Hospitality Industry-

Quick service Restaurants

Sector in India
Pinky Dey
PGDM (Executive)- Batch 17th
 Industry Overview
• The Indian restaurant industry is worth Rs.75,000
• 7% Annual Growth Rate
• 1.5 million eating outlets out which 3000 outlets are forms organized Sector
• Organized sector is expected to grow at annual rate of 16%
• Quick service sector is expected to grow at the annual rate of 21%
 Financial Analysis

• QSR has been outpacing the

market’s projected growth by
25%, making it one of the
segments to watch
• QSRs growing at 15% to reach
INR 21,500 crore in 2022
Key Growth Drivers

• High percentage of young and working age population driving the growth
of food business
• Increase in number of household with annual earning of USD 10,000 -
USD 50,000 will lead to increase in indulgence spending by the group.
• It is estimated that 23% of global middle class will be from India.
• The number of increase in household exceeds increase in population
growth indicating increasing nuclearization trend in India. According to
census data 2011, 74% of urban households have five or less members as
compared to 65% in 2001
 SWOT Analysis
STRENGHT OPPORTUNITIES
• Low upfront capital requirement
• Easy to expand in other areas • Burgeoning middle class
• Abundance of cheap labor • Increase in malls and multiplex
• Fresh and Hygienic Food • Increase in youth spending
• Affordable meals • Urbanization

WEAKNESS THREATS
• Lack of skilled Professionals • Food Inflation
• Maintaining quality standard across • Price competitions
outlets • Dependency on Third party
• Difficult to understand customer taste • Local food joints

Internal Factor External Factor

 Challenges faced by QSR

• Food price inflation is a key factor affecting the

consumer food services market
• Manpower is a big challenge in the food services
market, with an attrition rate of 25-30%.
• High real estate and labor costs tend to impact store
profitability
• The lack of appropriate infrastructure, inadequate
technologies, and the non-integration of the food value
chain are factors key to the wastage of nearly 30-40%
of prepared food across the supply chain.
• The Indian restaurant industry is burdened with
multiple taxes like VAT, excise, and service tax, besides
different state taxes, which add up to 20- 25% of the bill
value.
 CASE OF Fresh menu
• FreshMenu was founded in the 2014 by
Rashmi daga
• FreshMenu, an online restaurant that
today clocks 14,000 orders per day from
its app and website
• FreshMenu has multiple satellite kitchens,
each serving a radius of roughly five
kilometers
• The average order value is ₹320
• The online food platform has dished out
1,800 different food items
• In FY17, FreshMenu reported revenues of
₹72 crore, a 118 percent growth over the
previous year.
 Marketing Strategy
• Efforts are focused at creating larger brand visibility
• Gain new customers by highlighting our key USPs
• Engaging with our existing customers
• working closely with experts and influencers in the areas
through creative and exciting campaigns.
Supply Chain Managment
Challenges faced by QSR