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“Eat More Chikin” in India Bringing Chick-Fil-A into the Indian Marketplace An outline of the value of the fast food market in India, the key challenges with the introduction of a new fast food restaurant abroad, our solutions, and financial projections.

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Page 1: Chick Fil-A in India

“Eat More Chikin” in India

Bringing Chick-Fil-A into theIndian Marketplace

An outline of the value of the fast food market in India, the key

challenges with the introduction of a new fast food restaurant

abroad, our solutions, and financial projections.

Page 2: Chick Fil-A in India

2www.chickfila.com |Why Target the Indian Marketplace?A quick overview of the value of the Indian fast food market.

United StatesIndia

63.7 Million PeopleBetween Ages 10-24

Source: US 2012 Census

356 Million PeopleBetween Ages 10-24

Source: CNBC 2015

www.chickfila.com |

Page 3: Chick Fil-A in India

3www.chickfila.com |

50%

17%

13%

13% 7%

Why Target the Indian Marketplace?A quick overview of the value of the Indian fast food market.

Frequency of Fast Food Visits

80% of Indians in Metropolitan Areas Eat Fast Food at Least Once a WeekSource: International Journal of Application Innovation inEngineering & Management 2013

50% of Indians visit fast food

restaurants at least once a week

17% of Indians visit fast food

restaurants at least twice a week

13% of Indians visit fast food

restaurants thrice a week

13% of Indians visit fast food

restaurants once ever 15 days

7% of Indians visit fast food

restaurants at once a month

Page 4: Chick Fil-A in India

4www.chickfila.com |

$18

$20

$22

$24

$26

$28

$30

2015 2016 2017 2018 2019 2020

Why Target the Indian Marketplace?A quick overview of the value of the Indian fast food market.

$27.5BILLION DOLLAR

MARKET BY 2020Source: NOVONOUS 2015

7.0%YEAR OVER YEAR

MARKET GROWTHSource: NOVONOUS 2015

Fast Food Market in India ($US Billions)

Page 5: Chick Fil-A in India

5www.chickfila.com |Key Challenges with the Indian MarketplaceAn overview of the main challenges posed with the introduction of a new fast food restaurant in India.

Religious and Dietary Differences

Consumer Messaging Differences

Production & Distribution Issues

Business & Political Risk

Page 6: Chick Fil-A in India

6www.chickfila.com |

ManageTackling the cultural workplace differences while

addressing the complex business and political risks

of building abroad.

The Indian Fast Food

Market Entry Strategy

A comprehensive three point planto address the key challenges.

The “Triple M” PlanHow to tackle the key challenges and succeed in the Indian market.

MakeOutlining where storefronts will be established, how

resources will be distributed, and developing a

country-wide expansion strategy.

MarketAddressing the religious and dietary differences

between the US and India while crafting a message

native to the marketplace.

Page 7: Chick Fil-A in India

7www.chickfila.com |

The Indian Fast Food

Market Entry Strategy

A comprehensive three point planto address the key challenges.

The “Triple M” PlanHow to tackle the key challenges and succeed in the Indian market.

ManageTackling the cultural workplace differences while

addressing the complex business and political risks

of building abroad.

MakeOutlining where storefronts will be established, how

resources will be distributed, and developing a

country-wide expansion strategy.

MarketAddressing the religious and dietary differences

between the US and India while crafting a message

native to the marketplace.

Page 8: Chick Fil-A in India

8www.chickfila.com |

Since 1995, American fast food companies have expanded into the

Indian market. Yum Brands to date has over 1,000 stores with over

$1 Billion in revenue from the Indian market alone.

The “Triple M” Plan: MakeUnderstanding our competition and outlining our entry strategy

$18

$20

$22

$24

$26

$28

$30

2015 2016 2017 2018 2019 2020

Fast Food Market in India ($US Billions)

Page 9: Chick Fil-A in India

9www.chickfila.com |

JAN ‘17Establish Chick-Fil-A India HQ in Delhi

Manager roles acquired by Transition Team for

first stores. Begin recruitment Internal positions

posted for India.

FEB – DEC ‘17

JAN – DEC ‘18

Training Complete

Complete training of new employees. Begin

opening corporate-owned stores, distribution

sites in Delhi, Chandigarh and Bangalore.

Mumbai Expansion

First stores in Mumbai open. Chick-Fil-A HQ

expands as management and supply chain

grows more complex.

JAN ‘19 -Incentivized Small City Franchise Expansion

Move into smaller cities where competition

isn’t very well established. Offer Executive

Training program to grow internal talent.

The “Triple M” Plan: MakeUnderstanding our competition and outlining our entry strategy

Page 10: Chick Fil-A in India

10www.chickfila.com |

JAN ‘17Establish Chick-Fil-A India HQ in Delhi

Manager roles acquired by Transition Team for

first stores. Begin recruitment Internal positions

posted for India.

FEB – DEC ‘17

JAN – DEC ‘18Mumbai Expansion

First stores in Mumbai open. Chick-Fil-A HQ

expands as management and supply chain

grows more complex.

JAN ‘19 -Incentivized Small City Franchise Expansion

Move into smaller cities where competition

isn’t very well established. Offer Executive

Training program to grow internal talent.

The “Triple M” Plan: MakeUnderstanding our competition and outlining our entry strategy

Training Complete

Complete training of new employees. Begin

opening corporate-owned stores, distribution

sites in Delhi, Chandigarh and Bangalore.

Page 11: Chick Fil-A in India

11www.chickfila.com |

JAN ‘17Establish Chick-Fil-A India HQ in Delhi

Manager roles acquired by Transition Team for

first stores. Begin recruitment Internal positions

posted for India.

FEB – DEC ‘17

JAN – DEC ‘18Mumbai Expansion

First stores in Mumbai open. Chick-Fil-A HQ

expands as management and supply chain

grows more complex.

JAN ‘19 -Incentivized Small City Franchise Expansion

Move into smaller cities where competition

isn’t very well established. Offer Executive

Training program to grow internal talent.

The “Triple M” Plan: MakeUnderstanding our competition and outlining our entry strategy

Training Complete

Complete training of new employees. Begin

opening corporate-owned stores, distribution

sites in Delhi, Chandigarh and Bangalore.

Page 12: Chick Fil-A in India

12www.chickfila.com |

JAN ‘17Establish Chick-Fil-A India HQ in Delhi

Manager roles acquired by Transition Team for

first stores. Begin recruitment Internal positions

posted for India.

FEB – DEC ‘17

JAN – DEC ‘18Mumbai Expansion

First stores in Mumbai open. Chick-Fil-A HQ

expands as management and supply chain

grows more complex.

JAN ‘19 -Incentivized Small City Franchise Expansion

Move into smaller cities where competition

isn’t very well established. Offer Executive

Training program to grow internal talent.

The “Triple M” Plan: MakeUnderstanding our competition and outlining our entry strategy

Training Complete

Complete training of new employees. Begin

opening corporate-owned stores, distribution

sites in Delhi, Chandigarh and Bangalore.

Page 13: Chick Fil-A in India

13www.chickfila.com |

The Indian Fast Food

Market Entry Strategy

A comprehensive three point planto address the key challenges.

The “Triple M” PlanHow to tackle the key challenges and succeed in the Indian market.

ManageTackling the cultural workplace differences while

addressing the complex business and political risks

of building abroad.

MakeOutlining where storefronts will be established, how

resources will be distributed, and developing a

country-wide expansion strategy.

MarketAddressing the religious and dietary differences

between the US and India while crafting a message

native to the marketplace.

Page 14: Chick Fil-A in India

14www.chickfila.com |The “Triple M” Plan: MarketTackling religious and cultural differences in India

Dietary Adaptation Religious Observation

While India remains a diverse

country of different ethnic

groups, all people favor spicy

food. Altering current recipes

is necessary to attract the

Indian market.

Restaurant placement must

consider proximity to

pilgrimage sites. McDonald’s

faced protesters over this

issue and can be used by

Chick-Fil-A as a reference.

Page 15: Chick Fil-A in India

15www.chickfila.com |The “Triple M” Plan: MarketTackling religious and cultural differences in India

Dietary Adaptation Religious Observation

While India remains a diverse

country of different ethnic

groups, all people favor spicy

food. Altering current recipes

is necessary to attract the

Indian market.

Restaurant placement must

consider proximity to

pilgrimage sites. McDonald’s

faced protesters over this

issue and can be used by

Chick-Fil-A as a reference.

Page 16: Chick Fil-A in India

16

Altering company messaging to the

local consumers.

The “Triple M” Plan: MarketTackling religious and cultural differences in India

“Right Product Delivered

Indirectly”Lack of beef is good, but the

message shouldn’t be delivered

outright to consumers.

Product Renaming

Adapt our menu to local menu terms

that will attract Indians to our

foreign product.

Emphasis on Value and

Service Over CheapnessPortray Chick-Fil-A as an affordable

alternative with a friendly

environment.

“Part Indian, Part Us”

Fend off consumer animosity by

making Chick-Fil-A India part Indian.

Page 17: Chick Fil-A in India

17

Altering company messaging to the

local consumers.

The “Triple M” Plan: MarketTackling religious and cultural differences in India

“Right Product Delivered

Indirectly”Lack of beef is good, but the

message shouldn’t be delivered

outright to consumers.

Product Renaming

Adapt our menu to local menu terms

that will attract Indians to our

foreign product.

Emphasis on Value and

Service Over CheapnessPortray Chick-Fil-A as an affordable

alternative with a friendly

environment.

“Part Indian, Part Us”

Fend off consumer animosity by

making Chick-Fil-A India part Indian.

Page 18: Chick Fil-A in India

18

Altering company messaging to the

local consumers.

The “Triple M” Plan: MarketTackling religious and cultural differences in India

“Right Product Delivered

Indirectly”Lack of beef is good, but the

message shouldn’t be delivered

outright to consumers.

Product Renaming

Adapt our menu to local menu terms

that will attract Indians to our

foreign product.

Emphasis on Value and

Service Over CheapnessPortray Chick-Fil-A as an affordable

alternative with a friendly

environment.

“Part Indian, Part Us”

Fend off consumer animosity by

making Chick-Fil-A India part Indian.

Page 19: Chick Fil-A in India

19

“Right Product Delivered

Indirectly”Lack of beef is good, but the

message shouldn’t be delivered

outright to consumers.

Product Renaming

Adapt our menu to local menu terms

that will attract Indians to our

foreign product.

Emphasis on Value and

Service Over CheapnessPortray Chick-Fil-A as an affordable

alternative with a friendly

environment.

“Part Indian, Part Us”

Fend off consumer animosity by

making Chick-Fil-A India part Indian.

Altering company messaging to the

local consumers.

The “Triple M” Plan: MarketTackling religious and cultural differences in India

Page 20: Chick Fil-A in India

20www.chickfila.com |

The Indian Fast Food

Market Entry Strategy

A comprehensive three point planto address the key challenges.

The “Triple M” PlanHow to tackle the key challenges and succeed in the Indian market.

ManageTackling the cultural workplace differences while

addressing the complex business and political risks

of building abroad.

MakeOutlining where storefronts will be established, how

resources will be distributed, and developing a

country-wide expansion strategy.

MarketAddressing the religious and dietary differences

between the US and India while crafting a message

native to the marketplace.

Page 21: Chick Fil-A in India

21www.chickfila.com |

Adapting Indian Decision-Making

Companies tend to have more top-down

decision-making with more junior employees

expecting clear, comprehensive directions.

The “Triple M” Plan: Tackling religious and cultural differences in India

“We should be about more than just selling chicken. We should be a part of our customers’, employees lives and the communities in which we serve.”

S. Truett CathyFounder, Chick-Fil-A Talent Acquisition

Large millennial Indian population will allow

management to source talent, train them, and

have them grow within the company.

Creating the Chick-Fil-A India Identity

Recognize and encourage family commitments

and promote a cultural feedback loop to

consistently improve Chick-Fil-A India.

Page 22: Chick Fil-A in India

22www.chickfila.com |

Adapting Indian Decision-Making

Companies tend to have more top-down

decision-making with more junior employees

expecting clear, comprehensive directions.

The “Triple M” Plan: Tackling religious and cultural differences in India

“We should be about more than just selling chicken. We should be a part of our customers’, employees lives and the communities in which we serve.”

S. Truett CathyFounder, Chick-Fil-A Talent Acquisition

Large millennial Indian population will allow

management to source talent, train them, and

have them grow within the company.

Creating the Chick-Fil-A India Identity

Recognize and encourage family commitments

and promote a cultural feedback loop to

consistently improve Chick-Fil-A India.

Page 23: Chick Fil-A in India

23www.chickfila.com |

Adapting Indian Decision-Making

Companies tend to have more top-down

decision-making with more junior employees

expecting clear, comprehensive directions.

The “Triple M” Plan: Tackling religious and cultural differences in India

“We should be about more than just selling chicken. We should be a part of our customers’, employees lives and the communities in which we serve.”

S. Truett CathyFounder, Chick-Fil-A Talent Acquisition

Large millennial Indian population will allow

management to source talent, train them, and

have them grow within the company.

Creating the Chick-Fil-A India Identity

Recognize and encourage family commitments

and promote a cultural feedback loop to

consistently improve Chick-Fil-A India.

Page 24: Chick Fil-A in India

24www.chickfila.com |The “Triple M” Plan: ManageManaging the various risks involved in entering a new market

Consumer Risk Mitigation

Apply “Old Hands” approach to hiring

executives. Research local preferences

and tastes before opening up new

locations

Social Environment Risk Mitigation

Build a strong corporate culture

that promotes equality, diversity

and integrity.

Employee Risk Mitigation

Invest in intelligence collection

tools to facilitate decision making

based on fact.

Political Risk Mitigation

Purchase insurance. Hire a Chief

Risk Officer that is familiar with

Indian legislation and the political

environment. Support local culture

and events

Page 25: Chick Fil-A in India

25www.chickfila.com |The “Triple M” Plan: ManageManaging the various risks involved in entering a new market

Consumer Risk Mitigation

Apply “Old Hands” approach to hiring

executives. Research local preferences

and tastes before opening up new

locations

Social Environment Risk Mitigation

Build a strong corporate culture

that promotes equality, diversity

and integrity.

Employee Risk Mitigation

Invest in intelligence collection

tools to facilitate decision making

based on fact.

Political Risk Mitigation

Purchase insurance. Hire a Chief

Risk Officer that is familiar with

Indian legislation and the political

environment. Support local culture

and events

Page 26: Chick Fil-A in India

26www.chickfila.com |The “Triple M” Plan: ManageManaging the various risks involved in entering a new market

Consumer Risk Mitigation

Apply “Old Hands” approach to hiring

executives. Research local preferences

and tastes before opening up new

locations

Social Environment Risk Mitigation

Build a strong corporate culture

that promotes equality, diversity

and integrity.

Employee Risk Mitigation

Invest in intelligence collection

tools to facilitate decision making

based on fact.

Political Risk Mitigation

Purchase insurance. Hire a Chief

Risk Officer that is familiar with

Indian legislation and the political

environment. Support local culture

and events

Page 27: Chick Fil-A in India

27www.chickfila.com |The “Triple M” Plan: ManageManaging the various risks involved in entering a new market

Consumer Risk Mitigation

Apply “Old Hands” approach to hiring

executives. Research local preferences

and tastes before opening up new

locations

Social Environment Risk Mitigation

Build a strong corporate culture

that promotes equality, diversity

and integrity.

Employee Risk Mitigation

Invest in intelligence collection

tools to facilitate decision making

based on fact.

Political Risk Mitigation

Purchase insurance. Hire a Chief

Risk Officer that is familiar with

Indian legislation and the political

environment. Support local culture

and events

Page 28: Chick Fil-A in India

28

Conclusion: “Eat More Chikin”Addressing key challenges and succeeding in India

ManageTackling the cultural workplace differences while

addressing the complex business and political risks

of building abroad.

MakeOutlining where storefronts will be established, how

resources will be distributed, and developing a

country-wide expansion strategy.

MarketAddressing the religious and dietary differences

between the US and India while crafting a message

native to the marketplace.