Pizza lovers now have more reasons to rejoice as Global Franchise Architects which runs food brands including Pizza Corner and Cream and Fudge are expanding their operations in the country with an investment of about Rs 40 crores.
Joseph Cherian, CEO, GFA Global said that in Tamil Nadu alone there were 35 outlets across all brands run by them including Pizza Corner, Cream and Fudge, The Donut Bakers and Coffee World. They are planning to have 10 to 15 more outlets of those brands in which more number of outlets, at least 10, would be for Pizza Corner. “There is a large spending power and it makes sense to accelerate and capture that market. We have plans to open a total of 35 stores across all brands in South India and the expansion will happen in the next year,” the CEO said.
Pizza Corner, which is the third largest in terms of number of stores, will now largely grow through their corporate network while franchising would also continue. Cherian said that 75 per cent of the 60 Pizza Corner outlets have been opened under the franchise business model and the remaining are company owned. This year with the current expansion plans, the company’s strategy would be that GFA will own at least 45 per cent of these franchised outlets. “Our format is mostly dining in a 1400-1500 sqft and 30 per cent would be delivery. We do have kiosks in food courts. The first two quarters this year have seen a reduction in consumer spending compared to last year but again, it has increased this June,” the CEO added. The expansion will also include tier two cities.
According to him, the Pizza industry itself has seen a larger growth by 25 percent. Another popular brand, Cream and Fudge which was launched in Chennai two years ago and had seven stores in various locations including Besant Nagar, Anna Nagar and Kilpauk, will see 10 more outlets adding up to the company’s portfolio as they aim at higher penetration. “Expansion means increased accessibility to people. We will also bring in newer products,” Cherian said.
Apart from the presence of their brands in East India, Thailand, Malaysia, Indonesia, Laos and Vietnam, Cream and Fudge which was launched in Dubai will also see an expansion of about four to five stores in the middle east, Cherian added.