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Here is our US blogger - Donald Cranford’s second part in his franchising in India observations.

When people think of franchising, the first thing they think of, almost anywhere in the world, is McDonald’s. So I was pretty keen to have a look at how McDonald’s operates in India, given the exploding market there, as well as the country’s varied ethnic identities.

McDonald’s opened their first store in India in 1996. India, while a huge market, posed many cultural challenges for McDonald’s. Hindus, by far the largest religious group in India, are traditionally vegetarian. On top of that, they treat the cow as sacred (for instance, there were four cows tied to tree outside my hotel in Mumbai and they would sleep every night on the street). At the same time, there are also 133 million Muslims in India, who do not eat pork. So McDonald’s, before they even opened their doors, were at a quandary. Is a McDonald’s without a Big Mac or a Quarter Pounder really a McDonald’s? Bravely, they removed all beef and pork products from their Indian menu and created a number of meals to satisfy the Indian palette.

But problems have occasionally flared up. When McDonald’s revealed in 2001 that they cooked their french fries in beef fat, there were riots outside Indian restaurants. They seem to have gotten their cultural sensitivities in line though, and based on my own eyewitness evidence, their urban restaurants are thriving.

The McDonald’s I have documented below is in The Fort area of Mumbai. It’s the traditional business area of the city and throughout the whole day, it is a hive of activity. There are many beautiful Victorian buildings in this area. McDonald’s is in one of them actually, with a nicely-designed interior with outdoor picnic-style seating along the street. The menu might be the most diverse of any McDonald’s in the world. You can get veggie burgers, hot cheese (paneer) wraps, and even something called a McPizza Puff.

The McDonald’s in The Fort was packed the evening I visited, as was the one I passed by in New Delhi a few days later. For the generation of wealthy young Indians, McDonald’s, remarkably, has a reputation as a healthy, vegetarian-friendly restaurant. Also, they offer delivery, which is an exciting frontier for McDonald’s. It seems as if the Golden Arches have a great future in India.

This is a photo of an advertisement outside of the McDonald’s at The Fort. There are some menu items to the right and in the background you can see the umbrellas for outdoor eating. The warm climate in Mumbai makes India perfect for outdoor eating.

This is outside the door of McDonald’s. The most interesting thing here is that they are advertising their delivery service. This is pretty unique for McDonald’s. Obviously, they feel they need a delivery option to compete with Mumbai’s many other food services.

Here we have a closer look at some of McDonald’s food options. Notice the Veg Pizza McPuff and the ice cream at the bottom.

Here’s an interior shot of the restaurant. You can get a sense of how the distribution works. All of the eating takes place outside, as far as I can remember. The store was strongly air-conditioned, as well.

You can read our earlier post here on franchising in India. Keep an eye on the blog over the coming days for further insight on Indian franchising.

This week, we have a guest blog post from our US blogger - Donald Cranford, who is bringing us some observations on the franchise industry in India, following his recent trip.

For years now, we have been hearing that the 21st century will be the Asian Century, lead by China and India. You read this claim so often in the business pages of the international newspapers, you sometimes begin to wonder if it is merely hype. I was fortunate enough to visit Mumbai and New Delhi recently and can say with some confidence that the future of business lies in India, especially where franchising is concerned.

Before I discuss my own experiences, let’s just state some of the reasons why franchising is working in India and certain to grow in the coming years. This is a country of over 1billion people. There are more than 3 times as many people living in India compared with America. In a few decades, it will be the third largest economy in the world.

Now India may have a huge population, but that’s not the whole reason why it is so ripe for franchising. India’s rise is being driven by a rising middle class who are increasingly looking to the west, and to the US especially, for cultural input. I had the pleasure of sampling New Delhi nightlife and it was remarkable just how similar Indian nightclubs were to American ones. Much of this wealthy young generation of Indians has spent time in the US or the UK and picked up a taste and an interest for Western goods, foods and services. Foreign investors should also note that India is a country with a historical relationship with the English language and a decidedly pro-business, low-tax ethos. I was there on Budget Day and it was remarkable to witness the hundreds of media outlets debating the various points of the budgets.

On the other hand, it is still a country weighed down by bureaucracy and with corruption issues at grassroots political levesl, but India’s business practices have come on by leaps and bounds in recent decades. There are also some pretty vast cultural divides between India and the West, but perhaps the spread of wealth will shrink this gap. With a vital national entrepreneurial spirit, compared to other developing economies, one thing is sure- India is open for business.

As for the franchising scene, it is growing fast. I traveled around Mumbai and New Delhi, largely on foot. The franchises that I encountered, both Indian and foreign, were mostly food franchises. UPS and a few other shipping franchises are also set up on the ground. Many people still choose to eat from vendors on the side of the road, but more and more people are looking for cheaper, Western food.

I’m proud to say my first meal in India was from a franchise operation: Felafal’s Veg Hummous House, a very clean and air-conditioned restaurant at the Colaba Causeway, one of main arteries around Mumbai’s big tourist area. The food was cooked quickly and with a coke, the meal only cost about 90 rupees, which is less that two dollars. I was fully satisfied and I was thanked by management on my way out the door. It couldn’t have been a better experience.

In the coming days, visit the blog as we’ll be providing more insight on our travels through Indian franchising. Our next post will be about the experience of McDonald’s in India.

Franchise Direct has enhanced its reputation as one of the internet’s top resources for franchising data with the release of its definitive study on US food franchising. The world-leading franchise portal has just released six new reports on various food franchise sectors. Combined with its 2009 reports on pizza, ice cream and coffee franchising, Franchise Direct has now produced the internet’s most comprehensive and insightful examination of food franchising, which is by far the most popular franchise sector.  

These reports are essential reading for entrepreneurs. We have seen franchising inspire economies out of the doldrums in the past and many people in America and beyond who consider franchising decide to open restaurants. The global popularity of franchising has been led, by and large, by the food business. Since the 1950s, the likes of McDonald’s, Subway and Dominos have shown that a cleverly-branded restaurant with a popular, marketable product can become hugely popular. Hundreds of thousands of restaurants around the world of all shapes, sizes and cuisines are now franchised. 

Now Franchise Direct has issued an assessment of the state of food franchising. They have broken the industry into a number of sub-divisions and published brand-new studies on full service, fast food, fast casual, retail, health food and take-out and delivery food franchises. Even though these reports are based on the US Franchise Disclosure Documents (FDD) of numerous franchises in each sector, plus some additional scholarship, they are good indicators of the future of UK food franchises. Added with their previous reports on food franchising, Franchise Direct can now help entrepreneurs educate themselves on every single strand of the industry. 

These reports will give you some important information you’ll need before investing in a food franchise. You’ll find up-to-date financial statistics on each sector, plus reporting on the rise of the health food restaurant and the enduring popularity of retail food distribution. There is also invaluable franchise-specific economic data taken from FDD’s that will tell you how many franchises are currently faring. 

All entrepreneurs are told to do their homework before purchasing a franchise. Franchise Direct’s exclusive food reports take the hassle out of this research and make finding out about food franchising easier than ever before. Many people will choose to open a restaurant of some sort when purchasing their first franchise. Click on the following link to read Franchise Direct’s food franchise reports over on our US site before making that crucial investment and find the guidance you need for franchise success.

While a fellow franchise blogger wrote last week about the hopes for the pet franchise industry in the US, this week a UK pet franchise was leading by example through a welcome New Year donation to their local pets home.

Last week, Oscars Pet Food contacted us to tell us about their good deed for the RSPCA in Preston. Tails were wagging, when Oscars Pet Food franchisee, Paul Reilly delivered a whole tonne of pet food to his local independent charity for pets in need. The charity receives no financial aid from the government and relies on donations to keep up their work with pets in need.

Oscars were able to help out with their expert knowledge on animal nutrition and were able to provide the stray cats and dogs with a good healthy and nutritious meal.

To find out more about Oscars, why not visit their pet franchise profile, or to find out how you can help the RSPCA in Preston, visit their website: www.rspca-preston.org.uk

The last 10 years have changed the world enormously; we now use the word “Obama” on a regular basis, as well as words like Anthrax, Carbon Footprint, Climate Change, Recession and Brangelina. Subway is now the largest sandwich franchise in the UK and it is believed that there are now over 800 businesses operating as franchises across the UK today.

We now know that the Millennium Bug was not capable of bringing on a global systems crash. We have gained iPhones but lost Michael Jackson. We now have hybrid cars which display a more developed approach to environmental friendliness, but we’ve almost lost our grasp of the English language in favour of “txt spk”.

In 1999, SimCity revolutionised the gaming world with their introduction of simulation gaming, we were all listening to Ricky Martin’s “Livin’ La Vida Loca” and The Matrix was the highest grossing movie in the UK.

Throughout all these changes two things have remained the same….McDonald’s is still the world’s largest franchise and Franchise Direct have been bringing you the best franchise opportunities available on the market!

This year, Franchise Direct are celebrating their tenth year in operation. That’s ten years of bringing the UK the best franchise and business opportunities. To celebrate, we’re going to eat lots of cake and also reflect on how we’ve improved our websites over the years and on how we plan to improve even more over the next 10 years.

This year alone saw the launch of two new franchise websites for the Canadian and Irish markets, which makes 7 the total number of franchise websites we now have operating within the happy Franchise Direct family, which already includes websites for the US, UK, Spanish, French and German markets. Over the last ten years, the numbers of franchises featured has now grown to nearly 300 featured on the UK site, along with the addition of franchise videos featuring interviews with franchisors, franchisees and industry representatives. We also send regular newsletters, and features news, success stories and a comprehensive information centre with a wealth of helpful information and advice on precautions to take before investing in a franchise opportunity.

2009 has been a busy year for Franchise Direct, as the economic downturn took a hold on the UK economy and more individuals opted to start their own business using a proven business method along with the support of an experienced franchisor. We have seen the number of franchises featured on our site grow, as well as a fresh approach by many franchisors to encourage new business start-ups during the economic downturn with special offers on financing and falls in minimum investment costs. This summer’s Recession Buster offer was a huge success with over 50 UK franchises offering special offers on their franchise opportunities.

And we don’t plan to stop here, as the UK economy gains its foothold again; we look forward to another 10 years of successful franchising in the UK!

What better way to mark FranchiseDirect.co.uk’s Birthday than with the UK’s finest band singing Happy Birthday: