Date:27/12/2005 URL: http://www.thehindubusinessline.com/2005/12/27/stories/2005122702760800.htm

Back Mexican food chain plans to enter India

Dharini Nagarajan

New Delhi , Dec. 26

FIRST it was burgers and pizzas, now it is Mexican tortillas that would be trying their luck with the Indian consumer. Una Mas, a Mexican chain of restaurants, is planning to enter the Indian market.

Una Mas would be adopting the quick service restaurant (QSR) model for its chain. "An average QSR is less than 2,500 sq ft in area and offers food varieties in the $6-7 range," said Mr Jag Kapoor, Partner in Una Mas Restaurants Inc.

In Indian terms, the outlets would be serving meals for less than Rs 100. While the seafood may range from Rs 70 to Rs 100, chicken and vegetarian dishes would cost around Rs 70. Mr Kapoor was recently in town to attend the TiEcon summit and is in discussions with numerous real estate dealers for suitable sites for his outlets.

Heritage Ventures, a venture capital firm that acquired Una Mas recently, owns 22 outlets in California and is looking at set up five outlets here, to begin with.

It is surveying cities such as Delhi, Bangalore, and Pune as a possibility. The target group for the chain is 16-40-year-olds who have an appetite for a "sophisticated palate", which Mr Kapoor describes as "young technical or college educated consumers who have been exposed to foreign lifestyles and with discretionary income to spend."

He added: "This young, upwardly mobile, next generation segment is the perfect target as it prefers to eat in hip, vibrant, and energetic restaurants."

The firm is toying with the idea of opening its outlets in different retail formats.

They are most likely to take the form of Una Mas Express, which will be small and QSR-type outlets, while Una Mas Grill would be in the dine-in format.

"The Expresses could be stand-alone stores located in malls or even in workplaces. In fact, we are in talks with some MNCs in India to open our outlets in their work campuses and buildings," Mr Kapoor said.

Although supply chain logistics need to be worked out, the firm is confident about opening its first outlet within the next 3-6 months.