India Develops Taste for U.S. QSR Food

Fast-food chains are flourishing in the country that has not formerly welcomed foreign companies.

January 10, 2014

MUMBAI, India – With a young, mobile and fast-growing population, India become a country awash in U.S. fast-food restaurants, the New York Times reports. From Burger King and McDonald’s to Krispy Kreme and Taco Bell, QSRs have been gaining a foothold in a nation that is gaining a rising middle class.

“In India today, I think people are acquiring new tastes rather than changing their tastes, because it takes a whole generation to actually change tastes,” said Pinakiranjan Mishra, partner and national leader for retail and consumer products at Ernst & Young India. “As more and more people acquire money, there are a lot of new consumers who are experimental in nature.”

Last year, the country’s market for chain restaurants reached an estimated $2.5 billion, according to Technopak, which predicted it would jump to $8 billion by the end of this decade because of QSRs. “The Indian market is growing at a slower pace than what China has done but the potential is as large,” said Saloni Nangia, president of Technopak. “India also has a young age profile, many more people eating out and international influences coming in. Some of the international brands could replicate, to some extent, the China story in India.”

Fueling the growth is India’s young populations, with close to 65% of its people under the age of 35. Its cities and urban areas are crowded with young adults, who enjoy eating out. “Earlier, you would see quick-service restaurants being used for occasions and celebrations,” said Amit Jatia, vice chairman at Hardcastle Restaurants, which is a McDonald’s licensee. “Today, the weekend and family business continues, but working adults are using the sector far more than in the past. We’ve now also become an option for young professionals with disposable income to use us for a meal on a weekday.”

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