A note on the QSR – Quick Service Restaurant Business Landscape
The Quick Service Restaurants (QSR) and the casual dining restaurants account for a major share of the revenues of the organized chain market in India. The QSR’s and the casual dining restaurants together contributed a market share of 80.6% in FY’2013 to the organized restaurant chain market. The revenue from QSR’s reached to INR ~ crores in FY’2013 and the casual dining restaurants registered revenues of INR ~ crores in FY’2013.
A note on Organized and Unorganized Eateries, Restaurants and Quick Service Restaurants: (citation: researchandmarkets.com)
- The unorganized restaurant market includes the roadside vendors, Dhabas, Food Vending vans(trucks and other automobiles fitted with equipment to handle cooking and delivery of food and beverages) and food trolleys (and pushcarts).
- The organized restaurant market includes the Quick Service Restaurants (QSR), the full service restaurants, PBCL (Pubs, Bars, Clubs and Lounges) and the food courts and kiosks. The report provides the market share and company profiles of major players in major segments.
A note on the key issues affecting the restaurant business vertical:
Some of the key issues marring the industry include:
- Lack of quality infrastructure
- Shortage of skilled manpower
- Public relations events
- Transitioning into the digital environment
- Attracting newer audiences
- Maintaining brand value and product recall
Growth Drivers as Predicted by Food Wire (From Ernst and Young)
Both demand- and supply-side factors are fueling robust growth in the restaurant market. The following are some of these factors:
- Growth in the affluent and middle classes, backed by the Indian youth, is driving India’s consumption story, and restaurants are no exception.
- Consumers’ preference for eating out is largely driven by their desire for a different experience in terms of service, ambience and food. For example, QSRs and cafés provide a congenial ambience at accessible locations and are good value for money. As such, QSRs and cafés are preferred for meetings, for catching up with friends, and basic recreation.