The growth is being fuelled by younger millennial consumers, better pricing and an increasing number of brands entering this market.
TGI Fridays is bringing a second brand based on the bar model to India, to focus on liquor and snacking instead of operating as a full service restaurant chain that the American company has traditionally been. The new outlets are expected to be called Fridays American Bar. India will be the first country where Fridays is setting up the bar model, as it looks to respond to fast changing consumer demographics, lifestyle evolution and urbanisation.
“The company is experimenting with creation of another brand under the Fridays portfolio. In India, the new brand will be set up on smaller formats, which will give Fridays the ability to penetrate the market more, keep the capex low and focus on the development strategy,” TGI Fridays India chief executive Rohan Jetley told ET. “We expect a disproportionately higher growth curve with the smaller format and the Fridays umbrella brand pull,” he said. Global CEO Aslam Khan said last month that his focus was on pushing the brand towards a bar-focused, beverage-based environment. “My number one thing is hospitality, good product and a great bar. I want to enhance the performance a little bit better for investors, employees and, most importantly, guests,” Khan, who took over the top post in April, said.
In India, Fridays operates 12 TGIF stores and is positioned in the fine-dining space. Jetley said once the bar concept takes off, it could be taken to other international markets. “In terms of supply chain, storage, capacity and other back end operations, synergies will sync and create efficiencies. But the brand propositions of the existing TGI Fridays and the bars will be entirely different,” he said. The bar and pub segment in India has grown 23.5% in 2014-16, compared with 21.6% by cafes, according to data from market research firm Euromonitor. The growth is being fuelled by younger millennial consumers, better pricing and an increasing number of brands entering this market. According to Euromonitor, the consumer segment frequenting cafes and bars is primarily in the age group of 18-35.