QSR segment is growing at rapid growth. An obvious statement to hear, right? But did you know the quick-service industry is expected to touch the Rs 25,000-crore mark by 2020; currently it is at Rs 8,500. The annual growth rate of the QSR segment is 25% (CAGR).
The QSR chains which are much popular among the people living in urban areas will certainly see a rise and success too. The success of QSR brands namely Burger Singh, Rolls Mania and Chaayos makes it evident. According to an analysis by ASSOCHAM (Associated Chambers of Commerce and Industry of India), 35% of Indian population will migrate to urban areas making it to 52 crores from the current population of 34 crores. There is much more scope in the QSR space.
Though the format doesn’t allow any unnecessary investments on décor and ambience, the focus gets straight to the supply chain, food and customer service. Given low investments and high profits scalability, QSR is an evergreen business.
The food industry changes entirely every ten years. And with the new trends picking up every year, QSR is a segment which businesses should watch for. Here are four QSR trends for 2019 the brands in India should know and prepare for.
Digital Videos in the QSR industry is an important avenue for investment, then follows email marketing and social media.
If you want to keep up with the trends, which you should, stay up to date on technology. Working in an old-fashioned manner could take a toll on your business; QSRs doesn’t allow old-fashioned models. Technology makes the service easier, faster and is customer-friendly. It is estimated that digital videos will attract consumers, giving 50% boost to the business; email marketing and social media then take the lead in bringing the business of up to 20-30%. Choose wisely!
It is important to store the customers’ data to analyse their food preferences, location and time. A lot of innovation could be done on the basis of the customers’ data. As said earlier, focus on food is a must. You don't need to be in too much innovation with food but you need to keep yourself up to date in terms of the whole service. Make one thing so perfect that you don't need to change it. Like Mc Donald's has a fillet fish which it serves everywhere. While designing the menu, just make that one thing right. Don't try to be the best for everything but keep upgrading. Be open for the change. You can always do more on product packaging. These days, as health and nutrition game is scaling up, the brands are becoming more conscious with packaging and food innovations.
The Launch of New Products
Signature offerings are always a hit among the consumers if marketed right. Taking the calculated risk with new products will pay your QSR well. Introducing a new product every year will give your brand an opportunity to differentiate from that of your competitor. Products and offerings, both are the core of the QSR business. As part of creating a trusted customer base, the new product launches work!
The pressure will increase on the QSR brands to run socially-sound operations. Therefore, the quick-service restaurants, big and small, should move towards a holistic approach towards sustainability. The sustainability in QSRs covers everything from the kitchen ovens to the staff at the restaurants. Be it the concerns for product costs, service, health and nutrition and even plastic pollution. With more eco-ware launches, QSRs will take the route to eco-friendly packaging.
As told to Sara Khan, Features Editor, Restaurant India.