Restaurants

International brand, Indian heart

Arvind Mediratta Chief Marketing Officer (Indian subcontinent) Yum Restaurants International

Arvind Mediratta, chief marketing officer (Indian subcontinent) of Yum! Restaurants International, plans to develop a national presence for fast food brands, KFC & Pizza Hut, through both franchise and equity restaurants

Most international brands are attracted by the size of the Indian market. One such brand is Yum! Restaurants International (YRI) that has successfully adapted its offering to local tastes.

Arvind Mediratta puts it succinctly. "We are an international brand with an Indian heart," he says. The mushrooming of malls and multiplexes in practically every Indian city has made it conducive for fast food brands like Pizza Hut and KFC to enter the market.

The game plan

"Building a large restaurant group has demanded innovation, a commitment to quality and dedication to service and value," explains Mediratta. The company has penetrated the market by employing the franchise model for its Pizza Hut brand while it has opted for a mix of self-owned restaurants and franchise for KFC.

For this food brand, the target is now to have 1,000-plus restaurants in India over the next decade. And this is how it will go about achieving it. "Eating out has become a recreational activity and Pizza Hut's products like the Masala and Tandoori range and KFC's range of fusion products have won many consumers," Mediratta says. YRI also has a range of vegetarian food.

On the horizon

YRI is currently on an expansion spree in India. "Market analysts point to a growth of at least 16 to 17 per cent per annum. When combined with an economy on the roll and consumer spending at an all-time high, the food business is set for a high growth trajectory. Our market share has almost doubled from 15 per cent in 2000 to 28 per cent at present" Mediratta claims.

To sustain this kind of growth, the company will invest close to Rs 100 crore to scale up the KFC chain of restaurants in India to 25 from current the 15 and Pizza Hut outlets to 150 from the present 126 in this year. All this, with a special focus on tier-II cities.

Mediratta believes…

Eating out in India today has become a prime entertainment option and Mediratta views the country as a significant growth market for the two brands.

He says, "Indians show a significant change in their demographic structure. Smaller cities (B-class cities) are mirroring the lifestyle of larger cities - a large working population with a median age of 24 years, more nuclear families, increasing working women." It sure spells Yum! to him.