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Small-town India gorges on MNC restaurant chains

From Happy Meals at Gwalior to Zinger Burgers at Vizag, baby corn pizzas at Haridwar and Broccoli pasta in Kota, multinational restaurant chains are increasingly targeting the small-town India. For world’s leading fast food chains such as McDonald’s, KFC and Domino’s Pizza up to one-fourth of their sales come from tier-two and tier-three towns and cities. They expect this share to grow.

As reported in an article in leading business newspaper, Vikram Bakshi, MD and joint venture partner at McDonald’s India (north and east) said, “There is an immediate requirement to reach out to consumers in small towns. But you need to create consistent pull and not the occasional visit; that’s the real challenge and that’s where a lot of work is still to be done,” he adds.

So, the marketers of these multinationals are now developing strategies for consumers in Kota, Shirdi, Allahabad and Kochi, rather than Delhi and Mumbai. Domino’s plans to open 70 new stores over the next 10-12 months and almost half of them will be in tier-2 and tier-3 cities.
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