Quick service restaurants

  • The fast food or QSR, format took off in India about 19 years ago with the arrival of McDonald’s in 1996. Many global brands followed the suit since then, either through company-owned stores or the franchisee model, or a mix of both.
  • The chain space is marked by the presence of more than 120 brands with more than 4,000 outlets spread across various cities in India.
  • The sector in India is currently growing at a compounded annual growth rate (CAGR) of 25 per cent and is likely to touch Rs.25,000 crore mark by 2020 from the current level of Rs.8,500, according to an analysis by apex industry body Assocham.

Reasons for growth

  • Entry of various national and international players
  • Fast expanding middle class
  • Urbanisation,
  • youth spending,
  • nuclear families
  • better logistics
  • increased participation of women in the workforce,
  • increased exposure to international cuisine and
  • needs for elevated protein consumption

Current trend

  • The QSR segment is expected to witness increased activity via market expansion and entry by various players
  • At the city level, a large share of the QSR market rests in metros and mini metros due to higher consumption, heightened consumer awareness, and exposure in key cities such as Delhi, Mumbai, Bengaluru, and Hyderabad.
  • Slowly, QSRs have established their footholds in the major cities and are now expanding into smaller cities with smaller formats.
  • To withstand the competition, most of the players are tailoring their offerings in terms of flavours, pricing and services to meet Indian consumers’ inclinations.
  • Some efforts reflecting this include the opening of pure vegetarian restaurants in certain parts of the country, offering no beef-based products, establishing separate cooking areas for vegetarian and non vegetarian food, introducing local flavours in the menu, offering home delivery services etc.
  • With the entry of Indian and international brands into the space encouraging affordable eating and enabling the indulgence of even customers with smaller pockets.
  • The market is quite competitive in nature with players operating via core menu offerings and introducing variations in Indian and international foods.
  • A noteworthy aspect is the focus of Indian players on multiple cuisines, which contrasts the international players’ focusing on a single cuisine or product category
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