South Africa's largest fast food chain, Nando's, which specialises in flame-grilled chicken made in peri-peri (chilli) sauce, is all set to enter India.
Nando's will be brought to India by Indage Hotels, which owns popular restaurants like the Mumbai-based Athena, Zaha, Soho and Mimosa.
Says Vikrant Chougule, chief executive officer of Indage Hotels, "We have already established a presence in the fine dining segment and we were looking for a presence in the growing fast food sector. We had two options -- to launch our own brand or bring in an international brand. We opted for the latter."
"We have signed an agreement with Nando's to bring the brand to India. Indage Hotels will be the master franchisee for the brand," Chougule added. The first Nando's outlet will be set up in Mumbai. Nando's will then expand to other metros in the country.
The Indian fast food industry's sales are estimated at Rs 300 crore (Rs 3 billion) to Rs 400 crore (Rs 4 billion) and these are growing at double digit rates.
Says an industry observer, "There is a significant rise in out-of-home consumption, mainly led by the increased per capita income and the availability of various new cuisines."
Not surprisingly, therefore, international fast food giants like Mc Donald's, Kentucky Fried Chicken, Subway, Domino's and Pizza Hut have entered the growing Indian fast food market.
Nando's has more than 400 outlets across five continents.
The group has three main tiers -- Nando's Group Holdings, the listed company which has stores in the 'common monetary area,' Nando's International, which licenses the brand and receives royalties, and Nando's International Investments, which invests in various Nando's operations elsewhere.
Indage Hotels has an arrangement with Nando's International.
