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Revival of Consumer Expenditure Boosts Indian Fast Food Industry
Jan 13, 2010

The Indian fast food industry is likely to see opening of 70-100 new outlets in 2009 on the back of changing lifestyle of Indian consumers and rising disposable income.
With the revival of consumer spending, the Indian fast food industry (values Rs 3,000 Crore) is expected to see addition of 70-100 new outlets this year (2010) against 30-50 outlets in 2009, as reported by Business Standard.
KFC’s Yum! Brand will remain at the forefront as it has planned to open nearly 45 outlets in 2010. Pizza Hut, another Yum! Brand, will also increase the number of its stores and is planning to extend the base by 10% this year (2010).
Dominos has planned to add 65-70 stores in the financial year (2009-10). Of these, 33 had already been set up by the company till August 2009, which took its total number of stores to 274.
The intensive focus on the increasing number of stores in 2010 is based on analyst reports showing that franchise driven Indian fast food restaurant industry sales grew at a rate of 7%-20% in last one year (2009) on account of reasonable value meals and price points.
Besides, the transformation of Indian consumers’ lifestyles has tremendously helped the industry to grow and expand over the last few years. Other reasons like - rising number of nuclear families, exposure to western cuisine and global media, increasing number of employed women - have had a significant impact on the eating out trends and growth of the fast food industry.
The industry experts believe that the middle class young population, with high disposable income, will spend more on eating out at chained fast food outlets. The demand for ready-to-eat packaged food is also expected to record strong growth in the country.
According to a Research Analyst at RNCOS, “The addition of new food outlets along with other favorable factors will take the Indian fast food industry to a new height of growth and boost its revenue. The fast food outlets are including new varieties of products to their menu in order to fulfill the demand of each and every segment of the society. This change in approach of leading fast food chains will help them to experience robust growth in coming years.”
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