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 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.
It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and six per cent of total industrial investment. Indian food service industry is expected to reach US$ 78 billion by 2018.The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by three times by 2020.
The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential to attract as much as US$ 33 billion of investment over the next 10 years and also to generate employment of nine million person-days.
Coming up with a restaurant is not a cake walk but the most difficult part of this business is to be in the game, for which it is important to build the restaurant brand:
Define Your Restaurant Brand:
India is a home for foodies, which is one of the reasons why the number of restaurants, fast food corners and production of food products are multiplying themselves on daily basis.
Thus to stand out in the crowd, it is important to define your restaurant brand and to define that one needs to answer some vital questions before going forward:
Who are you?
What are you doing?
Why are you doing it?
In short keep your unique selling point (USP) clear in your head. These answers will help you in figuring out the basic idea of starting the business in the first place and will even push you in putting efforts to build the brand.
There is a combination of four aspects that draw revenue for the brand and they are: Product, Price, Place and Promotion.
Brand positioning, helps in directing and narrowing down brand awareness to the target audience.
It will solve a number of problems such as identifying the key partners, who will help in the investments, key activities, on how to proceed further, determining value positioning, customer relationship, key resources, distribution channels, cost structure and revenue stream.
Research reports seem to indicate that Indian consumers seem to be patronising Italian cuisine the most, gulping down pizzas and pastas. Chinese comes next. This, reports say, is largely fuelled by young consumers aged 14-45 years.
Get Technologically Connected:
The technological bug has bitten everybody and if you still live in that old school thought bubble, of promoting or marketing on newspapers and radio ads, then time to burst it and hit the social media for promotions.
Social media alone has produced many restaurateurs, food bloggers, chefs, who have become online celebrity.
Internet and technology create convenience, so take advantage of it to create the kind of space people look forward to returning to. Look at your market and ask yourself what kind of conveniences technology can offer them.
Offer free wi-fi to customers, online gaming space for kids or you can create a technologically themed space, these can fetch you a lot of families and children.