Several Indian restaurant chains such as K Hospitality, Lite Bite Foods, Sanjeev Kapoor Restaurants, RJ Corp-owned Devyani International, and Barbeque Nation Hospitality have accelerated their overseas expansion in the US, Dubai, London, and Singapore. The reasons are attractive growth options, ease of doing business, fewer regulatory issues, and higher returns on investment than back home.

The past few years have seen the eating out sector in India grapple with the rollback of input tax credit that has dented profitability, steep rentals, a highway ban on liquor that was imposed and then relaxed, food inflation, and intermittent localized regulations such as a clampdown on rooftop restaurants.

The returns on investment for the same brand are higher outside India. Since it’s evident that there’s global demand for Indian cuisine as its popularity caters to the diaspora, homegrown chains are leveraging that with financial and management bandwidth to invest and harness this opportunity. This signifies that Indian chains are going more truly global in the sense that it’s not just the Indian population overseas that’s driving the expansion.

However, crafting a successful entry into a new country for any restaurant brand isn’t easy. These expansion plans require months, if not years, of research and oversight as brands search for the right partner to develop a real estate plan and menu that match the market’s demographic. And with so many brands also following the same strategy, expansion means facing a lot of local and international competition.

Before expanding overseas, restaurants need to consider the potential of domestic initiatives versus international growth and determine the risk profile and financial return of each to figure out whether it is best to deepen growth in their own country or expand internationally

Not all countries are the right fit for brands, either. Given the gross domestic product and the saturation level within other countries, there are about 20 or 25 markets that matter. Two of the largest markets where brands are making big moves are China and India. But lately, a lot of Indian restaurant brands are foraying into international markets.

The reputation of being a global hospitality operation, not to mention the financial rewards is very alluring. However, if the venture is poorly researched, planned, and executed, the end result can be crippling in resource and financial terms.

According to Karan Kapur, executive director of K Hospitality Corp, many global markets are extremely deep and offer great potential to scale and build sizable businesses, however, each country is very different, so a step-by-step approach is important before jumping knee-deep into expanding outside your home country. 

One of the key reasons to expand overseas is diversification. Although we live in a global economic society and cross-border economic slowdowns affect us all, different countries are at different stages of their economic development. Therefore, markets that are ultra-competitive and mature in India may still be emerging, or do not yet even exist, in other countries. This offers firms an opportunity to become less dependent on their domestic economic situation.

“The principal benefits of global promotion may include, assets and believability. Huge organizations have the load to go up against inheritance ways to deal with

Creation and personal stakes in supply affixes and the standing to be dependable accomplices to a wide assortment of partners sharing reciprocal targets.

Information on-demand market. Enormous organizations grasp both homegrown and worldwide business sectors, the nature of interest for groceries, and accordingly the 'bar' that the poor should clear to advertise their merchandise (not least to organizations' own buying divisions),” Deepanshu Mann, managing director of Local Gurugram feels.

The range across the value chain can be another important advantage the significant firms in this area work or unequivocally impact whole esteem anchors from producers to buyers. Together, they can bear to contribute as long as possible and inject patient capital into groundbreaking drives.

Agreeing on the same lines with Maan, Chef Gauri Varma, founder of Confect opined that many F&B companies expand internationally to diversify their assets, which can help protect a company's bottom line from unexpected events. Companies with international operations can offset negative growth in one market by succeeding in another. Companies can also use international markets to introduce new products and services, which can help them keep a steady revenue stream.

Another reason to expand internationally, of course, is to fuel financial growth. Foreign markets offer new sources for revenue and profit margin expansion. Much has been written about BRIC countries and their enormous populations and growing purchasing power. Expanding into these markets, however, requires significant resources and very strong competitive advantage. The same can be said for Western European countries and the markets of Australia and South Africa. 

Although numerous opportunities still exist in many existing or emerging market segments, businesses that are only now thinking of international expansion especially those companies that are small or mid-sized would be best advised to consider starting their international foray with smaller markets, in countries such as Vietnam, Ukraine, Romania, Bulgaria, Poland, Hungary, Turkey, Kazakhstan, Georgia, Turkmenistan, Costa Rica, Panama, Chile, the Caribbean Basin, and Sub-Saharan Africa. Each of these markets can provide terrific additional revenue and profits to any Indian F&B brand that takes the time and effort to study the markets and enter them carefully.

“Another advantage of going global is the opportunity to access new talent pools. In many cases, international talent can also offer companies unique advantages in terms of increased productivity, advanced language skills, diverse educational backgrounds, and more," Ronald Ramirez, corporate manager,  Bar's (Pan India and the Asia Pacific) said.

Companies that focus on getting the product right are the ones who are able to make this move seamlessly, product acceptance and uniqueness are key. In a nutshell, continuous effort is the main ingredient of a success story. The achievement of business practices checking, coordinating, and controlling the channel of an organization's items and administrations to its clients especially for F&B organizations at the worldwide level to procure benefits and fulfill the requests universally is the saying of global promotion.