In last one year, Indian QSR has witnessed a slowdown in same store sales and adding number of store count. On one hand the segment contributes highest to the Indian restaurant business, whereas on the other hand regular innovations are pushing QSRs to come out of the shell that they have been living in.
Today customers are looking for an experience that lasts forever and are in no hurry to grab a meal from the nearest fast food restaurants. And, if they have to do so they’ll prefer ordering online rather than grabbing meal from their favourite QSRs which are no more upgrading itself.
What’s stopping them to grow?
QSR market which sits at 45 per cent of the total market share is captured by both Indian as well as western QSRs who started the trend of fast food in India but to astonishment the segment has closed 20 outlets in India all thanks to the growing India made food brands and eating out preferences which has changed in last two years due to growth of more customer centric platforms and food start ups and chef based meal options.
Also, many fast food restaurants which has entered India in 2014/2015 are either serving burgers or pizza which is already over flowing in the Indian market thanks to McDonald’s for setting up the fast food especially the burger culture in India almost 19 years back and since, there is nothing new for consumers to try these restaurants are dying out of new competitions and lack of innovations.
“A high per cent age of India’s population will be in the age group of 15-25 years with increased urbanisation and consumerism, they will be more likely to consume processed food and eat more often,” shared a report released by FICCI and this could be cited as one of the strongest reason which is pushing QSRs to either market themselves according to consumers or pack their bag.
Revamping is the key
The QSR segment in India is witnessing a lot of interest and activity. This coincides with the growing affluence and aspirations of middle class India. The trend is radically changing the way people eat in India. Key reasons include exposure to western cuisine, the rising number of nuclear families and growth in the number of employed women, which are also having a significant impact on the e ating out trends and growth of the fast food industry in the country.
Pizza Hut which has opened over 400 stores in India in last 11 years is continuously revamping and coming up with new engagements to remain associated with its customers. The pizza chain has come up with some of the new pizza menus catering to Indian taste buds.
“One can expect a lot of action on food innovation, where we have been very active and will continue to do that,” shared Unnat Varma, MD, Pizza Hut, India Sub Continent who is looking at addressing newer changing consumer needs and entering locations like airports and metro stations where QSRs could make next market.
Similarly, their counterpart Domino’s which has been adding 150 restaurants of Domino’s every year has entered tier II and tier III markets looking at the potential these markets are offering.
“We have been adding about 150 restaurants each year over the past couple of years and will continue to expand in the next financial year as well. We have been entering newer markets, especially tier-2 and tier-3 regions, to popularize the pizza culture and give more Indians a taste of international pizza,” added Dev Amritesh, President & Chief Business Officer, Domino’s India which has set up the pizza culture in India way back in 1996.
Thus, with key opportunities that the market offer and the projector growth that the sector is looking forward, innovation is the only key to remain at the top.