Tamil Nadu-based masala brand, Aachi Kitchen is planning to open a chain of Chettinad restaurants, the latest diversification of this nearly two-decade-old group inspired by the success of global chains such as KFC and McDonalds according to a report by Sanjay Vijayakumar and Sangeetha Kandavel in Economic Times.

Aachi Kitchen will start in the first quarter of this year in five locations. “First, I want to see whether I can sustain and then blow the trumpet,” said AD Padmasingh Isaac, Founder and Chairman, Aachi Kitchen, who refused to say how much he is investing in this venture.

Isaac, a first-generation entrepreneur who belongs to Nazareth in Tirunelveli district, started selling masala under the Aachi brand in 1995. This year, he expects to clock revenue of Rs 750 crore.

Holding a bachelor’s degree in business administration, he worked as area manager for Godrej’s personal care products unit for a decade before becoming an entrepreneur. Over the years, the Aachi group has extended to products such as herbal cosmetics, herbal cough syrup and even a matrimonial site. But the restaurant foray is likely to be the biggest-ever extension under the Aachi name.

Aachi’s decision comes at a time when a slew of South Indian players are upping the game in the food business. The likes of Hotel Saravana Bhavan and Adyar Ananda Bhavan have global ambitions in this space. More specifically, though, the quick service restaurant market where Aachi expects to play, is expected to swell in size in the years to come. A September 2013 report of Crisil said it expects this format to double in size to Rs 7,000 crore by 2015-16 from three years earlier.

source: http://www.hospitalitybizindia.com / HospitalityBizIndia.com / Home> F&B Overview> F&B / by HBI Staff, Mumbai / Wednesday – January 08th, 2014