Dec 22, 2009
South Africa's premium cocktail-bar chain News Cafe has announced plans to invest up to Rs 100 crore over the next five years to expand operations in India. The company, which ventured into India last week under a master franchise agreement with Hyderabad-based Numbersonly Hospitality, plans to open 20 outlets across India in the next five years.
"We have just opened our first Indian restaurant at Delhi, which also marks our first foray outside the African continent. We will open four more cafes in India in 2010 and our plan is to have a total of 20 restaurants within five years," said Alan van der Westhuizen, general manager (restaurant division), News Cafe.
On investment plans for the Indian market, Westhuizen said: "Our expansion will entail an investment of up to Rs 100 crore over next five years. Setting up the first restaurant in Delhi has cost us around Rs 3.6 crore."
Westhuizen said the investment will mostly come from the franchise operator, Numbersonly Hospitality, adding franchise arrangement could be extended for other South Asian countries and Mauritius in the future.
Bullish on the Indian market, Westhuizen said News Cafe expects a revenue of around Rs 50 lakh per month from each of its cafes.
"Our idea is to promote the cocktail culture in India. However, to suit the Indian market we have indigenised about 30 per cent of our menu," said Westhuizen.
The $40 million News Cafe currently operates 47 restaurants in South Africa, Botswana and Nigeria.
"Our next cafes will come up in Hyderabad and Mumbai and then we will open restaurants in other cities. Our main target is the corporate customer," Westhuizen added.
Westhuizen said the company's restaurants will have a size of 3,500-6,000 sq ft with indoor and outdoor seating arrangements.
Source: http://www.franchise-plus.com/Fullstory.asp?news_id=3470&cat_id=1
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