Overview

Although the present franchise market is relatively small, it has the potential to expand.  KFC and Pizza Hut both operate restaurants in Kathmandu.  Nepali locals represent approximately seventy percent of demand.  There are a number of U.S. and international brands present in the Nepal market 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 recognition and quality consistency.  With growing local demand, approximately one million tourists arriving every year prior to the pandemic, and a sizable expatriate community, fast food franchises hold excellent potential.  The climate is improving for expansion into other growing Nepali cities, such as Birgunj, Biratnagar, and Bhairahawa.  In recent years, due to increased consciousness of quality and durability of goods, demand for branded products has increased.

Resources

Because the franchise sector is still developing, research data and trade leads are not yet available.  In early 2018, Embassy Kathmandu became a “Partner Post” of the U.S. Foreign Commercial Service (FCS) in New Delhi.  FCS India is responsible for commercial issues in India, Nepal, Sri Lanka, and Bangladesh and for assisting U.S. companies looking to export their products and services to these markets.  A number of business services/programs, some fee-based, are provided through Embassy Kathmandu’s Political/Economic Section under this Partner Post arrangement, including commercial reports for U.S. businesses and connecting U.S. businesses with local companies of interest that could include buyers, agents, distributors, sales representatives, and other strategic business partners.  Requests for these services can be directed to U.S. Export Assistance Centers or to the Commercial Service New Delhi office at:  office.newdelhi@trade.gov