Online food industry attracting tier II and III: Survey

TeamLease Services is a staffing conglomerate listed on the NSE as TEAMLEASE, is transforming employment practices and improving business operations in India.

Their recent report on the Fast-Moving Consumer Goods (FMCG) sector reveals crucial insights set to reshape the industry.

Notably, the report highlights a significant gender gap in the FMCG workforce, with males representing over 90% of outsourced employees.

Drawing from their Associates Database and additional research, the report provides strategic advice on hiring and attrition trends.

It emphasizes the optimization of the people supply chain through hiring, attrition, and productivity (HAP) strategies.

Recommendations include fresher recruitment, utilizing psychometric assessments for better matching, and investing in co-pay models for Learning and Development (L&D) to accelerate career advancement for trainees.

Mumbai, Bangalore, Chennai, Delhi, and Hyderabad emerge as the top five Indian cities displaying a robust inclination towards hiring within the FMCG sector.

The report underscores substantial growth in new recruitments across various fields including sales, marketing, IT, office services, human resources, and blue-collar positions.

"The report unveils critical insights into the evolving landscape of India's FMCG sector, offering stakeholders invaluable strategic guidance in navigating opportunities and challenges. From harnessing technology and innovation to addressing workforce dynamics, organizations must embrace agility and foresight to thrive in this dynamic market environment.”  said Kartik Narayan, CEO of Staffing, TeamLease Services Limited.

As per the report, metropolitan areas exhibit the highest attrition rates at 27%, trailed closely by Tier 1 and Tier 2 cities at 26%.

Conversely, Tier 3 and Tier 4 cities demonstrate lower attrition rates compared to metros, reflecting the comparatively lower demand in rural markets.

The report highlights that the average age of active associates surpasses 36 years, while for attrited ones; it's nearly 34 years, indicating a tendency for younger employees to leave their positions.

Additionally, the report reveals that active associates typically hold their positions for 1.7 years, whereas attrited associates hold theirs for 1.1 years.

The report classifies attrition into two distinct categories: 'regrettable' and 'non-regrettable'. Regrettable attrition, constituting 21% of departures, involves employees who earned incentives exceeding the company's average, owing to exceptional performance.

Conversely, non-regrettable attrition, accounting for 39% of the attrition rate, occurs when employees do not earn any incentives.

Teamlease Services further notes that the average Cost to Company (CTC) for both current and attrited associates is highest in southern India.

Notably, while the salary gap between active and attrited associates is marginal, there is a significant disparity in earned incentives.

This suggests that incentives play a more substantial role in predicting attrition than salaries, as salary levels appear relatively unaffected.

Government initiatives such as FDI allowances and the PLI scheme are driving industry growth and export potential.

The expansion of e-commerce and direct-to-consumer models is facilitating market penetration, particularly in rural regions. Adapting to evolving consumer preferences through ongoing innovation and product diversification is imperative, given India's burgeoning middle-class and youthful demographic, ensuring sustained market expansion.

In this context, harnessing technology for operational efficiency, data-driven decision-making, and optimizing supply chains is essential.

The report underscores the importance of collaborating with traditional Kirana stores through enhanced digital connectivity for mutual growth and market expansion.

While Kirana stores remain the backbone of the country's retail sales and are expected to retain their relevance, Modern Trade and E-commerce, particularly Quick-commerce, are poised for rapid advancement.

There's a noticeable shift in consumer behavior, with these platforms no longer limited to impulse purchases but increasingly utilized for regular bulk purchases as well.

The report emphasizes the critical role of effective data management within the FMCG sector. Companies possess extensive consumer data, which, when analyzed effectively, can provide valuable insights to drive innovation and improve customer engagement.

Additionally, maintaining a positive brand reputation is vital for global success, requiring careful navigation of diverse regulatory standards across various markets. Identifying challenges, the report highlights the industry's struggle with heightened competition in online retail, leading to price conflicts and increased research and development expenses for major players.

Furthermore, the sector faces the task of catering to a broad demographic range, including Gen X, millennials, and Gen Z, each with distinct preferences and priorities.

Daalchini, India’s first 24X7 instant food vending machine, found in a recently conducted study that employees working in Industrial Units & Medium and Small Enterprises (MSMEs) consumed over half a million Samosas and Kachoris in last six months.

Daalchini recently surveyed the food consumption pattern of consumers in various settings such as schools, hospitals, and Industrial plants.

Food has always been a personal choice and occasion driven, and understanding the food preferences is crucial to providing excellent service and restocking the food items according to the particular food choice. It was amazing to find the results of the study.

In hospitals, the peak sale time was found to be around 8 A.M., and glucose biscuits, followed by orange juice and water bottles, were the most consumed items in the last six months.

The most surprising and exciting finding emerged from the students in the colleges and student hostels across North India, where the peak sale time was 4 A.M, and the students prefer indulging in early morning snacks, including Maggie, followed by Nachos, Thumbs Up, and Chocolates.

This pattern differs for the employees working in industries and manufacturing plants, where it was observed that the employees usually consumed according to their shift timings with multiple peak sales times at 3 A.M., 7 A.M., and 12 P.M., and the most preferred food choices were Samosa and Kachori, which accounted for over half a million in six months followed by Bhel- Chiwda and then by Frooti and Maaza.

Prerna Kalra, the CEO of Daalchini Technologies, said, “Distribution is always about the right availability. We were able to tailor the menu for workplaces, schools, hospitals, hostels, etc and provide the RIGHT PRODUCT, at RIGHT TIME, in RIGHT QUANTITY to our customers with our AI-driven supply chain and serve the customer better, while collating it centrally for efficiency. This data-driven approach helped us achieve higher than 80 NPS from customers.”

The hotel industry demand has recovered at a sharper pace post Covid 2.0 compared to last year’s lockdown, aided by the easing of restrictions in Q2 FY2022.

Partial lockdown as well as travel restrictions in many states in April and May 2021 post the onset of Covid 2.0 resulted in the ICRA sample of companies reporting a 56% decline in revenues on a QoQ basis, in line with the ratings agency’s estimates. However, the revenues are expected to improve by 85-90% sequentially in Q2 FY2022.

Occupancy has picked up, with the August-21 Pan-India premium hotel occupancy at 44-46%. For 5M FY2022, the same is estimated to be ~32-34% (up from ~13-15% in 5M FY2021) vis-à-vis ~46-48% in Q4 FY2021. The Pan-India ARRs are estimated at ~Rs. 3,850-3,950 for 5M FY2022 and still remain at a 25-30% discount to pre-Covid levels, although some high-end hotels and leisure destinations have even seen ARRs return to pre-Covid levels in Aug-21/Sep-21. Travel during the festive season travel will act as a key demand booster for the industry in Q3 FY2022, shared a report y ICRA.

Most markets reported over 50% occupancy in Jul-21 and Aug-21, the key markets - Jaipur, Goa, Delhi, Mumbai and Hyderabad displayed healthy occupancies whereas Bangalore and Pune lagged behind.

The demand recovery pattern has different from other crises, with properties with affiliated strong brands and in the luxury segment standing to benefit, as trust and safety are paramount. Drive-to leisure, staycations, social MICE/weddings and special purpose groups are expected to drive revenues for hotels for the next one year at least.

ICRA continues to have a negative outlook on the Indian hotel industry, as the sustenance of the demand pickup in the recent months remains to be seen. A potential third wave and its impact on travel and hotel occupancies cannot be ruled out. Further, the RevPAR is still significantly lower than pre-Covid levels. About 63% of ICRA’s ratings are also on negative outlook currently.

There’s no denying that restaurant industry is one of the worst affected sector due to the pandemic. As the country returns to post-pandemic normalcy, and restaurants, pubs and bars around the country reopen after over a year-and-a-half long lockdown, millions of Indian food lovers are returning to their favorite restaurants in town, thus triggering a nationwide revenge-eating phenomenon. 

According to the latest report by Restaurant dining and tech platform, Dineout, Delhi, Kolkata & Hyderabad have shown the maximum recovery among metros, with Delhi & Kolkata now operating at nearly 2X of Feb ‘21 levels.

Among smaller cities, Jaipur & Ludhiana have shown maximum recovery and are currently operating at nearly 2.5X of Feb ‘21 levels. 

The average order value at restaurants (ATV) in July-August has also increased by as much as 20% since February, with smaller cities like Agra (24%), Indore (29%) & Ludhiana (35%) registering the biggest surge in restaurant order value - pointing at a much-needed release of the pent-up demand for good food & socialising with friends & family. 

Interestingly, smaller cities like Agra and Ludhiana have also registered the largest average orders of INR 2509 and INR 2766 respectively! This is owing to the rise of luxury & fine-dining outlets in smaller cities, and that a significant number of professionals are now working out of their home towns & spending heavily on dining out.

A return to luxury dining

Owing to the higher disposable income thanks to our WFH lifestyles, luxury dining across India has increased by as much as 120% & fine dining by 105%, and the average number of diners per booking has also risen.

As offices are reopening, lunch hours are also getting busier at restaurants - 39% of bookings are for lunch hours in August ‘21 compared to 27% in Feb ‘21. Hyderabad (50%) & Chennai (45%) see the maximum business during lunch-time, while Bangalore has shown an increase in lunch-hour bookings from 24% in Feb to over 44% in August owing to the 9 PM curfew. Compared to pre-lockdown, Mumbai has shown an increment in lunch hour bookings, from 24% in Feb to 39% in Aug- this is likely due to restrictions in dining out during dinner time. Among smaller cities, Lucknow has almost 40% dining out during lunch hours, highest among smaller cities as opposed to Agra, where lunchtime bookings dropped from 29% in Feb ‘21 to 17% in August ‘21. 

“Most food-lovers across the country have been sitting on the fence for over a year and a half about going back to their favorite restaurants in town. It's understandable why millions are now thronging to their favorite eating joints as the COVID-19 health advisory is lifted, and that they can finally step out, and into their favorite restaurants and not be forced to have their meals on their couch,” shared Ankit Mehrotra, Co-Founder & CEO – Dineout.

The other notable trend is the obvious consumer preference for ‘vaccinated restaurants’. Out of 50,000 outlets across 20 cities listed on Dineout, around 67% outlets have fully vaccinated staff. Interestingly, these outlets have contributed 72% of the total business in August ‘21, with Ludhiana, Kolkata, Jaipur, Lucknow, Delhi & Bangalore boasting the highest percentage of dining out at vaccinated outlets.

The trends in the food service industry are expected to turn towards online ordering, changed customer perceptions about product consumption and services with increased prominence on hygiene and safety, shared Jubilant FoodWorks in its latest annual reports.

As per the report, rising population, growing income levels and evolving consumer preferences and lifestyles have opened promising prospects for the food of certain standard and quality.

Also Read: Capturing the home dining trend: what works in a dark kitchen biz

Also, this will be with an exponential increase in the use of digital solutions as the world deals with the concept of contact-less interaction among people, shared operators of Domino’s Pizza and Dunkin Donuts in India.

Besides, the rising presence of international brands, stronger back-end infrastructure, acceptance of new cuisines, changing lifestyles and aspirations, and the rise of entrepreneurial ventures will fuel growth, pointed the report.

"It is expanding rapidly due to the high percentage of the young and working population, increased frequency of eating out amid time-pressed schedules, and the growing influence of cross-cultural dietary patterns, owing to the strong presence of international brands," shared Jubilant FoodWorks by adding that the Indian food service industry witnessed exceptional growth in the past decade.

Talking about the outlook, JFL said the Indian economy is navigating uncertain times with policy reforms.

Moreover, pro-investment measures such as reduced tax rates on new capital investment, lowered interest rates and easy credit dissemination, among others, will yield benefits in the medium-to long-run. Consumption cycle can only be re-invigorated by putting more money in the hands of consumers, it added.

A part of Jubilant Bhartia group, JFL owns asian brand Hong’s Kitchen and biryani brand Ekdum apart from operating Domino's Pizza, Dunkin' Donuts in the country.

It has also signed a master franchise and development agreement with Popeyes, an American multinational chain of fried chicken fast-food restaurants, for markets as India, Bangladesh, Nepal and Bhutan.

The report also mentioned that factors like younger demographics, increased participation of women workforce, India-centric offerings, value pricing, online food ordering and food delivery are going to be demand drivers of the industry.

This will be also helped by the growing acceptance of online delivery in smaller tier-II, III and IV cities.

"This is particularly led by an increase in the percentage of working population in these cities. These cities have already started to see increased traction in the adoption of online food ordering apps," the report said.

JFL said India's urban cities, across all economic classes, are increasingly opting to eat out during leisure outings. "This trend is most popular among the millennial age group between 15 and 34 (around 447 million, 34 per cent of the population).

Moreover, the proportion of women workforce in India has been rising, majorly in the urban areas.

May Interest: Dining on wheels: Why ‘in-car dining’ could be the next big trend for convenience eaters

"Due to these factors, families order more multi-cuisine food via online channels and eat out, thereby contributing to the QSR market's growth," it said, adding value-conscious Indian customers have found interest in combos and value meals common across QSR chains.

40 per cent of respondents are preferring takeaway/home-delivery pre-COVID. Interestingly, nearly 50% diners admit that they are highly inclined to dine out once lockdown is eased, highlighting stay-at-home fatigue in Bengaluru. Whereas, Chennai had the highest percentage (80%) of respondents dining out at restaurants before COVID, 40% frequenting restaurants 3 times or more a month. However, only 8% of respondents indicate a willingness to dine at restaurants immediately post lockdown. 72% wish to dine out after a minimum of 2 months, shared a report conducted by Economix Consulting Group (ECG).

Also Read: Why more consumers are turning to food delivery amid dining restrictions

It also added that 64% of respondents in Mumbai prefer takeaway/home-delivery. In addition, ‘proximity of restaurant’ is considered “Not Important” by the largest share of diners. 21% of respondents do not expect to dine-out in the immediate future, while 27% wish to go out only after a couple months.

ECG Study reveals interesting insights on changing behavior and expectation of urban diners post second wave of COVID.

“From our study, it is evident that diners do not expect to return to dining at restaurants immediately after easing of lockdown restrictions. The shift to home-delivery/ takeaway is here to stay. Restaurants should take this time to focus on building trust with consumers, as diners exercise extreme caution in choosing where to eat/order,” added Latha Ramanathan, Founder & CEO, ECG.

The survey was conducted Pan-India among the middle class/upper middle class to understand the variations in diner behavior, Pre & Post the Pandemic and how restaurants should be gearing up to meet those needs. The survey was conducted in Chennai, Bengaluru, Mumbai, and a few other metros and smaller cities in India.

The study examined the changes in respondents’ dining habits and the current preferences including type of restaurants they would like to visit, type of cuisine they would prefer, the dine-in experience, safety and hygiene protocols.

Some of the key findings of the survey are:

A Sticky Shift to Home Dining: Diners expect to continue eating meals from restaurants at home, with 61% of respondents preferring takeaway/home-delivery of meals post the pandemic induced lockdown. In the past, almost 75% of respondents used to dine-out at restaurants. There is a marked shift towards preferring Takeaway/Home-Delivery over Dine-out across all categories of respondents, Homemakers and Working Professionals demonstrated the greatest shift (51% and 37% respectively) in their preferences towards Takeaway/ Home- Delivery.

Flexibility and Safety in Dining: Nearly 60% of diners wish to have the option between indoor and outdoor seating once they start visiting restaurants again, and more than 90% respondents wish for a change in table arrangements, either all tables being operational following social distancing protocols or reduced number of tables. Not surprisingly, a majority (86%) of the diners continue to consider seating arrangements as an extremely important factor amongst the list of factors considered before dining out at restaurants (pre-COVID (81%)).

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Cutlery Matters: More than half of the diners prefer Biodegradable (such as Banana leaf) or Recyclable (wood) cutlery, while just over a third of the diners prefer Reusable cutleries (metal/ceramic).

Transparency in Operations: A key demand of patrons while dining out post-COVID is for the restaurants to be transparent and communicate openly with customers regarding the safety and hygiene measures they have adopted. Over 95% of diners admit that they would feel comfortable visiting restaurants who clearly communicate their protocols in dining and kitchen areas, with some preferring kitchens that are open for inspections by customers. 74% of the diners would like the restaurants to advertise in social media/any other medium or through posters/flyers outside the restaurant about their hygiene and safety measures. Almost all (~98%) diners rated Cleanliness & Hygiene and COVID safety protocol as important factors amongst the list of factors they would like to consider prior to dining at restaurants.

Must Read: Covid-19 has made most restaurant kitchen a dark kitchen, Is Brand Trust Next

Personal touch continues to set apart the ‘restaurant experience’: Significant number of consumers still prefer waiters taking orders at the table (48%) and serving food at the table (58%). While as expected, millennials expressed the highest willingness (49%) to place their order via Apps & QR Codes, interestingly, respondents aged 40 and above are proving very adaptive with nearly a third open to both traditional and ordering via an app.

States across India have started phase-wise unlocking post the decline in COVID-19 cases in the ongoing 2nd wave of the pandemic. For instance, with COVID cases declining to a 3-month low, West Bengal has relaxed restrictions, extending the timing of restaurants and bars with 50% seating capacity. Similarly, in its 3rd phase of unlocking, Delhi has lifted restrictions from almost all economic activities like restaurants, malls and markets and so as Maharashtra.

With all these risks inherent in spaces like malls, restaurants and people’s homes, LocalCircles conducted a survey to understand what people plan to do in terms of their visits to malls and restaurants. With lockdown in place for 45-60 days and the unlocking just beginning, it also attempted to understand the kind of visitors people expect to have over at their home in the next 30 days. The survey received over 34,000 responses from citizens residing in over 314 districts of India.

According to the survey, 31% citizens plan to visit a restaurant to have a meal in the next 60 days.

As we all know that restaurants were amongst the first non-essential public places to open post-unlocking that began in September 2020. Citizens had become comfortable dining at restaurants as the number of cases kept declining till February 2021. With cases beginning to rise in March this year, most states imposed lockdowns and restaurants were shut for most of April and May. This month, some states have allowed restaurants to reopen with limited capacity after seeing a decline in COVID cases. The first question in the survey asked citizens if they would be visiting restaurants if they start to operate in the next 60 days.

The survey was done based on 9,038 responses that Local Circles received in an online survey.

The survey also mentioned that the first case study of how COVID spreads in indoor spaces was that of a restaurant in China and indicated how the SARS-COV2 virus can easily spread in an indoor restaurant with people dining due to indoor air and no outside air ventilation. Air-conditioned restaurants in most parts of India do not have the infrastructure currently to recirculate indoor air several times an hour making them vulnerable spaces for COVID spread. Even those restaurants that are non-air-conditioned have a risk of spread as diners take their masks off while consuming food.

India's organised food services market may grow at about 10.5 per cent CAGR to $37 billion over during FY20-25, stated a report by Kotak Institutional Equities.

Within the organised segment, chains can potentially grow at 13 per cent CAGR to $9.5 billion, capturing 12 per cent share in the overall food services market from 9 per cent at present, the report added.

"We expect India's organised food services market to grow at about 10.5 per cent CAGR to $37 billion over FY2020-25E, garnering 46 per cent market share from 40 per cent at present," it said.

This shows the bottom-up analysis of the market opportunity for western QSRs (quick service restaurants) across 541 districts in India that indicates potential for over 50 per cent store growth by FY2025E.

As per Kotak's city-wise forecast, factors include purchasing power, addressable population, palate preferences, extant QSR penetration, cluster-based expansion and economic viability.

Even as western QSRs are widely accepted in India, their penetration and share of the food services market at 3-4 per cent is much lower than in developed markets (over 15-20 per cent), it added.

COVID-19 has impacted the F&B industry like never before in the history of mankind. Restaurants are struggling to get back to their feet by gradually adapting to the new normal. As the lockdown is lifted in most of the Indian cities, restaurants are welcoming the people for dine-in services. 

According to a report by Dineout, Delhi, Bangalore and Ahmedabad are moving fastest towards normalcy with a 70% recovery rate projected to be achieved in this festive quarter, followed by Kolkata, Chennai, Jaipur and Hyderabad with a 55% recovery rate.

Also Read: How modern age dining is creating an impact on millennials

Mumbai and Pune that opened up last week have seen a promising 10 fold increase in diner count compared to the previous week’s numbers. 

This growth curve can be credited to restaurants that are leaving no stone unturned in ensuring the safety of their customers and staff. Restaurants are promoting QR Code driven digital menus as well as digital payments to minimise contact at the outlets.

As per Dineout partner data, 65% partner restaurants have already switched to QR code based digital menus in the last 3 months. Meanwhile, mobile ordering is expected to grow further as more consumers view mobile ordering a safer and convenient option. 

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“It’s amazing to see restaurants aligning their operations to the new normal and adapting to new strategies to secure a strong comeback,” said Ankit Mehrotra, CEO & Co-founder, Dineout that has recovered 60% of their pre-covid business numbers and expect to reach 100% by the end of this year.

Running a restaurant today is one of the most challenging jobs. Despite the impact of the pandemic, the restaurant industry is on its path to recovery to the pre-COVID level.

According to a recent report released by cloud-based restaurant tech platform, POSist, 80 percent of consumers opt for hygiene and safety over price. COVID-19 pandemic is likely to alter consumer behavior permanently and cause lasting changes to the way people eat out. The survey highlighted that 80 percent of restaurant operators feel that quality and safety will surpass price as a decision-making factor for cost-conscious customers. 

The report also added that 43 percent of orders are clocking via direct-to-consumer (D2C) channels. “As per restaurants, 43 percent of their orders came via direct channels. The majority i.e., 57 percent of orders still come from food aggregator platforms. Out of the 43 percent who choose direct channels- half of the respondents prefer ordering via WhatsApp or the Mobile number of the restaurant,” added the POSist research which was conducted via a survey among 300 senior executives in the restaurant industry.

Also Read: Restaurant-owners focus on building back, focuses on safety and hygiene

“What we are seeing from this survey is the opportunity for leveraging technology continues to be a major lever for restaurants to thrive in the ‘new normal’. In order to keep up with the pace of change, restaurateurs are experimenting with delivery models like Cloud Kitchen and opting for Direct-to-Consumer (D2C) channels to build a community of customers they can engage and grow,” said Ashish Tulsian, Co-Founder & CEO of POSist.

IMPACT OF COVID-19

• High operating costs and rentals are the biggest challenges in the industry

During the lockdown food orders were limited to mostly takeout and delivery, forcing many restaurants to turn into delivery outlets. 65 percent of restaurant owners across India ranked high operating costs in form of variable expenses such as labor, food, salaries, marketing, etc as their biggest pain point, followed by 55 percent citing fixed rentals as a challenge.

• Four in every ten otherwise dine-in only players started delivery services

“We asked restaurants if they had additional funds to invest back into the business, what areas they would invest into? 52 percent of the respondents placed their bet in setting up a Cloud Kitchen or a delivery-only outlet. Followed by 44 percent who have expressed interest in investing in technology to digitize their restaurant operations. Interestingly, 40 percent otherwise dine-in-only players stated they have ventured into delivery services post-lockdown,” added the report.

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This hints that as food delivery proliferates, consumer behavior is changing and perhaps to the advantage of the restaurant operator. As consumers become more familiar with delivery and ordering online, they’re more likely to choose a direct channel to order from the brand.

The survey reveals that 33 percent of restaurants have installed an e-menu using a QR code ordering technology at their outlet.  Also, it is interesting to note that 80 percent of the restaurant operators agree that deploying technology is important in these times. This sentiment can be corroborated by the response of 40 percent of restaurant operators who are willing to invest between 10-20 percent of their revenue in technology,” added the report.

Globally, International Beer Day was celebrated on 7^th August and countries in Asia seem to be thirsty for a beer this year.

According to a report by iPrice Group, with numerous government-implemented social distancing measures in place, people flock online to buy their wants and essentials. Unsurprisingly, many of them search for beer online, especially those in countries with stricter or longer lockdowns.

A study by iPrice Group indicates which countries among Southeast Asia, Hong Kong, and Taiwan google beer the most (in English and local languages), and it reveals the beer brands that dominate each market.

Hong Kong, comes in second by 3.6% of the country’s reach on Google. On the contrary, the Philippines, which has been on lockdown since March, comes close with 3.3% of its reach. There was even a 69% increase in online searches for beer in March, right when the lockdown was implemented, added the report.

Surprisingly, Malaysia is not at the end of the spectrum. Even with a big portion of its population not being allowed to drink alcohol due to religious laws, its search volume for the year accounts for 2.6% of the population, even more so than Taiwan’s (2.3%), where the drinking culture is more open and prominent. However, this could be attributed to Taiwan’s early containment of the virus, which consequently doesn’t call for a strict lockdown, it added.

Nightlife hotspots, Thailand and Vietnam, surprisingly rank 6th and 7th respectively in their search volume on beer. iPrice hypothesizes that the Thai and Vietnamese don’t find the need to google beer online since beer is quite easily accessible in both countries. Moreover, Vietnam hardly had any lockdown measures due to its great job in containing the virus early on. Thailand was also praised to handle the virus’ containment as well.

Expectedly, Indonesia googled beer the least among all the aforementioned countries. Since most of the population is Islamic, which doesn’t condone alcohol consumption at all, they are quite discouraged to do so.

Brands dominating the market

The report also mentioned that Dutch pale lager beer, Heineken, is the most popular beer brand in the 8 listed countries. It appears as part of the top three in each individual country’s search volumes, except Hong Kong’s. It’s safe to say that its efforts in investing in breweries and marketing across Asia have paid off. It is followed by the top Japanese beer, Asahi, which is pretty popular among Asian countries for its dry and light qualities that are best enjoyed with Japanese food.

iPrice also notes that some countries are quite loyal to their local beers. In countries like Taiwan, Vietnam, Singapore, and the Philippines, one or more of their local beers made it to the country’s top three most sought after beers. Thailand, Hong Kong, and Indonesia, however, do not search for their local beers as much as foreign brands.

Covid-19 pandemic has changed the whole flavour of the restaurant and the food sector globally. Many restaurants have been badly affected by the pandemic, some has to even close and adapt to a newer concept to survive in this tough time.

In March 2020, the country went on a lockdown making even restaurants to completely shut their shops. However, slowly and steadily when the lockdown was lifted nationwide, restaurants started opening for their customers.

Though, in many parts they are still not operational and they are only allowed to do grab through and delivery orders as per the coronavirus case in the region.

Following the WHO and MHA guidelines, restaurants were allowed to open with social distancing norms, safety and hygiene in place making it even more tough for the restaurant owners to run at half the capacity of a restaurant.

As a first step towards understanding and analysing the consumer sentiment, 5th Element Hospitality conducted a survey across Tier I and Tier II cities.

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“Dine-in restaurants across the country will have to contend with a low turnout with only 11% of consumers willing to walk in now,” shared the research by adding that with the current restrictive norms for opening, dine in businesses are not going to make enough money to even pay for day-to-day expenses.

"A Catch 22 situation which will result in a downward spiral for sales and therefore may drive a second round of even more severe economic reasons induced permanent closures," it added.

CITYWISE PROPENSITY FOR DINE IN SERVICES

Since, the rules are different from state to state and city to city. There is a different set of trend that is being found in these cities depending on the permission granted. Interestingly there seems to be quite a skew between consumers in the major metros in terms of willingness to dine out. According to the report,  Mumbai which has probably faced the worst infection of Covid19 in India and seems to have gotten over the worst, is more than willing to immediately get back to dining.

Similarly, a recent study by Swiggy also mentioned that people are preferring biryani over any other food. Burger, momos were other preferred snacks when working from home has become a new normal.

Eating habits in India changes as per region and taste, according to a latest research by cloud-kitchen brand Cross Border Kitchen, those who are living alone preferred meal bowls above all else. Also, the the sale for meals in a bowl went up by 20%.

However, according to their research and orders placed over their website, biryani as a category de-grew, while burger category grew. The survey showed said that the consumption and sale of burgers went up by 9% pointing towards the culture of binge-watching while also enjoying your favorite thing to eat.

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Burgers are believed to be that one favorite food-item because they aren’t very heavy and hence can be eaten at multiple times while doing office work or while catching up on a movie or a show. A lot of time on the consumer’s hand is believed to be the reason behind the rise in the consumption of light yet tasty food option like a burger.

A similar research by Cheferd Foods that own brands like Pizza

The "StatEATistics report: The Quarantine Edition" from food delivery platform Swiggy found that Indians ordered biryani over "5.5 lakh times" from their favourite restaurants.

It was followed by butter naan and masala dosa at 3,35,185 and 3,31,423, respectively.

Biryani has topped the list of most ordered dishes for the fourth year in a row, the food delivery platform noted.

Indians didn't forget to indulge their sweet tooth in the uncertain months of lockdown. Their favourite comfort food during the lockdown period was the moist and decadent Choco Lava cake, ordered around 1,29,000 times.

CBK also mentioned in its research that Delhi’s undying love for Dal Makhni and Butter Chicken continued COVID or not. “Delhi has been falling in love with Dal Makhni and Butter Chicken all over again during the phase of lockdown. Our survey shows that the sales of these two SKU’s stayed consistent with the pre-COVID numbers showing that comfort food, food that we have been relishing for generations never succumbs to anything, not even a pandemic,” added the report.

Also, people are ordering momo as one of the most preferred snacking at home making the sale double. It also shows momos is very well accepted as an Indian meal and not part of Chinese cuisine.

How many times do your eat at home? Or what is the online order frequency when you are tired cooking at home after a busy schedule at work? The answer is at least 3-4 times a week by an average millennial that is placing order online. This trend is not only driven by an ease of getting food but also the various option that is available in the market. That’s where we have seen the rise of food-tech players and app in the fast evolving Indian food market.

“We expect the industry to grow to $7.5-$8Bn at 25-30 per cent CAGR over the next three years, will require wider adoption & continued usage,” shared BCG-Google Report.

Here are top three key growth drivers shaping the food tech space in the Indian market:

Increase in internet and online buyer base:  Over the years we have seen a sudden rise in the internet penetration across rural and urban areas which are growing at a CAGR of more than 20 per cent. Not only this, Indian online buyers base is expected to grow exponentially at a CAGR of more than 12 per cent, shared the report.

Higher order frequency though offset by lower average order value: More and more people are ordering food these days. No matter, whether you are looking for north Indian, south Indian, go-to options or some healthy delicacy according to your need and preferences. Seeing all this growth, ordering frequency is expected to grow by 18-20 per cent even as average order values may soften by 5-10 per cent. More users are moving from occasion based ordering to habitual ordering on a regular basis.

 Expanding reach within India:  Large food-tech players are now  present in 500+ cities in India and aggressively expanding operations in all present cities. Zomato, Swiggy and Faasos have expanded themselves to even tier-3 cities and have partnered with local restaurants and hotels to deliver food at the convenience of home. Improving network of restaurants across India has augmented growth of Food tech in new areas and also its reach to even smaller towns and cities.

Online food ordering space is one of the paragons in the internet led business space. Funding in the food tech space has grown by 35x in the last five years, shares a BCG- Google report. Macro trends such as rising internet penetration, increasing ordering frequency, favorable consumer disposition, expanding reach in smaller tiers and expanding network of restaurants on Food Tech platforms pan India, continue to drive momentum in the industry.

The report also mentioned that the reach of food tech aggregators has grown six times from 2017 to 2019. At the same time, we see consumers spend more than double the time to explore and order online, from 32 minutes per month in 2017 to 72 minutes per month in 2019. Riding on the wave of higher consumption in a growing market and maturing dynamics on the supply side, we expect the industry to grow from $4 Bn to $8 Bn in next three years, a massive 25% growth rate.

Not only this we have also seen that with food-tech shaping up the online food ordering space, consumers are deeply engaged and have high expectations from these players. Here are five key drivers for the growth of food-tech sector in the country:

Deep personalization: Every customer enjoys some special attention and customization. Lately, food-tech players have worked a lot on personalizing the experience for its customers while placing an order online.

Focused marketing: Food-tech players have got the nerves of the customers and hence they know how to focus on right marketing.

Increased quality assurance: Quality is something that everyone looks at. Quality food is always customer’s first choice when placing an order online. And, these players have partnered with best restaurant partners to deliver quality food.

Constant value for money: Value for money and quality food goes hand in hand. And, food-tech players have everything on board for everyone.

Advanced convenience features: One can easily order, track and see detail about their placed order with advanced convenience features.

Also, diversification is a common theme across global players, making inroads into non perishable delivery (Grocery, Medicine), Cloud Kitchen, Ride sharing, Payment Gateway, OTT Streaming and Hospitality. “We see players leverage their current network of categories, services and consumer to enter adjacent spaces. Established global operators have invested in advanced deep personalization, data analytics, and targeted marketing initiatives, “added the report. Despite all these growth and convenience that online players provide there are some barriers to online ordering.

Barriers in Online Ordering

The Indian food-tech industry has grown exponentially in the past few years with a proposition anchored around convenience & value. According to a new report by Google and Boston Consulting Group (BCG), the sector is expected to grow at a 25-30% CAGR to become $8 billion market in the next two years.

“Overall online spending in India is rising rapidly and expected to grow at 25% over the next 5 years to reach over $130 Bn. Riding on the wave of rapid digitization and steadily growing consumption, the reach of Food Tech companies has grown six times over the last couple of years and will continue to increase further,” said Rachit Mathur, Managing Director and Partner; India Lead of BCG’s Consumer & Retail Practice.

Also, Razorpay, the leading full-stack financial services company, recently launched the fourth edition of ‘The Era of Rising Fintech’ report. The report provides an in-depth study of a rapidly evolving FinTech ecosystem in India. It analyses the patterns of digital transactions and the impact of industry innovations such as UPI which are harnessing this digitally inclusive economy.

The report clearly mentioned that food and beverages sector was one of the top sector for digital payments sitting at 26 per cent.

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In 2019 Bangalore was the most digitised city (23.31%), whereas Delhi, climbed up the ladder to the second spot (10.44%) followed by Hyderabad (7.61%). (2018: Bangalore 29.26%, Hyderabad 9.02% and Delhi 8.36%)

In 2019 (Top states), Karnataka saw the highest adoption of digital payments (26.64%) followed by Maharashtra (15.92%) and Delhi NCR (13.01%)

While the usage of Cards (46%) and Netbanking (11%) saw a decline in 2019, down from 56% and 23% for cards and Netbanking respectively in 2018, UPI (38%) went up from 17% in 2018

“A growth of 338% in digital payments in a year (2018-19) is massive. It’s the highest we’ve seen so far in the country. Among other factors that led to this exponential growth, it was UPI which rose in prominence, dominating other modes of transactions,” shared Harshil Mathur, CEO & Co-Founder of Razorpay.

Not only this, the entry of new age food tech players has led to a massive transformation of how restaurant industry operated in last few years. Growing disposable income and busy lifestyles of the young and working population, coupled with increasing internet penetration and rising smartphone users, will continue to drive India’s food tech market through 2021.

With more than 900 food delivery start-ups in the country, the food tech space saw a different wave of tech-emergence in the country. Thus, we can say that the emergence and success of food delivery and ordering platform is a matter of convenience, reliability and easy access. From providing backend support, to enabling easy ordering and payment, technology has set a new dimension for the growth of restaurants in India.

In a country where alcohol business is seen as a complex bureaucratic process and where each of the 29 states regulate their own laws on it, a recent report by IWSR, says that despite all the roadblocks, Scotch whisky in India has witnessed double digit growth of 11% volume growth.

India being the sixth biggest global destination for Scotch whisky has a significant influence on the global whisky market. “Demand is being fuelled by a rising consumer base of young consumers who are becoming more affluent in a country where the global reach of some of the smaller cities is becoming more significant, diluting the historical whisky sales bias towards the big three cities of Mumbai, Delhi, Gurgaon and Bangalore,” shared the report titled, ‘The volatility of the Indian whisky market’.

With the new affluent consumers preferring premium products, the value of whisky market in India is increased by 17% last year. According to the report this is a long term trend, with the average price of whisky in India nearly doubling in ten years to $7.18 for a litre.

In 2017, the liquor industry reported a major blow in their sales figure as a result of Supreme Court’s ruling on banning the sale of alcohol within 500 meters of nearly all state and national highways. Consequently liquor companies projected a decline of around 10-19% sales due to this.

On the contrary in 2018, the liquor industry got a boost by no new regulatory or tax interference. “The premuimisation process resumed and prompted the emergence of some pioneering and cult Indian whiskies; companies like John Distillers and Amrut Distillers are raising the bar for Indian whisky,” the report mentioned.

Most of the younger brands in the market are trying to contemporize the category of Scotch whisky to make it more appealing and accessible, be it the young drinkers or the 35 years old plus ones. “Restaurants and bars now have started to include whisky in cocktails which is making the category more relevant to the female drinkers too,” it added.

“Currently, the Indian Whisky category is strong: its innovation is bringing new consumers into the category and is building its profile among whisky purists, both internally and externally. Whether this trend will continue with the ever-present threat of Federal or State disruption remains to be seen; the category is prone to taking one step forward and two steps back following government regulation or tax changes.” the report added.

The NRAI India Food Services Report 2019 estimates Indian foodservice industry’s market size at INR 4,23,865 crore in 2018-19 which is expected to grow at a CAGR of 9% to reach INR 5,99,782 crore by 2022-23.

Amitabh Kant, CEO, NITI Aayog (National Institution for Transforming India), Government of India, launched NRAI India Food Services Report 2019 (NRAI IFSR 2019) in Delhi. CEO, NITI Aayog, GOI, while releasing the report, said, “The Food Service industry is evolving rapidly with India being the youngest country with internet and tech-savvy consumer base, having a high disposable income with little time to cook indoors. This is reflected in the number of eating out frequency – an average of 6.6. per month in the country, providing food service players with an exciting opportunity to expand.” He further added, “India is the seventh largest travel and tourism economy in the world according to the World Travel and Tourism Council. Globally, food businesses are being promoted to boost tourism. A similar effort can be implemented in India capitalizing on the diversity that the country has to offer. Food hubs, envisaged as experience centres can serve as places for experiencing local and regional cuisines as part of a larger culture.”

Kabir Suri, Delhi Chapter Head, NRAI, said, “Delhi has limited pockets available to open restaurants and that is why delivery has picked up the pace.” As per the report, “Delhi NCR is the ‘Restaurant Capital of India' with the highest number of restaurants in the country,” said Kabir Suri.

The NRAI IFSR 2019 is the 4th edition of National Restaurant Association of India’s research study mapping trends, opportunities and challenges of the restaurant sector in India- is a comprehensive compilation of data on India’s food service sector gathered from in-depth interactions with over 130 restaurant CEOs and 3500 consumers across 24 cities in India.

Rahul Singh, President, NRAI said, “It is the largest industry in the service sector in the country after retail and insurance and is 20x of the film industry, 4.7x of hotels and 1.5x of the pharmaceutical sector.”

Rahul Singh, while noting contributions of the Restaurant sector mentioned, “The Indian Restaurant Industry employed 7.3 million people in 2018-19. The organized food service sector, which is only 35% of the total market, contributed a whopping INR 18,000 crore as a way of taxes in 2018-19. The number is expected to more than double if the unorganised sector becomes organised.” Rahul Singh also shared his thoughts on GST in the food sector. He said, “Govt’s tax collection will improve and increase if Input Tax Credit is given to the restaurant industry.” 

Introducing the trade report to the audience, Samir Kuckreja, Past President and Trustee, NRAI said, “NRAI IFSR 2019 is an in-depth research study which maps out the scale and impact of India’s food services sector. This report is crucial for the industry to garner the necessary support and recognition from the government and its agencies for providing a fillip for consistent and sustained growth. I would like to thank all the NRAI members for their contribution to the research study.”

While the food services industry has seen steady growth over last three years, the report reveals that the industry has its fair share of roadblocks and challenges like high real estate and manpower costs, inadequate supply chain infrastructure, financing issues and majorly policy formulation. The main aim of the report is to aid entrepreneurs and investors to take informed decisions and unite the industry under one banner.

Puratos, one of the world’s largest bakery, patisserie and chocolate ingredients producer, has introduced products in an easy-to-use avatar for the preparation of cutting edge desserts for the Indian market.

A 100 per cent subsidiary of Puratos International, Puratos helps customers in delivering nutritious, delicious food, leveraging new technologies and innovations in ingredients across countries.

A recent consumer survey by Puratos revealed an awareness of world consumer trends amongst customers, of experimenting with culinary experiences, a more open palate, while sticking to original world favourites. Capitalizing on these trends, Puratos has launched these easy to use products.

The ‘Deli Cheesecake’ by Puratos is a super easy versatile take on the iconic New York style Cheesecake, the 1^st in India. This ready to use egg free cheesecake mix allows one to effortlessly produce a dessert that is otherwise quite challenging.

Puratos’ survey also found a clear bias to old favourites and hence, introduced the O-tentic Durum - a convenient solution for creating breads with a distinct taste of yesteryear deliciousness in a secure fail-proof easy package. It captures the magic of sourdough and combines it with modern-day technology, for an easy to use tasty bread experience. One can produce world class breads with an old world charm, and magical lip smacking flavour with this.

In a candit chat with Franchise India, Ritesh Dwivedy, CEO, JustEat.in, talks about his unique concept, the marketing strategies adopted along the way and the challenges that needed to be overcome.

In 2006, I was working as a software engineer and we always had a tough time ordering food late at night. That prompted us to begin such a venture. The research was done and finally we started the online ordering system. As I was working in Bangalore, it was very difficult to understand the local language as well.

On developing the concept

At present we are 100 (employees); however it was started by two of us. I used to discuss with a lot with friends and family who helped me in taking the initial idea forward. Being a techy, I used to spend a lot of my time with my seniors who were running successful businesses. My friends, who had an MBA, helped me in planning the process of business. It was not one or two people, but many who helped me develop the concept.

All our systems are based on an open search; we don’t believe in charging a premium on the software. Most of the software which we offer to the restaurants is either free or is based on a cash system. It is fairly easy to use on any normal tablet, desktop, laptop. We also have a mobile app on android and ios.

On market research

I did not want to start anything without knowing that there is an opportunity. I met a lot of my seniors who knew about the start-up and took suggestions from them on how I should start. They advised me first to think about my target audience, meet people and find out if there is a genuine need. And then, through my studies, I realised that I needed a survey. We did a survey near an IT college and realised that the problem did exist. This was especially done to save the cost. We also did a thorough research on which area to target and which cuisine to target.

On the marketing strategies adopted

For the growth of a restaurant, it’s not the kitchen capacity but the word through which we talk the order. We started talking to them that ‘if we start an online order for you, you can receive calls for your existing customers and we will give you additional order through the website’. That way was very exciting. The restaurant could get their customers easily and they helped us to get promotion through their customers. Apart from that we did some traditional marketing like emails, partnered with the corporate and did a little bit of PR.

When we started, we couldn’t hire a PR due to shortage of money. We asked people to speak to journalists especially people who like to write about start-ups. So in about six months we were featured in many newspapers. In Bangalore, we had fabulous coverage and this also helped us in getting to the restaurant because they also realised that these people are serious and not fly-by-the-night companies. We now get over 1 lakh customers in a month.

I found blogging an easiest way to connect to likeminded people and that’s how I started reading some people’s blog. Soon I too started writing blogs.

On getting restaurants on his website

In 2006, the ecommerce or the internet was non-existent. It was very difficult in making restaurants understand about internet because they did not come from an IT background. They were more of individual shops or outlets located near to the offices. However we talked to a lot of people and once they started opening up, it became easy.

Today we are partnering with 2500 restaurants in India and in Bangalore we started by partnering with 800 restaurants. A lot of restaurants now approach us and we also approach restaurants. When we started in a new city, it required a bigger push from our side to get on board. However, in a stable city like Delhi and Bangalore, it was fairly simple because there are a lot of restaurants who have heard about us from their friends in this business.

On the challenges faced and overcome

The biggest challenge which we faced was to get the restaurant on board. Initially when I started meeting restaurants, I used to talk about internet and how the internet worked. The restaurant didn’t understand the powers of internet and that made it difficult to sell the concept. So I decided to make them understand how they will get more business and this helped in getting them. Even today our sales team makes them understand about the amount of business we can generate for them. 

Initially I could not speak the local language Kannada, so I started meeting restaurants who could understand Hindi or English. We were having 30-40 restaurants at that time. Then we starting taking help from restaurants to talk to other restaurants and, gradually, it worked. But initially, the language was a barrier in Bangalore, but in Delhi and Mumbai we never faced such problems because Hindi is a very common language there.

Not being from a sales background comes with its own set of difficulties. I never faced any problems in meeting the restaurants, but it was difficult to explain that it was easy to order food online.

On his competitors

There are many competitors locally, but the good thing is that we are far bigger than any other company in the food ordering company. We consider phone our biggest competitor because the people either call or order online. Also the concept of ordering online is still very low.

On his journey from Hungry Bangalore to Hungry Zone to JustEat

When we started from Bangalore, we kept the name as Hungry Bangalore. When we moved to other parts of the country, the name changed to Hungry Zone. After we partnered with Just eat we branded to just Eat. Just eat is global food ordering company running in 14 other countries. I partnered with Just eat in Dec 2010.

On the changes in marketing strategies after rebranding

When we were Hungry Bangalore, it was a very small company. Just Eat is a global brand working in 13 countries quite successfully so it was easier for us to get rebranding done in India and outside. This rebranding is very good in terms of getting the global knowledge.

Having partnered with Just Eat, the biggest difference we found was that we now had money to do a lot of marketing. We started a lot of online activities, like Google ads, and along with it a lot of discounts in a number of ways focusing on how to use this fun effectively.

On staff attrition

We are still a start-up and this business is very challenging. The environment is also very challenging so the job never gets mundane. Most of the people who are with us enjoy working with us because every day is a new challenge. Apart from this, we also encourage other trainings like if anybody is a software engineer we support them in marketing and sales. We are like a family here and have a good environment; we don’t have rising attrition levels.

On regular customer feedbacks

We regularly follow a customer feedback. For any order placed on the website we send a customer survey to that person after his order has been placed to know about his experience. We do a lot of quality control of a restaurant. We have a team who talks to the restaurant about the feedback and improves the quality.

On Franchising

Right now we manage the company ourselves. In a few years we might look into franchising because the concept has yet to pick up. Once the concept is developed and picked up, we’ll think of franchising.

On how the fine line between ‘being hungry’ and ‘been hungry’ affects

You order food when you are hungry. And when your order gets late, you tend to become angry. We consider ourselves to be working in a very difficult industry because if the order gets delayed, the customer might get angry. So the best thing we can do is to deliver food on time without annoying them. That is why customer service is very important for us.

On his advice to aspiring entrepreneurs in this business

It (the business) is not easy; it’s a very challenging operation. You need to have very strong technology platform to be able to grow in the business.

On being called the accidental entrepreneur

I never thought that I will be an entrepreneur. I never planned on starting a business like many people plan; it just happened.  I was getting bored with my job and with this striking idea I thought I could make a difference. Perhaps that is why they call me so.

The global food retail industry has been experiencing steady growth in the last couple of years. With a marked change in customer preference, a sharp move towards online shopping, rising global population and an increase in the purchasing power of emerging markets, the global food retail industry continues to grow at a good pace with the above mentioned factors driving the industry. Furthermore, government investment in infrastructure and the entry of global food giants in emerging economies has led to a boom in the food retail sectors of these markets.

The biggest game changers

China and India in particular are driving rapid growth in the global food retail industry, as Asia Pacific remains the largest market for food retail globally. Indonesia and Thailand are also witnessing excellent growth as modernization of traditional outlets is taking place. Meanwhile, food retail market in Europe, particularly Western Europe, is thought to have already reached a saturation point. Countries such as Italy, Spain, Denmark, France and Greece are in fact seeing a decline in their food retail industries.

With supermarkets or hypermarkets accounting for the largest sector in the global food retail industry, there is no doubt that the future of the industry remains bright with the industry value expected to reach roughly USD 7,500 billion by the end of 2019.

According to a global research, 75 of the leading global players in the food retail industry, 34 key food retail markets worldwide, and three major regions as well. Data covered in the report ranges from 2010 till 2019.

The report begins with an analysis of the global food retail industry through industry statistics, industry growth analyzed through industry value, industry segmentation, distribution channels that are used in the global food retail industry, and a forecast for the market up to 2019.

In the last few years, packaged food market in India has witnessed a good growth. And, citing this growth, the country’s packaged segment is all set to witness a quantum jump to $50 billion by 2017 from $32 billion at present due to increasing popularity of ready-to-eat items, says a survey.

"There has been a major shift in food habits in the metropolitan cities. About 79 per cent of households prefer to have instant food due to steep rise in dual income level, standard of living and convenience," said a survey by industry body Assocham.

The poll highlighted that 76 per cent parents, mostly both working, with children under five-years in the big cities, are serving easy-to-prepare meals at least 10-12 times per month in some form or the other.

"The consumption of packaged food is much higher in the urban areas, especially metros, where life is fast-paced, attracting lot more companies to launch new types of products and variants," Assocham Secretary General D S Rawat said.

The paper also pointed out that there is a large divide between urban, semi-urban and rural consumers. Urban areas account for 80 per cent of the demand for all packaged food.

The survey noted that about 76 per cent nuclear families feel they have less less time to spend in the kitchen, while nearly 79 per cent bachelors prefer convenience food. It is in this background that home delivery business model for cooked food has grown multi-fold, it said.

The main categories of packaged food are bakery products, canned/dried processed food, frozen processed food, ready-to-eat meals, dairy products, diet snacks, processed meat, health products and drinks.

Food manufacturers have also started concentrating on manufacturing new innovative food products and ready-to-eat processed food to keep up with the ever changing tastes of consumers.

The Indian food industry which is currently valued at $39.71 billion (Rs 2,476.8 billion), is said to grow at the rate of 11 per cent annually to reach $65.4 billion (about Rs 4 lakh crore) by 2018 the joint report by IIM-Calcutta and Academic Foundation said.

"Food and grocery constitute a substantial part of India's consumption accounting for around 31 per cent of the consumption basket," added the report.

In contrast, consumers in other countries spend a much lower proportion of their income on food and grocery.

While US spends 9 per cent, Brazil and China spend 17 per cent and 25 per cent respectively on food and grocery, the report further said.

Also food contributes as one of the largest segment in Indian retail sector which was valued at $490 billion in 2013, it added.

"India's retail market is expected to grow to $865 billion by 2023, which is presently valued at $490 billion," the report stated.

The share of modern retail is expected to rise to 24 per cent of the total retail market from 8 per cent currently, it added.

The report also suggests that India may have benefitted from the presence of foreign businesses in the food supply chain.

"Several foreign companies have invested in manufacturing in India, leading to employment creation," the report observed.

"Some of the foreign firms have successfully established backward linkages and are working with farmers and contract manufacturers. These firms have contributed substantially to government revenues," it added.

There are also some additional benefits from the presence of international businesses, such as implementation of waste management, environment-friendly technologies, product innovation and exports from India, the report said.

The quick service restaurants (QSR) sector in India is currently growing at a CAGR of 25 per cent, and is likely to touch the Rs 25,000-crore mark by 2020 from the current level of Rs 8,500, said ASSOCHAM.

"Entry of various national and international players in the QSR space has significantly widened the chain market due to fast expanding middle class, urbanization, youth spending, nuclear families and better logistics," reported ASSOCHAM.

"About 50 per cent of India's population eats out at least once in every three months and eight times in every month in bustling metros as compared to the US (14 times), Brazil (11 times), Thailand (10 times) and China (9 times)," said D.S. Rawat, Secretary General, ASSOCHAM.

"The QSR segment is expected to witness increased activity via market expansion and entry by various players," added Rawat.

At the city level, a large share of the QSR market rests in metros and mini metros due to higher consumption, heightened consumer awareness, and exposure in key cities such as Delhi, Mumbai, Bengaluru, and Hyderabad.

At present the space owns more than 120 brands with more than 4,000 outlets spread across various cities in India.

In terms of menu, Indian QSRs like Haldiram's, Bikanervala etc. have a skew towards vegetarian food in contrast to which international players like McDonalds, Dominos, KFC, Subway etc. offer a mix of both vegetarian and non-vegetarian offerings. Even Mayonnaise in Indian McDonald outlets is free from eggs.

By 2020 it is expected that 35 per cent of India's population will be in urban areas by 2020 totalling to 52 crores compared to the current urban population of 34 crores.

With a young population, a high rate of urbanization, rising disposable incomes, increased participation of women in the workforce, increased exposure to international cuisine and needs for elevated protein consumption, industry sources envision growth within the QSR sector.

Indian consumers are increasingly spending large sums, eating out with family and friends on weekends and holidays, churning up a huge appetite for the QSR business.

Young and old Indians can be seen devouring billions of dollars worth of fast food at shopping malls, multiplex complexes, metro stations, and highway eateries and even in office blocks, as the eating out culture spreads across urban India.

With new and emerging concepts hitting up the Indian food space, 2015 saw seventeen deals in the space with an increase in investment flow by 93 per cent to $130.3 million.

According to Chennai-based Venture Intelligence, food technology start-ups attracted $130.3 million investments between January and September 2015. The five deals in 2014 brought in $67.7 million and six deals in 2013 $42.06 million, reported Business Standard.

This year's top three deals are $16.25 million pumped in by Sequoia Capital, Nexus Venture Partners and Matrix Partners into TinyOwl, $16.5 million by SAIF, Norwest, Accel and DST Global in Swiggy and $60 million by Temasek and Vy Capital in Zomato.

Experts also said that food start-ups would continue to thrive for five years and the popular one will be Zomato, Quinto, ChefHost, MeDine, Momoe, DineOut, BigBasket, HalfTeaSpoon, Eatlo and Fresh Menu.

Investment in food start-ups rises 93 per cent in 2015 "We have seen immense growth in the last one year in Mumbai. TinyOwl has partnered more than 4,000 restaurants," said Harshvardhan Mandad, co-founder, TinyOwl.

"There is huge potential and more start-ups will grow substantially over the next five years with slight changes in the business model. They may be acquired early," said Vikram Gupta, founder and MD of IvyCap Ventures.

Online food delivery in India grew 40 per cent to Rs 350 crore in 2015 and accounted for 17 per cent of the online services market, according to the Internet and Mobile Association of India (IAMAI). Restaurant discovery portal Zomato launched its ordering service in April.

Investment in food start-ups rises 93 per cent in 2015 Hyperlocal delivery services, such as Roadrunnr, which received an investment of $11 million in June and Delyver, which was acquired by Big Basket in the same month, have latched on to this growth. "There will be significant value creation in online food ordering, and a mobile-only approach is the way to win. TinyOwl is a part of our broader portfolio of investments in local services and this will be an important area," said Rishi Navani, co-founder and MD, Matrix India.

According to Sarath Naru, managing partner of Ventureast, "We are staying away. One of the things we look at it is a business should have backward integration." 

Valuation in the segment is another challenge, according to investors. "They are seeking valuation of three years from now. But competition is also increasing. People are realising if you are looking at 20 companies, you do not necessarily have to work with the one seeking the biggest valuation," said a venture capital investor.

The online food delivery market in the country has seen an impressive growth of 40 per cent in 2014 touching Rs 350 crore on the back of strong traction in metros like Delhi-NCR, Mumbai and Bangalore, a report by IAMAI-IMRB said.

According to the report, the food delivery segment is growing at a fast pace and constituted 17 per cent of the overall "other online services" that stood at Rs 2,025 crore in 2014.

"The other online services market has grown with a CAGR of 73 per cent since 2010 and was valued at Rs 2,025 crore by December 2014. This segment includes emerging service categories like online entertainment ticketing, online commuting, online food and grocery delivery," Internet and Mobile Association of India (IAMAI) said.

Similarly, online booking for commuting (cabs) has seen rapid growth during 2014, accounting for 30 per cent of the pie, and is estimated to be about Rs 600 crore at the end of 2014.

The share of buying tickets for movies, sports, shows/ concerts online stood at Rs 990 crore, comprising 49 per cent of the overall pie.

Online grocery market accounted for six per cent of the total other online services.

The digital commerce market in India was pegged to be worth Rs 81,525 crore in 2014. Of this, online travel (rail, air, bus tickets, hotel accommodations, tour packages and travel insurance) comprised Rs 50,050 crore.

The non-travel component includes e-taling (Rs 24,046 crore), financial services (Rs 4,508 crore), matrimonial and classifieds (Rs 896 crore) and Rs 2,025 crore worth of other online services.  

Today, an environment advocacy group termed the country's food regulator's move to reduce trans-fat content in edible oils as important milestone in controlling non-communicable diseases in India and urged to bring it to "near-zero levels", reported PTI.

Lately, the Food Safety and Standards Authority of India (FSSAI) has reduced permitted trans-fats content in edible fats and oils in the country from 10 to 5 per cent.

"The five per cent limit is a step in the right direction. Although slowly, we have progressed from having a 10 per cent limit first set a couple of years ago. We should aim to reduce it further to near-zero levels," said Sunita Narain, Director General of Centre for Science and Environment (CSE).

The CSE said, FSSAI in its latest notification on the issue has reduced the maximum permitted amount of trans-fats to 5 per cent (by weight) in hydrogenated vegetable oils, margarine and fat spreads and interesterified vegetable fat.

"Consumption of junk foods is also rising across all sections of society and age-groups. It is no longer limited to urban areas. Keeping this in view, the new regulation is an important milestone in containing the burden of non-communicable disease," Deputy DG CSE, Chandra Bhushan said.

With the consumption of trans-fats through cooking medium or ultra-processed junk foods was strongly linked with non-communicable diseases, particularly cardiovascular diseases.

The World Health Organisation (WHO) has been advising countries to limit its consumption while in a similar attempt, the US in June recognised the use of partially hydrogenated oils as unsafe and banned its use by food product manufacturers within three years, the CSE said.

In 2009, CSE study on 30 brands of cooking oils, found trans-fats contents in all vanaspati brands much higher than the prescribed standard.

Are you obsessed with detox food products that are supposedly free from chemicals? Well, there is no such thing as a "chemical free" food, shows a research.

No matter what the companies selling detox products say, in reality chemicals are in everything we eat -- though all may not be unhealthy, a video created by a Toronto-based web portal ASAP Science shows, reported IANS.

It shows how bananas, for example, contain more chemicals than some sweets and explains that it is the dosage of chemical, rather than the chemical itself, which often causes problems, Daily Mail reported.

In the video, scientists explain that while many people will advise against eating food which contains chemicals that are hard to pronounce, yet a single blueberry contains chemicals like methylbutyrate and oleic acid benzaldehyde, among many more.

And in some cases, healthy foods contain more chemicals than processed sweets. In an example, a banana is shown containing more than 50 chemicals from riboflavin to histidine.

"Everything around us is made up of chemicals from the water you drink to the air you breathe, which is why it is frustrating when companies consistently tout their foods as chemical-free," scientists said.

"Seriously, we can break down any food to look like a confusing long list of foreign ingredients," scientists added.

The video continues that even non-harmful chemicals in food have the potential to become harmful at higher doses.

The Maggi controversy is likely to be a stepping stone in the evolution of country's packaged and processed food industry, which could result in better labelling, packaging and testing norms for the entire sector, a Nomura report said.

"We see the entire controversy as a stepping stone in the evolution of India's packaged and processed food industry," said Manish Jain and Anup Sudhendranath of Nomura in a research note, adding similar tests are likely to be conducted on other similar products and companies.

According to the Japanese financial services firm, the next logical step for the Food Safety and Standards Authority of India (FSSAI) would be to tighten the labelling, packaging and testing norms for the entire sector, which in turn is positive for the consumer.

"This is a positive from the consumer's perspective and would help expedite the migration from the unorganised to the organised sector," the report said.

Maggi brand has been under the regulatory scanner due to allegations that the product contains higher than permissible levels of lead and traces of monosodium glutamate (MSG).

While Maggi's brand equity has more than likely been dented from a near to medium-term perspective, Nomura believes the company is taking all the right actions and will rebound strongly from the same.

"We strongly believe that Nestle India will rebound with a revamped product and packaging, which will slowly rebuild the brand equity," Nomura said and added that some other bigger brands of the company like infant nutrition portfolio and coffee business are likely to remain "insulated".

In October 2003, Cadbury brand was marred by a controversy when worms were found in their chocolates. However, recovery for the chocolate giant started by late 2004 and by June 2014, things were back to normal, Nomura said.

Another such incident was the coke pesticide issue. In 2006, the Centre for Science and Environment alleged that Coca Cola and Pepsi were among a dozen soft drinks that contained high levels of pesticides and insecticides.

However, as was the case with Cadbury, the giants emerged strongly from the controversy with sales of the brand doubling between 2008-14 at a compounded annual growth rate (CAGR) of around 17 per cent, Nomura added.  

Indian Food and Beverages sector which is one of the fastest growing industry in the country is expected to reach Rs 380,000 crore by 2017, revealed a report by FICCI-Grant Thornton.

According to the report, presently the industry is worth Rs 204,438 crore growing at a CAGR of 23-24 percent annually.

Dominated by quick service restaurants (QSR) and casual dining chains which accounts to 45 per cent and 32 per cent of the overall food business in India, the report added that both Indian and MNC chains are still less penetrated and there exists a large opportunity in this space to create bigger restaurant chains.

"The government recognises the F&B sector's potential for growth and job creation. Hence, it has been identified as a priority sector in the National Manufacturing Policy and is also amongst the top 25 priority sectors, which are being promoted across the globe to attract investments," commented Atul Chaturvedi, Joint Secretary, Department of Industrial Policy & Promotion while revealing the report at FICCI.

The report also focuses on how to improve ‘Ease of Doing Business’ in the food and beverages sector and make it more attractive for both Indian and foreign investors.

“I am confident that the deliberations of the seminar and the recommendations of the report would provide a roadmap for the industry to grow and achieve its true potential,” added Arbind Prasad, Director General, FICCI.

The report also said that the government should set up good infrastructure, cold chain processes, skilled labour and ease of licensing to foster the growth of the segment.

“The government has been of late focused on developing the food processing infrastructure through the promotion of cold chains and integrated food parks by subsiding the capital cost,” shared Vinamra Shastri, Partner, Grant Thornton India LLP.

Growing demand for ready-to-eat food products coupled with rising preference for natural food ingredients to drive food additives market in India over the next five years.

Food additives are edible substances added to food products to enhance their taste, color, appearance and texture. Besides improving quality, these additives are added to prevent microbial growth and increase longevity of processed food products.

Being one of the most populous countries in the world, India has been witnessing significant rise in food consumption level, prevalence of processed and packaged food, convenience food, alcoholic and non-alcoholic beverages, bakery items, ready-to-eat food products and cereals.

These trends are expected to drive remarkable growth in the demand for food additives in the country over the coming years.

According to the recently published TechSci Research report "India Food Additives Market Forecast & Opportunities, 2020", the market for food additives in India is anticipated to witness double digit growth at a CAGR over 12 per cent during 2015-2020.

Growth in per capita disposable income and rising urban middle class population are among the key market contributors.

Due to cultural and regional diversities, food consumption pattern is very not uniform in various parts of the country. As a result, western region generates the highest demand for food additives in the country. The region is expected to continue spearheading the market due to the presence of a large number of food and beverage manufacturing companies in the states of Gujarat and Maharashtra.

Firmenich Aromatics India Private Limited, Zydus Cadila, Danisco and Adani Wilmer Limited are some of the major food additives suppliers operating in India.

Global food giants such as Mars, Mondelez, PepsiCo and Kraft Foods have also been supplying their food items and are among the major food additives consumers in India.

"Indian food additives market is dominated by the flavors segment due to their substantial use in beverages, savory items and cereals. With rising incidences of health problems like diabetes, consumers are also shifting towards all-natural, low calorie sweeteners such as Stevia. As a result, sweeteners are most likely to witness faster growth over the next five years and emerge as the leading segment in India food additives market through 2020.", said Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

"India Food Additives Market Forecast & Opportunities, 2020" has evaluated the future growth potential of food additives market and provides statistics and information on market size, share and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers and key challenges prevailing in India Food Additives Market.

Today’s vast landscape of digital and social media tools have provided more opportunities for restaurants to connect with guests, but with limited budgets and time, restaurateurs are still struggling to choose the most effective mix of marketing and loyalty solutions, according to new industry research conducted by LivingSocial.

“We know restaurateurs have little confidence in the value of their overall marketing spend as they keep experimenting to get more bang for their buck”

In the LivingSocial “Restaurants Trends & Insights for 2015” report, 68 percent of restaurateurs in the survey cited limited marketing budgets and 49 percent of respondents noted trouble tracking the real ROI of marketing investments as top marketing challenges.

And more than a third indicated that managing customer interactions online was another top issue that their businesses faced.

Restaurateurs said they recognize the growing importance of social channels to interact with patrons, build their brand and manage their reputation, but effectively maintaining the sheer number of channels has become a complex problem.

“With the addition of these social media tools, the number of marketing channels that today’s restaurants use is so varied and broad that it’s not a surprise that making sense of the marketing mix can be overwhelming,” said Doug Miller, Chief Revenue Officer, LivingSocial.

In terms of growing the business, almost 60 percent of respondents said they plan to offer new or additional menu items, while exactly half of them said they would adjust their promotional mix to maximize ROI.

At the same time, a majority of survey respondents (86 percent) said they rely on their own experience or the advice of others to make marketing decisions without the help of any supporting data.

“We know restaurateurs have little confidence in the value of their overall marketing spend as they keep experimenting to get more bang for their buck,” said Miller. “There is an information gap which presents an important opportunity to help restaurant merchants have more visibility and better tools to understand the performance of those marketing investments and to make smarter decisions.”

Meanwhile, respondents identified the months of January, February, July and August as slow months for business. To compensate during these months, those surveyed said they offered special promotions.

Nearly 80 percent of survey respondents think online deal sites, such as LivingSocial, are successful in driving sales; 18 percent stated that online deal sites are more beneficial than other marketing channels.

Sixty-one percent of respondents said they used deal sites two to four times a year, while 17 percent leveraged them five or more times per year.

A majority of restaurateurs find that multiple promotions are successful in driving sales and repeat business but offering a dollar savings with a minimum spend requirement is most successful in meeting both goals.

Starbucks Coffee, which is known for blending the perfect cup of coffee, has initiated the ‘Race Together’ campaign in America.

The coffee company has partnered with USA Today to tackle the issue of racism in America.

This week, baristas at 12,000 Starbucks locations nationally will try to spark customer conversation on the topic of race by writing two words on customer cups: Race Together.

Also, a special "Race Together" newspaper supplement, co-authored by Starbucks and USA TODAY, will appear in USA TODAY print editions starting from 20th March and will be distributed at Starbucks stores.

How it began

As racially-charged tragedies unfolded in communities across the country, the Chairman and CEO of Starbucks didn’t remain a silent bystander. Howard Schultz voiced his concerns with partners (employees) in the company’s Seattle headquarters and started a discussion about race in America.

Despite raw emotion around racial unrest from Ferguson, Missouri to New York City to Oakland, Schultz said, “We at Starbucks should be willing to talk about these issues in America."

Adding further, he said, "Not to point fingers or to place blame, and not because we have answers, but because staying silent is not who we are."

Partners were not silent. For more than an hour, at an all-hands meeting at the Starbucks Support Centre, partners representing various ages, races and ethnicities passed a microphone and shared personal stories.

“The current state of racism in our country is almost like humidity at times. You can’t see it, but you feel it,” said one of the partners.

A thousand more voices have joined the conversation

Over the past three months, more than 2,000 Starbucks partners have discussed racial issues at open forums in Oakland, Los Angeles, St Louis, New York and Chicago.

In the midst of a conversation with partners in St Louis, a soft spoken young man shared that he was proud to have reached the age of 20.

“The magnitude of that statement might have been lost on many in the room, but for me, it brought to light a deeply troubling situation. For some young people in our country, just staying alive is their biggest and most important accomplishment,” said Kelly Sheppard, a Starbucks 15-year partner who attended two of the forums. “How could that be in 21st century America with all of the promise and opportunity our nation provides?”

In each forum, partners demonstrated vulnerability and courage as they shared personal stories.  The gatherings highlighted the mission and values of Starbucks, and the partners’ desire to do more.

Inviting customers for discussion

Baristas in cities where the forums were held said they wanted to do something tangible to encourage greater understanding, empathy and compassion towards one another.

Given their willingness to discuss race relations, many partners wanted to begin conversations with their customers too. Partners in New York, Chicago, St Louis, Oakland and Los Angeles have voluntarily begun writing “Race Together” on Starbucks cups.

Partners in all Starbucks stores in the US will join them today. Partners in Starbucks stores may also engage customers in conversation through Race Together stickers available in select stores, and a special USA Today newspaper section arriving in stores later this week.

In addition, full-page ads in The New York Times and USA Today support the Race Together initiative, which will be further outlined during Starbucks 2015 Annual Meeting of Shareholders in Seattle on Wednesday.

Race Together is not a solution, Schultz acknowledged, “It is an opportunity to begin to re-examine how we can create a more empathetic and inclusive society – one conversation at a time.”
 

Global coffee exports reached 8.79 million 60-kg bags in January, up slightly from the same month in 2014, showed the ICO data, according to a latest Reuters report.

World coffee production in 2014-2015 is estimated to drop by 3.2 per cent from the previous season to 142 million bags, the lowest in three years, the International Coffee Organization said in a report.

The output was revised up slightly from 141.6 million 60-kg bags estimated last month due to higher output in Honduras and slight upward adjustments in Tanzania, Cameroon, Rwanda and Burundi, the London-based ICO said in its February report.

"This puts the coffee market into a deficit for the current year, although stocks in exporting countries have so far allowed exports to continue at a strong pace," the report said.

World coffee consumption is expected to grow at least 2 per cent in 2015, picking up from an annual rise of 1.8 per cent last year when consumption was at around 149 million bags, an ICO executive said on Friday.

Global coffee exports reached 8.79 million 60-kg bags in January, up slightly from the same month in 2014, ICO data showed.

Notwithstanding deflation in wholesale prices, food inflation remains ‘a concern’ and could rise further, says a report by Dun & Bradstreet, reported PTI.

According to the global research firm, comfort from the decline in fuel inflation may soon start to abate following the rise in domestic petrol and diesel prices.

“The already elevated food prices could rise further in the event of unfavourable rabi harvest, thereby exerting pressure on overall inflation,” the report said.

It expects the WPI inflation to be in the range of (-) 0.4 per cent to (-) 0.2 per cent in February 2015.

Wholesale prices fell the most in five-and-a-half years in January as decline in oil and some food items resulted in a negative inflation or deflation of 0.39 per cent for the month.

According to D&B, WPI Inflation is likely to remain in the negative zone led by weak commodity prices, subdued demand and continued fall in the global crude oil prices.

“The weak global economy coupled with deflation witnessed in major economies is expected to have some impact on the performance of the domestic economy, the extent of which though cannot be deciphered so easily,” said Arun Singh, Senior Economist, D&B India.

It was the second time in three months that the wholesale price index entered the negative territory. The government had also revised downwards the inflation number for November to minus 0.17 per cent, from zero earlier.

The last time the inflation had touched this low level was in June 2009 when it was at (-) 0.4 per cent.

RBI Governor Raghuram Rajan on January 15 cut interest rates ahead of the scheduled monetary policy review. It is expected that he might announce another cut after the Budget in the wake of significant improvement in the inflation situation. The next review is due on April 7.

MindShift Metrics, the digital research arm of MindShift Interactive launches a research report (with the sample size of 150) that reveals the Fine Dining culture in India.

The research reveals that approximately 89 per cent of people in the age group of 18 years till 35 years visit a fine dining venue once a month.

It is noticed that the eating pattern largely depend upon offers, discounts, loyalty membership because 59 per cent people eat out on the weekdays.

The research showcases the preference of platforms (Zomato, TripAdvisor, Justdial, Food Panda, Groupon, etc.) to refer to, before decision making.

Furthermore, Mindshift Metrics has dwelled into cuisine preferences across age groups as well as their influencers. The need for service, ambience and food is basic but with changing times, the insights showcase how music and seating preferences play an equally important role.

The outcome of the report is to showcase to the hospitality industry, sharing light upon the importance of the location, preferences of potential customers and how reviews and social media influencers are a growing phenomenon.

In association with Social Samosa, MindShift Metrics has jointly released the report  which shares insights into the digital habits of a fine dining customer amongst the age group of 18-24 years and 25-35 years in India.

The objective was to analyse the frequency, search patterns, preferences, service expectations and impact of influencers and reviews, due to which the culture of fine dining is picking up and will continue to grow in India.

The findings of the report will assist marketing, sales, operations and analytical departments in the hospitality sector on how to stay ahead of competition and be relevant within so many options available today.

The report will also be helpful towards independent players and food chains looking at setting up base in India.

“MindShift Metrics has created research reports on trends within the industry, namely Selfie Epidemic, Formula 1, Hospitality Report sharing valuable inputs on topical trends. The inception of the Fine Dinning report evolved with the overgrowing favourability of using content generated digital platforms. With the report we plan to create awareness in the hospitality industry on the strengths of the digital consumer, along with ready solutions to the industry on how they could go about creating a well planned engagement strategy across digital and at their venue,” said Zafar Rais, CEO MindShift Interactive.

Restaurant Business in India is continuously growing at a CAGR of approximately 17.5 per cent from last two years. But getting the right business done by making the new customers a regular customer has become a problem for restaurant operators in the country. Getting the right feedback to acknowledging what they require in the service is unable to get cracked by the restaurateurs.

Challenges faced

Restaurants, today, are faced with challenges where by customer data is stored across multiple dashboards and has no co-relation. Besides, very few technology platforms are driven by ROI and help restaurant build their own CRM. And hence the restaurants are unable to achieve measurable ROI.

Solution

Mobikon helps restaurants drive more footfall and increase repeat business, through its simple to deploy platform, mEngage. The solution helps restaurants capture real time instore feedback and build customer history based on Reservation, Ordering, Spend and Feedback in minutes.

The platform integrates across these touch points to bring in a complete 360 view of the customer.  These data points are used to drive automated campaigns using our mReach platform which results in more footfalls and increased ROI.

How beneficial it is?

These types of platform tracks customer’s visits and engage them based on their past visit spend and review. Besides, it also tracks customer’s birthdays and anniversaries, wishes them automatically and drives more revenue for restaurant.

Investment made

A restaurant can avail these types of services at about Rs 2000 per month.

Who are some of your clients?

Its clients include brands like: Pan India Foods, Little Italy group, Billion Smiles, Pizza Express, Royal Orchid and many more leading brands covering 5 countries and over 32 cities with nearing 1000+ outlets. These platforms engage over 100,000 unique dinners per month and have powered over 1.5M reviews.

Over the years, restaurant industry is facing lots of problem in getting the right traffic at their restaurant. Marketing and placing their product right is a great challenge in a market where people have become very open to eating out.

Challenges faced

From last few years entrepreneurs especially the small restaurants are facing various difficulties in getting their business right, especially when they also have an online presence. Today they do not have a one stop platform that takes care of the complete online presence.

They also do not have any control on media through current channels such as aggregators. Meanwhile, small restaurants are provided no transparency in the management of their marketing budgets and cannot track the conversions through the channels.

Hence they currently resort to traditional means such as OOH, and print. As this is expensive and hard to track the industry is facing lots of challenges.

Solution
Service providers like, Sokrati provides clients with complete online marketing for the restaurant. From launching to managing their website to smoothen their business, these channels are helping the small players achieve their right business.

“We are also helping the restaurant fraternity in paid advertising and free traffic to drive traffic to the website through channels such as Google, Facebook, Pinterest, Email Marketing, SMS Marketing, Local Listings and Maps and hence it is helping in driving leads for their business,” says Santosh Gannavarapu, Co-founder & CTO, Sokrati.

Benefits

The restaurant gets customers for dine-ins and orders for home deliveries and pickup. The restaurant also gets ability to manage their brand, through online brand monitoring.

It exposes channels that the restaurant never tried before. The online marketing is cheaper than traditional forms such as OOH.

Total investment required in providing such solution

And to avail these solutions restaurant chains can pay a sum of about Rs 10000 per month to the solution provider and help their traffic through essentials of marketing.

Clients

“We work with restaurant chains, standalone restaurants and restaurant aggregators” adds, Gannavarapu.
 

India's FMCG sector, which recorded a muted growth, is planning a healthy revival due to drop in inflation, said Nielsen India.

"The inflation in the country has fallen to single digit from double-digit it used to be until sometime back. This has paved the way for the revival of the FMCG sector," said Piyush Mathur, President, Nielsen India Region.

The growth in fast moving consumer goods sector was a tepid 7 per cent in 2014, a steep decline from 18-19 per cent recorded in 2010-11.

The sector has now entered the revival mode due to the falling price rate. Mathur said this at unveiling the consumer confidence index (CCI) findings by Nielsen India for Q4 2014.

"The FMCG sector is coming back slowly. The volume growth story will come back because of lower inflation in the next couple of years. And we hope that growth in the FMCG sector will be 10 per cent during the current calendar year and 12 per cent in 2016,” Mathur added.

The sense of uncertainty prevailing among consumers during the past few years was responsible for the muted growth in the key segment, the firm added.

"For the last couple of years, we had a bit of double whammy where consumers were concerned about their job prospects. People were not sure of the economy versus high inflation,” said Mathur.

The report also mentioned that the growth will be faster in the rural areas as compared to urban during the months to come.

The consumer confidence in urban parts rose to a score of 129 in Q4 2014 - a 14 point increase from 115 reported in the corresponding period of the last year. This was despite a 2 per cent fall at global level in the CCI, the report said.

In an online survey conducted between 10 -28th November 2014, over four in five (82%) urban Indian respondents indicated the highest level of optimism globally on job prospects in the next 12 months, followed by Indonesia (73%) and Philippines (73%), the report mentioned.

Pic Courtesy: www.careerclubplacements.com

Indian food market size which was at Rs 23 lakh crore in 2014, growing at a CAGR of 17 per cent is expected to reach Rs 42 lakh crore by 2020, shared, Boston Consulting Group.

"India's food market size which is at around Rs 23 trillion in 2014 is set to reach around Rs 42 trillion by 2020, along with a three-time increase in average household income from 2010-2020," said, Rohit Ramesh, Principal, BCG.

Indian food habit is evolving over the years with increase in the consumption of fresh dairy products and protein and healthy foods.

According to experts, food expenditure is perceived second to health expenditure in India.

The higher disposable income, women working and the urbanisation of people is increasing the consumption level in the country.

“Presently, Indian food market constitutes 41 per cent of fresh perishable dairy, 34 per cent staples and 15 per cent on beverages and foods,” added, Ramesh.

Meanwhile, the country is witnessing lots of new concepts, innovations in the food and beverages segment. Major global chains like Burger king, Carl’s Jr, Wendy’s, Pita Pan are entering India.