancements
It is one of the significant factors responsible for tremendous growth of food and beverage sector. India has a huge scope because of favourable demographics and there has been a tremendous growth rate achieved by local brands. Future of food franchise sector is bright individuals can choose it as a career.
Factors responsible for vast growth
Expansion of rural market
Rural markets are trying to compete with urban areas; consumers living in rural regions know how to market their products or services. Organised retailers realized vast opportunities to sell products or services to rural consumers. Some food franchise retailer has started commercial activities to expand business into rural India.
Involvement of middle class
Out of 1.2 billion population almost 50% people from middle class; consumers from this section of society demand quality and fresh products. Modern-day retailers often target middle class families to reach every citizen of India.
Entry of professional players
Large multinational Indian corporations have entered food sector, provide top-quality products to consumers. For example, chatar patar foods offered branded panipuri (organised format) and other snacks. Now everybody wants health hygiene foods prepared as per food and safety standards.
Technological advancements
It is one of the significant factors responsible for tremendous growth of food and beverage sector. India has a huge scope because of favourable demographics and there has been a tremendous growth rate achieved by local brands. Future of food franchise sector is bright individuals can choose it as a career.
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