In the next 15 years there will be lots of opportunities in food service and other businesses in India
No matter how successful your concept may be, you always have to maintain the value. Today, nobody believes in eating the same food whenever out on foodies trail. You need to introduce that change, whether in terms of menu, recipe, design creation, improvement in technology. There should always be a flow of Innovation from one side or the other.
According to market data, India is expected to be the largest consumer market by 2030. In the next 15 years, India will cater to many opportunities in food service and other businesses. India is predicted to be the youngest country in terms of age where average age consumption is 20 years followed by China 30s and US 40s. “We will add two billion people in the global workforce in next 15 years, which is four times to that of the US,” shares Niren Chaudhary, President KFC Global who has built brands like KFC, Pizza Hut and Taco Bell in India before moving to a global role.
Brand needs to be youth centric
As larger percentage of crowd living in India is young, tech savvy and technology connected, the brands entering in India or the ones who have already created a landmark in India have to be youthful and aspirational in terms engaging more customers. “After China, India is the second largest country where people are digital savvy and technically connected,” adds Chaudhary who believes that gateway innovation and value for money is what works in India.
“to build an inspirational brand, one has to do sound marketing, and until all this is not done, you are not going to make any businesses. In the last few years we have seen strong dip in sale of the food brands in India and it’s all because of the economics and supply chain,” shares Akshay Bector, Chairman, Cremica Food Industries.
Also, as technology is driving business in India, we have seen almost 10,000 food tech start ups hitting India’s start up ecosystem. According to NRAI food service report, rise of discretionary spending and increase in internet users, which was 193 MN in 2013, has gone up to 462 MN in 2016, increase in numbers of smart phone users from 35MN in 2013 to 204 MN in 2016. Time scarcity among urban crowd and willingness to order various cuisines for home delivery are some of the favourable reasons for the growth of this segment.
“We have over 8MN FaceBook fans which is more than Pepsico in India, points Chaudhary, who believes that smart phone penetration is one of the important catalyst in making people technology addicts.
Food safety is the key
Restaurant industry is an important part of the food business sector and is becoming much diversified with the new opportunities in the market. Though, comprehensive food regulation is quite new to the market, food safety should be kept as an agenda for successful food businesses. “Each restaurant must have a food safety supervisor who needs to be trained by the food safety regulator,” says Shri Pawan Agarwal, CEO, FSSAI.
Adding to the same line, Bector shared, “It’s a digital world. Even a small mistake gets viral before it gets published in the news or on a shown on television. So, the operator and the food service people need to be more alert. It is extremely important for the restaurants to maintain safety measures and consistency while serving food.
And, as there is a long way to go, focusing an eye on economics of the business and value adding to the systems will brings back the customer and will be a key to run a successful brand.