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Mahmood Khan Ph.D, an expert in hospitality franchise at the Franchise India workshop in Mumbai

Food franchising is likely to be one of the few sector to grow in this economic downturn according to a new report by Franchise India Holdings and CIFTI–FICCI.

It claims that food franchising is one of India’s fastest growing segments with 200 food and beverage franchise concepts in the country, accounting for 17% of the total franchise market. The silver lining is the fabulous 48% growth expected in this sector over the next two years, primarily driven by Indian foodservice entrepreneurs.

The report base is of 408 brand franchisors, of which 70% are in Delhi NCR, followed by Western India with 386 brands, the majority from Mumbai and Gujarat.

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250 brands are in the South, with a majority in Bengaluru and Chennai. Eastern India, mainly Kolkata, accounts for just 58 brands.

More than 30% of the upcoming food outlets are through the franchise system. In all, India has over 18,000 franchised businesses as compared to only 2,500 restaurants run by companies owned by 150 food franchisors.

According to the report, 51% of the consumer’s wallet is dedicated to food (54% in rural areas and 42% urban areas).

Franchise networks spread across the country are now well established with 90% of the  franchisors setting their agreement tenure of more than three years while their contract renewal rate has climbed to 80%.