Kfc Market Analysis

6781 WordsSep 11, 201128 Pages
| KFC | |MM-1 Project Phase 2&3 | |By : Group 10 | Introduction The Indian fast food market has been witnessing rapid growth on the back of positive developments and presence of massive investments. Currently, market growth is largely fuelled by the rising young population, working women, hectic schedules, and increasing disposable income of the middle-class households. Improving living standard, rapid urbanization and westernization of Indian culture are some of the other factors responsible for robust growth. Some of the unique properties of fast food like quick served, cost advantage,…show more content…
India's entire food-service market is estimated at $64 billion. Income: Per capita income (average income) of Indians has grown by 6.5 per cent to US$801.36 in 2010-11 as against US$ 752.59 in 2009-2010, at the prices of 2004-05. India’s gross domestic product (GDP) estimated to expand at an impressive 8.5 per cent in 2010-11. The consumer spending on processed food has increased at an average rate of 7.6 per cent annually from 2008 to 2010 and this is expected to rise at an average of around 8.6 per cent until 2012, according to a report by ASSOCHAM. A recent McKinsey Global Institute study projected that India's middle class, currently at 50 million, will grow, amazingly, to 583 million by 2025, and that India's masses of young people will spend more outside the home than their parents' generation. They're the chains target population. Real Estate: KFC’s have became more active in taking up retail space as consumers continued to gravitate to affordable eating outlets, triggering a climb in the number of fast food restaurants. It would be difficult to state the current per square feet rate as it varies according to the city and location. For example, on an average, rentals, which were hovering at around Rs 150 per sqft, have now gone up to Rs 250-300. KFC is now looking at dishing out anywhere close to Rs 1,000 crore for the expansion over the next five years.

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