Food Franchises in India
Food franchising business has been becoming known to almost all country, particularly in India.
The Federation of Indian Chambers of Commerce and Industry or FICCI and the Confederation on Indian Food Trade and Industry or CIFTI, along with Asia’s integrated franchise company, release a report regarding India’s food franchising status.
The report presents an overview of the current status of food franchising in India, as well as the different factors that affects it. According to the statistic, franchising rate in India is at 38 percent every year and continuously growing. It has a market size of about 7.2 billion US dollars and probably will rise for up to 20 billion US dollars by the year 2013. Today, there are over 1200 franchise opportunities all over India and an estimated 100,000 franchisors. These franchises comprise of 200 food and beverages franchises, beauty salons and cosmetics franchises, shoes and apparels, retailing stores, business services, and travel and tours.
Also, according to the statistics, over 408 franchisors were situated in Delhi NCR, 386 in Western India, particularly in Mumbai and Gujarat, 250 on South India, most particularly in Bangalore and Chennai, and 58 in the Eastern region, specifically in Kolkata.
Franchising business is considered to be the leading business in India. It is believed that almost 30 percent of the newly established businesses in India are franchised business. There are roughly 18,000 franchised restaurants in the whole India while there are only 2500 businesses that run by a company. It is estimated that 17 percent of food and beverages businesses were being franchised. Today, there are almost 1200 franchisors in India. 150 of this come from the food and beverages business.
Benefits of the Food Franchising Report
The 2009 Food Franchising Report was made so as to give entrepreneur and businessmen a view on the current trend in franchising business. It also encourages other companies and businesses start their own franchise. The first part of it talks about the increasing economic status of India, as well as its recent food consumer market. It says that almost 51 percent of businesses come from the food industry. 54 percent of it is situated in the rural area while 42 are in the urban area. The second part of it talks about the situation of the franchise business in India. It is estimated that almost 35 to 38 percent of India’s franchising division are continuously increasing each year. The report also talks about what is happening in the food service sector in India. It is believed that 11 billion US dollars are coming from the food service sector but some says that they want less than eight percent of it. Also, the report says that all other business, such as food service business, needs a well-established support system for it to work well.