Global food chains plan to open 400 outlets in 2008

By siliconindia   |   Thursday, 10 January 2008, 18:23 IST   |    4 Comments
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Kolkata: Global food chain firms like McDonald's, Domino's, Yum Brands, and Indian player Cafe Coffee Day plan to allot Rs 400 crore ($100 million) to expand retail presence in India in 2008, reported the Business Standard. India is likely to see the addition of at least 400 restaurants, fast food outlets and coffee joints in 2008. India currently has more than 900 fast food restaurants and coffee joints. Currently Yum Brands operates around 134 Pizza Hut restaurants in India and will add 30-40 restaurants this year. The company plans to increase the number of its food outlets to 175 by 2010. KFC a subsidiary of Yum brands runs around 30 outlets in the country and intends to add 15-20 new restaurants this year. According to the sources the market share of organized food and beverage retail sector in India accounts to about Rs 11 billion, and it records an annual growth rate of 25-30 percent. Domino's Pizza India, another major player in the industry, has announced an investment of Rs 220-230 crore in India over the next three years for expansion of its operation. Pizza delivery and dine-in is Rs 470 ($117.5 million) crore business and is growing at the rate of 35 percent per annum. The pizza delivery segment alone constitutes about 40 percent of the overall market. The company will add 50-60 stores this year at an investment of Rs 80-90 lakh per store. It has 148 retail outlets in the country and intends to double this in the next three years. McDonald's plans to increase the number of its outlets in India to 220 by the end of 2008. The company currently has about 123 restaurants in India. The company will invest about Rs 500 crore ($125 million) in the next two-three years to expand its market. The approximate investment in developing each outlet will be about Rs 3 crore, which exclude the real estate costs, and about Rs 500 crore ($125 million) will be invested for an additional 110 outlets. Bangalore based Cafe Coffee Day (CCD), has nearly 440 stores and plans to scale the number to 700 outlets at an average investment of Rs 25-30 lakh per store.