Pollo Tropical, a part of Fiesta Restaurant Group Inc. (FRGI), signed its first development deal with franchisee Paramount Cuisines Pvt. Ltd, a subsidiary of the Paramount Group.
As per the deal, Delhi-based Paramount Cuisines will unveil at least 10 locations in India between 2013 and 2016. The outlets will be in Northern India comprising several important locations like Delhi, Punjab, Chandigarh, Haryana and Uttar Pradesh. The terms of the deal were not disclosed.
Both Pollo Tropical and Paramount believe that its chicken options will complement the Indian taste buds. Additionally, the restaurateur’s already strong vegetarian offerings can successfully cater to the huge vegetarian population of India.
The latest alliance underscores management’s intent to make India one of the prime markets for international expansion, considering the promising economic growth and under-penetration of quick-service restaurants in that country.
Pollo Tropical’s grilled chicken is presently available in the Latin American and Caribbean region apart from 90 locations in the domestic markets of Florida and Georgia. This Florida-based company has more than 30 overseas franchised locations in Puerto Rico, the Bahamas, Ecuador, Honduras, Panama, Trinidad, Venezuela, and Costa Rica. It is also in process to open in Guatemala, Aruba, Bonaire, and Curaçao.
According to a report by the U.S. Commercial Service, the middle income population in India is burgeoning and will grow 10 times by 2025. Growing income for the larger populace also makes India a lucrative investment proposition. Furthermore, the report reveals that the country’s capital, Delhi, is expected to be one of the world’s largest metropolises by 2025 following the rapid urbanization.
With more than 50 shopping malls already in action and dozens under construction, Delhi remains one of the vital locations to the Indian consumers. However, the Indian market is not free from competition. Following the growing demand for American dining brands, several U.S. restaurateurs like KFC of Yum! Brands Inc. (YUM) and McDonald’s Inc. (MCD) are currently gaining traction in the chicken category with a much wider scale of operation.
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