Why is India becoming such an important market for Taco Bell and whom are they tying up with and why?
Why is India becoming such an important market for Taco Bell and whom are they tying up with and why?
Retail Store Design and Location
1. Ferrari wants to set up its store in Pune. Which would be the most ideal location and why?
2. What are different types of retail formats? If you were to start a store of your own which product would you choose and how would you go about setting up your store.
3. Case Study: Taco Bell to open 600 outlets in next 10 years
Taco Bell, the global Mexican fast-food major, is planning to open 600 outlets in India over the next 10 years. If implemented successfully, this can make India the second largest market for Taco Bell, after the US, said Liz Williams, president Taco Bell international.
“India is one of the most important markets outside the US and its diverse nature offers an opportunity to Taco Bell, as we are adept to embracing change. After the new plan is implemented successfully, India will emerge as the second largest market for Taco Bell.” said Williams. Currently, South American countries are it leading markets outside the US.
Taco Bell operates through 500 restaurants in 30 countries outside the US. In the US it has around 7000 restaurants.
Since it began its journey in India in 2010. Taco Bells growth has been muted. In 2015, it got Burman Hospitality to expand its business and had open up 30 restaurants in total of 11 cities. Now with the focus off its global management on the local market, Taco Bell will ramp up the process. This year it plans to open up 35 outlets and add up to five new towns in Bengal and Gujarat.in its portfolio, she said.
The American chain, from the Yum! Brand Group has appointed Delhi’s Burman Hospitality as its master franchisee partner for the same.
Under the current model, Burman Hospitality will own and operate all Taco Bell outlets with the right to sub-franchise. According the Gaurav Burman, director Burman Hospitality, it may look to sub-franchise some of the locations in the next three to five years. “However we would be launching the flagship restaurant’s in any new location on our own. This would help us establish the brand and set the standards.” He said. While Burman didn’t specify the amount of capital they need to invest for the expansion, estimates suggest that the firm may need to pump ₹80 to 100 crore a year for the same.
According to Williams, the market is ready for a widespread expansion, unlike earlier when Yum! brands focused on its other two chains KFC and Pizza Hut in India.
Currently, there are some 800 operational outlets between the two brands in India. However, Williams said over the years the number of Taco Bell outlets might overtake KFC and Pizza Hut.
Questions:
a. How many outlets is Taco Bell planning to open in 10 years and what is the strategy to do so?
b. Why is India becoming such an important market for Taco Bell and whom are they tying up with and why?
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