However, international fast-food chains have had to change this business model completely, to adapt to Indian preferences.
For instance, Pizza Hut, known globally for its pizzas, is counting on rice and vegetarian dishes to grow revenue in India.
Items such as vegetable biryani and rice bowls, introduced in recent months, are expected to give the company about a tenth of its turnover in one year.
Dunkin’ Donuts, globally known for its doughnuts and coffee, already gets a third of its revenue from burgers, wraps and sandwiches, something it introduced only last year.
Starbucks, known for its take-away culture in the US, its biggest market, has had to reinvent itself as a sit-in restaurant-cum-cafe chain, since Indians simply don’t enjoy picking up stuff on the go.
So, while India is a must-go for most of these, adapting to conditions here is a challenge.
And, fast-food chains have had to respond quickly for survival and to grow.
The reinvention also comes when same-store sales growth (SSSG) of most fast-food chains in India is down to low single digits, due to the cut in spending on discretionary items. In some cases, SSSG is in the red (see chart).
Sanjiv Razdan, general manager, Pizza Hut & Restaurants, says, “To stay relevant in every part of the country, we re-invent. And, rice-rich preparations would certainly catch those who don’t eat pizzas.”
What is pushing Pizza Hut to revamp its business model is the percentage drop in revenue share of its core product.
“The revenue share of pizzas is coming down by four-five percentage points.
"By 2020, we expect contribution from pizzas to come down to 40 per cent from 60 per cent now,” says Razdan.
This even as pizzas continue to be its dominant business abroad.
Dunkin’ Donuts, which launched its first outlet in India in April 2012,
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