Restaurant Franchise Opportunities

Marketing Sep, 02 2017

How Café Segment Is Inclining Towards Healthy Life

Things have changed over the period of time, now people are smart and convenience friendly. They know what they want and they do not want to compromise because they have options.

By Charu Sharma
Feature Writer

Gone are the days when cafés were related to breakfast only, now they are one of the happening eating out destinations. The whole spectrum of café has changed drastically. It’s amusing that quarter of the revenue of restaurant business is coming from the breakfast or brunch segment.

According to a report by Technopak Advisors, a consultancy firm, the per organised café market in India, which grew almost six fold in the last five years to $230 million currently, is likely to hit $410 million by 2017, maintaining a compounded annual growth rate of 13-14 per cent. It shows that the future of the cafe’ is definitely bright as it is time savour and way convenient. Things have changed over the period of time, now people are smart and convenience friendly. They know what they want and they do not want to compromise because they have options.

The Consumer Segmentation

Cafe’ segment is growing as people are migrating to different cities as per their requirements. Therefore breakfast and café have become a huge category in restaurant business. “Over the course of the journey, we have realized that the incidents of having breakfast and the time that it takes to prepare breakfast is slowly getting much important for people. Disposable incomes started coming up to consumers, they travel more and getting more cosmopolitan now. In this rushing lifestyle, it has become a necessity to grab something for breakfast on the go”, says Aditya Bagri, Director, Bagrry's India Limited.

Breakfast For Healthy Living

Few years back there was nothing such a concept like café and breakfast. “Many researches have been done that breakfast plays as the significant part of the whole day. Having breakfast in the morning maintains body’s BMR and that is why café culture is getting on the stage,” he adds further. There is a huge scope in café segment because people today have no time to prepare healthy breakfast and café brings that on the table.

Spending Quality Time

“One visits cafe’ just to hang out with friends and to have some quality time. Cafes’ are primarily about community who are comfortable enough to enhance bonding and communication whereas restaurants are about food, exploring new things and novelty,” Riyaaz Amlani, CEO at Impresario Entertainment which runs Mocha Cafes in India.

Preference Of Vegan Consumer

It does not take hours to prepare vegetarian breakfast and that is why it becomes a question for vegans to have breakfast in cafés. “Basically people have no time to cook in the morning and there are cafés serving them home made plus healthy food,” says R.J. Surendranath, Managing Director of M/s. HNS Hotels Pvt. Ltd.

With a market size of around Rs 1700 crore and expected to grow at a fast pace of 20%, the segment has been largely dominated by only two or three key retail coffee chains. As the industry involves different format to catch customers’ attention, it gives emerging player a wide range of opportunity to tap upon the mid-level segment.

Related: 5 reasons you should be scared of opening a restaurant

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