US hotel chain Best Western scouts for franchise partner to expand in India

US hotel chain Best Western is scouting for a new management partner to expand its presence in India, according to three people familiar with the matter, as the company gears up for growth in the country's hospitality sector. 

Eight years after signing on a franchise partner in India, which it calls an "important" market, Best Western has fallen behind targets due to what industry experts say are quality considerations and the absence of a strong sales and distribution network. 

"Best Western needs more focus on the top management to be able to grow the brand in India. The international partners need to give more commitment and attention that this territory deserves," said one of the people, who earlier worked with the company. 

Best Western had inked an agreement with existing master franchise partner Cabana Hotel Management Services in June 2007. At that time, Cabana had planned to invest over $1.2 billion to add more than 100 Best Western hotels and 10,000 rooms in India by 2017 — targets that are likely to be missed. 

While Cabana acknowledged that growth hasn't taken place as planned, it denied that a change of partner was being contemplated. Best Western International, headquartered in Phoenix, Arizona, was noncommittal. 

"We consider India an important market and we will continue our steadfast efforts to meet the hospitality needs of customers in this significant market," David Kong, president and CEO of Best Western International, said. 

A Cabana (Best Western India) official said the company is currently discussing the terms of an extension of its agreement with Best Western International. 

"In terms of the global Best Western development pipeline, India stands at number 4 amongst all Best Western Affiliates internationally," Gaurav Sarin, associate vice president of Best Western India,said. 

While Best Western India's website mentions 25 operational properties with about 1,250 rooms in the country, he said the company runs 29 hotels. 

Sarin attributed the slow signing of deals to the overall slowdown and financing issues facing the hospitality industry since 2010-11. "Signup numbers might be proceeding at a slower clip in the past two to three years compared to earlier. However, it is still much higher compared to other chains." 

Classic Rock Coffee Co all set to open its first outlet in India

After two established venues in the US, and six more in progress, Classic Rock Coffee Co. (CRCC), the high end classic rock music themed coffee shop, will be opening its first outlet in India on Saturday,16 May in Pune. For its Indian launch, Guns N' Roses guitarist Ron 'Bumblefoot' Thal will perform alongside Blackstratblues front-man Warren Mendonsa.

Master Franchisee for Classic Rock Coffee Co. (India), Avinash Agarwal says:” After venturing into the F&B business, through my own company 'FoodJockeys', I was looking at bringing American F&B franchises to India. During that time, I came across Classic Rock Coffee Co., and found out that they were looking at opening various CRCC franchise​​s around the world. I wrote to them and after various evaluations, background checks and finance checks, we became the Master Franchisee of Classic Rock Coffee Co. here in India.”

CRCC (India) is located in Kalyani Nagar, Pune, with a seating capacity of 200 people and total capacity of 400.

Agarwal further added that since FoodJockeys is the Master Franchisee of the brand, he plans to open various CRCCs across the country, including cities like Mumbai, Delhi, Bangalore and Hyderabad. For the initial roll-out, COCO (company-owned company operated) is the most suitable model since we can control all the areas of the brand. After the flagship store is running, the FOCO (Franchisee-owned company-operated) and FOFO (Franchisee-owned Franchisee operated) models will be the best business model. Bringing the CRCC franchise to India was a multi-crore investment as the expenditure included setting up the venue in Kalyani Nagar, advance franchise fee, master franchisee fee and large funds presented to CRCC upfront in return for holding the franchise rights in India.

Manhattan Fish Market opens outlet in Chennai, sets sight on another 10 cities

After popularising chicken, quick service restaurant chains are now looking at healthier seafood. Some of the international seafood chains also are entering the Indian market.

International specialty casual dining restaurant chain Manhattan Fish Market has launched its first outlet in the country in Chennai.

Jumbo Seafoods Pvt Ltd, the master franchisee of the Malaysian restaurant brand, plans to take the brand to at least another 10 cities in the country through sub-franchising.

The 140-seat restaurant will serve predominantly seafood, said M Shafraz Anees, Managing Director of Jumbo Seafoods. “However, as we go forward, we will gradually step up our vegetarian offerings to at least 20-25 per cent.” There was a big gap in the market which offers good quality seafood either at a very high price or very cheap and not-so-hygienic restaurants, “And hence we positioned our restaurant at the right place where it offers good food at affordable price points,” he said. A three-course meal will cost ₹650 here, he added. It serves fish in flamed, poached, grilled, fried and baked forms in American-styled cuisine.

The brand name (Manhattan) is the influence of the famous Fulton Fish Market in Manhattan, and the restaurant has 60 outlets in Asia and the Middle East.

The Indian master franchisee also owns the franchise rights for Sri Lanka and Maldives. “We have two restaurants in Sri Lanka, and are in the process of expanding there as well,” Anees said.

Australia's pizza chain Eagle Boys seeks India expansion

Australian pizza chain Eagle Boys is rapidly expanding its base in India and  has targeted 50 outlets in India by end of 2015.  Their current outlet base of 14 outlets is spread out across six outlets in Mumbai, four in Pune, one in Chennai and three in Hyderabad. Recently, the company has opened its sixth outlet in Pune.  So far, the company has invested over Rs 50 crore in India.

Rakesh Nanda, director, Eagle Boys Pizza said, "In the coming year, keeping in line with our aggressive growth targets, the business vision is to achieve more than 100 outlets across the length and breadth of the country. We are moving into this space, with plenty of its franchisees beginning to offer in-store dining services.  We are investing in the range of Rs 50- 60 crore whilst the minimum target being looked at in terms of volumes is 50 new outlets per year. Eagle Boys looks to expand to Maharashtra, Gujarat, Madhya Pradesh, Goa, Chhattisgarh and beyond."

According to Nanda, pizza is moving into new territories, taking on a role in casual family dining.   Eagle Boys selling seven-inch pizzas price ranging from Rs 49 to Rs 100, catering to all consumer segments and price points, ranging from corporates to students.

Nanda added, "Apart from the 2000 employees who will be directly on rolls with Eagle Boys, there are another 500 who will get indirect -unemployment by dint of being food suppliers and manufacturers partnering with us."

Apart from Pizza Hut and Domino's many international pizza brands are now expanding their footprint in India.Few names are  Debonairs Pizza from South Africa,  Sbarro of the US.   

Eagle Boys has 200 outlets in Australia with a  22 per cent share of the pizza market with the annual turnover of USD one billion. Apart from India, it is rapidly growing presence in Papua New Guinea and Fiji.

The Shahnaz Husain Group To set up joint venture to expand in international Market

The Shahnaz Husain Group, the undisputed leader in the premium segment in Ayurvedic beauty care in India said that it will set up joint ventures with international reputed business houses / multinational companies to expand its presence in new markets around the world.

The Group's Chairperson and Managing Director, Ms Shahnaz Husain, said that the company has received many offers for joint ventures from various national and multinational companies, but has not finalised its decision on joint venture so far and added that the company will definitely go for joint venture once offers are received with favourable terms and conditions to the company. She said that the company at present operates the largest chain of franchise ventures in India and abroad, besides selling a wide range of herbal products at counters set up in domestic and international markets.

She said that the company is exporting herbal products to 66 countries around the world, like EU, UK, USA, UAE, Canada, France, Germany, Switzerland, Australia, Austria, New Zealand, Russia and a host of other countries in Asian and African sub continents and added that, "We are focusing to increase our base in EU, CIS countries and also targeting African countries."

Company Chairperson and Managing Director, Ms Shahnaz Husain, said that the company has set up targets to increase the exports base 5 to 7 times of the current level of annual exports at present, by developing new innovations and appointing distributors in unrepresented new markets, to tap the growing demands of quality herbal beauty products in the market . She said that in order to increase its market base in new areas, the company is showcasing its products in trade fairs and expositions worldwide especially in London, China, Italy, Singapore, etc., to set up new trading channels and boost exports.

Company Chairperson and Managing Director Ms. Shahnaz Husain said that company is adding new products and innovations for beauty and health care from time to time. The company has well established skin and hair care products and is continuing to add different products in different segments in the near future, as extensive R&D activities are being carried out. She said that the company is coming up with a new range of products, especially with Plant Stem Cell culture, Oil Free Acne Moisturizer with grape fruit, skin and hair care products for teenagers, hair grooming products and new anti ageing formulations. "Our therapeutic products from the Shahnaz Herbal Range, as well as premium products like Flower Power, Gold, Pearl, Diamond, Plant Stem Cells, Telomere and Black Diamond are in demand in the international market," she added.

Wendy’s Plans to Open in India with Beefless Burgers

Among the great Indian dishes today are chicken tikka masala, vegetable paneer and … veggie burgers from Wendy’s? The American fast food giant has decided to make a lucrative move to the East, selling its square patties to the throngs of Indians hungry for a quick bite.

In five years’ time, the fast food company plans to open 50 Wendy’s across India’s major cities, according to reports.

“What we’ve basically done is taken the soul of Wendy’s and put it into a new body,” said Jasper Reid, the head of Sierra Nevada, the joint venture responsible for the Wendy’s franchise in India. 

That means Wendy’s will still taste, smell and feel the same in India, just without the beef.
Wendy’s Indian restaurants will feature six different vegetarian burgers, nine chicken burgers and two lamb burgers on its menu.

Thus, Wendy’s decided to dump some of their biggest sellers, including Dave’s Hot ‘n Juicy Triple and the Baconator, from the menu because selling beef just wasn’t worth the risk of having the majority of India’s over 1.5 billion non-beef eating Hindus be offended by the menu.

It’s a smart move, because according to Technopak Advisors, the fast food market in India is estimated to reach $78 billion by 2018.

Wendy’s is the second largest burger chain in the States by sales, just behind McDonald’s, but with its hot new vegetarian menu, decked with mushrooms, spinach and corn and potato patty burgers, the prince of burgers in the States may just become the rajadhiraja (“king of the kings”) of veggie burgers in India.

Virat Kohli launches Chisel, a chain of fitness centres

With celebrity-backed ventures becoming the new trend in consumer businesses, cricketers too are joining the fray with unique enterprises. Recently, Virat Kohli was present at the launch of Chisel, a chain of gym and fitness centres, which he has started. With investment of Rs 190 crore in sight, the plans are to launch 75 centres in three years under the brand name Chisel.

This brand is jointly owned by Kohli, Chisel Fitness and CSE, the sister concern of Cornerstone Sport & Entertainment, which is the agency that manages Kohli.

 "We will launch gyms of various sizes and with different facilities according to their locations," said Satya Sinha, Director of Chisel Fitness, a Bangalore-based startup that specializes in corporate fitness. 

Kohli is not the first cricketer to switch role from cricket pitch to entrepreneurship in the recent time. Speaking on the occasion, he said, "Fitness and good health are extremely important for a happy and successful life.

The brand under the celebrity-status of Indian cricket team’s vice-captain is hopeful of making it big in around Rs 1,300 crore Indian fitness industry comprising branded fitness chains and standalone gyms.

KUONI – SOTC ADDS TO ITS FRANCHISE NETWORK

In order to capitalise on the growth opportunity, Kuoni-SOTC announced the launch of five franchisee outlets in Bengaluru – Malleshwaram, Model Town- Delhi, Netaji Subhash Place- Pitampura, Alipore- Kolkata and Allahabad.

Apart from the franchisees that were launched, Kuoni-SOTC opened its own branches in Raipur in Chhattisgarh, Guwahati in Assam and Santacruz in Mumbai. Raipur will now become Kuoni-SOTC’s nodal office catering to the entire region of Chhattisgarh whilst Guwahati will be the hub to drive business for the entire North East region.

The launch of franchisees has significantly contributed towards the brand’s growth. Based on the potential and demand of the market, Kuoni- SOTC currently operates 109 outlets across prime locations in 55 Towns & Cities across the country. Kuoni-SOTC endeavours to open 15 outlets in the coming year across target markets. 

Vishal Suri, CEO, Tour Operating, Kuoni India said, “We have introduced an aggressive franchisee expansion plan to cater to the market needs of our customers in India. Our primary goal is to cater to customers from tier II and III cities and share our passion for creating perfect holiday moments while making holidays a priority for Indians.” 

Daniel D’souza, Head Sales, Tour Operating, Kuoni India stated “We have been able to penetrate into smaller towns and expand our footprint, thereby growing the business considerably. With a thriving business model and a solid franchising system, Kuoni-SOTC is committed to providing continuous support to its consumers and looks forward to many franchisee partnerships and regional presence in the years to come.”

Kuoni- SOTC recently held its National Franchisee Summit this April in Mumbai. The event brought together Franchisee Business Partners from across India, along with the senior and regional management of Kuoni India as well as esteemed tourism boards. The National Franchisee Summit clearly outlined Kuoni India’s plans for the way forward and was an excellent platform that allowed the Management at Kuoni- SOTC and the Franchisee Partners to collaborate and bond on the many successes in store for the future.