Consumers these days have become more informative and aware and are constantly looking for new products.
Over the years food service brands are providing more specialized and value for money options to the diners driven by the experience at all these restaurants. India as a whole is experiencing a demographic shifts in eating out culture not only in metros but also in tier II and III cities. Consumers these days have become more informative and aware and are constantly looking for new products without compromising on quality and presentation.
“Competition is assuredly tough. We are trying to create a niche’ but there are places opening every second day. That is why I keep saying that one needs to be honest with the product as India is a price sensitive market because if you are not creating a value for money product with stupendous service experience and alluring ambience then you are over,” says Suved Lohia, Partner at Hopscotch - Bar & Brassiere adding that earlier it was about reinventing the restaurant yearly but now it’s about reinventing daily to maintain that upper hand in the market.
Going by the trend, if restaurateurs are less pretentious about food and concentrate more on flavours and taste; they sure are going to stay for long in the market exploring new opportunities and dimensions. At the end of the day, Indians want something fruitful and as long as restaurateurs maintain that flavour, people will keep coming back to them, believes experts. “Market segments keep changing and change is the only thing constant. It’s good that everybody is getting mature in food and beverage industry and they want to innovate something actually amazing to give customer an outstanding experience,” Anit Dang, Partner at Selfie Swag Café.
As there is lots of opportunity bludgeoning in the industry with Indian food and beverages growing at a CAGR of 21% per annum, casual dining segment and QSR segment is unfolding lots of success stories in the country. Players like Goli Vadapav, tea cafes like Chaayos and casual dining chains like Social and The Beer Cafe are crossing all boundaries when it comes to excite customers’ taste bud. Restaurants these days are joining hands and entering in joint ventures and franchising partnerships to expand their businesses. “A franchise of a business creates a distinctive hold in the market. It helps in reaching out to more people thus generating a meaningful communication with the customer reach,” shares Pariekshit Madishetty, MD, Grid Logic Hotels and Resorts.
Franchising not only strengthen growth but also helps in establishing a position and maintaining a consistent presence in the fast evolving market. Similarly, if a brand is not performing well but there is another brand in the same segment, merger and acquisition could be a great way to make it a profitable business.