U.S. fast-food chains bet on India to drive growth

The scramble by global food companies into India's fast food sector intensified on Monday as several U.S. chains announced plans to enter the country, hoping to tap the surging spending power in Asia's third-largest economy.

Restaurants like Denny's Corp , known for serving pancakes and sausages all day, and Rita's Water Ice, which would be the first foreign competitor to local water ice brands like Gola, which operates out of little stalls placed mostly on streets, plan to enter India over the next two years.

Pollo Tropical of Carrols Restaurant , known for Caribbean-flavored chicken, Applebee's and Johnny Rockets, known for its hamburgers, are also looking to cash into the Indian quick-service restaurant market worth $13 billion.

All brands will face challenges as they compete with incumbent McDonald's and Yum Brands, not the least of which would be adapting a meat-centric menu to a largely vegetarian palate.

Starbucks Corp and Dunkin Donuts recently announced plans to enter India, taking advantage of a growing preference for coffee and a culture that is increasingly socializing in cafes.

India caps foreign ownership in single brand retail at 51 percent, forcing all foreign chains to seek partnerships to do business in the nation of 1.2 billion people.