Asrapport Dining Signs Franchise Agreement with Taco Bell Corp.

Asrapport Dining Co., Ltd  announced  that it has signed a franchise agreement with Taco Bell Corp. for restaurant openings in Japan.

Asrapport Dining is a publicly traded holding company which operates a food service franchise business with 429 restaurants throughout Japan including Japanese style “Izakaya” pub and barbecue restaurants. In signing this agreement, Asrapport Dining will become a franchisee of one of the largest global quick service restaurant (QSR) brands to operate “Taco Bell” restaurants in Japan.

“Our main business realm is dinner time pub style restaurants. We seek to increase the competitive strength of our portfolio and grow the number of our restaurants that frequented by customers throughout the entire day,” said Shusaku Higaki, Asrapport Dining CEO. “We believe that 'Taco Bell' holds strong growth potential and will enable us to create a new QSR category by cultivating the strong latent demand for Mexican inspired foods within Japan.”

Taco Bell Corp., a member of the Yum! Brands, Inc., currently operates more than 6,000 restaurants globally, and seeks to increase its restaurant numbers by 2,000 and 1,300 inside and outside of the United States by 2022 and 2023 respectively. They will cultivate market opportunities outside the U.S. to create a new growth model for Taco Bell and to fortify its global presence. Their global expansion strategy is focused upon Europe (UK, Poland), Asia (Korea, Japan and Thailand), Latin America (Chile, Peru) and India.

“We look forward to growing Taco Bell, which is one of the largest QSR chains in U.S. and globally, as part of their global expansion strategy. Furthermore, this development is an integral part of our own growth strategy,” said Higaki.

Mahindra First Choice Wheels expands footprints in Delhi NCR

Mahindra First Choice Wheels Ltd. (MFCWL) today inaugurated two new authorized dealerships- Guru Kripa Motors and Auto Rehman in Delhi-NCR region. Both outlets were inaugurated by Yatin Chadha, Senior Vice President, Retail Business, Mahindra First Choice Wheels Ltd.

“Delhi NCR is a strategic market for Mahindra First Choice Wheels and I am sure that our association with Guru Kripa Motors and Auto Rehman will help us popularise the MFCWL brand further. At Mahindra First Choice Wheels Limited, we are witnessing a transformational change in the way we operate. With a vision to create a used car ecosystem, we are enhancing and leveraging our physical and online presence and are best positioned in the auto industry to deliver a “Brick and Click” synergy interface for a unique customer experience in our rapidly growing franchisee network across India,” said Chadha.

With these new additions, company’s footprint in the region has reached to 33 dealerships, which it further plans to expand this number to 40 outlets by year end. MFCWL now has a network of 157 dealerships in North India.

“We are delighted to be associated with Mahindra First Choice Wheels, the leader in the Indian used car market. With its strong value proposition of trust, credibility and exceptional service, MFCWL is well poised to tap into the exponential growth in this market. The company’s consistent focus on innovative products and services is also sure to find favour with customers here,” said Deepak Shahani, Dealer Principle, Guru Kripa Motors.

Auto Rehman will offer customers a range of services including car finance, insurance, fitment of car accessories and assistance with paperwork and documentation.

Mumbai’s ‘Let’s Talk’ opens first centre in Chandigarh

After opening 35 Centres in Mumbai, Let’s Talk, a premier organization specializing in communicative English, opened its first centre at Chandigarh albeit in franchise mode in collaboration with Captive Edu World.

Aakash Kadam, Founder Director who was present on the occasion told that “Chandigarh would act as a first step for expansion in North, the region where we will soon have major presence”. Chandigarh is a window to states like Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir. Once we are established in Chandigarh, then we would fan out to neighbouring states.

When asked how different, Let’s Talk would be from several institutions operating in Chandigarh, Aakash Kadam said that “our USP would be the sandwiched training programme that not only includes English language training but also developes one’s overall personality through grooming, etiquette training etc.

It is a holistic programme for imparting communicative English and on development of winning images of people. He said till date Let’s Talk has trained 1,50,000 people including high flying executives of MNCs, aspiring actors, students and even housewives. He said that Let’s Talk would bring in whiff of fresh air into the Image Makeover communicative English industry.

Anil Chalana of Captive Edu World added that with the intervention of technology, we would ensure that the quality of instruction in Chandigarh is at a par with the one given to Bollywood stars and other high profile people of Mumbai.

Marks & Spencer to launch online in India

Marks & Spencer is close to signing a deal with Indian etailer Myntra.com, which would see the British retailer selling online in the country for the first time.

The deal with India’s largest ecommerce platform would be just the second market where M&S sells through a third party website. It started selling on China’s Tmall in December 2012.

The two companies have reportedly finalised the terms of the partnership and the final agreement is expected to be signed soon.

An M&S spokeswoman said: “Whilst we always look at new opportunities, we would never comment on rumour or speculation on our future business plans.”

M&S is believed to have had talks with various e-commerce companies in India including Myntra, Jabong, Snapdeal and Amazon.

Speaking about its partnership with Tmall M&S said teaming up with the platform enabled it to benefit from its “scale, infrastructure and local insight” as well as extending its brand reach and better understanding how the local customer shops online in a “complex market.”

The retailer currently operates in 54 retail territories across the globe.

M&S operates in India with franchise partner Reliance Industries. The company runs 46 M&S shops and plans to double the number in the next two years.

India to get fitter under the gravitational pull of AntiGravity

AntiGravity, US-based fitness and entertainment brand is looking forward to foray in India through franchise route. The brand has entered into a joint venture with Biorhythm India to open studios in the country. The target is to have around 100 franchisees within the first year of its operations. Within a span of two weeks, around 13 franchisees have already signed up with the brand.

Jignesh Raval, Chairman, Biorhythm India says, “There is a huge potential for yoga in India. Presently it is a $0.17 billion market and is expected to reach $1.18 billion by 2017.” Christopher Harrison, the Founder of AntiGravity is in India to train the first batch of trainers. The trained people will set up franchise outlets under the brand name of AntiGravity. As the artistic creator of the brand, Harrison has conceived and produced over 400 entertainment productions.  In 2009 his was the only non-singing group invited to perform with the A-list celebrities at the Presidential Inauguration of Barack Obama.

Talking about the opportunity that lies in store for the individual yoga and fitness enthusiasts and the corporate, Raval adds, "We have kept the franchise costs low, enabling one to break even with enrolling just 50 students.”

AntiGravity was established in 1991. It has its headquarters and fitness training centre in midtown Manhattan. The AntiGravity Theatre and National Aerial Performance Training Centre is based in Orlando, Florida.  The team maintains a roster of over 80 physical entertainers and hundreds of certified AntiGravity fitness instructors around the globe.

Tommy Hilfiger, Swarovski & Nike may soon get a smooth run in India as govt mulls tweaking FDI rules

IKEA, Tommy Hilfiger, Swarovski and Nike could soon get a smooth run in India with the government considering significant changes in the foreign investment policy for single-brand retailing to promote ease of doing business.
Addressing long-pending concerns of foreign companies, the government will likely allow them flexibility to simultaneously operate various retail formats — franchise, wholesale and company-owned — besides clarifying on the domestic sourcing clause.
The single-brand retail FDI policy, drafted by the previous government, is seen as a roadblock for top international companies looking to invest in India. Many applications are stuck due to the complexity of the policy.
While the January 2012 policy allows retailers to run 100% subsidiaries in India, it does not allow them to operate a mix of fully owned stores and franchisees or engage in wholesale trading. The mandatory 30% domestic sourcing norm kicks in when the FDI level goes above 51%

"The concerns raised by foreign players are very valid. We will look into the matter soon. It will require tweaking of present FDI policy in single-brand retail. There are many interpretational and policy issues. We will make it absolutely simple and lucid to promote ease of doing business," said a senior government official. 
The lack of clarity on policy has led to a piling up of unapproved applications. Austrian-based Swarovski, which sells accessories, jewellery and home decor items through more than 2,350 retail outlets worldwide, has been unable to open wholly owned stores with its application of wanting to house both formats — cash-and-carry and single-brand retail — together not going through. 

It was asked to apply separately for both formats or the 30% sourcing rule would apply for the cash-and-carry operations as well. In other cases, companies have proposed to enlist franchisees in India in addition to opening their own stores. Franchisee stores are operated by third-party individuals and entities that help brands to expand their presence in a country. 
"Why should the government interfere in a company's business decisions? They should be allowed to do whatever format they want to use for retailing. If an Indian brand can sell watches through thousand different franchise outlets along with its fully owned stores, then why not a foreign brand?" the official argued.
"We will make FDI policy very simple with no confusion at all," he added. US apparel company Tommy Hilfiger hasn't been able to open a wholly owned store yet for the same reason. Sports apparel major Nike's application got rejected by the government. Experts argue that the company cannot close down 500-600 franchise stores in the country to open fully owned outlets.
Last week, IKEA asked the government to tweak the 30% domestic sourcing clause so that it is counted from the day the operations begin instead of from when the first tranche of investment is made, as an average of total value of goods purchased in five years.

"The issue raised by IKEA is quite understandable. Buying land itself is so difficult. There is a significant time gap between announcing your foray into the country and actually starting operations. This will be corrected in the policy," said the official. 
The previous government had tweaked the mandatory 30% sourcing from small and medium enterprises norm for FDI in single-brand retail to accommodate Swedish furniture maker IKEA, making it 'preferable' rather than 'mandatory'. ,
The government could also consider a plan to allow single-brand retailers to bring in sub-brands or sell under different trademarks. IKEA has announced an investment of Rs 12,500 crore in the country and proposes to set up 25 stores over the next 10 years. 
Over the past two years, over Rs 300 crore of investments have come into the single-brand retail sector. 
"The single-brand retail policy is very confusing. Why should the government even distinguish between franchise and single brand, as they are not a threat to your kirana stores? How can ownership make a difference? This policy is practically impossible for most foreign brands. Government must reframe the rules to get foreign investment," said Arvind Singhal, chairman of Technopak Advisers. 
"A clarification on the single-brand policy is required, especially the flexibility to go for franchise along with fully owned stores. It is a normal practice for any retail brand to have its own stores and also give rights to a third party. That is how you grow. The two have always coexisted and should be left to the company to take his decision," said Akash Gupt of PricewaterhouseCoopers. 

Sarovar opens Dasavatara-themed hotel in Tirupati

The hotel is conceptualized and designed around the Dasavataras of Lord Vishnu. The property has 121 rooms and suites, according to a statement from the company. 

"Tirupati is one of India's most visited pilgrimage centres. The existing demand-supply gap in this temple town offers a huge opportunity for hospitality brands. Every brand which was earlier in the luxury segment now wants to have a piece of the business here. We believe that Tirupati Yatra is no longer about an arduous journey to meet Lord Venkateshwara, it is nirvana luxe," Anil Madhok, managing director, Sarovar Hotels & Resorts, said. 

"Marasa Sarovar Premiere Tirupati is India's first theme hotel inspired by the 10 incarnations of Lord Vishnu. It aims at providing luxurious and affordable accommodation. The newly completed hotel ensures that a visit to Tirupati no longer entails compromising on personal comfort. Till date many visitors to the temple and otherwise opted on a day trip to Tirupati due to the limited choice and quality of existing accommodation. This is no longer the case with the opening of the Marasa Sarovar Premiere as the hotel sets the standards in not only accommodation but also offers choices of dining options, spa, health club, swimming pool," Yogesh Prajapati, director, Finance, Marasa Hospitality and owner of the hotel, said. 

Sarovar Hotels & Resorts is a hotel management company which manages and franchises over 70 operational hotels in 48 destinations in India and overseas, under Sarovar Premiere, Sarovar Portico, Hometel, Radisson, Park Plaza and Park Inn brands. The brands cover the 3, 4 and 5 star spectrum. 

The Madhvani Group, which was also part of the project, is a private sector conglomerate in East Africa. It owns a portfolio of business interests in several countries particularly in East Africa and India. 

Dubai-based Fmart opens first store in India at Kochi

Fmart, a Dubai-based convenience store chain, today opened its first outlet in India in the city.

Kochi Mayor Tony Chammany inaugurated the country's first F-mart at Panampilly Nagar.

Yoonus Mohamed, Managing Director, Fmart Specialty Retail Concepts, said Fmart is a chain of contemporary convenience stores offering a wide range of FMCGs and other ethnically traditional branded foods.

"We are planning to open 25 Fmart stores in Kerala alone in 2015, mostly on franchised model," he added.

Kareem Abdullah, Director, said at present Emaco Investments, the holding company of Fmart, collectively runs 11 stores in various prime locations while it continues its accelerated growth by expanding in the Middle East and Asia.

"In India, each new Fmart outlet will require an investment of approximately Rs 30 lakh to start a franchise model store. Fmart offers four flexible franchise models with different investment plans to cater to different segments of society', Dr M A Babu, Director, said.

"Our franchise model is a low investment business opportunity along with premium margins, brand recognition and quality service', Yoonus Mohamed said.

Asics starts India sales operations

Japanese sportswear major Asics will not renew its exclusive distribution pact with Reliance Retail and is setting up its own sales operations with plans to open up to 35 mono-brand stores in India to tap the growing market here.

The company that has been in India through distribution partnership since 2009 has launched its own wholesale operations under Asics India Pvt Ltd from this month to work with franchise partners.

“We have an exclusive distribution agreement with Reliance Retail (Footprint) which will be finished by end of March 2015,” Asics India Director Rajat Khurana said.

He said although the company would work with various trade partners directly “Reliance will be our preferred partner for retail operations in India.”

The company said: “The change is intended to bolster sales of Asics products in the country.”

Bullish on the Indian market, Khurana said: “First year’s sales target is Rs 28 crore. We aim to triple the sales in three years. Our plan is to open 30-35 mono-brand stores, mainly in metro cities through our franchise partners.”

In the first year, the company plans to open 4-5 mono-brand stores, he added.

Currently, the company has one such store in Kochi operated by Reliance Retail.

Commenting on Asics’ plans in India, Asics Asia Pacific Division Senior General Manager and Asics India Director Dae Chul Kim said: “India is a promising market and has a huge potential.

“We plan to expand our sales network and bolster marketing support for retail shops in order to establish Asics’ value and image as a true sport performance brand.”

Kim further said: “Running is the fastest growing category in sports in India. So, we will be focusing on popularising the sport…”

The company’s products, priced between Rs 5,000 and Rs 12,500, will compete with the likes of Nike and Adidas.

To promote its products, Asics has been sponsoring events like the Mumbai Marathon for which it is the official sponsor.

“We will build our brand image as true sport performance brand among consumers. We will directly reach to consumers through services such as running clinics.

“Also, we will increase brand exposure, seeking opportunities in cricket, the national sport,” Khurana added.