New Delhi: Australian firm Foodco Group on Thursday announced the entry of its bakery and cafe chain 'Muffin Break' in the Indian market through a partnership with South Asian Food & Hospitality Services, with plans to open 40 outlets in five years.
"We always wanted to be in India. It is a large market but the challenge was to find the right partner, that was the key limitation," Foodco Group Pty Ltd Executive Director Robert Fitzgerald told PTI here.
Under the partnership with South Asian Food & Hospitality Services Pvt Ltd (SAFHS), Muffin Break will open around 40 outlets in the next five years, he added.
Foodco Group has entered into a regional license partnership with SAFHS, which will operate Muffin Brand in India, Fitzgerald said.
When asked about the investments on opening on Muffin Break outlets, SAFHS Chief Executive Parvin Juneja said :"We will be spending around Rs 40 crore to open these 40 outlets. The first cafe will be opened in Delhi in next two days."
As part of the franchise agreement, Juneja said royalty fees, which will be a 'percentage of sales' will be given to Foodco Group.
"Later we will also sub-franchise the cafes," he added.
Foodco Group started its operations in Australia in 1989 and presently has over 370 franchise business retail outlets across the world, trading through three brands -- Muffin Break, Jamaica Blue and Dreamy Donuts.
"We might also open Jamaica Blue cafes in India in future but right now it is Muffin Break," Fitzgerald said.
First Published: Thursday, September 27, 2012, 16:38