While in Nepal for a friend’s wedding earlier this month, I was so eager to try new foods that the bride imposed a street-food ban to ward off gastrointestinal collapse in advance of her special day(s). Between mouthfuls of momos, achars and aloo, I noticed that the people I was with had something else on their lips: KFC.
Nepal is one of the last countries in the world without an international fast-food chain, but that is about to change. Varun Beverages, a Nepali Pepsi bottler (owned 70% by The RJ Group, an Indian conglomerate) plans to open a Pizza Hut in Kathmandu this fall. A KFC is expected to follow. (That said, a Nepali Times article from August 2008 reported that Pizza Hut was scheduled to open before the end of last year.)
KFC and Pizza Hut are both part of YUM! Brands, the world’s largest restaurant company. YUM!’s global diversity strategy includes rapid expansion into China, which is seen a boon to investors.
“With more than 36,000 restaurants in over 110 countries and territories, Yum! Brands international growth sees no signs of stopping as we continue to enter international markets, introducing people around the world to our winning brands.”-Yum! Brands website.
For some, fast food is a global clubhouse wherein packaging, upbeat jingles, and top-secret flavors are enjoyed by an international brethren, united by salty fingers and grease-glossed lips. Regional tailoring of these international brands accommodates local preferences and makes for great screenwriting. (See: Pulp Fiction; 30 Rock, Season 3, Episode 7-Senor Macho Solo). Others see the arrival of arches, huts, and colonels as a fall, an invasion, the succumbing to a global regime.
Considering how long Nepal has lasted without international franchises, one wonders: why now?
The Nepali Times speculated that the estimated $1 million annual franchise cost was preventing entry into the market. Price fluctuations, bandhs (protests/ strikes), water shortages, and power cuts are among the logistical challenges that many Nepalis face daily. If you’re in the quality controlled, frozen chicken-parts business, this is not a good sign.
Clearly, someone with money thinks that there is more money to be made. The expansion and growth of the Nepali “Bakery Cafe” chain is seen as evidence of demand for fast food. Moreover, tastes are changing. International media and entertainment help build brand familiarity. As younger generations (with the means to) study abroad in India, Australia, England, the U.S. etc. they bring home new experiences and expectations. Expats, trekkers, and tourists, also play a part in shaping demand, especially in the capital city.
Expats in Nepal say that the wood-stove fired pizza at Fire & Ice in Thamel rivals the best pies in the States. One boldly claims it could even take on Frank Pepe’s.
The Nepali Times interviewed the owner of the Roadhouse Café, a successful Kathmandu pizza chain restaurant:
Nepalis have become more experimental in their taste, they are eager to try new items in the menu,” explains Chandan Kayasta, owner of Roadhouse Caf?, “we see real potential for the food industry to grow.
My friend hopes to stage a protest in Kathmandu when KFC opens. I’m sure her in-laws will be thrilled. A post on Kathmandu Blog about KFC and Pizza Hut generated several comments, debating fast food’s impact on the local economy and feminine hotness.
This is the worst news ever. Nepal is poor but at least our girls are skinny and hot! And the guys… well, at least we’re not fat. Friends don’t let friends eat at KFC or Pizza Hut - spread the word. http://socialect.com/posts/463“–sthapit April 27, 2009
Yea, that is very true. Healthwise, that is probably not good for people in Nepal. May be they’re trying to get Nepalese people to become obese. Lol. That would suck if the girls in Kathmandu got all fat with too much cellulite. As for their profitability, I think they are just testing these these two out. And I’m sure if they think business is somewhat successful, they’ll have another 50 built in no time. –nepse21, April 25, 2009
Well, good or bad. Bad because it’s unhealthy, good because it’s kind of Nepal going global. As far as investment is concerned, we’ve still gotta see major foreign investment in mass job producing sector. Perhaps the opening of KFC or any international fast food chain could send a positive msg to foreign and domestic investors that it is safe to do business in Nepal. For now, it is wait and see.-bihan, June 8, 2009
Regardless, the points raised about health merit further exploration. Preliminary studies in Nepal (there aren’t many large data sets with this information) have shown a high prevalence of diabetes in urban Nepal (Singh and Battarai). Although national overweight prevalence data for Nepal are relatively low–8.85% for men, 8.0% for women–the figures arepredicted to rise over the next five years, especially in urban areas. Although Nepal is among the least urbanized countries in South Asia, its urban population is the fastest growing in SAARC. Lastly, a 2005 article by researchers from UNC Chapel Hill and the National Institutes of Health reported that more women in developing countries are overweight than underweight.
In other words: a fast-food revolution in Nepal is probably bad for health outcomes and stuff. Of course, this assumes that KFC and Pizza Hut will open according to plan.
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