Feb 6, 2020
By Piyush Bhandari
The QSR industry has the potential to grow and expand to other cities because of the scale of investment, which also makes their operations nimble and sustainable
I feel that India’s food sector is primed for further expansion. Already, the country, which ranks sixth in terms of food and grocery market globally, is witnessing huge expansion with online delivery players such as Swiggy and Zomato entering into partnerships. Quick service restaurants (QSR) and casual dining restaurants together comprise more than 74% of the market and are growing exponentially.
The QSR segment is one of the most exciting segments in the food and beverage industry today.The QSR industry has the potential to grow and expand to other cities because of the scale of investment, which also makes their operations nimble and sustainable. Consumer expectation has also changed over the years with the proportion of pickup and food delivery through new-age apps dramatically increasing.
Hence, the need for large dine-in formats has come down. The restaurants today are smaller than before and this trend is evolving across the industry. This has even given birth to ghost restaurants wherein there is no dine-in option.
Hyperlocal marketing also has a huge part to play in the QSR industry, which provides data on consumer preferences and habits. Based on hyperlocal trends, they can focus on a popular menu and reduce wastage. They can curate a menu based on consumer preferences, enabling them to best utilise their inventory. The efficiency of restaurant operations has drastically improved purely because of the availability of data and information.
I am very bullish on the QSR format and the potential it holds as a sector. The future looks bright for QSR because of India’s rising youth population, better per capita income, and more awareness because of internet availability in tier 2 and 3 cities. I welcome startups with brand-led thinking and entrepreneurs who can revolutionize and create consumer brands in the QSR space in big markets.