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Food and Beverage 2013-06-01

How Popular are QSRs in India?

The concept of QSR has gained prominence in India with the entry of Indian and international brands encouraging affordable eating and enabling customers even within smaller pockets to indulge.

By Deputy Features Editor
How Popular are QSRs in India?

At the city level, a large share of the QSR market rests in metros and mini-metros due to high consumption, heightened consumer awareness and exposure in key cities such as Delhi, Mumbai, and Bangalore. Slowly, QSRs are now expanding into smaller cities with smaller formats. Players, like Domino’s Pizza and Subway, have an even presence across various city types. Regional chains, like Jumbo King, Burger Man, Goli Vada Pav, Kaati Zone, Mast Kalandar, stand in close competition to national chains in terms of the number of outlets in their respective regions.

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 QSR, like Haldiram’s, Bikanervala, etc., have a skew towards vegetarian food in contrast to international players, like Mc Donald’s, Domino’s Pizza, KFC, Subway, etc., which offer both vegetarian and non-vegetarian offerings.

Trade Dynamics

  • Food is the prime focus of QSR that is visible from its dominance of sale and SKU Mix- 77% and 80% respectively.
  • Beverages constitute 18% as product sale and 13% SKU Mix, respectively.
  • The contribution of vegetarian food is marginally higher, at an estimated 45% in comparison to 40% for non-vegetarian foods.
  • Dine-in contributes the highest 67% to total QSR sales and is followed by takeaway orders which account for 19% of sales. Home delivery is also picking up.

The peak business hours for QSR are skewed towards dining, i.e. 1900 to 2200 hours. About 36% customers visit the outlets during this duration. However, international QSR have also gained prominence for on-the-go meals during lunch hours with 34% consumers flocking to them during the office hours.

The entry of numbers of players in the QSR space has pushed the chain market and the size is estimated at INR 5,500 crore (USD 1,060 million) in 2013. It is projected to grow at a CAGR of 25% to reach INR 16,785 crore (USD 3,230 million) by 2018.



(Source: National Restaurant Association of India, 2013, NRAI)

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