There are many articles in the press recently about the huge potential in the Indian market especially for QSR concepts. Private Equity is taking notice as well and there have been many investments in the entire restaurant chain sector the past several years. This should not be surprising. India is the second fastest growing market in Asia Pacific behind China at 13% per annum the past 5 years. The country also favors western concepts given their historical relationship with the British.

Just like China, rapid urbanization is driving rising disposable income and dining out. Pizza and burgers are in demand fueled by the development plans of McDonald’s, Pizza Hut and Domino’s to mention a few. Domino’s has more than 600 stores currently. There is already a big local coffee chain, Cafe Coffee Day, with over 1000 stores and growing. Starbucks recently entered the market with the Tata conglomerate.

The fast food sector is expected to double in the next 5 years to 70 Billion Rupee’s or US$1.1 Billion.

India has also a young population with 60% of the population aged less than 30 years.

The biggest potential of course is with Indian QSR and many brands are already in the market and growing.

Sure India has lots of challenges from power to logistics to sanitation/food handling but it is a market that cannot be ignored.

Do you have a serious strategy for the Indian market? What are you waiting for?


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