Economic Times: December, 2016
New Delhi: Global multi-brand restaurant company DineEquity Inc has signed a franchisee partnership deal with food services firm Kwal’s Group, to bring in breakfast chain IHOP in the country, as it looks to leverage its equity in the intensely competitive eating out sector.
India is the nineteenth country the NYSE-listed DineEquity, franchisor of Applebee’s Grill and Bar and IHOP restaurants, is setting up presence in, with the objective of expanding its footprint across different markets.
The first of the stores is expected to come up in early 2017, Beatrice Carvalho, DineEquity director, international marketing, said. The firm and its local partner expect to infuse Rs 100 crore worth of investments and set up 20 stores across Indian cities over the next decade.
“This is a growing economy and consumers are being exposed to different tastes and cultures. We are creating a new category here and not necessarily competing with anyone,” Carvalho said.
The California-based DineEquity has been largely focused on three regions for international expansion -- Latin America, the Middle East and Asia Pacific. A company statement said its existing store strength includes over 3,700 restaurants across 18 countries in partnership with 400 franchisees.
However, over the last seven quarters at least, growth in the eating out sector in the country has stalled to low single digits, with consumers cutting back discretionary spends, further fuelled by last month’s currency ban.