QSR Sector has experienced a steady growth of 20 per cent in the last few years. 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 per cent by 2020 due to changing consumer behavior and demography.
Fast food market in India is expected to be worth US$ 27.57 billion by 2020.
It’s Burger War in India
When McDonald’s entered India the term burger was very new to Indians, they have known Vada Pav but not burger. For majority of Indians burger was a foreign invention of a Vada Pav. McDonald’s was one of the first brands to introduce burgers in India as well as the QSRs as a format. Initially and significantly they did the very first conversion of Indian consumer from ideal restaurants to QSRs. With their burger, McDonald’s have introduced the term fast food to Indian market which later transformed itself in to one of the fastest growing business sectors in India. They changed the consumer mindset by introducing burger in the category of a meal and about a burger being a high-end product. We can surely say that McDonald’s has benefited the Burger business in various ways and has opened the gate for other burger businesses. Talking about market it has divided the market in two various segments one is price sensitive and the other is product sensitive. Market created by McDonald’s will now create opportunities for local burger brands.
Opening Doors for many
Closing of the McDonald’s outlets will impact the burger business in a big way but only to some extent. Also, businesses like us which is a dusk to dawn delivery chain which focuses on delivery services because of the closing of the McDonald’s outlets now the regular McDonald’s customer who prefers online ordering during our delivery timings will definitely convert in to a Dudleys consumer. Burger players are trying to cater to a price sensitive consumer and closing of McDonald’s will somehow benefit these brands with more brand loyal customers.
Hence, we can say that with McDonald’s shutting outlets in east in north regions would definitely give way to new players and existing players in the country.