QSR Sector has experienced a steady growth of 20 per cent. Restaurant industry has proved its growth and this sector have provided employment to the 9 million people in this country. This industry has also contributed in country’s revenue and made the country liveable.
A report produced by Research and Markets say that Indian fast food market is expected to grow at a CAGR of 18% by 2020 due to changing consumer behaviour and demography.
Fast food market in India is expected to be worth US$ 27.57 billion by 2020.
About 10% of the fast food market in India is organized. NOVONOUS estimates that the organized fast food market in India is expected to grow at a CAGR of 27% by 2020.
Vegetarian fast food constitutes of around 45% of the whole fast food market in India and is expected to grow at a CAGR of 18% by 2020.
According to the report, global fast food market was valued at over USD 539.63 billion in 2016, is expected to reach above USD 690.80 billion in 2022 and is anticipated to grow at a CAGR of slightly above 4.20% between 2017 and 2022.
For any business, a thorough market research is a must. Study the market, its demands, where will the supply come from, and analyse it thoroughly before jumping into the line. Market analysis will clear the clouds from the surface by addressing some very important questions, such as what do you want to serve to your customers, where does your restaurant stand in the market, is there any demand for any particular cuisines or food type in the market now or in future, who all are your competitors in the market, how can you attract the customers and what are your expectations from the market?
No Unnecessary Investment
The best part of QSR model is there are no unnecessary investments other than paying the staff and things required for cooking. There is no extra investment involved for hiring more staff for serving and cleaning purpose, or interior decoration or sitting arrangements or valet parking. The entire focus of the business narrows down to maintaining the quality of the food, being served to the customers.
Attracts More Crowd
These models can be opened in shopping malls, amusement parks, theme parks, and multiplexes, where the crowd is always high. And eating in a restaurant is not every one’s cup of tea; QSRs are the quick option for them, just grab and go. It will further help in marketing the brand to broader audience, when they are exposed to the quality of food and variety of options than the regular ones.
QSRs have become Commodity
Things have changed in QSR market because customers have changed over a period of time or we can say that India has grown with time. “Around 15 years back when multinational QSR formats like, KFC, Dominos, Mc Donalds et cetra entered into Indian food industry they were more of aspirational brands to India. They have never seen those brands and also there was an increase in income at that time so people started liking sitting there and enjoy. Now these aspirational brands have become commodity brands because they are more known for a quick bite and they are less expensive. Delivery and take away are becoming new trend in QSRs as 80per cent business in QSR belongs to delivery and take away only,” says Sandeep Singh, CEO at Papa Johns.