Franchise India organised Food Franchise meet at Mumbai.

June 16, 2009 - PRLog -- Franchise India Holdings Ltd (FIHL) - Asia’s integrated Franchise consulting company organized an exclusive two day workshop on Food franchising at Taj Lands End, Mumbai. This two day workshop focused on various aspects in the F&B Franchising right from conceptualization to building a successful chain.

According to Ms. Veenus Barak, Vice president, Franchise India “Food Franchise industry in the near future is going to bring immense scope for the Indian market which would rise the percentage of business opportunities for the franchisees in India. Considering the same concept we hosted the Food Franchise Workshop to educate about the different aspects of this industry for the aspiring businessmen.”  

Also on the occasion Franchise India together with CIFTI –FICCI presented India’s first Food Franchising Report which provides strategic approach to the opportunities and challenges being witnessed in food service franchising.

The primary objective of the report is to provide a snapshot of current trends in Food Franchising vis-à-vis expert analysis of various elements having implications on it.

Franchising in India is growing at the rate of 38% per annum with a market size of US$7.2 billion and is expected to reach US$20 billion by 2013. There are 1200 active franchise concepts in India and over 100,000 franchisees. There are 200 food and beverage franchises concepts across the country where other important sectors using franchising business model are beauty salons and cosmetics, business services, apparel, education, food and beverage, retailing, tours and travel.

According to the survey carried out by FIHL and CIFTI– FICCI there were 408 brand franchisors of which 70% brands were concentrated in Delhi NCR, followed by Western India with 386 brands majority from Mumbai and Gujarat, 250 brands were in south with majority in Bangalore & Chennai and lastly 58 brands in the eastern region majority concentrated in Kolkata.

The study reveals more than 30% of new food outlets which are coming up in almost all the cities across the country are through franchise system, 17% share of food and beverages in the organized sector is operated by franchisors in the country. There are 1200 franchisors at present, out of which 150 are exclusively dealing in food and beverage retail 75% of which are of Indian origin and rest are international. There are around 18,000 franchised restaurants in the country as compared to only 2500 run by company owned by these 150 food franchise companies.
Food Franchising Report 2009 (FFI 2009) gives a comprehensive learning curve for restaurant owners and existing food companies to look out and spread their brand in terms of franchisees across the country.
Part one of FFI 2009 gives an overview of the growth of the Indian economy and the food consumer market. The overview states that 51 per cent of the consumer wallet share is dedicated to food (54 per cent in rural area and 42 in urban areas).

Part two of the report discuss about the franchise business in India. It claims that franchising sector in India is growing at swift pace of 35 -38 per cent per annum.

Part three of the report gives insights of food service sector in India which is calculated $11 billion but organized players enjoy less than 8 per cent of the market share.

Part four states that like any other industry, food service sector too requires a support system to thrive. The biggest challenge today for the Franchise Industry is that Government has not recognized it as Small Business facilitator in India unlike the US.

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Franchise India “Food Franchise industry in the near future is going to bring immense scope for the Indian market which would rise the percentage of business opportunities for the franchisees in India.