INDIA – Mid-sized QSR operator Feastary Hospitality has acquired the master franchise rights for the casual dining restaurant chain TGI Fridays in North India in a move meant to revive the chain after it closed all its outlets in 2022.
Feastary Hospitality acquired the master franchising rights from Singapore-based Universal Success Enterprises for an undisclosed amount.
The QSR operator revealed it will invest Rs 50 crore (US$5.9 million) to reopen 15 outlets across nine North Indian states.
Suraj Mahant, Feastary’s Managing Director revealed the first outlet to be reopened will be in Delhi-NCR. The outlet will be reopened before the end of the year.
He welcomed the acquisition, reiterating TGI Fridays’ brand value and high potential. The managing director revealed the operator intends to revamp all outlets before relaunch.
TGI Fridays’ master franchising rights were sold to Universal Success Enterprises in 2019 by Bistro Hospitality in 2019 after rollback of input tax credit reduced profit margins by 10-15%. This led to an 18% increase in capital expenses.
These financial struggles were further exacerbated by lower demand in the dining-out sector and competition from discounted delivery platforms.
A failure on Bistro’s side to implement strategies that aligned with the Indian market also contributed to the franchise’s financial woes.
Feastary’s acquisition comes at a time when mid-sized global restaurant chains are scrambling for the Indian market.
According to market analytics firm MARC Global, the Indian food service market was valued at US$70 billion at the end of 2023 and is projected to grow at a combined annual growth rate (CAGR) of 9.1% to US$125 billion by 2029.
As larger chains struggle with declining same-store sales, more strategically focused QSR brands are capitalizing on the opportunities available in India.
Brands like Belgian confectionary and bakery chain Le Pain Quotidien, UK’s Frank Hotdogs and JD Wetherspoon have all made forays into the Indian market.
These strategic entrants are marked by more measured investments. For example, Le Pain Quotidien’s committed Rs 35 crore (US$4.2 million), with a focus on metropolitan areas in the first year before transitioning to smaller towns.
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