Growth in Indian Franchises and the Expansion of Indian Focused Franchises

Indian franchise brands are experiencing explosive growth in North America, driven by a massive diaspora population and increasing mainstream interest in Indian culture. With India’s franchise market projected to reach $140-150 billion by 2028, U.S. and Canadian markets are becoming prime targets for expansion—particularly in food, education, and lifestyle concepts.

This comprehensive guide explores how Indian-centered franchise systems are successfully entering North American markets, with concrete examples, statistics, and strategic insights for franchise investors and consultants.

The Indian Franchise Engine: Scale and Growth

Over the last decade, India has quietly emerged as one of the world’s franchise powerhouses. The numbers tell a compelling story:

• India is now the world’s second-largest franchise market, with approximately 4,600 active franchisors and nearly 200,000 franchise outlets operating across multiple sectors
• The Indian franchise industry is valued at $47-48 billion and growing at an impressive 30-35% annually
• The sector contributes close to 2% of India’s GDP, demonstrating its economic significance
• Multiple reports project the Indian franchise market could reach $140-150 billion by 2028
• Approximately 300+ new companies start franchising in India every year

What’s Driving This Explosive Growth?

Several key factors are fueling the expansion of Indian franchise brands:

• Rising disposable incomes and urbanization across India’s major cities
• A young, aspirational consumer base eager for branded experiences
• Growing entrepreneurial comfort with franchise models as a preferred scaling route
• Increasing sophistication in franchise operations and support systems

As this domestic ecosystem matures, Indian brands are naturally looking outward—using franchising to reach global markets, with North America at the top of their expansion list.

Why the U.S. and Canada Are High-Priority Targets for Indian Franchises

The Power of the Indian Diaspora

The most compelling reason for North American expansion is the size and economic power of the Indian diaspora:

United States Statistics

• The Indian-origin population in the U.S. is approximately 5.2 million as of 2023
• Indian Americans are the second-largest Asian origin group in the country
• Between 2010 and 2020, the Indian American population grew by 50% nationally
• Fastest growth is in California, Texas, New Jersey, New York, and Illinois
• In 2024, Indian students accounted for 27% of all international students (approximately 420,000 students)

Canada Statistics

• People of Indian origin in Canada number approximately 1.86 million (5.1% of total population)
• Indian Canadians are the largest non-European ethnic group
• In 2024, 23% of all new Canadian citizens were Indian nationals
• Major concentrations in Toronto, Vancouver, Calgary, and Edmonton

This creates a dense, high-income, culturally aligned customer base in major metros—perfect testbeds for Indian franchise brands entering North America.

“Franchise Diplomacy”: Brands as Cultural Ambassadors

Industry analysts have coined the term “franchise diplomacy” to describe how Indian brands act as cultural ambassadors while tapping global funding and local partners.

The typical expansion playbook includes:

1. Building a strong base in India through company-owned and franchised outlets
2. Using diaspora-dense markets (UAE, UK, U.S., Canada) as early global expansion targets
3. Leveraging master franchise or area development agreements to reduce capital expenditure
4. Partnering with local operators who understand real estate and regional compliance

Top Indian Restaurant Franchises Operating in the U.S. and Canada

Foodservice represents the most visible sector of Indian franchise expansion. Here are the leading brands making significant inroads in North America:

1. Saravanaa Bhavan – Global South Indian Vegetarian Leader

Saravanaa Bhavan, founded in Chennai in 1981, is one of India’s most successful globalized restaurant chains.

Key Statistics:

• Operates 33 locations in India and over 90 outlets across 28 countries
• Specializes in South Indian vegetarian cuisine (dosa, idli, vada, thali meals)
• Positions itself for both diaspora nostalgia and mainstream vegan/vegetarian consumers

North American Footprint:

United States: Multiple outlets in New York City, New Jersey suburbs, Houston, Dallas, Sugar Land, Plano, Richardson, Fremont, and Sunnyvale

Canada: Established locations in Scarborough, Mississauga, Brampton, and Delta (Surrey)

Growth Strategy: Start in high-density diaspora markets, prove unit economics, then expand through franchised outlets in the same metro and adjacent cities.

2. Sankalp – Multi-Cuisine Indian with Global Reach

Sankalp has deliberately used franchising for international growth since 1980.

Key Statistics:

• Grown to 150-250 restaurants worldwide across India, U.S., Canada, Australia, New Zealand, and UAE
• Positions itself as the “world’s No. 1 authentic South Indian restaurant chain”
• Offers turnkey franchise support systems and standardized operations

North American Presence:

United States: Chicago area (Warrenville/Naperville), New Jersey (Parsippany/Cedar Knolls), and Dallas-Plano

Canada: Operates under “Sankalp Restaurants Canada” brand

Franchise Appeal: Strong vegetarian heritage, proven multi-country operating model, comprehensive training and support.

3. Bikanervala – Sweets, Snacks, and Casual Dining Empire

Bikanervala, which began as a small sweet shop in the early 1900s, has transformed into a multinational franchise powerhouse.

Key Statistics:

• Operates 150-225 outlets globally including U.S., Canada, UAE, Qatar, New Zealand, Singapore, and Nepal
• Packaged brand Bikano exports to nearly 30 countries
• Recently invested in Dubai manufacturing facility to support global expansion

Expansion Highlights:

• Recently entered Chandler, Arizona—moving beyond traditional coastal diaspora hubs
• Operates hybrid retail + franchise model
• Products available in Indian and mainstream grocers across North America

Strategic Advantage: Retail distribution builds brand awareness before restaurant franchising, leveraging existing brand equity.

4. Chai Sutta Bar – Youth-Oriented Chai Culture Concept

Chai Sutta Bar (CSB) is a high-growth QSR concept built around kulhad chai (tea in clay cups) and Indian street-snack culture.

Key Statistics:

• Founded in 2016, grown to 600+ franchise outlets across 370+ Indian cities
• Self-described as the “biggest chai chain on the planet”
• Rapid growth driven by strong supply chain and franchise audit systems

North American Expansion:

Canada: Multiple outlets in Calgary, Montreal, Edmonton, and Surrey with active franchise recruitment

United States: Planned expansion including Atlanta, Georgia location

Market Significance: Proves North America isn’t just accepting full-service Indian restaurants—youth-oriented, category-specific formats are thriving.

5. Haldiram’s – FMCG and Restaurant Hybrid Model

Haldiram’s has evolved into an Indian snacking and QSR giant with significant international presence.

Key Statistics:

• International outlets in U.S., Canada, and multiple other countries
• Recently secured approximately $1 billion in investment commitments from Temasek and other major firms
• Products widely available at Indian grocers and increasingly in mainstream retail

Lesson: Combining FMCG distribution with selective franchised outlets dramatically accelerates brand awareness and supports brick-and-mortar expansion.

Beyond Food: Education and Digital Franchise Models

While food franchises grab headlines, Indian education and digital franchises are quietly expanding into North America.

Indian EdTech Franchise Expansion

• BYJU’S and Cuemath are using master franchise and partnership models to expand in over 70 countries
• These brands operate in North America with localized content and regional franchise partners
• Digital-first models offer lower capex and faster scalability
• Focus on student acquisition and compliance rather than brick-and-mortar infrastructure

Hybrid models combining licensing, franchising, and online subscriptions represent the next wave of Indian franchise expansion in K-12 support, test prep, STEM, and skills training.

Market Statistics and Future Growth Projections

When analyzing all factors, the growth outlook for Indian-centered franchise systems in North America is exceptionally strong:

Consumer Demographics

• U.S.: 5.2 million Indian-origin residents with high educational attainment and above-average household incomes
• Canada: 1.86 million Indian-origin residents, plus total South Asian population of 2.6 million
• Both markets feature ideal demographics for franchise investors and premium customers

Domestic Indian Market Strength

• 30-35% annual growth rate in India’s franchise sector
• Thousands of franchisors creating a deep bench of potential exporters
• Runway to $140-150 billion by 2028 ensures continued international expansion

Category Momentum in North America

• Curry Up Now (U.S.-born Indian fast-casual) has become one of the largest Indian chains with active franchising
• Chutneys Indian Grill and HomeTaste in Canada demonstrate scalability of Indian-centered formats
• Indian cuisine is transitioning from mom-and-pop to mainstream franchise category

Strategic Implications for Franchise Development

For franchise consultants, developers, and investors, several clear patterns emerge from Indian franchise expansion into North America:

1. Master & Area Development Are Default Entry Models

Most Indian brands entering North America prefer master franchise or area development agreements with commitments to multiple units over time. They typically cluster in diaspora hubs first before expanding to secondary markets.

2. Menu Localization Is Subtle, Not Radical

Successful chains preserve their Indian core while making tactical adaptations:

• Clearer communication on spice levels
• Expanded gluten-free and vegan options
• Portions and price points adjusted to North American expectations
• Strategic introduction of non-vegetarian options for traditionally vegetarian brands

3. Retail + Franchise Flywheel Is Powerful

Brands like Bikanervala and Haldiram’s demonstrate how packaged product distribution through supermarkets can pre-seed awareness for later restaurant franchising. This hybrid approach significantly reduces customer acquisition costs.

4. Education & Digital Franchises Are Under-the-Radar Growth

Indian edtech and training brands franchising into North America represent a second major wave after foodservice. Expect significant growth in K-12 support, test prep, STEM education, and skills training sectors.

Conclusion: A Multi-Billion Dollar Opportunity

Indian franchise brands are no longer testing North American waters—they’re executing sophisticated, multi-unit expansion strategies backed by proven domestic success and strong diaspora demand. With India’s franchise market on track to reach $140-150 billion by 2028, the pipeline of internationally-ready brands will only deepen.

For franchise investors and consultants, this represents a significant opportunity to partner with culturally rich, operationally mature brands entering a receptive North American market.