How healthy and wealthy is chicken business!

More and more overseas chicken brands are targeting the Indian market which is bubbling with huge opportunities. The brands are offering spicy business opportunities for F&B investors. Read on to know what’s all in store for entrepreneurs…

When we talk about international chicken brands, KFC is the first name which comes to the mind. No doubt, the brand has made a big market for itself in India and constitutes a large portion of the market share in the fast food category. But, of late brands in the same segment have given a tough competition to the QSR giant.

Mr Fried Chicken, Five Star Chicken, Panro's Crisp Chicken, ChicKing, Hot Chix, W 'N' F, LC Systems and Mad Over Chicken are few of the names which have made rapid strides in the franchise QSR chicken sector. It has not only provided many options to the consumers but also to the franchisees in India. 

A big growing market

As per Economist Intelligence Unit, the fast-food industry of the country is estimated to double in size between 2013 and 2016 to $1.12 billion. The demographic trends show that it could become the next mega-market for the international fast food players. 

A study on Indian Mirror says the Indian poultry industry is booming and emerging as the world's second largest market. The organised sector of the Indian poultry industry is contributing nearly 70% of the total output and the remaining 30% in the unorganised sector. Broiler industry is well-dominated by the southern states in our country with nearly 60-70% total output coming from these states. Even the growth rate is growing at the phenomenal rate of 12 to 15% every year. Thus, QSR players have mushroomed in large numbers.

Speaking on the same, Bill Loeffelholz, Export/Government Sales Manager, Broaster Company, comments, “Indian organised food and beverage market is growing at over 15% CAGR. 55% of the market is driven by non-veg food and fried chicken is the fastest growing segment with many local brands mushrooming. With Broasted chicken, the customers enjoy the benefits of fried chicken but with a much better quality, lesser oil and natural chicken moisture. India is the highest potential market of future.”

Adding to him, Sanjeev Pant, Senior Vice President, CP Foods, says, “'Exposure to global culture, changes in the demographic profile, higher disposable income, higher propensity for consumption and experimentation and availability of multiple choices are few of the key drivers of the growth in India. At Five Star Chicken, we offer great tasting products, best value for money, high convenience and a very good world class quality to our consumers.” 

Franchising, an apt way to expand 

QSR chicken brands are finding franchise route feasible for expansion in India. Almost all major players in this category are offering franchise opportunities.

Pant of the Thai brand tells Franchise India, “Franchisee mode is the most suited for faster, wider and deeper penetration. We can leverage the deep local knowledge and the entrepreneurial spirit of franchisees to reach the right sections of the target customers with success. The franchisees can benefit from the highest quality and tasty products and professional sales, marketing and training support we provide. It is a mutually beneficial partnership. We provide the right content and the franchisees provide the local connect and the business spirit.” The brand wants to open 100-150 Five Star Chicken outlets pan-India, besides opening new outlets in the existing markets in the next two years. 

US brand Broaster too has much to offer when it comes to business partnership. “One can become a Licensed Trademark Operator or an authorised Broaster Distributor. Our unique advantages include no franchise or licensing fees, expert distributor support at the local level, access to our corporate training facility, proven marketing support and national brand recognition,” adds Loeffelholz.
This brand is rolling territory rights for India and plans to roll out over 30 outlets with in 2016 and 75+ outlets across India by end of 2017.