Home-grown food chains are setting a scorching pace in terms of expansion plans, giving their MNC counterparts like McDonald?s, Pizza Hut and KFC a tough challenge.
Having learnt a marketing lesson or two from their MNC counterparts, several Indian food chains have adopted international standards and have spruced up their menus, hygiene levels and premises to evolve as spanking new brands. So, now when you walk into a mall, a Bikano outlet looks as inviting as a McDonald?s.
In fact, the catalyst for this revival was a McDonald?s store. When the first one opened in Delhi, it prompted Bikanervala MD Shyam Sunder Aggarwal to think if right ambience and quality standards, marinated with desi food, could produce similar results. And, so began the journey of Bikanervala, which today has sweet shops-cum-restaurants all over India and even New Zealand, Dubai and London. It will soon be opening its doors in the US, living up to its tagline for overseas outlets, ?Pardes Me Des Ka Swad?.
Here are some appetising numbers underlining the expansion story: Street Foods of India (SFI) is targeting a total of 120 outlets in the next five years; renowned chef Jiggs Kalra?s Punjab Grill intends to have 30-35 dining restaurants in the same period. Pind Balluchi, with 25 restaurants at present, will open seven more in the next year.
Bikanervala is looking at 50 outlets by 2013, while it will be adding 25 more Bikano Chat Cafes, a format that is located in BPOs, office buildings and malls, to its pool of 88.
Kulfi and ice-cream major Giani?s is looking at 20 more outlets in the next two years, while Mirah Hospitality?s Rajdhani will have a total of 40 restaurants by the end of this fiscal.
What?s more, these brands know no boundaries, as they expand beyond regions and even the country. So you have a Punjab Grill in Hyderabad and Mumbai, Pind Balluchi, in Patna and Rajdhani in Goa. Even Lucknow?s Tunday Kebabs have moved out of the city?s kitschy galis and been corporatised.
While many other players such as Bikanervala, The Great Kabab Factory and Rajdhani have also made their presence felt abroad, Punjab Grill and Delhi-based Pind Balluchi will soon be joining them.
?Our Punjab Grill restaurant in Mumbai is one of the top restaurants in the country if you consider sales-per-square-feet area,? claims Zorawar Kalra, managing director, Wrapster Foods, a JV between Lite Bites and Kalras.
So what are the ingredients in this recipe for success? Rising demand is the foremost reason, coupled with the fact that homegrown players are adopting international standards and style of working. ?On one hand the demand has increased, especially for vegetarian Indian food, and on the other, expansion is easier now with the mall boom. Majority of our restaurants are, in fact, located in malls,? says Aji Nair, AVP, food and beverage division, Mirah Hospitality.
?Indian cuisine was not marketed well earlier, but now it has become a lifestyle product too, something you would want to enjoy on a family?s weekend outing. The demand from the middle class and the aspirational class has been a growth catalyst,? says Shashi Khanna, CEO, Pind Balluchi.
With business booming, there is growing interest in the sector. For instance, Giani?s has been approached by a few bigger companies for a likely buyout, but the owners tell FE that they are not interested in selling. ?We have been approached by FMCG companies, but right now we don?t want to encash. Being a family-owned brand is helping us expand through company-owned outlets and franchisees,? says Gurpreet Singh, MD, Giani?s. In another instance, Mirah Hospitality acquired partner?s stake in JV company Encore Hotels (that ran Rajdhani) last month, so that they could expand Rajdhani Restaurants in a bigger way. Interestingly, Pind Balluchi has tied up with the retail biggie Wal-Mart and will be sharing space with its cash and carry stores. They have opened their first outlet recently with the retail company in Jalandhar and will be expanding as the retailer sets shops in other cities such as Kota and Kanpur.
Clearly, Indian cuisine players are hungry for expansion.