Written By: Gouri Ghosh

India's food industry is going through an exciting change. With consumer preferences changing and increasing global risk, more international food brands are entering the Indian market. From popular fast-food chains to premium coffee brands, India has become one of the hottest sites for global food franchises. If you are planning to start a food franchise in India, it may be the best time to invest.

In this blog, we will find out how the rise of international food brands is changing India's food industry and which trend is making this development in 2025.

Why is India the next hotspot for the International Food Franchise in 2025?

India is quickly becoming a favorite destination for international food brands. But why is this happening?

• Growing middle class population: More people now have high disposable income, which is ready to spend them on global cuisine.
• Urbanization and adopting western lifestyle: Young Indians are more open to try international foods such as burgers, coffee and desserts.
• Tech-service population: Uday of online food delivery apps like Zomato and Swigi has made it easier for brands to reach customers.
• Extension in Tier 2 and Tier 3 cities: Global brands are no longer limited to metro cities - small cities are also showing demand for international food chains.

With all these factors, India is set to become a goldmine for the International Food Franchise in 2025.

Rise of International Food Brands in India

The Indian food market is on a phenomenal surge; international food brands are witnessing an escalating acceptance. There are myriad variables accountable for this altering consumer behavior and providing new avenues for business.

The Key Trends Leading to the Rise of International Food Brands in India

Fascination with Global Cuisines

Interest in globally acclaimed cuisines among Indian consumers has steadily increased. Consumers now have a craving for pizzas, burgers, coffee, fried chicken, and desserts because of the popularity of some international brands. This aspiration to experiment with various food stems from an increase in the exposure of Indian consumers to global cultures through noticeable changes in travel and digital content, also known as social media. The younger generations, especially in the urban areas, have begun to experiment with various options, making global food brands particularly appealing.

Health-Conscious Eating

An increasing degree of cognizance towards health seems to be evolving among Indian consumers. With more knowledge about food, people in India search for a brand that will offer them healthier alternatives. International food brands that are offering vegan, gluten-free, low-calorie, and organic options are in great demand. Brands like Subway and Smoothie King cater to this demand by promoting fresh ingredients and well-balanced meals. This trend is believed to be on the rise as more people in India become fitness and health conscious.

Booming Food Delivery

Online food ordered delivery is a welcome change in how different people order their food. The availability of services like Swiggy and Zomato has enabled more customers to have food imported from their favorite international brands without visiting their outlets. The easy homed delivery services have multiplied the reach of food franchises really fast. Thus, it enabled global brands to grow much faster, mostly in smaller cities where they may not necessarily have physical stores. 

Cloud kitchens

Cloud kitchens are delivery-only concepts used by food brands to operate without the overhead of a full-service dine-in restaurant. International brands are now opting for cloud kitchens to enter the Indian market with an easier and economical approach. It helps brands to reach out to many customers without setting up an enormous infrastructure. Popeyes and Burger King are just two of the names using cloud kitchens to build their delivery networks.

Social media influence

The social media channels, like Instagram, YouTube, and TikTok, have turned the spotlight on the global food brands. International franchises are now more desirable because of food bloggers, influencers, and viral food trends. Platforms like Instagram create a sense of aspiration for popular food items, instilling in the population a desire to try famous brands like Starbucks, McDonald's, or Dunkin' Donuts. And social media is something that allows the brands to connect directly with the younger audience through interesting content and deals.

In 2025, many popular international food brands begin entering the Indian market.

There is fast growth in the food and beverage market in India, attracting several internationally popular food brands. By 2025, many well-known brands will be expanding or launching for the first time in India. This shows that there is considerable demand for different cuisines and fast-food options in the country.

Here’s a deeper insight into which brands are expected to dominate the Indian market;

• Pizza Hut: A name most of India knows; Pizza Hut is looking to grow its presence with more outlets in smaller cities and towns. The focus will be on affordable meal combos and pizzas inspired by local flavors.
• Dunkin' Donuts: Following its initial growth in the metro cities, Dunkin' Donuts will be expanding further. More varieties of coffee and localized snacks for the Indian palate are likely to be introduced by the brand. 
• Burger King: With its growing popularity, Burger King plans to open more outlets across the country. The brand will focus on providing more vegetarian options to suit the Indian market.
• Denny: This American dinner chain is ready to debut in India, which brings its signature pancakes, burgers and breakfast options. The brand is likely to target the first urban areas, catering for the growing trend of breakfast throughout the day.
• Smothi King: Health-conscious consumers in India are increasing the demand for nutritious food options. The smoothie king will focus on promoting his healthy smoothie made of fresh fruits and superfoods.
• Domino Pizza: Already a market leader, Domino's plan in India plans to introduce more new flavors and expand distribution services. The capacity and quick service model of the brand continues to attract a large customer base.
• McDonald's: McDonald's is ready to expand and expand into small towns while rebuilding its menu with more plant-based and regional items. The brand will also emphasize durable packaging and digital ordering.
• Popis: This American fast-food chain, known for its fried chicken, will be a new entry into the Indian market. The pope expects to offer a mixture of its signature objects along with local spicy options to appeal to Indian taste.

How much does it cost to start an international food franchise in India?

Starting an international food franchise may seem exciting, but it is important to understand the cost before making any decision.

On average, what the cost of international food franchise appears here:

• Small Cafe (eg Dunkin Donuts): ₹ 20-30 Lakh
• QSR Chen (eg Domino, Burger King): ₹ 50-1 Crore
• Premium brand (eg Starbucks): ₹ 1.5-2 crore

Cost usually involves:

• franchise fee
• Equiprus and interiors
• staff training
• Royalty  (5-10% of monthly revenue)

What Makes International Food Franchises a Profitable Business Model in India?

India has emerged as one of the fastest-growing markets of the food and beverage sector. With the growing reputation of international food brands, this speaks volumes about the opportunity for franchise investors. International food franchises are favoured by consumers besides being more profitable than local businesses.

Here's another round of argument elaborating upon the reasons for which international food franchises create a profitable business model in India:

• Brand Recognition: Well-known global food brands like McDonald's, Domino's, and Starbucks have a strong reputation throughout the world. Indian consumers trust these brands to deliver consistent quality, hygiene, and taste that entices customers to the franchise, even in unfamiliar territories.
• Proven Business Model: International food franchises have very well-structured business models. From recipes to operating protocols, the whole business model has been pre-tested in many markets prior to being offered for entry. This limits the possibility for failure and makes it easier for investors to manage a franchise successfully.
• Marketing Support: International franchises put in a lot of money for marketing campaigns. They give the relevant marketing personnel all sorts of materials needed for campaigns, from merchandise to social media projects. As marketing is done for the franchise internationally, attracting customers becomes easy without local expenditure or marketing.
• Rising Demand: With increasing Western influence on India's youth through social platforms, demand for international cuisines such as pizza, burgers, coffee, and smoothies is on the rise.
• Lower-Risk Faster ROI: International food brands have their loyal customer base and a tried and tested business model. Thus, an investor plays a trick with a minimal failure rate. International food franchise owners enjoy quicker returns on investments than those who create a food business from the ground up. 

Challenges in Setting Up an International Food Franchise in India 

While international food franchises offer great business opportunities, the establishment of such businesses in India is fraught with challenges. Almost all such challenges, however, are possible to overcome, with good planning and a proper approach.

Future Outlook: How International Food Brands Will Shape India's F&B Market by 2025

The food and beverage (F&B) market in India will be undergoing a sea change by the year 2025, with international food brands playing a pivotal role. As per industry reports, the Indian food service market will grow at a 10% annual rate. 

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.