The world`s second-largest burger chain, the US$ 2.3-billion US brand Burger King, is all set to enter the Indian market. The company has plans of tying up with the country`s largest real estate compa
The world's second-largest burger chain, the US$ 2.3-billion US brand Burger King, is all set to enter the Indian market. The company has plans of tying up with the country`s largest real estate company by value, Delhi-based DLF, in a 51:49 joint venture. Regulations allow up to 51 per cent foreign direct investment in single-brand retail. The Miami-headquartered Burger King was earlier in talks with Kishore Biyani's Future group but the idea of a partnership fizzled out when the burger chain opened negotiations with Seattle-based coffee chain, Starbucks. The fast-food chain, which has 11,100 restaurants across the globe, operates over 90 per cent of its outlets as franchises. Entering into a joint venture with a real estate company in India, therefore, marks a departure from its usual strategy. The fast-food chain is expected to begin its South Asia foray with India, later targeting the neighbouring market of Sri Lanka. Burger King`s foray into the Indian market, will herald competition with rival burger chain, the US$ 20.4-billion McDonald`s, which is currently the world`s largest fast-food chain with 31,000 stores worldwide. McDonald`s today operates 122 franchise outlets across the country. Other global food chain majors like Pizza Hut, Domino's, Papa John`s and KFC are already present in the country. In a scenario of spiralling rentals across the country, international retailers teaming up with an Indian partner with land banks and access to prime locations, becomes the natural choice.