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Marketing 04 Aug 2017

How QSR and Cafe’ are Unique

Restaurant industry is one and a half size of Indian railways, two times the size of whole Info Tech sector and seven times the size of hotel business.

By Charu Sharma Feature Writer

QSR Sector has experienced a steady growth of 20 per cent. Restaurant industry has proved its growth and this sector have provided employment to the 9 million people in this country. This industry has also contributed in country’s revenue and made the country liveable.

“Restaurant industry today has a lot of potential as it is growing aggressively year by year and we are still figuring out as who our customer is and what the concept should be. Indian food industry is ready for the evolution. Restaurant industry is one and a half size of Indian railways, two times the size of whole Info Tech sector and seven times the size of hotel business. Therefore, the numbers are huge and so the opportunities,” avers Riyaz Amlani, CEO at Empressario.

Hurdles

When did in the history success come easily? There are problems and of course things will look up but the problem is there are around 40 licenses just to sell a sandwich. Irony is one has to ask govt. to sell a sandwich but he’s not liable to ask govt. before selling a microwave. Also if we talk about real estate then the kind of real estate available to the restaurants is limited. For example, if one wants to change his commercial property into retail then he can do that easily but if he wants to sell food over there, he has to pay conversion charges. But the things will change and people are realising the worth of restaurant industry.

Taste of India

If someone wants to have good food without burning a hole in pocket then he might chose casual dining format, if someone wants to celebrate something or wants to entertain any guest then he has fine dining as an option but cafes’ are different. 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.

Uniqueness of QSR

Things have changed in QSR market because customers have changed over a period of time or we can say that India has grown with time. “Around 15 years back when multinational QSR formats like, KFC, Dominos, Mc Donalds et cetra entered into Indian food industry they were more of aspirational brands to India. They have never seen those brands and also there was an increase in income at that time so people started liking sitting there and enjoy. Now these aspirational 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 80per cent business in QSR belongs to delivery and take away only,” says Sandeep Singh, CEO at Papa Johns.

Standardised System

To make the business scalable, there should be a standardised system because consistency is vital. “For Cafes’ and QSRs, the thing which certainly needs to be there is consistency because that is how they tend to rely on companies who can give them standard base products depending on their supply chains. 

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