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After KFC and MacDonald's of the United States, the leading London-based fast food multinational Dixy Chicken is making forays in the Indian market and will open its first two outlets here by early next year.
"We are investing Rs 3 crore (Rs 30 million) each to open an outlet in Mumbai and Delhi shortly and intend to sign-up franchisees to have 30 outlets within two years," Franchise Director, Dixy Chicken, Kamran Amjad said.
He said the company plans to appoint regional franchisees for North, Central and South India who will then initiate setting up of outlets in their respective areas of operation.
Based on market surveys conducted in India, a business plan has been prepared. Negotiations are on with franchisees and locations for the outlets in Delhi and Mumbai will be identified shortly, he pointed out.
The first two outlets will be opened on 51:49 per cent joint venture basis but the subsequent outlets will be established and run by franchised partners. Amjad said these franchisees will have to pay a licence fee of Rs 10 lakh (Rs 1 million) and monthly royalty will be 5 per cent of the gross revenues.
He said they will also have to shell out an additional three per cent for marketing the Dixy brand in India.
Marketing will be done by a designated independent company and the three per cent of the revenues will directly go to them for the purpose.
The focus of the outlets will be on pizzas, chicken and burgers. The food raw material will be sourced locally and not imported. Talks are on with the abattoirs in India to ensure that quality chicken is used for the preparations, he added.