4 Franchise Brands Growing in India
26 Aug 2021 - As the second-largest franchise market in the world after the U.S., India is an attractive option for American franchisors looking to expand into new countries around the world. The franchising industry in India is growing at 30 to 35% year-over-year and is predicted to reach $100 billion by 2024. A majority of this growth can be attributed to young professionals, especially from the IT world, who are looking to start their own business.
Profitable franchises in India generally reflect larger, contemporary global consumer trends, which is why brands that are already established in America can oftentimes successfully translate to the new country. For example, globally popular sectors like retail, food service and automotive concepts constitute almost 60% of the overall franchise sector in India.
Here are some of the top American franchise brands that have experienced major success while attempting to expand into India.
Domino's, the American pizza chain with more than 17,800 franchised and company-owned stores in the United States and more than 90 international markets, has one of the most successful franchise growth stories in India. The company opened its first pizza outlet in New Delhi in 1996 through partner Jubilant FoodWorks and has grown to a whopping 1,250 stores in 120 cities. This success can be attributed to several factors, including continued product improvements, strategic development changes and an innovative approach to technology. As of today, it is the largest pizza company both worldwide and in India.
Subway, which holds the title of the world's largest fast-food chain with more than 44,700 franchises, first entered the India market in 2001 and has since expanded to feature more than 650 restaurants across 70 cities. The American sandwich company was able to establish an expansive presence in India by offering entrepreneurs strong marketing, supply chain management, a value-driven business operation and complete back-end support.
Shell Retail is one of the most recognized franchise brands in the world with more than 43,000 service stations in more than 75 countries. The Shell Group's presence in India dates back to 1928, when it entered the country as the pioneering oil distribution company through an alliance between the Burmah Oil Company and Asiatic Petroleum. Today, Shell currently operates in eight states across India — Andhra Pradesh, Assam, Gujarat, Karnataka, Maharashtra, Meghalaya, Tamil Nadu and Telangana. Each Shell franchisee receives a commission on all fuel sales and is entitled to the income generated from all shop transactions in exchange for pre-agreed royalties paid to Shell for all non-fuel sales.
Baskin Robbins is a California-based ice cream company started in 1945. Today, the brand has grown to more than 8,000 locations, including nearly 2,500 shops in the United States and more than 5,000 in more than 50 other countries. In 1993, Baskin Robbins opened its first store in India and has since become the largest ice cream franchise in the country. This is in large part due to the fact that Baskin Robbins adapted its menu to be 100% vegetarian in order to appeal to the Indian population. In addition, Baskin Robbins positions franchisees for success with operational simplicity, flexible real estate options, ongoing business consultation, supply chain support and more.