Home Food Service Yum! Restaurants India Eyes Top QSR Slot, Pins Hopes on KFC

Yum! Restaurants India Eyes Top QSR Slot, Pins Hopes on KFC

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Yum! Restaurants India which operates , , and Pizza Hut in the country is eyeing to be the number one QSR player in India as it tries to close the gap with rival McDonald’s by aspiring to have 2,000 stores till 2020 according to recent media reports.

In 2011, KFC had 155 stores as compared to McDonald’s 240 outlets, KFC has indeed drawn attention by operating 300 plus stores currently as compared with McDonald’s 350 outlets.

KFC Story

The KFC story began with Harland Sanders, born in Henryville, Indiana, who bought a roadside motel and cafe in Corbin, Kentucky in 1930. An avid cook, Sanders started giving his take to the masses on southern fried chicken. In 1939, he perfected his blend of 11 herbs and spices. In 1955, the restaurant closed due to opening of Interstate 75. By 1964, Sanders had a growing network of franchisees across the US. At 74, Sanders sold the Company for $2 million to a group of investors, though still involved in the quality control. He passed away at 90 but KFC continued to grow. By 2015, KFC plans to have 500 restaurants across 75 cities as per the brand’s website.

Localising the Taste

KFC is the company’s fastest growing QSR brand in the country, as per analysts. The brand seems to fast catch up with McDonald’s not only in terms if store count, but trying to localise its offerings for the Indian palate. In February, the brand launched Rockin’ Burgers starting at Rs 69 plus taxes for the  vegetarian option while the Chicken Rockin came for Rs 75 plus taxes. In order to woo the vegetarians, KFC introduced the Paneer Zinger and Veg Twister in April priced at Rs 105. Both KFC and McDonald’s have been opening new outlets, giving an Indian touch to their menus, and entering price wars for the signature dishes, McDonald’s burgers and fries and KFCs fried chicken. The fast food giants plan to invest billions for expansion.

McDonald’s on the other hand, recently launched Royale Range burgers in premium category with Mc Paneer Royale (Rs 115) and Grilled Chicken Royale (Rs 125). Targeting other segments of the society, it also has the McEgg in the value range (Happy Price Menu) and Masala Grill in the mid- tier segment.

In terms of pricing, Mc Donald’s follows differential pricing across various locations in North and East of India which means that same product is priced differently at Highstreet; Highway, Shopping Malls; and McDelivery.

Doorstep Delivery

Online delivery is fast becoming an important element in the growth for both the brands and is contributing a significant chunk in their overall sales. McDonald’s entered India in 1995 and after nearly eight years of operations, it started the home delivery service in the country. The McDelivery service is available in the West and South India for the restaurants operated by Hardcastle Restaurants and its franchisees.

On the contrary, KFC presently delivers only in Mumbai, Pune, Hyderabad, Bangalore, Chennai, Coimbatore, Vizag, Vijaywada, Manipal, Cochin, and Mysore.

Footprint and Menu

According to a leading daily, McDonald’s currently has some 350 restaurants in India of which 167 are in North and East India and 183 in West and South India operated by Hardcastle Restaurants. Mc Donald’s food items comprise Burgers & Wraps, Sides, Beverages, Desserts, Breakfast, Happy Price Menu, Meals (Econo Meals and Extra Value Meals), Happy Meal. In India, Mc Donald’s offers seven items in its Breakfast menu including Veg McMuffin, Veg Supreme McMuffin, Hot Cakes, Mc Egg, Egg and Cheese Mc Muffin, Sausage Mc Muffin, and Sauage McMuffin with egg. The regular menu offers 16 items such as Spicy paneer wrap, McAloo Tikki, Masala Grill Veg, McVeggie, McSpicy Paneer, McEgg, Chicken McGrill, Filet-O-Fish, etc. In beverages, 15 types are available, and 10 types of desserts.

Breakfast menu hours for McDonald’s fall between 8am to 11am while the regular menu is available from 11am to 12.45 am. In Delhi, for example, the breakfast and value meals start from as low as Rs 35 for a McEgg to Rs 125 for Sausage McMuffin with Egg meal. Sides at McDonald’s Desserts at McDonald’s start at Rs 49 and go up to Rs 69. Happy Meal at McDonald’s range between Rs 105 and Rs 125.

KFC has outlets in Agra, Ahmedabad, Aligarh, Allahabad, Amritsar, Asansol , Aurangabad, Bangalore, Bareilly, Belgaum, Bhatinda, Bhilai, Bhopal, Calicut, Chandigarh, Chennai, Cochin, Coimbatore, Darjeeling, Dehradun, Dhanbad, Durgapur , Faridabad, Gajraula, Ghaziabad, Goa, Greater Noida, Guntur, Gurgaon, Hubli, Hyderabad, Indore, Jabalpur, Jaipur, Jalandhar, Jammu, Jamshedpur, Kannur, Kanpur, Karnal, Kasargod , Kharar, Kolhapur, Kolkata, Kollam, Kottayam, Lonavala, Lucknow, Madurai Malappuram , Manipal , Mohali, Mumbai, Mysore, Nasik, Navi Mumbai, New Delhi, Noida, Panchkula, Patiala, Patna, Pondicherry, Pune, Raigad, Raipur, Ranchi, Satara, Secunderabad, Shillong, Siliguri, Sonipat, Surat, Thindivanam, Thrissur, Tirupur, Trivandrum, Udaipur, Ulhasnagar, Vadodara, Vijaywada, Vishakapatm, and Zirakpur.

McDonald’s outlets in North and East India are present in Chandigarh; Delhi; Haryana (Gurgaon, Faridabad, Sonipat, Kurukshetra, Ambala, Panchkula, Karnal, Rohtak, and Manesar); Himachal Pradesh (Dist. Solan), Jammu & Kashmir; Madhya Pradesh (Bhopal and Gwalior); Punjab (Amritsar, Ludhiana, Jalandhar, Bhatinda, Hoshiarpur, Patiala, and Patarsi); Rajasthan (Jodhpur, Alwar, Udaipur, Kota, Jaipur, and Ajmer); Uttar Pradesh (Noida, Mathura, Allahabad, Agra, Ghaziabad, Lucknow, Amroha, Varanasi, Muzaffarnagar, Meerut, Bareilly, nd Kanpur); Uttaranchal (Dehradun and Haridwar) West Bengal (Howrah, Kolkata). In West and South India, it has outlets in Mumbai, Bangalore, Chennai, Gujarat, Hyderabad, Indore, Pune, Coimbatore, and Kerala.

Indian QSR Segment to Evolve

Fighting an intense competition to remain at the top in the Indian QSR space, KFC and McDonald’s are both set to transform the market in India, offering new innovations to capture the market. More stores, greater variety in menu, value offerings, the convenience of home delivery, and customisation will surely see the QSR segment touch new heights in the country irrespective of whosoever captures the number one position!