Dive Brief:
- FAT Brands will open 60 co-branded Fatburger and Buffalo's Express restaurants in India with Franglobal Advisors Private Limited, according to a press release.
- The restaurants will be developed over the next 10 years.
- FAT Brands, which also owns Buffalo's Cafe, Hurricane Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, has more than 300 locations under development in 32 countries.
Dive Insight:
Many U.S. brands that have reached saturation in the U.S. are expanding into new markets to continue growing locations as well as help overall same-store sales. The global expansion of many fast food chains often starts with a business leader in another country wanting to bring an American concept into a new market.
Global expansion has been working for many QSR brands. McDonald’s same-store sales for 2018 grew globally for the 14th quarter in a row and global guest count rose for the second year, according to Skift Table. Restaurant Brands International’s global push has also helped it continue to grow, and Starbucks is eyeing a rapid expansion in China.
FAT Brands also has been expanding globally of late, opening its second co-branded location in the United Arab Emirates earlier this year and its first co-branded location in Scotland. It has plans to open 25 to 30 franchises across its brands globally this year.
Asia Pacific has been a particularly popular market for fast food brands, especially since it is the fourth fastest-growing market, according to Euromonitor International. Many brands have been doing well in the market too. KFC is the most popular fast food brand in China.
FAT Brands will likely have to adapt its menu to include more vegetarian options, especially since the country has 400 million vegetarians and lower meat consumption than any other country. It still has meat-eaters, about 71% of its population, but that compares to 95% of Americans who eat meat.
McDonald's adapted its menu when it embarked into the country decades ago. Domino's offers curry pizza in India, and is one of the most popular QSR chains in the country. With so much growth potential in Asia, more brands will likely have success in India and China and beyond, especially if they can capture each country's most popular flavors.
