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Burger King heats up Indian Catering services sector

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In India the catering services market has grown at a rate of approximately 20 percent. Out of the total retail sector here, food and beverages sector constitutes about 4.7 percent. The catering services sector in the country is mainly unorganized, which consists of street side food stalls.

The catering services sector is heating up in India. With players like Starbucks and Burger king lining up to enter the country. After Starbucks it is Burger King that is in talks with Pantaloon group to open outlets in India. In the case of Starbucks-Pantaloon joint venture, government’s nod is awaited.

Sources close to the development have informed that Burger King has shown interest in opening outlets in India. However, no clear indication from the meeting between Burger King the Pantaloon Group has come out. The two companies are likely to reach a franchise arrangement.

The news of talks has already made many experts grab the opportunity to state that Burger King would give McDonald’s a run for their money in the long run. Similar things were said about Nirula’s when Macdonald’s entered India. In spite of the success that McDonald’s has had in the country, Nirula’s has increased its earning.

Miami-based Burger King is the second biggest fast food hamburger restaurant. As of June 30, 2006, the Company owned or franchised a total of 11,129 restaurants in 65 countries and United States territories, of which 1,240 restaurants are Company-owned and 9,889 are owned by its franchisees. The company anticipates more than 400 restaurant openings worldwide in 200, in places such as Brazil, China, Italy, Japan and even North America.

The last 50 restaurants that the company opened in the United States and have operated at least a year are earning record-high average annual sales of more than $1.4 million, which is more than 25 percent higher than its U.S. and worldwide average. The international average restaurant sales are $1.11 million in 2006. The company has earned revenue of $2.05 billion in 2006.

The Pantaloon group which has presence in catering sector with its Chamosa food counters and Café Bollywood eatery chains has already roped in Starbucks, world’s largest coffee-shop chain, in a joint venture to open outlets in the country. Starbucks is said to have plans to open around 1,000 outlets in the India.

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