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American food chains queue up to open shop
Vandana Saxena
MUMBAI, December 25: The US invasion in the domestic food sector will begin with renewed vigour in the new year with America's Favourite Chicken (AFC) and Family Restaurants Inc (FRI) planning to set up their shops in India. Thus they will be joining McDonalds and Kentucky Fried Chicken (KFC) which have already gained a foothold here. Officials of these companies have visited India for talks with their local counterparts. The list was pretty long add included the Kamat group of companies, Venkateshwara Hatcheries, Ras Resorts & Apart Hotels, Radhakrishna Foodland and Tasty Bite Eatables and many others. AFC, for instance, is seeking exclusive area developers to build the market here, according to vice president Charlie Weeks. Though the Indian business will be managed by the local partner, AFC will continue to keep a close relationship, he added. ``AFC has strict norms regarding quality and services which have to be followed worldwide,'' said Weeks. While the company provides training to its staff at a new outlet, it also offers help in design, engineering, operation and marketing. ``Since the company has an established brand identity, these standard criteria are important,'' he added. To forge an alliance, the Indian company must have a sound financial base, though AFC would support the launch of the new outlet, Weeks said. The financial contribution from the Indian partner is negotiable and will depend on the business proposal, he said. AFC is the parent of Popeye's Chicken and Biscuits and Church's Chicken, the second and third largest chicken chains in the world. Popeye's was established in 1972, Church's in 1952 and AFC brought them together in 1992. The two offer specialities ranging from Cajun-style spicy chicken to Texas-style fried chicken with mashed potatoes. AFC has around 2,200 restaurants in different countries. Under its international plan, which is to promote the flagship company with support from a local company, it proposes to open 200 more such places in various countries, he added. FRI Inc was established in 1946 and has since represented Coco's and Carrows family restaurants of the US which feature a California style cuisine. Coco's was established in 1948 and Coco's acquired Carrows in 1984. The parent company, Flagstar, acquired both the companies last year. FRI believes in flexibility to suit different pallets, said vice president Bill Costan, adding that the restaurants would have `trendy menus' to appeal to different segments of society. The company is primarily looking for master licensees which implies that there would be minimal investment from the Indian partner. The facility here would involve a cost outlay of around $2 million.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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