Wai Wai Enters into Quick Service Restaurant Format

India: Nepal’s noodle maker CG Corp Global, which sells its noodles under the Wai Wai brand, has announced to enter the quick service restaurant space. The company is planning to set up 1,500 noodle bars over the next five years under the brand name Wai Wai across multiple markets.

The restaurants will enter the market in partnership with franchise and retail solution provider Franchise India, on an estimated investment of around USD38 million.

According to TechSci Research the CG Corp Global has created a significant presence in Indian noodle market through its brand Wai Wai. The company’s plan to foray into food services sector through an unconventional QSR format is expected to benefit the company due to increasing awareness and growing popularity of its brand.

According to recent report published by TechSci Research “India Food Services Market Forecast & Opportunities, 2020”, the market for food services in India is expected to grow at a CAGR of over 12% through 2020. Growth in the market is anticipated primarily on account of higher disposable income, improved standard of living and changing preferences of consumers. In addition, expansion of brands into tier II and tier III cities, is also a major factor which is expected to drive growth in food services market of the country over the next five years. In 2013, the market was dominated by unorganized and non-branded players, however, with growth of various foreign and domestic brands, these players are expected to lose their market to organized branded players. Segment-wise, dining food services segment was the largest contributor in India food services market in 2014, on account of the large number of dining restaurants in the country. The segment is expected to retain its dominance in the market over the forecast period as well.