US icons McDonald’s, KFC and Pizza Hut doing big business in Kochi

KOCHI/ NEW DELHI: In an ironic twist, American multinationals are thriving in communist Kerala. It’s most evident in Kochi, the most cosmopolitan city in the state, where fast-food majors McDonald’s, KFC and Pizza Hut are doing sizzling business.


Already known for its fetish for gold — the state consumes almost 10% of the total yellow metal sold in the country — and fad for fast cars — it’s the fastestgrowing market for luxury cars — Kochi is now making another statement, by feasting on burgers, pizzas and chicken wings.

Burger-and-fries chain McDonald’s and Yum-promoted KFC and Pizza Hut say their restaurants in Kochi’s biggest, newest and toniest shopping complex, LuLu Mall, have joined each brand’s top 10 outlets in the country in less than four months of launch.

“The almost instant popularity of such foods is perhaps to do with high literacy rates, affluence and travel and tourism,” says Sandeep Kataria, general manager of Pizza Hut and chief marketing officer at Yum! India. Yum! operates 264 Pizza Hut restaurants and 232 KFC outlets in the country.

Amit Jatia, vice chairman at Hardcastle Restaurants, which operates 161 McDonald’s outlets in South and West India, says, “We are both humbled and overwhelmed by the response.” The North and East India business of McDonald’s is managed by Connaught Plaza Restaurants.

Kerala for long has been more of a source for spices for multinational food chains; but now it’s transformed into a booming market as well, thanks to changing lifestyles and food culture, particularly in big cities such as Kochi.

Hardcastle has already launched the second Big Mac store in Kochi, at MG Road, and the blueprint for the third store is ready, its officials say.

Yum! officials say KFC is leading quick service brand in Kerala with seven restaurants in the state. While youngsters drive the demand mostly, others such as working women and housewives too find these quick-service restaurants convenient and tasty. Nina Nair, a Kochi-based content writer, says her family eats out at least three to four times a month, mostly in LuLu Mall. “Each time the choice is between KFC and Domino’s Pizza,” she says.

Neelam Senan, a housewife, says she visits McDonald’s regularly for its spicy chicken burgers.

But the main patrons of these stores are the youngsters. “Most of our customers are repeat customers,” Shyam S, manager at a Pizza Hut store in Kochi, says. “These are youngsters who visit the restaurant at least three to four times a week.” On Valentine’s Day this year, Pizza Hut sold heart shaped pizzas to woo the young crowd.

A significant chunk of middle class consumers in the state is not affected by the overall slowdown in economy because of the sizable presence of non-resident Keralites who work abroad and earn in dollars. In fact, their incomes have increased because of the recent free fall of the rupee. These non-residents’ exposure to multinational food chains too are contributing to their rising demand.

“Keralites, who have migrated to major job markets, are well exposed to the different tastes and food culture,” Naushad, promoter of restaurant chain Naushad the Big Chef, says.

Experts in the food industry also say demand for traditional food too is growing in the state. S Bhasi, who runs Shappu Curry, a restaurant that serves the traditional food sold in toddy shops, says that he gets customers from different parts of the state.

LuLu Mall, which opened in March this year, has an average footfall of 55,000 a day — nearly double the figure the mall projected initially. It is the country’s largest shopping mall in gross leasable area, built on 17 acres and housing more than 300 outlets including food courts, family entertainment zones, a multiplex, an ice skating rink and a 12-lane bowling alley.