The Indian retail market is expected to earn a profit of US$535 billion by 2013 with the growth in the organised retail segment, which is likely to be driven by the franchise model. The food industry happens to be the key contributor in the growth of the retail market in According to the Indian Retail Report 2009, it has been found that the food service industry is one of the fastest developing industries, which provide a variety of services including multi-cuisines, fast food as well as home delivery. “It has been observed that the growth in the industry is due to rise in disposable income of modern-day consumers,” says Shashi Chowdhury, proprietor of New Dragon, a small-sized fast food restaurant in Kolkata. According to the Technopark Report 2009, out of 100 shoppers about 60 prefer to eat in restaurants and hotels, whereas only 40 opt for entertainment like watching movies at multiplexes. Food retailing booming Jubilant Foodworks, which manages Domino’s pizza outlets across the country with a 65% market share plans to target funds worth Rs 300 crore from the capital market. Jubilant Foodworks has filed the draft red herring prospective (DRHP) with Securities and Exchange Board of India (SEBI). Currently, there are about 270 Jubilant Foodworks outlets and it plans to open 65 more outlets in According to Sanjay Reddy, manager of Johnson’s Restaurant, a small-sized fast food restaurant in Kolkata, “The growth and development in the Indian food retail market is mainly due to the increase in the modern-day nuclear family set up especially in the urban areas.” Moreover, disposable income of consumers has also increased. These factors have collectively led to the rise in consumer spending, thereby propelling development in the Indian retail market. Sabrina Mitchell |
