{"id":2626,"date":"2014-08-30T05:07:00","date_gmt":"2014-08-30T05:07:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=2626"},"modified":"2022-09-12T05:10:11","modified_gmt":"2022-09-12T05:10:11","slug":"the-foreign-curry-challenge-in-india","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/the-foreign-curry-challenge-in-india\/","title":{"rendered":"The Foreign ‘Curry’ Challenge In India"},"content":{"rendered":"\n

Ekta Sharma Verma, Franchise India\/Retailer
\n New Delhi, 30 August 2014<\/i><\/p>\n

Commencing \n a new restaurant biz or an outlet in India usually comes with \n a lot of challenges for entrepreneurs. But the challenges and \n dares are more when you replicate a foreign brand’s model \n in India. So, what are the challenges that the far-off food brands \n see while foraying in India. Let’s talk to experts from the \n F&B sector and know more on this.<\/i>

\n As per Third Eyesight, a consulting firm – The number of international \n brands continued to grow each year at a steady pace until the \n early 2000s and took off exponentially thereafter. It is growing \n with each year passing. The brands prefer mostly franchise route \n for entering India. However, few also choose licensing and JV’s. \n <\/b>Fast food is not a new concept in India. With roadside shops, \n chat places and other easy pick eatables, Indians have always \n been very well aware of the offerings. But with the entry of McDonalds, \n KFC, Pizza Hut, Dominos and many others in the Indian market, \n whole scenario changed. Indians have loved the westernisation \n of Indian fast food. Like a tikki in a burger with a little twist \n is now recognised as Aloo patty.

\n Another brand, The Chocolate Room is an Australian brand and \n entered India via the franchise route. Chaitanya Kumar, Chief \n Managing Director, The Chocolate Room opines: “Indian franchisors \n are very eager to get franchise partners for their brand. But \n once they get an investor, most of the franchisees face problems \n in inadequate awareness of brand, training, communication, quality \n and customer service standards. Lack of franchisor’s follow up’s \n and support to the franchisees results in rumors about the brand \n in the market place. Few of the major challenges for the restaurants \n here are fragmented market, operational challenges, real estate, \n manpower and supply chain.”<\/p>\n

License intricacies and challenges to run a resturant<\/b><\/p>\n

In India, obtaining the requisite licenses, e.g. health license, \n food safety license, police license, No Objection Certificate \n (NOC), from the fire department and the state pollution control \n board, and so on is a major obstacle hindering the smooth operations \n of a restaurant. The process is not centralised as yet and requires \n filing applications with individual stakeholders, which involves \n a lot of paperwork and is a time-consuming activity. The licenses \n required to start a restaurant are the same throughout India, \n except in some states like Maharashtra. A player needs approximately \n 12-15 licenses just to open a restaurant. In comparison, the licensing \n requirements internationally are not as intricate as in India.
\n <\/p>\n

As a result of globalisation and consequently diminishing trade \n barriers, our economy has opened new avenues of opportunities. \n With these opportunities, comes a great deal of challenges that \n threaten the success of business. Multinational brands on entering \n a new market, sometimes strive to create a competitive advantage \n over local established brands. There are a lot of challenges that \n an international food service brand faces when entering a market \n like India. According to Manpreet Gulri, Country Head, Subway \n Systems India Private Limited: “some of the major challenges \n are adapting to the local taste and preferences, developing familiarity \n with ethnic differences and abiding by them, operating under the \n legal framework of the market, establishing a connect with the \n consumers, keeping with the brand value and maintaining standardisation \n in the systems and also a few challenges related with the supply \n chain.”
\n <\/p>\n

Engaging the local customer<\/b>
\n <\/p>\n

A major challenge for an international Quick Service Restaurant \n (QSR) brand is to engage the local consumer. Keeping in view the \n local preferences, Subway has adapted to the local palate by introducing \n vegetarian and non-vegetarian offerings such as Chicken Tandoori \n and Paneer Tikka. For a sensitive market like India, vegetarian \n and non-vegetarian service counters are kept separate as far as \n possible. Another challenge is to have a system in place wherein \n standardisation of the products and their quality is ensured throughout \n the market which is why, Subway franchisees are supported by locally-based \n Development Agents and their staff that provides additional business \n expertise. This helps in running the operations smoothly.
\n <\/p>\n

Gulri of Subway adds: “In food service industry, there are \n no set formulas or shortcuts to excel in the business. An idea \n that works for other countries might not work in India. The key \n to gain an edge over the established home-grown brands is: Research \n – Adapt – Innovate.”
\n <\/p>\n

To conclude, in order to create and sustain a global competitive \n advantage, multinational companies today need a systematic approach \n to research, renew and enhance their core capabilities before \n entering a new market. Localisation strategies like competitive \n pricing, store expansion, delivering value for money products \n and engaging with the consumer can help one operate successfully \n under such circumstances.
\n
\n Other major challenges for restaurants in India:<\/b>
\n <\/p>\n