This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/2/2019

Overview

Although the present franchise market is relatively small, it has the potential to expand.  KFC and Pizza Hut both operate restaurants in Kathmandu, the first foreign food franchises in Nepal.  Nepali locals represent approximately seventy percent of demand, with the remaining thirty percent from foreigners.  There are a number of U.S. and international brands operating in Nepal including Coca-Cola, Pepsi, Western Union, Hyatt, Radisson, Marriott, DHL, United Colors of Benetton, Cookie Man, Baskin Robbins, Wimpy, Hot Breads, Bata, Puma, Reebok, and Adidas.  Indian franchises have also entered the Nepali market including Gini and Jony, Time Square, Planet Fashion, Raymonds, Angan, Lilliput, Big Cinemas, John Players, Peter England, Provogue, Yana Sizzlers, Kendriya Vidyalaya, Patanjali Chikitsalaya, Aptech, NIIT, and Eurokids.

Leading Sub-Sectors

Fast food restaurant chains
Coffee houses
Clothing
Sports Equipment
Hotels

Opportunities

Franchises have the opportunity to expand in Kathmandu and Pokhara, two of Nepal’s largest cities and tourism hubs.  Market growth is projected at 25 percent through the first few years of establishment.  Key benefits of a franchise lie in brand name equity and quality consistency.  With about one million tourists arriving every year, as well as a sizeable expatriate community, fast food franchises hold excellent potential.  The climate is improving for expansion in other growing Nepali cities, such as Birgunj, Biratnagar, and Bhairahawa. Market entrants should take a long-term view.  In recent years, due to increased consciousness of quality and durability of goods, demand for branded products has increased.

Web Resources

Because the franchise sector is developing, research data or trade leads are not available.  The Political/Economic Section of the U.S. Embassy keeps track of strong expressions of interest in U.S. franchises by the local business community.  For information on potential local partners, U.S. businesses may contact the Economic and Commercial Officer at the U.S. Embassy in Kathmandu at:basnyatap@state.gov.
 
 

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