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Marketing 2017-08-18

​Casual Dining Restaurant or Quick Service Restaurants, What to Choose?

India’s food and beverages (F&B) industry is growing at a rapid pace of 10% from USD 48 Bn in 2016 to reach USD 77 Bn by 2021, says NRAI Food Service report.

By Senior Sub-editor
​Casual Dining Restaurant or Quick Service Restaurants, What to Choose?

The growing number of colleges, private companies and continuous movement of people from places to places has pulsated their taste buds. The craving for that particular food from that country or region is what brings half the foodies under the roof of restaurants, many just feel like skipping the home made dinner and have a quick bite form the fast food stalls.

The QSR (quick service restaurant) and ACDR (affordable casual dining restaurant) formats make up around 60 per cent of the total organised market, with ACDR having the highest market share at 41 per cent. The density of outlets is highest in metros and mini metros. Delhi and Mumbai account for 22 per cent of the food services market while the six mini metros constitute 19 per cent of the food services market.

“With growing number of workforce in corporate and IT sector, demand for eating out places has also risen up. Restaurants are coming up with diverse options from exotic dining options to healthy options. Customers are also more aware about various cuisines and want mix of both home food options to street food options,” says Pariekshit Madishetty, MD, Grid Logic Hotels and Resorts.

India’s food and beverages (F&B) industry is growing at a rapid pace of 10% from USD 48 Bn in 2016 to reach USD 77 Bn by 2021, says NRAI Food Service report.

Today, the industry is going through an exciting phase where country’s private finals consumption expenditure accounts for 60% of the total GDP and is predicted to reach USD 2.4 trillion by 2021.

Here are some factors which will help the aspiring restaurateurs as well as customers, to pick one from Casual Dining Restaurant and Quick Service Restaurants:

Quick Service Restaurants (QSR)

The quick service restaurants (QSR) sector in India is likely to grow three-fold to Rs 25,000 crore within five years, says industry body Assocham.

The country's QSR market, estimated to be at Rs 8,500 crore currently, is growing at a compounded annual growth rate (CAGR) of 25 per cent, it said. Entry of various national and international players in the QSR space has significantly widened the chain market due to fast expanding middle class, urbanisation, youth spending, nuclear families and better logistics, the analysis showed.

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. The chain space is marked by the presence of more than 120 brands with more than 4,000 outlets spread across various cities in India.

Sandeep Singh, CEO, Papa John’s, said, “The QSR brands have become commodity brands because they are more known for a quick bite and they are less expensive. Delivery and take away are becoming new trend in QSRs as 80 per cent business in QSR belongs to delivery and take away only.”

Casual Dining Restaurants (CDR)

Restaurant industry is gradually changing but restaurateurs need to keep a watch at logistics, kitchen hygiene, service experience etc.

When one goes out to eat with family or friends or simply treating himself/herself, they want to please their mood, satisfy their appetite and have a good time. One just cannot order and sit at home, and wait for the food and expect it to be as appealing as the restaurant food.

A casual dining restaurant is known for the quality of food, ambiance, decorations, and utensils. The restaurateur as well as the customer come together and work to make the experience memorable.

Sriranjan Seshadri, Director, Gaja Capital Partners, said, "Restaurant’s core business is making food and creating an experience that is how logistics is the variable cost that they would rather outsource. Therefore, logistics become an important part for the business."

The CDR is known for the freshly cooked, beautifully decorated, food and for that if one is asking a little extra money then it would not be count as a sin. Any business thrives because of the way it treats its customer and satisfies their appetite.

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