British food and travel service company SSP Global is planning to enter India and launch three of its brands—bakery chains Millie’s Cookies and Upper Crust, and coffee shop chain Ritazza—by the first quarter of 2018.
SSP Global, a £2 billion company listed on London Stock Exchange, operates more than 400 food and beverage brands (and owns 200 of them) across the globe. With presence in over 30 countries and expertise in travel sector, the company earns 90 per cent of its revenue from food outlets at airports and railway stations. “In India, we want to focus on shopping malls and high-end streets as well as travel retail, starting with the three main cities Delhi, Mumbai and Bengaluru. There is opportunity because there is no competition for two (Millie’s Cookies and Upper Crust Bakery) of the three brands that we are launching here,” said Sukh Tiwana, commercial director at SSP Global.
The company is entering India in partnership with Franchise India Holdings owned subsidiary World Iconic Brand Hospitality. Franchise India is a franchise solutions company and helps global brands find partners in India.
Over the next five years, SSP Global is planning to invest Rs250 crore in India and set up a total of 225 outlets (75 of each brand). “Millie’s Cookies offers a long cookie menu with cupcakes, giant cookies and cookie slices. Upper Crust is a French baguettes brand. Ritazza, apart from coffee and tea, offers pastries and quick bites,” Tiwana added.
Founded in 1961, SSP Global operates food and beverage brands like Starbucks (in European markets), Burger King (in 13 markets) and a few outlets of YO! Sushi. Upper Crust is one of the oldest brands (founded in 1960s) owned by SSP Global.
“This is a huge partnership with focus on travel as well as off-travel retail. We have already started looking for sites to set up stores. We are targeting all airports, railway stations (in top cities) and prime locations in Delhi, Mumbai and Bengaluru to begin with. First store will probably go live by first quarter of 2018,” said Gaurav Marya, chairman at Franchise India.
Experts believe that there is huge opportunity in travel retail and on-the-go food consumption. “On-the-go food consumption is huge outside India. With improving infrastructure and railways being prioritized by the government, the scope for such brands is huge here. The challenge, however, remains in making the store economics and pricing work,” said Rajat Wahi, partner (management consulting) at consulting firm Deloitte India. The food services market in India is projected to touch Rs 4.98 trillion by 2021 from Rs 3.09 trillion in 2016, according to a joint report by National Restaurants Association of India and consulting firm Technopak Advisors. The industry is expected to grow at an annual average rate of 10 per cent, as per the report.
