New Delhi, Oct 24 (ANI): The quick service restaurants (QSR) sector in India is currently growing at a compounded annual growth rate (CAGR) of 25 per cent and is likely to touch Rs 25,000 crore mark by 2020 from the current level of Rs 8,500, according to an analysis by apex industry body ASSOCHAM.
“Entry of various national and international players in the QSR space has significantly widened the chain market due to fast expanding middle class, urbanization, youth spending, nuclear families and better logistics,” according to the sector-specific analysis conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
“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),” said D.S. Rawat, secretary general of ASSOCHAM while releasing the chamber’s analysis.
“The QSR segment is expected to witness increased activity via market expansion and entry by various players,” said Mr Rawat.
At the city level, a large share of the QSR market rests in metros and mini metros due to higher consumption, heightened consumer awareness, and exposure in key cities such as Delhi, Mumbai, Bangalore, and Hyderabad.
Slowly, QSRs have established their footholds in the major cities and are now expanding into smaller cities with smaller formats.
The fast food or QSR, format took off in India about 19 years ago with the arrival of McDonald’s in 1996. Many global brands followed the suit since then, either through company-owned stores or the franchisee model, or a mix of both.
The chain space is marked by the presence of more than 120 brands with more than 4000 outlets spread across various cities in India.
To withstand the competition, most of the players are tailoring their offerings in terms of flavors, pricing, services etc. to meet Indian consumers’ inclinations.
Some efforts reflecting this include the opening of pure vegetarian restaurants in certain parts of the country, offering no beef based products, establishing separate cooking areas for vegetarian and non vegetarian food, introducing local flavors in the menu, offering home delivery services etc.
With the entry of Indian and International brands into the space encouraging affordable eating and enabling the indulgence of even customers with smaller pockets.
The market is quite competitive in nature with players operating via core menu offerings and introducing variations in Indian and international foods.
A noteworthy aspect is the focus of Indian players on multiple cuisines, which contrasts the international players’ focusing on a single cuisine or product category.
In terms of menu, Indian QSRs like Haldiram’s, Bikanervala etc. have a skew towards vegetarian food in contrast to which international players like McDonalds, Dominos, KFC, Subway etc. offer a mix of both vegetarian and non-vegetarian offerings. Even Mayonnaise in Indian McDonald outlets is free from eggs.
By 2020 it is expected that 35% of India’s population will be in urban areas by 2020 totaling to 52 crores compared to the current urban population of 34 crores.
With a young population, a high rate of urbanization, rising disposable incomes, increased participation of women in the workforce, increased exposure to international cuisine and needs for elevated protein consumption, industry sources envision growth within the QSR sector.
Indian consumers are increasingly spending large sums, eating out with family and friends on weekends and holidays, churning up a huge appetite for the QSR business.
Young and old Indians can be seen devouring billions of dollars worth of fast food at shopping malls, multiplex complexes, metro stations, and highway eateries and even in office blocks, as the eating out culture spreads across urban India. (ANI)