Restaurant Industry has set the benchmark by showing such a tremendous growth over the last decade. Credit goes to India as a food loving country which always welcomes food joints if they could satiate Indian palate in an astounding way. "About 50 per cent of India's population eats out at least once in every three months and eight times in every month in bustling metros as compared to the US (14 times), Brazil (11 times), Thailand (10 times) and China (9 times)," Assocham Secretary General D S Rawat said.
The food industry, which is currently valued at US$ 39.71 billion, is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$ 65.4 billion by 2018. Food and grocery account for around 31 per cent of India’s consumption basket.
The country’s QSR market, estimated to be at Rs 8,500 crore currently, is growing at a compounded annual growth rate (CAGR) of 25 per cent speaks volume in itself. But in today’s demand fulfilling customer’s expectations is an increasingly complex process. Often times, the compromises between customer fulfilment and staying profitable are tricky and non-intuitive.
The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. An innovative idea a day keeps monotony away. Innovation yields techniques that address opportunities for both customer and restaurateur. The way to decide innovation is when customer walks in to their restaurant; does it create a “wow”? An emotional connection? Does it make them need to enter?
Getting the pricing right is again a complex topic. It is not less than a rocket science. Raising prices by 1 per cent can boost profits by up to four times as much as a 1 per cent cut in overheads and fixed costs. Reducing prices on less popular items can help drive volume sales helping restaurateurs clear out obsolete inventory and improve inventory turns. Increasing and decreasing prices on items, or even during items of the day, can maximise total contribution. This is now in the realm of the possible.
Get your Customer Service right
“Customers are spoiled for choices and as a restaurateur we must spoil them with choices. There is a loop in the market which we restaurateurs need to fill”, says Jasmeet Singh Marwah, Managing Director & Chairman of Marwah Group. Restaurant’s ambience, customer service and interaction with customers influence customers more and make them believe that the price is worth paying for the experience according to a study. All in all, restaurateurs need to set expectations carefully so that they don’t end up hitting their own head. In all customer experiences, customer management is half the ball game.
In the end, it’s all about playing smartly and influencing customers. Indians are too traditional in their ways not in just food but about living a life as well. So there is a void that’s what new trends are trying to fill. There are lots of gap to be filled up in each part of F&B sector. Smart Work is good for industry because it’s giving customer more of choices and thereby they’re going out to eat. This diversity would be a new evolution to the market.