YUM just opened its 40,000th store in Goa, India this week.  An amazing accomplishment to say the least.

The company also announced that it planned to reach $1 Billion in sales in India by 2015.   When I worked with PepsiCo Restaurants International (now YUM Brands)  in the early 1990’s, the company was keen to enter the Indian market but a series of setbacks led them to be more cautious.  It is clear now that the market has matured sufficiently to be an exciting growth opportunity for all international restaurant chains.

YUM is not the only company to discover the Indian market.  Domino’s has 600 stores and McDonald’s is growing rapidly also.  Starbucks entered the market earlier this year in a joint venture with the Tata Group.  Now all the big players are here and fighting for market share.

Emerging markets are the key to growth for all these food service concepts as they follow the early international development pattern of tobacco companies and soft drink makers.  When your product has health concerns in the USA then you quickly go to where these concerns are less important.

As usual, the big players will get their fair share of the market with early mover status and good partners but where does it leave all the second tier brands?  Everyone is talking about India today but now is the time to make the move!


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