Marrybrown experienced fast growth in Indian market
Malaysian quick service restaurant (QSR) brand Marrybrown has been in the Indian market for 16 years. But seeing the fast growth in the eating-out market in recent times, it has charted an aggressive expansion plan and finds the smaller cities and towns much more profitable than metropolitan cities.
Master franchisee for Marrybrown in India, Chennai-based MGM Entertainments, wants to triple its outlet strength in next three to five years from 48 to 150. Of this, 80 percent will be in the tier II to tier IV cities. The south-focused company is also looking at entering the western region and Sri Lanka.
The profit margins are seven to eight percent higher in smaller cities, mainly due to lower rentals and lesser overheads. With increased awareness, sales in smaller cities are almost similar to that in the larger cities said S Ajith, director, Marrybrown India.
The companies having quick service restaurants prefer to open their franchisee in the smaller cities. This is mainly because they expect that it is easier to get the labour at a cheaper rate in the smaller cities in comparison to the metropolitans which is true.
Source: Financial Chroncicle
