Pakistan Franchise Boom

With the world’s 6th largest population and a 70 million strong middle class spending 90 Billion Rupees ($924 Billion) per annum on eating out alone, Pakistan offers an opportunity second to none for international brands. With the gradual saturation of franchise opportunities worldwide, investors are looking for under developed markets, and with a population of almost 190 million Pakistan is seen by experts as:

'The World's Largest Untapped Market for Franchising.’

Consumer spending in the country has increased at an average of 26 per cent over the past three years, compared with 7.7 per cent for the rest of Asia, according to data compiled by Euromonitor International. Pakistan’s rising middle class consumers in major cities like Karachi, Lahore and Islamabad are driving sales of international brand name products and services. Real estate developers and retailers are responding to it by opening new mega shopping malls such as Dolmen in Karachi and Centaurus in Islamabad. Yet a Bloomberg report from July of 2012 showed Pakistan has the fewest fast-food stores for its population among 34 emerging markets. The nation has 0.55 outlets for every 100,000 urban residents, compared with 1.33 for India and 4.15 for Turkey.

Unilever recently doubled production after the Anglo-Dutch company struggled to meet demand.

"Pakistanis can’t seem to have enough”.

Ehsan Malik, Chairman Unilever Pakistan.

Fullerton, California-based Tutti Frutti Frozen Yoghurt, that has 20 outlets in Pakistan since opening in late 2011, plans to start 100 more this year, said Naeem Niazi, director for International Business Development at Wellspring Industry Inc., owner of Tutti Frutti.

“Pakistan is an amazing destination for food outlets because eating out has become the nation’s biggest source of entertainment,” said G Hussain Soomro, owner of Berrylicious, another local frozen yoghurt chain that opened in 2011.

“Every new place that opens up is packed - The spending power of the masses when it comes to eating out is amazing.”

G Hussain Soomro

Did you know?

Pakistan has continued to offer much greater upward economic and social mobility to its citizens than neighbouring India over the last two decades. Since 1990, Pakistan's middle class had expanded by 36.5% and India's by only 12.8%, according to an ADB report titled "Asia's Emerging Middle Class: Past, Present And Future.

With expediential growth in the food sectors, experts are now predicting a boom in non-food sectors such as retailing, convenience stores, hotels & motels, courier services, security services, cinemas, amusement parks/arcades and educational training centres.