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Casual Dine 2014-01-21

Casual Dine

The Dining out culture has evolved in india over time with casual Dine restaurants now forming the second largest segment (31%) of the chain food services market in India.

By Deputy Features Editor
Casual Dine

l. Market Overview

Casual Dining is an exciting segment that revolves around specific cuisines or themes focusing on elaborate menus, quality of food and increased focus on presentation On the other hand, consumer indulgence is increasingly fuelled by non-occasion outings to these outlets.

In 2013, the size of the chain casual Dine market is estimated at INR 3,950 crore(USD760million). It is projected to grow at a CAGR of ~ 18% to reach a size of INR 9,035 crore (USD1, 740 million)by 2018.

II. Market Players

The Casual Dine market is led by domestic players, which are largely region-specific. There are a few international players present in the space which have a pan-India presence. With the growth in the segment, some new players have also entered the space and the existing ones have been innovating as well as expanding their operations albeit at a slow pace.

Currently, there are~1700-1800 Casual Dine outlets spread across India In the affordable and premium segment. Few examples include pizza Hut,Papa john’s, pizza express, Flavors of Italy, Café Zone, Rajdhani, Moti Mahal, Indigo Deli, Smoke House Deli, Amici café, etc. The player spread is the highest in the metros at 45%, followed by mini metros with 35% of all outlets. Across Tier I and Tier II+ cities, the outlet density is low.

In order to achieve sustained growth and attain scale, most of the players across segments are moving to express options that offer a quick and convenient casual dining experience. Players like pizza Hut, Rajdhani and Moti mahal have also started fast Casual Dine or Express formats.

III. Trade Dynamics

Product Sales and SKU Mix

In the Casual Dine segment, food dominates the SKU and sales mix at 81%and77% followed by beverages and deserts that are mostly side orders. A slight variation is observed in the mix based on formats and the cuisines offered. Overall, the SKU mix is directly proportional to the sales mix.

Sales Mix- Dine-in & Non- Dine-in

Dine-in and non-Dine-in options form a good mix to sales in the Casual Dine segment. Most of the sales (60%) are through dine-in as consumers prefer to sit at restaurants and enjoy the width of available product offerings.

Delivery services contribute a healthy 30% to sales, followed by takeaway which brings in 10% of total sales. This is primarily for outlets located in residential areas, office complexes, etc. where the consumer prefers getting food hand-delivery due to paucity of time.

Sales Mix – Peak Business Hours

The main meal times of lunch (1300-1600 hours) and dinner (1900-2200 hours) contribute to ~85% of the total sales at Casual Dine outlets. However, the peak business hours of outlets located in office complexes are more skewed towards lunch time.

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