SURVIVAL STRATEGIES FOR INTERNATIONAL FRANCHISEES IN INDIA: A CASE STUDY

Abstract

     

Ruchi Enterprise is an Indian food service company that owns Taco Roast, Sitaram, and Romino's restaurant franchises. Taco Roast is a Mexican-inspired fast-food restaurant chain. It came to India in the third quarter of 2016, with a total of ten franchises, all of which were purchased by Ruchi Enterprise. Taco Roast believed India to be the most suitable market to open its outlets since it has Mexican food to be served at an affordable rate, based on the eating habits of Indians, particularly young people, who frequently visit quick-service restaurants and sample new cuisine. The percentage of profits of Taco Roast outlets began to decline after a few years due to the taste preferences of the Indians as well as their menu containing unfamiliar names as meals. Now, the challenge in front of the board is that either they switch to another brand franchise, Sitaram, which is offering 27 franchises at a 20 percent waive in franchise fee for the lifetime or opt for newer strategies in Taco Roast outlets to survive in the near future. Because Taco Roast owns around 65 percent of the company's total outlets, dumping it is a critical element to consider. But how can they afford to pass up such a huge offer from Sitaram?