Burger King and the Indian Market

After other fast food chains (McDonald’s or KFC) Burger King is mulling an entry into the Indian consumer market. Different reports have said that the company is looking for a local franchisee, as is its strategy across the world, and is in talks with several Indian players. Ravi Jaipuria is who is a franchisee for KFC is also reportedly in talks with Burger King.

To enter the Indian market, the biggest challenge will be to fight against McDonald’s (in India for 10 years) and other chains ( KFC: in India for 12 years) which are well-known in India. But analysts say that Burger King could still enjoy a strategic advantage despite its late entry!!!

BK will have to fight against pizza companies too. Indeed, for example Domino’s (in France Domino’s Pizza), a world leader in pizza delivery, has an annual expansion expenditure of $1.5 million in India with 30 more outlets this year to add to 105 existing ones. It was the first global fast food chain to open outlets away from the large Indian cities.

And other thing really important, they will have to challenge with local fast food chains.

The Indian market is enormous. According to a survey, an urban adult Indian is among the top 10 in the world in terms of frequency of fast food consumption. 100 million Indians who spend close to $1 billion annually at fast-food restaurants. The fast-food market in India is growing at 40 percent. Smaller towns and cities are going to be the new target markets as income spreads from metropolitan cities to smaller towns. Half of 11 million households with an annual income of over $23,000 live here.

In India, as the fast food culture takes off, health experts are warning about the health hazards of such high-calorie food, which will result in higher prevalence of obesity, especially afflicting children.
According to a World Health Organization report, at least 17 percent of the male and 15 percent of the female population in India is obese.
India is one of the top ten obese nations with a population of more than 35 million diabetics. During the past 20 years, obesity among adults has risen significantly in the U.S.