The new tech reality of QSRs

India has a huge population and they are more willing to try new foods around the world. Due to a number of market-driven and strategic factors, international burger franchisees are opening in India.

Young Gen-Z and millennials makes up an important segment of India's population, and they are greatly impacted by international culinary trends. Burger chains find this group to be an appealing market since they are more willing to try and embrace foreign cuisine. With less stringent laws and simpler standards for foreign direct investment (FDI) in the food and beverage industry, India has become a more business-friendly place.

It was projected that the Indian burger market would grow to 20.4 billion dollars by 2025. From 2022 to 2028, the fast food industry in India is anticipated to expand at a compound annual growth rate (CAGR) of 7.3%.

What’s pushing the growth

Quick-service restaurants (QSRs) are replacing traditional home-cooked meals in the Indian market, particularly in urban areas. Affordability, newness, and convenience are important in this business to be successful.

Also, International chains are also customising menu to suit Indian palates, depending on the region and geographies.
After partnering with Franchise India, Burgeratory and Wow Burger is all set to broaden their footprints by venturing in Indian markets.

Regarding the launch Tarun Sachdeva, Global Partner, Burgeratory said, “Our Brand ‘Burgertory’ is an Australian brand which has entered the Indian market and we plan to open 100 stores in India, with the first locations in major cities like Mumbai, New Delhi, and Bangalore.”

The brand is focusing on serving a menu that will feature a mix of Australian dishes and local adaptations, like the Tandoori Chicken Burger and Paneer Tikka Burger. Burgertory is committed to using local ingredients, while also importing some proprietary components from Australia. 

Health in focus

These days’ consumers are focused more on health-conscious diets and are looking at options that is both tasty and healthy.

Sachdeva added, “Our slogan is sinfully delicious healthy burgers. Everything we use is fresh in our kitchen.” 
Overall, they have 14 types of burgers and produce everything in-house and no frozen items. Similarly, there is a growth in the Plant-based burgers segment. By 2033, the market for plant-based burgers in India is anticipated to grow at $362 million.

Emphasizing on their plant-based burgers, Sunil Datwani, Managing Director, Wow Burger commented, “We are a Hong Kong based brand. We want to promote healthier way of eating. So, the main focus is to promote vegetarian burgers which are mostly soy-based. The patties are wheat based and no chemicals or preservatives used. The brand also serves rice bowls, wraps and much more.” 

Regarding the brand name, he added, “We will enter the Indian market with a different name as there is Wow Momos in India, so to avoid the confusion we will come up with a new name and logo. We are planning to launch 15 stores in India by end of 2025. For the start, the brand will open in Mumbai and Gujarat and later will expand to other locations. We also have decided to localize 65 percent of the menu as per the different cities in India.”

Although, the challenges will be there, but it is certain that the international brands are likely to grow in the Indian market with their unique concepts and creativity. 

Convenient food options like pizza is becoming more and more popular due to rapid urbanization and rising disposable income. To broaden their market reach and boost overall profitability, pizza chains are concentrating on aggressive marketing strategies, such as celebrity endorsements and social media platform ads. In order to appeal to the varied Indian palate and draw in more customers, pizza businesses are always changing their menus and adding regional flavors and ingredients. 

Over the last five years, India's pizza market has experienced remarkable expansion, with an annual growth rate of 26%. From 2024 to 2032, the market is anticipated to expand at a compound annual growth rate (CAGR) of 9.63%. 

Jae Won Lim, Founder & CEO, GOPIZZA Global in a keynote session at Indian Restaurant Congress that happened in Delhi on 8-9th October explained about their brand and the ‘Global Perceptions that Drive Growth’.
Here are the key insights from his informative session:

Running on Popularity

“We are a South-Korean pizza brand. When we started GOPIZZA in 2016, I wanted to make a true QSR version of pizza; our motive was smaller size, faster servicing speed and cheaper price. We made these happen in the last 8 years. Pizza is considered to be a premium food and family diner by the rest of the world. It usually takes long to deliver,” shared Lim who has witnessed a dramatic change for the brand, starting from streets to India and to the President’s office in Korea. “Anywhere people want pizza, we give them pizza. Currently, we operate in 7 different countries and 1200 stores and we are serving more than 600 thousand customers every month globally,” he added.

Service at the Top

To build a restaurant is an art. The nature of this business lacks scalability and hence we need to continuously focus and grow it. We serve personal size pizza mostly and the price in India starts from 89 rupees. We normally serve our customers within 5 to 7 minutes and that’s where we are trying to compete with our peers.

Globalisation is the Key

Emphasizing on why to be a global brand, he added, MCD’s is the largest Fnb Corporation in the world. And, it is still growing like a teenager and has become a global brand, targeting the right market, clientele at the right time.
Today, many Asian countries where the market is stagnant and not going anywhere so the brands try to get out of their nation to see potential in order to grow more. In India, lots of markets are drooling over. Even if we have enough capital to build the brand, maintaining the brand name is a challenge as you need to achieve scalability and consistency at the same time.

“Profitability also plays an important role. One may have 100 stores that make money but you can’t predict if that money will be from the first 100 stores or not,” he mentioned as he aims at making GOPIZZA a global chain.

Scalability is Important

Running a restaurant is a difficult task. “We were funded 40-50 million dollars. We are the most valuable food tech company in South Korea right now. In order to prove to our investors, we have to prove all of them that we are scalable,” he added as he is targeting to grow his outlets and is keen on expanding to newer regions.
He also mentioned that he worked at a Pizza chain to learn how the brand can be scalable, consistent and profitable. 

Infusing Tech for Efficiency

Elaborating further, he added, “Everyone has different skill sets in the restaurant, consistency can break and profitability isn’t guaranteed always.  In order to achieve things, we took in food technology and came up with the concept of pre-make the dough. And, this was our mission, serve the food faster with the pre-make dough. Within a year of practice and research in kitchen, we started our truck. Within the truck, we were selling 800 pizzas per night. It was a huge success pizza food truck model for us. There were 12 people working in the truck, especially if you see the oven it’s very difficult to operate with more people around. The brand aims to become MCD of pizza by building accessible pizzas worldwide.

Use of Automation

“We thought why not make an oven with automatic rotator which can rotate the pizza without any manual help. Food technology was very important for GOPIZZA from the very early days. The brand uses cutting-edge AI technology, including the patented GOVEN, which bakes six pizzas in 3 minutes. We incorporated AI in to our kitchen in 2019; this is called AI Smart Topping Table. The AI Smart Topping Table monitors pizza toppings in real-time for precise results. In Korea and Singapore and in other places, there are literally no humans to work in restaurants and robots are doing the work. We are dependent of technology as it is evolving. We made tremendous growth in India serving around 100 thousand customers per month. The brand has expansion plans in India and in other locations,” he concluded.
 

Restaurant patrons are increasingly aware of their unique preferences and seek dining experiences that cater specifically to their individual desires and needs. According to a recent PWC report, a significant 82 percent of consumers are open to sharing personal information if it means receiving a more customized and satisfying experience. Furthermore, the same survey highlighted that 87 percent of respondents consider a personalized experience as a crucial aspect of their purchasing decision, underscoring the growing demand for tailored service in the restaurant industry.

Restaurants today are facing a unique challenge in the digital age: how to sustainably increase revenue while catering to a varied clientele. The answer lies in the strategic segmentation of customers into four categories - new customers, return customers, regulars, and lost customers - and leveraging data-driven insights for personalized experiences. This approach not only elevates customer satisfaction but also significantly boosts revenue streams.

Welcoming New Customers: First Impressions Matter

New customers are potential goldmines for any restaurant. The first interaction sets the tone for future engagement. Indian restaurants are increasingly utilizing integrated WiFi marketing to capture valuable data like visit frequency and preferences. Personalized welcome messages coupled with tailored offers not only make a great first impression but also encourage repeat visits. For example, a first-time guest at a Mumbai seafood restaurant could be greeted with a personalized message offering a complimentary welcome drink that complements the local coastal cuisine.

“I believe our revenue surge is a result of staying attuned to the pulse of culinary trends, consistently elevating our offerings, and fostering a warm ambiance that keeps guests coming back. It’s about creating an experience, not just a meal,” Manik Kapoor, Director of Cafe Hawkers and Sambar Soul commented. 

Offering first-time customers a discount in the welcome message when they enter a physical store can encourage them to make a purchase. This strategy increases the chances of them buying something during their initial visit or coming back later for more purchases, motivated by personalized discounts tailored to their shopping preferences. Creating a data-informed atmosphere that delivers relevant information to customers demonstrates that a business is committed to understanding and creating a unique experience for its customers, setting it apart from its competitors.

Nurturing Return Customers: Beyond the First Visit

Once a new customer walks through the door a second time, they transition into a return customer. This group is crucial as they have shown initial satisfaction and a propensity to revisit. Personalization in this phase focuses on recognizing their previous choices and suggesting new options. Integrated data systems can track their favorite dishes or seating preferences, enabling the staff to provide a customized experience. Loyalty programs tailored to individual preferences can be highly effective. For instance, a Delhi-based restaurant might offer a special discount on a customer's preferred North Indian dish, encouraging them to become regulars.

According to a McKinsey study, subscribers to paid loyalty programs tend to spend 60 percent more on a brand post-subscription. Similarly, those enrolled in free loyalty programs show a 30 percent increase in spending on the brands they follow. Although paid loyalty programs have a stronger impact in motivating repeat purchases and higher spending, free programs also significantly contribute to boosting customer expenditure and loyalty.

Cherishing Regulars: The Backbone of the Business

Regular customers are the bedrock of a restaurant's success in the competitive Indian market. They provide steady revenue and often act as brand ambassadors. For them, the focus shifts to appreciation and recognition. Exclusive offers, priority reservations, and efficient service are key strategies. A Bengaluru tech hub café could implement a loyalty program offering express service or reserved seating during peak hours, recognizing their regular customers' time constraints.

“Driving Gola Sizzlers’ revenue growth requires a nuanced approach — from selecting the right locations that align with our brand ethos to keenly identifying our target audience. It’s about creating a culinary symphony that harmonizes with the pulse of each neighborhood, ensuring our success transcends mere dining to become a cultural and gastronomic centerpiece,” Rajat Kapoor, Director of Gola Sizzlers added. 

Re-engaging Lost Customers: Rekindling Old Flames

The end of a customer relationship with a restaurant is painful, not just due to the loss of potential revenue, but also because the established connection with customers contributes to a healthier business environment. Focusing on re-engaging with former customers is crucial, as they represent the fourth key customer group for businesses. Through integrated marketing efforts, businesses can revive these relationships, recognizing that a temporary pause in patronage doesn't signify a permanent end. "Marketing Metrics" highlights that there's a 60-70 percent chance of selling to an ex-customer, a notably higher probability compared to the 5-20 percent chance of selling to a new prospect.

“Lost customers present an opportunity for reconnection. Analyzing their previous behavior and preferences through data from integrated WiFi systems allows for crafting compelling offers tailored to bring them back. A restaurant might use historical data to identify customers who haven't visited in the past six months and send them a personalized invitation to a special event featuring their previously enjoyed dishes,” Debaditya Chaudhury, founder of Chowman added.

The key to flourishing is not just in the quality of food but in the art of personalization. As customers increasingly value experiences tailored to their unique tastes, restaurants embracing this trend are setting new standards in customer satisfaction and loyalty. The strategic categorization of customers into new, return, regular, and lost, coupled with leveraging cutting-edge data analytics, has become an indispensable tool. This approach not only nurtures a deeper connection with each patron but also propels restaurants towards sustainable growth and a distinguished place in the competitive market. It's clear that in the realm of gastronomy, the future belongs to those who not only serve meals but craft memorable, personalized experiences that resonate deeply with their clientele.

As we move closer to the Union Budget 2024, like every other sector, restaurant and food & beverages sector have high expectations from the government. And, are looking forward to some changes that they are demanding for long from the government. From prioritizing enhanced infrastructure to policies that will cultivate a thriving economic infrastructure. Meanwhile, as inflation had led to a rise in the cost of products and raw materials, the government allowing input tax credit could prove to be a boon for the sector.

Here are the Top 6 Demands that Restaurant leaders have from the government in the upcoming union budget: 

An Ease in Policies: “Over the past few years, the restaurant industry has not only contributed substantially to economic growth but has also been a steadfast source of employment generation. As we anticipate the upcoming Union Budget, our focus remains on policies that will cultivate a thriving economic environment for sustained growth of our industry,” shared Amit Jatia, Chairperson, Westlife Foodworld Ltd. He also pointed that, they also advocate for policies supporting the comprehensive growth of the restaurant industry. This includes measures to fortify the agriculture sector and enhance the supply chain infrastructure, especially pertaining to freezers. We acknowledge the government's past decisions favoring agriculture and allied sectors and look forward to continued support.

Renew GST Structure: One critical aspect that restaurant owners are keen on watching is the existing GST structure, particularly concerning input tax credit. “The current 5% GST rate on restaurants, bereft of the input tax credit, presents a potential hurdle, especially in capital expenditure where input tax credit is not available. We propose a nuanced approach – offering restaurants the choice between a 5% GST rate and a rate that includes input tax credit. This, we believe, would be mutually beneficial for the government and the industry, fostering a more conducive growth environment,” added Jatia. 

Enhancing Economic Growth: “As industry leaders, we strongly encourage the government to prioritize enhancing infrastructure, alleviating GST and tax burdens, streamlining licensing procedures, and offering accessible financing for the food and beverage sector. This sector employs 7.5 million individuals, and we are dedicated to advancing economic growth and fostering equitable opportunities. We anticipate that the government will engage all stakeholders in pursuing a robust and prosperous future,” pointed Teja Chekuri, Managing Partner at Ironhill India & Global Restaurateur.

Commenting on the same, Singeshwar Singh- Founder, Sinberg Hospitality, said, “Our expectations extend to the budget reflecting a dedicated commitment to a well-supported sector, acknowledging its substantial contribution to the broader economic revival. By prioritizing these facets, we envision a budget that allocates resources and strategically positions the hospitality industry as a key driver of sustained economic recovery. Additionally, we look forward to the budget addressing challenges related to liquor licensing, facilitating a more conducive environment for responsible alcohol service.

Reduction of Interest rate & Income Tax: “The interest rate for MSME sector starts at 7.65% at the recent. This rate of interest can be reduced and loan disbursal must be expanded. Simultaneously, streamlining income tax by reducing it for such sectors can posit a relief to the restaurant industry,” mentioned Debaditya Chaudhury, Managing Director of Chowman, Oudh 1590 & Chapter 2.

Commenting on the same, Dawn Thomas, Co-founder, VRO Hospitality, added, "With demand all-time high in hospitality, we are expecting a transformative year ahead. The upcoming budget holds the key to unlocking innovation and progress. As pioneers in these industries, we approach the budget with optimism, anticipating policies that encourage investment in cutting-edge technologies to enhance guest experiences in our sector and elevate healthcare services. We seek a budget that fosters a collaborative ecosystem, providing support for startups to flourish and contribute meaningfully to the growth of this sectors. A forward-looking budget will not only fuel innovation but also create a resilient foundation for the future of hospitality in our nation."

Streamlining Liquor License: “The budget prioritizes Progressive cuisines and streamlines liquor licensing for culinary tourism and operational ease. However, the hospitality sector grapples with increasing food procurement costs amid rising expenses, commodity price fluctuations, and inflation. Businesses must strategize with alternative sourcing and cost-effective supply chains for profitability. Addressing these challenges requires careful planning and innovative solutions,” commented Saurabh Luthra, Restaurateur, Owner & Founder, Chairman- Romeo Lane, Birch By Romeo Lane & Mama Buoi.

A Need for a Separate Ministry: “The Restaurant Industry is a vital contributor to the national economy, generating over 7.20 million direct jobs and boasting an annual turnover of around INR 4.23 lakh crores. Despite being one of the sectors hit hardest by the pandemic, the industry has displayed resilience and is on a steady path to recovery. In light of this, I would like to emphasise the need for policy and budgetary support in the upcoming budget to propel the sector & accelerated growth. The key areas of focus include the restoration of the GST Input Tax Credit, reinstating the Service Export from India Scheme, establishing a dedicated Food Services Ministry, according to industry status, reducing GST on eco-friendly materials, addressing GST on commercial rentals, rationalising licences and NOCs, ensuring equitable e-commerce policies, extending operating hours, implementing targeted subsidy schemes for SMEs, and introducing an employee welfare plan. These measures will not only boost the overall size of the industry but also generate significant employment opportunities, contributing to the country's economic growth,” pointed Pranav Rungta, Director, Mint Hospitality Pvt. Ltd.

Hence, as we look ahead with optimism, the industry look forward for a budget to recognize the pivotal role played by the restaurant industry in India's economic landscape.

Spreading its wings to the city of Hyderabad, Indian Restaurant Congress hosted 2nd edition of its Leadership Series at ITC-Kohenur Hyderabad that witnessed great footfall from the restaurant and F&B fraternity. Top restaurateur, policy makers, food service professionals, chefs and consultants, food ingredient and raw material suppliers came together at the event and awards held on 5th December.

“I am super excited and delighted to be a part of Restaurant India Awards in Hyderabad and this is the place to attend and meet the who’s who of the Hyderabad F&B industry and I am very excited and happy to be a part of it,” shared Amar Ohri, MD, Ohri’s that is into the business for almost four decades now.

A Platform for Restaurant Entrepreneurs 

The restaurant and F&B (Food & Beverage) professionals came together on the single platform to interact, share their knowledge and experiences on various topics related to Curating Experience, Investing n technologies, Trends and Expasion. Keeping in mind the theme of the event ‘Consistency, Connection and Convenience’, experts shared their insights on how to create business concept and food palates that are modern in their traditionalism.

“The big news for the restaurant industry growth is the interpolation of independent restaurateurs’ and Hyderabad stands out both for its brilliant concepts and restaurant owners ambition,” pointed Ritu Marya, Editor-in-Chief, Entrepreneur Media & Restaurant India by adding that restaurants are not as insulated in their regional pockets as they used to be. 

She also mentioned that we will be seeing restaurants that focus on regional cuisines, crossing the state borders, and will alight a new array of Andhra food options in Indian cities.

“I congratulate Restaurant India that has come to Hyderabad to recognise the best of the talent, best of cuisine. It’s a beautiful platform where like-minded people come together and share ideas, thoughts and knowledge. We also get to see some great food and food-tech products that help hoteliers, industry to make their job faster, convenient and efficient and affordable and I think restaurant India has provided a wonderful platform for all of us at Hyderabad,” mentioned Chef Dharmender Lamba, President, Telangana Chefs Association and Hotel Manager, Trident Hyderabad.

Commenting on the same, Ramit Goyal, National Sales Head, Hyperpure by Zomato added, “It’s been a great experience at Restaurant India and it was pleasure connecting here with lots of restaurant partners. It is a great platform to meet restaurant and F&b partners and share ideas.”

It’s Gala Time

Restaurant India Hyderabad Awards 2023 was held in the evening of 5th December that acknowledged the contribution of market leaders and innovators from the Restaurant fraternity. Organised by Franchise India and judged by leading business experts including the Editor-in-Chief of the group, these awards were the perfect opportunity to show the awardees’ outstanding success in the industry as they received national recognition and extensive media coverage with the partners.

The awards night was attended by the top leaders including Amar Ohri of Ohri’s, Shashank Annumula of Café Niloufer, Teja Chekuri from Ironhill India amongst others. The awards night was also blessed by the presence of Shri Jayesh Ranjan, Secretary, IT&EC, Govt of Telangana and Shri Meela Jayadev, President, FTCCI.

“Restaurants today need professional level of high level, trained and qualified staff as it is very important to know who the team that works with you are is. Also, a training facility by restaurant people is required since it's different from other sector, the training has to come from within the industry,” mentioned Mr. Ranjan by adding that restaurant business should also align themselves with the Govt and as we are celebrating the International year of millets, restaurants should popularise this in restaurant and organise food fest around the same and support the same.

In the last two years, Restaurant India Conference and Awards has become the authority and the final word when it comes to food and beverage in the country. A night full of applauds and recognition of customers was sponsored by Ohri’s, NuTaste, Hyperpure by Zomato, On2Cook amongst other. The prestigious brands that were a part of the evening included Paradise Biryani, Café Niloufer, Ohri’s, Cock & Bull, Trident, Marriott Hotels, The Park, IronHill India, Bawarchi, Pista House to name a few.

Quick-service restaurants (QSRs) have come a long way, technology has emerged as the unsung hero, transforming the dining experience into a seamless and futuristic affair. Gone are the days of scribbling down orders on paper and shouting them across the kitchen; today's QSRs are using the power of digitalization to not only expedite service but also to create a more engaging and personalized dining journey.

Picture this: you stroll into your favorite burger joint, and before you even reach the counter, your phone pings with a notification. "Welcome back! How about adding your usual double cheeseburger to your cart?" The digital age has ushered in an era of hyper-personalization in QSRs, where algorithms anticipate your cravings almost as accurately as your best friend.

One of the most noticeable trends in QSRs is the rise of mobile apps. These apps aren't just a fancy add-on; they're becoming the backbone of the entire dining experience. Mobile ordering has empowered customers to skip the line, customize their orders effortlessly, and even schedule pickups. It's not just about saving time; it's about giving customers the power to curate their dining adventures with a few taps on their screens.

Speaking of screens, digital menu boards are another tech trend that has found its way into the QSRs. Forget static displays; these digital marvels showcase visuals of every item on the menu, complete with real-time updates and promotions. It's like having a food gallery right in front of you, tempting you to explore beyond your usual choices. The days of squinting at small print menus are fading away, making room for an immersive visual feast.

But the digital transformation doesn't end with the customer interface. Behind the scenes, kitchen operations are undergoing a tech makeover as well. Integrated kitchen management systems are streamlining the cooking process, reducing errors, and optimizing inventory management. It's not just about serving food fast; it's about serving it right every time. With digital tools keeping the kitchen in sync, chefs can focus on what they do best – creating delicious masterpieces.

The introduction of self-service kiosks is yet another chapter in the tech tale of QSRs. These touch-enabled stations allow customers to place orders, customize meals, and pay, all without interacting with a human cashier. While some may argue that this diminishes the human touch in hospitality, others see it as a way to empower customers, especially those who prefer a swift and independent dining experience. It's a fine balance between embracing the convenience of technology and preserving the warmth of human interaction.

Moreover, loyalty programs have taken a digital twist. Forget about stamp cards and physical coupons cluttering your wallet. QSRs are leveraging digital loyalty programs to reward customers for their patronage. From points-based systems to exclusive app-only deals, these programs are not only encouraging repeat business but also providing valuable data for restaurants to tailor their offerings to individual preferences.

Now, some may argue that the charm of a QSR lies in its simplicity – a place to grab a quick bite without the fuss. However, the digital revolution isn't about complicating the experience; it's about enhancing it. The aim is not to replace the essence of QSRs but to infuse it with the efficiency and personalization that today's tech-savvy customers crave.

In a nutshell, the tech trends in QSRs are not a mere addition but a fundamental shift in the dining paradigm. From mobile apps and digital menu boards to kitchen management systems and self-service kiosks, every aspect of the QSR experience is undergoing a digital makeover. Embracing this revolution doesn't mean saying goodbye to the traditional charm of quick service; it's about welcoming a new era where technology and simplicity coexist, creating a dining experience that's not just quick but also smart and tailored to individual tastes. So, the next time you order your favorite meal, remember, it's not just a transaction; it's a digital dance between you and the restaurant, choreographed for your satisfaction.

World Food Day is celebrated every year on 16 October. The day is dedicated to create awareness about the importance of healthy diet, and highlight the challenges faced by millions of people across the globe due to lack of access to healthy food. The main purpose behind celebrating Food Day on a global level is to promote policies and programs for eliminating hunger to ensure that the upcoming generations do not face food related issues and malnutrition. Restaurant India spoke to some of the top restaurant and food entrepreneurs from across India on the key learnings that these people have over the years while running a successful restaurant business.

Never Ever Compromise on Quality: When we talk about healthy diet, food safety and wholesome food, the most important aspect of a restaurant business that comes to our mind is ‘quality’. According to, Vishal Anand, Founder, Moonshine Food Ventures, food industry is ever evolving and moving forward at a fast stead pace. “The most important learnings I have taken from my years in this industry are that never ever compromise on quality. Always use the best quality and fresh ingredients and ensure you always give your patrons a wholesome experience,” he added by pointing that it is important to innovate but it is even more important to not digress from the authenticity of flavours and preserve the uniqueness of every dish.

Commenting on the same, Harsha Vadlamudi, Cofounder and Managing Partner - Ironhill India said, “Unwavering commitment to quality is non-negotiable. Regardless of the customer's expenditure, quality is a universal priority. As a brand, it is imperative to consistently uphold the highest standards in all facets of the business – from the food served to the ambiance of the establishment and the quality of service provided. This unwavering commitment to quality is not only a hallmark of professionalism but also a key driver in retaining a loyal customer base.”

Customer is the King: No matter how good you are in the business, if your customer is not happy and satisfied, your business will not survive in the market. “The first major learning that I’ve got from the food industry is that customer satisfaction is the key to success. Serving good quality, tasty food and great service go hand in hand in ensuring customer satisfaction. Also constant innovation is important to keep the customer engaged and ensure their return,” pointed Vikrant Batra, Cofounder, Dhansoo Cafe, Gurugram. 

Diverse Culinary Experiences: Sharad Madan and Naresh Madan, Co-Founders, Khubani, Delhi have learned that the restaurant industry is not just about serving food; it's about creating a holistic dining experience. They emphasize that a diverse culinary experience, which includes a blend of flavors, ambiance, and service, is what sets a restaurant apart. This learning has driven them to curate menus that cater to a wide range of tastes, ensuring that there's something for everyone, and to create a welcoming atmosphere that fosters memorable moments for patrons.

Constant Adaptation and Innovation: Sharad and Naresh have learned that staying relevant means being open to change, whether it's experimenting with new dishes, adapting sustainable practices, or embracing technology for efficient operations. They believe that innovation is not just about following trends but also about setting them, and they continually seek fresh and inventive ways to enhance the dining experience for their customers.

Respect your Time: In the realm of the Food and Restaurant Industry in India, though people focus on many fundamental principles but everyone forget to mention the most important aspect of running a business, ‘Time’. According to Harsha Vadlamudi of Iron Hill India, “An entrepreneur's dedication to respecting time is a pivotal aspect. Time is a valuable resource, and in the world of business, punctuality and respecting the commitments made to others are essential. For entrepreneurs, demonstrating respect for everyone's time is not only a mark of professionalism but also a testament to one's reliability and integrity. It fosters trust and bolsters relationships, both of which are integral in the restaurant industry.”

Know what’s Trending: “It is important to recognize that the palate, trends and requirements of the consumers keep evolving over time. Till a few years ago, the only people who avoided sugar were diabetics, but now fitness enthusiasts, especially GenZ and Millennials, try to keep Sugar and sodium levels to a minimum and consume as healthy as possible. Foods and Beverages with higher sugar content may taste better but GenZ and Millennials are ready to forgo them for healthier options. Such trends like healthier foods and Vegan friendly-options are accelerating and the F&B industry needs to offer these in their menu to cater to the growing audiences,” commented Abhishek Sarwate - CEO at Utopian Smoothies.

The Food and Restaurant Industry in India demands a steadfast commitment to quality and an unwavering respect for time irrespective of the country you are in. Embracing these principles not only elevates one's brand but also paves the way for long-term success in a competitive and dynamic market. These key learnings reflect their commitment to providing a diverse and innovative culinary journey for their patrons while adapting to the ever-evolving landscape of the food and restaurant industry.
 

Restaurant Business in not everyone’s cup of tea, one has to be very passionate about operating and owning a restaurant. According to Pizza Hut India Sub Continent, Managing Director, Merrill Perryra, the importance of the three Cs: Consistency, Convenience, and Connection in the food industry is very important. Addressing to audience at 12^th Indian Restaurant Congress, he mentioned that connection with customer is very important. Excerpts from his speech:

Adaptation during the Pandemic: The COVID-19 pandemic forced rapid adaptation in the food industry. It highlighted the need for innovation and evolution to meet changing consumer demands.

The Significance of Connection: Connection with customers is essential. People seek not only good food but also an emotional connection. Familiar comfort food became even more important during the pandemic.

Adaptation to Digital Platforms: Brands need to adapt to digital platforms to connect with younger generations like Gen Z who have specific preferences for communication (e.g., WhatsApp, Snapchat, Discord).

Values and Authenticity: Authenticity and alignment with values are crucial for connecting with today's youth. It's not just about products and marketing; it's about living up to what the brand claims.

Innovation and Sustainability: Innovation initiatives, such as the use of solar panels and reducing food waste, are important for business strategy, appealing to investors, customers, and employees.

Consistency and Convenience: Consistency in product quality and brand experience is key to customer satisfaction and loyalty. Consistency should be maintained while embracing innovation. Meanwhile, convenience, beyond just delivery, is crucial in today's fast-paced world. It includes affordability, sustainable packaging, and ready-to-eat meal options.

Growth Opportunities: The Indian food industry is poised for double-digit growth, and businesses should invest in new technologies, expand into untapped markets, and tailor their offerings to diverse consumer preferences.

Tailored Communication: Personalized and relatable communication is important, especially in the digital medium. Use pop culture and authenticity to connect with consumers.

These points highlight the importance of adapting to changing consumer needs, maintaining authenticity, and aligning with values in the food industry, especially in the context of the three Cs: Consistency, Convenience, and Connection.

In the fast-paced and ever-changing landscape of India's food industry, a notable shift is underway. This transformation is being driven by a growing inclination among consumers towards lower-priced products and a preference for regional brands. Against this backdrop, the country's leading quick-service restaurant (QSR) chains are undertaking significant overhauls of their business strategies. These strategic adaptations have become essential as these QSR giants grapple with a persistent slowdown that has persisted for three consecutive quarters. The key elements of this strategic transformation encompass a multifaceted approach aimed at ensuring the QSRs' continued relevance and competitiveness in the evolving Indian market.

The Shifting Tides of Consumer Preference

Consumer discretionary spending in India, like in many countries, is facing headwinds. Gaurav Burman, director of Burman Hospitality and master franchise partner of Taco Bell, acknowledged the challenges, mentioned in a statement, “Branded QSR is not an everyday purchase." Taco Bell has taken extensive steps to adapt to this new environment, aiming to increase its appeal to cost-conscious consumers.

Localizing Menus: A Key Strategy

One notable strategy employed by QSR chains is menu localization. This approach involves tailoring offerings to cater to regional tastes while maintaining the global brand's identity. For example, Taco Bell has introduced three new products as part of its Indianized menu, featuring flavors and ingredients that resonate with the local palate. This approach not only attracts a wider customer base but also allows brands to stand out in a crowded market.

Rajiv Bakshi, a food industry analyst, comments on the significance of menu localization: "In India, where diversity in cuisine is celebrated, adapting menus to local tastes can be a game-changer for QSR chains. It's about striking a balance between global appeal and local flavors."

Price Sensitivity and Competitive Landscape

The quick-service restaurant (QSR) industry in India is currently witnessing a dynamic and competitive landscape, marked by several notable trends. One of the prominent developments is the rise of boutique brands such as Leo's, Tossin, GoPizza, and MojoPizza, which are making significant strides in the market. These local players have strategically positioned themselves by offering lower-priced alternatives to the more established QSR chains. This approach has proven successful in attracting a younger and increasingly price-conscious demographic of consumers.

On the flip side, the QSR landscape is also seeing the emergence of specialized brands like AvoBeet, Feta Burger, Nino Burgers, Louis Burger, and Speak Burgers. These brands have chosen to target the premium end of the burger market, aiming to cater to consumers seeking unique and indulgent dining experiences. By focusing on high-quality ingredients, gourmet preparation methods, and innovative flavor profiles, these specialized QSRs have carved out a niche for themselves among discerning consumers who are willing to pay a premium for exceptional food and dining experiences.

Local Competition: Hurting or Pushing Innovation?

Local competition is undeniably a significant factor in the evolving QSR landscape in India. Smaller, local brands have successfully tapped into the price-sensitive consumer segment, offering competitive prices and localized flavors. This has resulted in a noticeable shift of customer preferences towards these alternatives.

However, while local competition poses challenges, it is also a driving force behind innovation within the QSR space. Larger chains are compelled to diversify their menus, lower price points, and focus on product innovation to stay relevant and regain market share.
Motilal Oswal, a leading financial services company, shares insights into the challenges and opportunities facing the QSR industry in India. In a report in June, Motilal Oswal stated, "The benefits of strategic interventions such as store reimagination, aggressive new launches in the value segment, and 20-minute delivery to address the slowdown in dine-in business have been slower than expected due to discretionary slowdown."

The report highlights that the industry is facing persistently high prices of milk and milk-related products, along with recent increases in vegetable prices. These factors pose challenges to QSR chains' profitability and pricing strategies.

Price Point Focus

To address the challenge of declining footfalls and to remain competitive in a market increasingly characterized by lower-priced offerings, major chains like KFC India have unlocked new price points. KFC India's have unlocked a new price point of Rs 99 with two recent launches, in addition to rolling out consumer promotional offers.

Similarly, Burger King, under Restaurant Brands Asia (RBA) India, has prioritized strengthening its position in the value-for-money meal segment with prices starting at Rs 99. This strategic shift aims to gain price leadership and cater to consumers looking for affordable dining options without compromising on quality.

Maintaining a Long-Term View

Despite the current challenges, QSR chains remain optimistic about their long-term prospects in India. Taco Bell's Gaurav Burman emphasized that it's crucial to manage the business effectively to ride out these headwinds. With 130 stores and ambitious plans to reach 170 stores by year-end, Taco Bell is demonstrating its commitment to the Indian market.

Burman shares his perspective on the industry's resilience, stating, "Would I be happier if all our markets were growing and growing double digits? Of course. But the reality is, when you take a long-term view of managing a business, you'll have good times and hard times."

A Long Road Ahead

Analysts predict that the QSR industry may continue to experience subdued like-for-like growth for several more quarters. Factors such as rising raw material costs and unpredictable demand make the current environment challenging. However, industry executives remain committed to mid-term expansion targets, counting on factors like the growth potential in smaller towns, the introduction of more affordable products, and enhanced delivery options through aggregators.

In conclusion, India's QSR chains are adapting to changing consumer preferences by localizing menus, focusing on lower price points, and investing in product innovation. While local competition presents challenges, it is also driving innovation within the industry. As the industry navigates headwinds and local competition, it remains focused on long-term growth and evolving to meet the ever-changing needs of Indian consumers.
 

With continuous surge of the price of tomatoes and other vegetables, restaurants are gradually feeling the pinch of high operational cost and sales margin. Restaurant India spoke to restaurant owners to find out what’s cooking behind the kitchens these days.

Customer is at the Top

“Although our costs have increased, we have not passed on that cost to our guests yet because we are waiting for the situation to get better and the prices to stabilize, we are waiting for the government's intervention for the situation to get better,” shared Sharad Madan, Director and Co-founder, Khubani by pointing that Khubani is a luxury dining space and our eminent priority has always been on getting the best produce for our cuisines. However, this has become a challenge due to the limited supply of good quality tomatoes as they are highly perishable and essential commodities.

The tomato crop is currently undergoing a seasonal shift after growers reduced planting due to losses incurred last year. Also, rain in key producing states has severely caused a supply and demand gap. These fluctuations in tomato prices have led to an increase in our overall operational cost. Last week, QSR chain McDonald’s has removed tomato from its burger menu and other key items on the menu.

Quality is Priority

"Amidst the tomato woes, restaurants find themselves grappling with soaring prices and a restricted array of choices! As a chef at Cafe Delhi Heights, we understand the predicament all too well. We strive to navigate these challenging times by sourcing the finest ingredients available, exploring creative alternatives, and crafting delectable dishes that continue to tantalize taste buds, added Chef Ashish Singh, Culinary Director, Cafe Delhi Heights who has not done much changes in the menu.

Although the prices of tomatoes have skyrocketed and restaurant owners have no idea how long it will last, they are still trying their best so that it does not affect their standard of service and serve customers their favorite dishes at affordable prices.

Driving Biz on Relationships

“We take these things as routine. Such situations are temporary and last sooner. We don’t compromise on its use for any of the recipe preparation as we don’t want our customers to face the results. This increases our costings but then this is what we call hidden expenses and there is always a room for it. This has not affected sales so far,” mentioned Akash Kalra, Founder at the famous United Coffee House Rewind.

He also added that since the brand has multiple locations, they have settled vendor base to work out the ingredients even at higher price. “Our pricing in the menu are same as of as now, and we don’t intend any change till the situation becomes absolutely beyond control,” he clearly pointed.

Sharing his view on the same, Amit Bagga, Co-Founder, Daryaganj shared, “There is impact on our business but we haven’t changed or modified the menu as yet. We had done a signed an annual supply contract for our vegetables with Hyperpure by Zomato and they are honouring the same price and specifications. We are not facing any issue as of now.”

Started by Apinash Sivagumaaran in 2016, Isso Prawn is Sri Lanka’s favourite prawn restaurant. Soon after its launch, it became a favourite among prawn-lovers in the city, prompting the opening of more branches both in Colombo and the Maldives. The brand is now planning to enter into the India market and expand their business here. Excerpts here:

Tell us something about Isso Prawn. Why the name?

ISSO means Prawns in Sinhalese. We're a prawn focused restaurant. We started the restaurant in 2016 wherein we bring people together through delicious prawn dishes from around the world. Our focus is on taking a luxury ingredient and serving it at a price bracket that can be considered reasonable.

What’s your USP?

Our unique selling proposition is again prawn as we are focused on it along with affordable pricing.

What’s your plan for Indian market?

We want to make an entry into the Indian market as we think this is a strong market and is mostly untapped in terms of Prawns. Certain cities in India, culturally love prawns. So, I think in these markets we would do very well. There's also a massive gap in the market for Sri Lankan food. And, that’s where we fit in and are in search for a very strong partner for us to enter into the market.

Which markets would you say is the strongest in India for prawns?

Chennai, Mumbai, Delhi and Goa is a strong market and hold great potential for our product line.

Models in India?

We have three models. One is a full scale model that's about 2,500 to 3000 square feet that can sit a hundred people. I don't think that would be the first outlet. The first outlet would be an express outlet that's about 1,500 square feet and then there's a kiosk type as well. In a mall, 40 seater.

Which market segment are you actually targeting in India?

We are positioning ourselves as a quick service restaurant. So, we would hit the middle income all the way to the top. Again, we are taking a luxury ingredient and making it reasonably priced. So, that mean we are also catering to the top 10 but also giving something to the middle market as well as everyday food option.

Will it be a franchisee owned, franchisee operated, or the other one the franchisee owned and the company operated?

It would be case by case. We are looking for a master franchisee or a multi-unit partner for India. This would be a franchisee own franchisee operated. But if it is required, we are willing to set up base over here and do a company operating model as well.

Where will you be sourcing the ingredients?

We will try and locally source as much as possible. I think India has access to most of the ingredients. So, there's no reason to import it.

There is an increase in technology. So how will you be using this technology?

I mean couple of ways. We are rolling out our brand in Malaysia this year wherein we are introducing robotics in our kitchen. We're automating our kitchen. We're reducing the dependency on human capital that does mundane processes. Second, we are rolling out our loyalty program. We've built our own POS system. Apart from technology we are looking at trends in the food industry, plant-based protein is going to be the next big thing and hence, we are looking at plant-based prawns, plant-based seafood.

And any new trends that you're witnessing in the industry as a global restaurant?

Yeah. Skilled labor shortage is a major issue as you can get a lot of unskilled labor, but there's a massive skilled labor shortage.

As India is growing to be one of the largest GDPs of the world, it is moving closer towards being more diverse and becoming cosmopolitan. India is now evolving as a key market for global chains that are betting on the market as the country’s millennials are increasingly embracing western preferences.

Three major factors play a key role in the success of QSRs – Product, People and Customer. It is important that these three factors must evolve with time and also be in sync with each other. Regardless of whether they are selling a local product or a global product, Indian QSRs are banking on these factors to scale up even marginally

Brand connect is important

Consumer preferences have changed greatly off late with their preferences turning increasingly brand centric influencing their choice of food brands. Love for local QSRs by the consumers has changed the market dynamics. Owing to the consumer demands, local QSRs are mushrooming in various metro cities which have turned out to be an important trend of present times. This has given a golden opportunity for QSR brands to scale up and grow to become a global brand.

It has not been more than a decade since the American chains entered the Indian market flagging the western cuisine. Foods from western cuisine such as pizza, burgers etc… have no more remained as foreign food. In fact they have been heavily ingrained in the food preferences of the millennials.

Driven by cultural diversity

Food that has always been a parameter of globalization, is also a metric for adoption of cultural diversity. India is a country with regional diversities found in every state across the length and breadth of the country. In such a case, designing a product that can sell all over a country is a challenge as the preferences of consumers tend to change across different regions.  In fact the idea of standardized menus by American QSRs had created a huge gap in the market as it did not meet the regional preferences of consumers which are unique across various regions of the country.

Standardization is the key

Unlike other markets, success for QSR brands does not lie in just the pricing and attractive branding but lies in the way QSRs succeed to please the palates of Indian consumers. American QSRs brought QSR business to India but their idea of standardization of menu does not suit the Indian market. Adding to it is the increasing preferences for Indian touch in every food Indian consumers eat. Today Indian QSRs with a menu filled with food with desi touch are finding success in the Indian market.

Technology is driving innovation

As India grew to become a global leader in the IT industry and is leading the adoption of technology. This has been another key factor that created a conducive environment for the emergence and growth of homegrown QSR chains across various demographics in India. Despite these positive factors in the market, multiple limitations and hierarchy of priority have made it a challenge for American chains to adapt to Indian pallets.

Seasoning and R&D being two among the major factors, Indian QSRs are now able to easily stand at par with global QSRs adopting global standards. India now being a prime focus for global companies from seasoning and food R&D spaces, they are betting high on the Indian market. They are now increasing their regional presence to offer easy access to Indian QSRs to adapt to global standards.

In the last two years, amid rising cases of Covid-19 and continued worker shortages, some fast-food restaurants closed down their dining rooms and anticipated to never reopen again. While sit-in areas where closed, the locations offered other ways of getting food whether via pickup, delivery, and drive-thru. But as the pandemic continues to change the restaurant industry, whether that’s cutting back on staff, turning to delivery, or investing in new business models like ghost kitchens, it raises the question of whether fast-food chains still need dining rooms at all.

In some cases, the loss of indoor dining will be permanent because they are investing quite a bit in changing the architecture of their restaurants. Like few McDonalds opted for drive thrus and they remained a constant even after post pandemic mess. Meanwhile, few fast food chains have been turning to ghost kitchens, which are essentially restaurants without a storefront as they would rather deliver meals themselves than outsource it to third-party delivery companies and lose the commission. And, for some restaurants, the reopening of dining rooms may come with more hassle and expenses than it’s worth.

Customers are looking for spaces to step outside

But restaurants that are in malls or have playgrounds are likely to continue to have sit-in dining, as they cater to children which is a big market. Children would like to go and get some happy meal or enjoy and get some balloons. That is part of the fast food operations. At the same time, a delivery-only restaurant limits what type of food can be delivered.

But whatever the situation may be, the projrection of having no dine-in space for any fast food outlet is not a valuable proposition yet. As  Reetesh Shukla, business head of Charcoal Concepts, K Hospitality Corp commented, “Customers are looking for spaces to step outside their homes and offices, and fast-food restaurants with seating, where you can get food served quickly, conveniently and at value for money prices, provide a space for consumers to bring their families or colleagues, and let customers experience the brand. “As we scale up Joshh in the coming years, we would provide spaces where our customers can come experience the brand and our quality promise, in person,” he informed.

Are ghost kitchens replacing dine-in need?

Fast food restaurant owners know operating successful ghost kitchens require savvy planning, but it's a risk many chains seem willing to take. Following the coronavirus pandemic and the rise of third-party delivery apps, some fast food establishments are converting to these kitchens to satisfy off-site dining demands.

There's no storefront, dining room or front-of-house staff in a ghost kitchen. Instead, a team works solely to fulfill online orders requiring delivery, space gets rented to prepare food orders made through third-party apps. The adoption of ghost kitchens isn't new, but it has surely new takers post pandemic. But not all feel the same.

“In today's changing world, there are numerous options like dine-on, cloud-kitchen , etc. But the craze for and of dining spaces for restaurants is something which no one can replace. Today, fast food goes beyond greasy burgers and fries. Millennials are looking for greasy burgers, a flawless espresso shot is whipped up in record time by a medley of music, delicious food, pleasant surroundings, and live performances,” Rohit Tandon, co-founder of Zoca Café commented. 

India has a sizable market for dining establishments, and fast food cafes are turning heads with innovative ideas and expanded menus. Fast food cafes like ZOCA, YOLO (You Only Live Once) operated by Fraterniti Foods Private Limited, have already adapted themselves as competitors in India. Fast food outlets are transforming into dining establishments with a variety of their own brands and providing a distinctive food court experience from a stand-alone restaurant. 

May get eliminated abroad but not in India

The coffee business in which Tim Hortons competes has been roiled in recent years with the spread of drive-thru coffee huts abroad. Dutch Bros, which went public last year, rocketed to become the third-largest coffee chain with a model that features no seating. But when Tim Hortons decided to enter India, they were sure of the seating model and not the drive-thru model. Indian audience and consumers when compared to international consumers vary differently in terms of preferences. 

Large fast food brands that rushed to open cloud kitchens and double down on virtual first brands in the pandemic said they are focusing more on their dine-in business and prioritizing deliveries via existing stores. Sagar Daryani, co founder and CEO at Wow! Momo, which had opened 19 stand alone cloud kitchens post the pandemic, said they will follow a more hybrid model, building stores that service both dine-in and delivery. The company operates three fast-food brands. For several chains that have for years invested in pure-play dine-in formats, cloud kitchens were an alternative revenue stream during the pandemic and not a primary one. 

Many people who did cloud kitchens as a means of survival are now witnessing fewer orders or are not looking at expanding those kitchens and are back to expanding physical outlets. 

And for the only legible substitute of dine-in for fast food chains can be drive thru which cannot be a great idea considering Indian demographics. A country like India can never manage a drive-thru restaurant in its overpopulated cities like Delhi, Kolkata, Mumbai etc. Due to urbanization, competitors in the fast-food industry are increasing and it's almost impossible for a fast-food brand to acquire a large enough space and operate a drive-in in an already overcrowded place.

Looking at the current scenario, in the future, franchises will have more choice, from choosing between smaller size restaurants with kiosks to a full on brick-and-mortar restaurant, and now dine in or takeout-only services. However, going hybrid will be the way forward for fast-food brands. 

Have you dined at your favourite restaurant recently after a long break and have felt the price changes of your favourite chicken balls, double-patty burger or your favourite drink to sip? Yes, restaurants across India has gone through a certain price changes in the menu, all thanks to the continuous fuel price hikes and un-availability of certain ingredients locally. 

It was almost 2-3 months back when I visited one of my favourite QSR chain to found that my favourite burger and other loved items on the menu have gone through a price revision of almost 20-30 rupees, making it even tougher for customers to visit these outlet more often. And, that’s where it clicked in mind to speak to the restaurant owners to know the inside stories.

“Surely the rise in oil prices is another blow to the already struggling global supply chain, which has increased the prices of raw materials in restaurants, ultimately impacting the customer and their ability to spend. Individuals are just recovering from covid and getting back to steady jobs and salaries with inflation is a challenge as they would not be able to dine out at the same frequency as before, which slows down the recovery for restaurants,” shared Amrut Mehta of Little Italy Group of Restaurants has faced the supply chain issues of certain products and raw materials post opening of the lockdown and it is still continuing. 

Mehta is also of the opinion that products that are especially imported are the most impacted as availability was already a challenge coupled with increasing prices. “It's a big hit to restaurants. Even local produce with the oil prices is seeing a significant hike,” he pointed as he has also hiked the prices of items served at his restaurants. 

Beating the heat

There’s no denying that the only way for restaurants to stay in business is to hike rates to subset the impact of inflation, but it's not an ideal choice as, ultimately, the customers suffer and the business as a whole would start to suffer too. This gives more opportunity to local produce and restaurants are trying to use more local products to support the local communities.

“By doing our mass production in the central kitchen, we are trying to reduce manpower costs and overheads. Also, higher the buying power, higher the negotiation power. In such scenarios restaurants can work at contractual rates with vendors through the year,” added Gaurav Kanwar, Founder at Harajuku Tokyo Café in Gurgaon.

Kanwar is also using bare minimum fuel/electricity consumption at the outlets by making everything in big batches at the central facility and using outlet kitchens as only assembly/fly kitchens. 
Commenting on the same, Mehta pointed, “The delivery business is still fairly stable and a majority of the customers order from a need-based perspective. They still need to take care of their basic eating needs, but they are becoming more price conscious and looking for offers to incentivise their purchase.
 

After more than 30 years of operations in the country, McDonald's Corporation announced it will exit the Russian market and has initiated a process to sell its Russian business.

This follows McDonald's announcement on March 8, 2022, that it had temporarily closed restaurants in Russia and paused operations in the market.

The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values.

As part of McDonald's decision to exit, the Company is pursuing the sale of its entire portfolio of McDonald's restaurants in Russia to a local buyer. The Company intends to initiate the process of "de-Arching" those restaurants, which entails no longer using the McDonald's name, logo, branding, and menu, though the company will continue to retain its trademarks in Russia.

McDonald's priorities include seeking to ensure the employees of McDonald's Russia continue to be paid until the close of any transaction and that employees have future employment with any potential buyer.

“We have a long history of establishing deep, local roots wherever the Arches shine. We're exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald's make today's announcement extremely difficult. However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there,” shared Chris Kempczinski, President and Chief Executive Officer, McDonald's.

McDonald's restaurants in Ukraine remain closed while the company continues to pay full salaries for its employees in the country and continues to support local relief efforts led by Ronald McDonald House Charities. Across Europe, the McDonald's System is supporting Ukrainian refugees through food donations, housing and employment.

As a result of its exit from Russia, the Company expects to record a charge, which is primarily non-cash, of approximately $1.2-1.4 billion to write off its net investment in the market and recognize significant foreign currency translation losses previously recorded in shareholders' equity.

Burger chain McDonald’s has announced that it is eliminating artificial colours, artificial preservatives and artificial flavouring from select food items.  

This World Health Day, McDonald's India West and South has strengthened its commitment to enhancing the goodness of the food served at its restaurants.

Being a pioneer of many firsts in the industry, McDonald’s is also the first QSR brand in India to do so.

The brand will now also display Allergen & Nutritional information in-store and on its McDelivery app for the entire menu to enable customers to make food choices that are good for them.

"Food is like technology, which continues to evolve with time”, shared Smita Jatia, Director, Westlife Development Ltd. At McDonald’s by pointing that they have been working relentlessly to enhance the nutritional profile of their food. 

“Some years back we introduced whole wheat buns across our restaurants to give consumers a nutritious choice for their burgers. Similarly, we have reengineered many of our products to enhance the nutritional profile of our food and make them more wholesome. As we go forward, we are committed to adding more products to our menu that give our consumers more wholesome options to choose from,” she added.

McDonald’s believes that consumers should have easy access to nutritional information to help them make informed food choices. Consumers today have not only become conscious of what their food contains but also about what it doesn’t contain. Hence, to bolster the trust of consumers in the brand, McDonald’s is creating more awareness about the components of its food by highlighting its progressive movement towards Clean Labels. 

It is perhaps the most common question asked by quick service restaurant front counter cashiers, “Will have it here or take away?” That question, which was simply a functional part of the order taking process, has taken on unprecedented significance in 2022. Today, the number of people responding “for here” is a far cry from what it was before the pandemic, and the degree to which the answer changes in the future will shape the way QSRs are designed and operated for years to come.

When reflecting upon the future of dining rooms and on premises QSR dining, several questions loom large. Will dine in occasions ever return to what they were, both in the frequency and nature of the experience? Might we go beyond the pre-Covid era and see a renaissance in the dine in experience at a QSR? If so, what might fuel that change in consumer behaviour? Now two years after the start of the pandemic, have dine in peaked, meaning that today’s world represents the new normal? What makes these questions so difficult to answer is the lack of precedence. There is nothing in the history of the industry that resembles, even remotely, the dynamics that led to the upheaval of QSR operations such drastically.

Looking at the gradual shift

Quick-serves with drive-thrus, delivery programs, and digital channels had a significant advantage in the marketplace. Virtually everyone else was playing catch-up. The pandemic would prove to fall short of a mass extinction event for dine-in occasions, especially in the QSR segment. But not all is lost.

“There are a lot of factors that determine whether dine-in is viable for a brand or not. I can't speak for other brands but for us, it makes a lot of sense and our focus over the last year has been to specifically seek out high footfall/mall locations. We have the advantage to scale, which helps keep food costs low and a business model that is very low on operating expenses and hence breaks even at very low revenues. Some of our recent stores, like Ambience Mall, Gurgaon, Elante mall, Chandigarh, Pheonix mall, Lucknow have been runaway successes. We plan to continue expanding in these high footfalls dine-in locations,” Rahul Seth, co-founder of Burger Singh commented.

Consumer behaviour to drive the market

The answer to what lies ahead rests heavily on understanding the drivers of consumer behaviour and the decline in on premises experiences during the years leading up to the pandemic. Technology, digital and mobile tech in particular is at the forefront in terms of bringing about behavioural change. 

It is also being anticipated that with the virtual presence of quick-service restaurants amplified beyond physical locations, off-premise dining will grow. This will have a massive impact in terms of the need for more back end staff, to package and service off-premise orders during peak hours. The ratio of front-end to back-end staff will change.

QSR chains witnessing uptick in dine-in

Karan Kapur, executive director of K Hospitality Corp informed that the company is witnessing strong growth with dine-in at Joshh, its foray into the Indian QSR sector. “What works well for Joshh is the focus on quality, with an entirely open kitchen for guests to see and trust in the hygiene, experience our super-fast and efficient service, and enjoy a clean, comfortable, and friendly space to dine-in with friends and family. We believe in the basic principle of CSV: Convenience, Speed and Value, and will continue to focus on that through all our Joshh restaurants as we expand to areas around Mumbai and the rest of India,” he commented.

The QSR segment is experiencing growth as a result of technological innovations as well, like improved Point of Sale(POS) systems, varied payment options, and improved geolocation to aid the delivery segment. However, it is also interesting to note that the takeaway segment is expected to grow at the rate of 18 percent, and the home delivery segment in the QSR market is expected to grow at around 17.4 percent by 2025.

Technology for rescue

According to Kewal Ahuja, founder of SGF India restaurants, pre-order and pre-paid bill services introduced through the restaurant’s app or telephone shall dramatically change the dine in experience in the post Covid world. “In pre Covid times, the entire process of dine-in, conventionally, was a heavy time consuming process where the customers need to wait for the table. Once they get in, they shall be taking time to order for each individual. After the meal, time is consumed in waiting for the bill and finally for paying for the bill. With pre order and pre-paid bill services, restaurant tables can be booked in advance, at the same time their order is placed online and the bill is paid in advance. All that customers have to do is arrive on time, eat their food, and leave,” he added. 

Believing in technology to be the biggest driving factor, he further added that technology will ultimately also help in reducing crowd where one needs not to be concerned with social distancing which therefore greatly improves the rate of inflow of customers opting for dine-ins.

Every brand is faced with sizing up the role that dine-in business plays in their future; a one size fits all strategy is not in the cards. Some fast casual brands will lean into a post-pandemic revival in their dining rooms; the nature of their cuisine and the culture of their brand will lead them in that direction. On the other hand, brands that have experienced disproportionate success in growing their off-premises business will likely double down on that success.

Besides architecture, modern amenities and a vibrant economy, the pink city is also known for the gastronomic delights it offers to its residents. Jaipur, already famous for its traditional fare comprising Daal Baati and Laas Maas, is at the threshold of entering a new territory where it aspires to cater to a growing section of people who want to try global cuisines. The Pink City has many functional multi-cuisine restaurants and the food scene is only going to get exciting with many big brands already penetrating the city.

Not just the big names are looking at the city for a presence but cloud kitchens based out of the city is luring investors and f&b giants for acquisitions. The recent acquisition of Jaipur-based cloud kitchen, White Kitchens will be instrumental to Curefoods’ Tier 2 expansion strategy. Similarly, when Shyam Thakur disclosed the expansion plan of Momo King, Jaipur was on his top list, owning to the growing demand. 

“When it comes to looking at potential and opportunities for expansion, we identify a lot of potential in the city. We believe that tier 2 cities have become the breeding ground for opportunities due to the huge demand for quality products and limited options available,” he added.  

Estimates vary but on average 20 percent of restaurants in Jaipur shut their shops due to Covid led crisis but those who survived limped back closer to normalcy much faster than in any other tier 2 cities. Before the pandemic, Jaipur had witnessed a surge in new restaurants. According to a data research website, the count went par 5000.

The two lost pandemic years stuck at home, contradictory though it may sound, both accelerated and slowed the move to tier-2 and tier-3 cities. At one level, youngsters who found themselves on a train or plane back to small-city India and the new world of work from home (WFH) have begun wondering whether they should return to the big city with its sky-high rents and hour-long commutes. 

According to one estimate, 10 to 20 per cent of youngsters who don’t have customer-facing jobs are reluctant to return to big-city life. Jaipur in these last two years have got a lot of residents coming back and opting to stay forever, they have, however, bought back the exposure of multiple cuisines along with themselves, giving a push to brands to grow.

Looking at another aspect, Jaipur, which has the Mahindra World City sees plenty of hotels and restaurants growing fast in the vicinity. “IT biggies such as TCS, Infosys, and Tech Mahindra have opened up centres in Jaipur with major projects being executed in the software-services space. Other co-working companies, too, have spotted the opportunities. Smartworks is finalising co-working spaces in Jaipur. This has given a sudden rise in our customer base,” the owner of Daniel's Oriental Kitchen situated in the neighbourhood commented. 

A recent study launched by MBA students indicated that social media though not much popular among consumers of Jaipur for restaurant selection is now a strong driving force. Online visibility through social media marketing is gradually becoming a secret weapon of restaurant owners in having a strong customer base. Consumer buying behaviour is changing very speedily & marketers have to change their strategies according to the scenario. Therefore now the 

The demand for global cuisines is on the rise and restaurateurs are reading it as an investment and expansion option.  "The gennext is visibly drifting towards healthier eating options which spell a boon for most restaurant chains. With the average Indian more travelled and exposed to international cuisine, he/she is willing to experiment and settle for global flavours," said Kuldeep Singh, MD of Spice Court.

Other outlets like Meraaki Kitchen, The Forresta, Townsend Bar & Kitchen, Tapri Central, Cafe White Sage etc are beating the aristocracy of high end restaurants situated in the metros. While they are claiming positive turnover, owners are happy to plan for within city expansion, giving much-needed hint that the f&b market of Jaipur is booming, and the local patrons are demanding more.

Strong average check growth driven by larger order sizes and menu price increases, strong menu and marketing promotions, such as the Crispy Chicken Sandwich and the Famous Orders platform, contributed to the comparable sales growth, as well as growth in digital channels, said McDonald’s on Wednesday as its announced it Q3 result 2021.

The burger chain has witnessed its global comparable sales were up 12.7 per cent in the third quarter and increased 10.2 per cent on a 2-year basis.

"Our third quarter results are a testament to our unparalleled scale and agility," said McDonald's President and Chief Executive Officer, Chris Kempczinski by adding that their global comparable sales increased 10 per cent over 2019, which was delivered across an omni-channel experience that is focused on meeting the needs of our customers.

US same-store sales grew 9.6 per cent in the third quarter ended Sept. 30, whereas international operated markets segment increased 13.9 per cent (8.9% on a 2-year basis).

“We continue to execute our strategic growth plan and run great restaurants so that we can drive long-term, sustainable growth for all of our stakeholders,’ he added.

It also mentioned that McDonald’s 32K restaurants have delivery today which is up from 3,000 restaurants five years ago.

The brand also cited that COVID-19 continued to result in some instances of government restrictions on restaurant operating hours, limited dine-in capacity and, in some cases, dining room closures.

“The Company has continued to apply appropriate precautionary measures, including following the guidance of expert health authorities, to protect the health and safety of its people and customers and expects some operating restrictions in various markets so long as the COVID-19 pandemic continues,” it added.

The QSR chain has also announced its partnership with IBM, a leader in AI for business and AI-powered customer care.

This would further accelerate the development and deployment of its Automated Order Taking (AOT) technology. 

Under the agreement, IBM will acquire McD Tech Labs, which was created to advance employee and customer facing innovations following McDonald’s 2019 acquisition of Apprente. As part of McDonald’s strategic growth plan, "Accelerating the Arches," the company is committed to innovation across Digital, Delivery and Drive Thru. This agreement will accelerate McDonald’s efforts to provide an even more convenient and unique customer and crew experience.

Next month, McDonald’s USA is conducting an operations test of the McPlant™, a delicious new plant-based burger, for a limited time in eight select restaurants across the U.S.

Here are five things to know about McPlant before the launch:

Innovating with flavours: “We’re always testing new items and flavors, and this particular test will help us understand how offering a burger with a plant-based patty impacts the kitchens in our restaurants,” shared the statement. The McPlant was created to give customers more delicious options in addition to the McDonald’s burger line-up you know and love, with fan favorites like the Big Mac® and Quarter Pounder® sandwich still available nationwide.

The juicy details: The McPlant includes a plant-based* patty co-developed with Beyond Meat® that’s exclusive to McDonald’s and made from plant-based ingredients like peas, rice and potatoes. The patty is served on a sesame seed bun with tomato, lettuce, pickles, onions, mayonnaise, ketchup, mustard and a slice of American cheese. It has the iconic taste of a McDonald’s burger, because it is one.

Availability: Eight McDonald’s restaurants across the U.S. will be testing the McPlant for a limited time starting Nov. 3 while supplies last. Cities with test locations include: Irving and Carrollton, Texas, Cedar Falls, Iowa, Jennings and Lake Charles, Louisiana and El Segundo and Manhattan Beach, California.

Going with the trend: If it sounds familiar. The McPlant has also been introduced in various markets overseas this year, including Sweden, Denmark, the Netherlands, Austria and most recently the U.K. Just like in the U.S., we often conduct limited-time offers with menu items internationally to help us learn.

After two major lockdowns, the restaurant industry was and still contemplating its business revival.

A recent research conducted by dineout to gauge the sentiments of restaurateurs with respect to owning the customer data, targeted marketing solutions, and the role of technology in business revival.

81% of restaurants believe that their own website is a more cost-effective medium to generate direct order, shared the report.

The survey was conducted in 8 major cities including Delhi -NCR, Mumbai, Bangalore, Pune, Hyderabad, and others.

“There is no denying the fact that the restaurant industry has been hit badly in the gut. In order to survive and keep the business afloat, many resorted to aggregators for daily orders. Restaurants need to take charge of their direct orders and own the guest data in order to retarget them effectively,” shared Nihal Harchandrai, VP- Finance & Strategy and Director, Theobroma Foods Private Limited by adding that it’s all about providing a great experience to guests.

The report provides a look at the widespread adoption of technology by restaurants to manage their daily operations and to further minimise their dependency on aggregators.

Online reservation systems, loyalty programs, and targeted marketing solutions provide restaurants with an opportunity to retain customers and provide a safe customer experience.

“73 per cent restaurant owners believed that social media is helpful in generating orders; whereas, 96 per cent believed that digital marketing has helped them during the pandemic,” concluded the report.

Customers love convenience. There's nothing better than having your wishlist delivered to your doorstep. When you can receive your long grocery order within a day or two, the latest movie on Netflix in a few clicks, the expectations from the food orders grow even further.

Digital orders and delivery have grown 300% faster than dine-in since 2014, which shows its rising popularity. Besides, this is just the beginning. The online food delivery market is expected to grow at a  CAGR of 9.5% to reach a market volume of USD 13,233 million by 2024.

QSRs such as McDonald's, Burger King, KFC, Dominos, etc., dwell on the concept of fast food cuisines that require minimum preparation and serve time. They can be relished on the go but have a fairly short shelf life, say 20-30 minutes. Any delay puts both the quality of food and brand reputation at risk. As much as 60% of consumers want their food to be delivered fast. Hence, responsiveness is the prerequisite for fast food chains to tackle deliveries and takeaways during peak hours and otherwise.

The Role of Online Food Delivery Apps and the Subsequent Roadblocks

Food aggregators indeed bring agility to restaurants. They offer the logistical speed a restaurant needs to facilitate timely delivery. But this advantage comes at an opportunity cost. Let's quickly go through some of the crucial delivery aspects that restaurants let go of when outsourcing deliveries.

Limited Control over Customer Experience: Outsourcing deliveries to food aggregators prevents businesses from gaining complete control over a customer's delivery experience. They have little say on ETAs, priority deliveries, delivery turnaround time, and how to handle an order.

Reduced Profitability: High commissions charged by aggregators and discounted rates are causing significant dents in restaurants' bottom lines. Even the National Restaurant Association of India has raised serious concerns regarding the situation. According to news reports, commissions and discounts charged by aggregators have grown to 40-42 %. Hence, building direct delivery capabilities is becoming crucial for QSRs.

Limitations to Ensuring Rapid Food Dispatch: Food delivery aggregators work with hundreds of restaurants in a city. This makes it difficult for QSRs to prioritize their orders. For instance, if a restaurant is tasked to deliver a food item that quickly degrades in quality over time, say an ice cream, it hardly has the means to execute a priority dispatch.

Poor Customer Insights: Knowing what a customer thinks about a restaurant's food quality can make a winning difference. But as much as 43% of restaurant professionals believe the third-party apps that withhold data interfere with a direct relationship between a restaurant/bar/pub and its customers. So while such platforms are instrumental in bringing orders to the restaurant, there is no direct access to a customer's feedback or review. This significantly limits the scope of providing a personalized experience. Even refunds are subject to the aggregator's discretion.

Lessons from a Leading Food Chain on Enhancing Customer Experience

A leading multinational food chain leveraged a modern logistics platform to provide an omni-channel delivery experience and drastically shrink the brand-customer gap. With regards to owing to customer experience, Kiran Komatla, CIO at Burger King, highlights the importance of having a holistic view of a customer.

"Customers now interact with a company through multiple channels, from physical stores to websites, mobile apps, and social media. Digital customer experience is the combination of all digital interactions a customer has with a brand. Right from the time when a customer looks for a brand online, interacts with the brand on social media, makes a purchase, gets food delivered, and sends out feedback, all this information must be captured seamlessly to gain a single view of the customer," said Komatla. Therefore, to gain that single view of customers and ensure greater control of the delivery experience, it's crucial to leverage modern digital tools.

"Brands need to take advantage of and be part of this technological delight by integrating customer and brand context with technologies. Every interaction with the customer, no matter how small, should be monitored and should make sure there are always connecting dots to build deeper connections with the customer," he added.

The QSR segment is expected to clock the highest growth in the foodservice ecosystem, growing at a CAGR of 23% in FY20-FY25. Online ordering is a bustling market where cognitive capabilities can unleash massive profits for any QSR player.

The key to success in any industry lies in taking control and evolving with the growing customer needs. QSRs need to be the custodians of their digital experience. New-age technologies such as AI, big data, and cloud capabilities can bring operational efficiency at scale and significantly reduce delivery costs. The question is, are QSRs willing to expedite their digital transformation goals?

The ongoing coronavirus pandemic has led to a shift in the consumer behaviour even when it comes to their snacking preferences. This resulted in overnight innovation in the snack food market, which comprises of salty snacks, confectionery, baked snacks and frozen snacks.

The need to eat healthy food, environmental concerns, convenience, affordability and at the same time trying out something unique are the factors that would drive the growth of the snacking industry in 2020. Many emerging markets rise to the top of those with an increased appetite for snacks. Seeing sales growth in non-essential categories, like snacks, is a good indicator that consumers in these countries are ready and able to spend beyond the bare necessities, marking an incredible opportunity for FMCG companies in these markets, despite the pay-cut or job loss because of the COVID-19.

Also Read: Why It's Important to Give QSRs a Healthy Makeover

Healthy at convenience: Non-communicable diseases such as diabetes, stroke and heart attacks is estimated to contribute to 73% of all deaths. Governments around the world have implemented taxes, campaigns, labeling and advertising reforms to help consumers make healthier food choices. And, COVID-19 has also made the urgent need of shifting towards healthier snacking options. People are becoming mindful snackers and are also looking for clean labels. Companies are in the process to adjust their action plans in addressing these rapidly increasing consumer needs. The good news is, this healthy food trend is creating new opportunities within snacking and adjacent categories.

On-the-go snacking products: Portability has become one of the main criterias of consumers, who are either working from home or leading a busy schedule. However, on-the-go snacking could be a concern when it comes to sustainability, due to their disposable nature and use of excess packaging. But, many companies are dealing with this major concern to shrink by deciding on to produce minimum packaging waste. They have introduced recyclable and biodegradable packaging solutions. Many companies have been urging the consumers to send back the wrapper or the bottle of their company’s location and for that they are attaching envelope with their address mentioned in it. It has been seen that almost 40 percent of wasted fruit and vegetables are “imperfect” produce that has been turned away by supermarkets for not complying with cosmetic standards.  As a result, snacking companies are also working on to reduce the food waste. For example, an emerging snacking brand in UK launched a new range of crisps made from surplus fruit and vegetables, as it aims to give value to oddly shaped, discoloured or blemished fruits and vegetables.

Plant-based snacking: There has been a rise in plant-based diet among consumers in the past few years and the snacking sector has also modified their ingredients according to the consumers’ growing preferences. The global plant-based snacks market was valued at USD 34.69 billion in 2019 and is forecast to reach USD 73.61 billion by 2028, according to Future Market Insights. From vegan jerky, almond milk yogurt, to vegan protein bars, the plant-based snacking market is going through plethora of innovations to cash in on the trend. They are targeting the health-conscious consumers.  Conventional crisp-making methods, such as deep-frying, have been replaced with a trend for popped and puffed crisps. Popped and puffed snacks often use ‘healthier’ ingredients such as seaweed, lentils, chickpeas and seeds.

Must Read: “We have added healthy options, reduced price so that customers try it more often”

Way forward

The FMCG landspace is going through major transformation in the past few months. Due to the coronavirus pandemic and even after the pandemic subsides, the trend of healthy eating is going to stay for a longer time because consumers have understood that nothing is precious than their wellbeing. The vending industry is one of the most affected industries because most of snack vending machines are set up either in offices or metro stations. Though metro stations are operational now, many offices are still shut. According to a report by ResearchAndMarkets.com, the global snack food market is expected to grow from USD 210.4 billion in 2019 to USD 215.9 billion in 2020 at a CAGR of 2.7%. This low growth is down to economic slowdown across countries affected by Covid-19.

New entrants in quick service restaurants are gaining popularity against the traditional chains by responding to consumer’s demand for quality, healthy ingredients, and customization.

According to Numerator (a market intelligence firm that brings together Omni-channel marketing, merchandising, and sales data), customization and convenience appear to be driving forces behind these chains’ growth.

"When it comes to Donuts, national powerhouses like Dunkin, Cinnabon, and Krispy Kreme are being challenged by a group of up-and-comers like Yum Yum Donuts, Duck Donuts, and Shipley Do-Nuts– all of which were up double-digits on trips in 2018,” shared the report by adding that much of the success among emerging chains in the donut space is the result of minimal geographic overlap, as all three of these high-growth chains are largely regional.

The primary reason cited by customers was the option to customize. Five times as many Duck Donuts buyers cited "customizable options" compared to buyers at the benchmark chains (Dunkin, Krispy Kreme, Cinnabon). 44 percent of buyers said they chose Shipley and Yum Yum primarily because they were "eating on-the-go," compared to 26 percent for benchmark chains.

Veganism and healthy eating trends are playing a significant role. “People are now paying attention to food labels and gravitating towards healthier options more than ever. At the same time, they don’t want to compromise health for the sake of speed and convenience, which is why smoothies and nutritious drinks have become so popular.”

Chains like Jamba juice, Smoothie King, and Kung Fu Tea are all projected to see double-digit increases in trips and are going after a younger consumer segment than traditional QSR/fast-casual chains, pulling in Generation Z and Millennial consumers at 1.4 to 2.6 times the national average, the report said.

Meanwhile new and upcoming QSRs with their “build-your-own-pizza” strategy are creating a new competition for the traditional chains. Numerator in its report said, “Projected trips for Mod Pizza and Blaze Pizza, which offer customizable options, jumped by about 30 percent in 2018. Similar to the donut chains, these emerging pizza joints don’t have much overlap, as only about one-third of Mod buyers are aware of Blaze and vice versa. Among the buyers of their benchmark competitors (Papa John’s, Domino’s, Pizza Hut and Little Caesars) awareness of Blaze or Mod is low, at about 20 percent.”

Pizza chains which are offering healthy options made from fresh dough, clean ingredients, no artificial colors, no preservatives, chemicals or additives are more preferred and customers are willing to pay more for it. The report said “Blaze and Mod buyers are more willing to pay a slight premium for organic ingredients than total QSR/fast casual buyers (16 percent and 17.5 percent respectively vs. 12 percent).”

Traditional chains will always have a large customer base because of the price and convenience they provide. However, the report said that with far fewer locations and lower awareness levels, these emerging brands are capturing more and more trips within niche consumer segments.

Quick service restaurant chains have also remained way ahead when it comes to adopting technology and enabling new technological developments. Growing at a CAGR of 4.2 percent between 2017 and 2022, global quick service market is believed to reach more than $690.80 billion in 2022.

Brands like Starbucks, McDonald’s, Burger King and Domino’s to name a few are continuously working hard to market their brand right in-front of the customers. They are partnering with top delivery players and also working hard on loyalty and rewards to attract new customers as well as retain the old customer base.

“Loyalty programs in top QSR apps were especially prominent in the US, UK, China and Japan in 2018. Loyalty programs incentivize repeat orders and allow for more personalized and relevant offers and notifications to be delivered to each user,” shared a report released by App Annie.

It also mentioned that in the US, McDonald’s and Chick-A-fil leveraged promotional text to market flash deals for consumers — a strategic App Store Optimization (ASO) tactic that, unlike most —such as description, logo and keyword bank updates — does not require a full version update.

Use of Mobile Apps in Promotion

Recently, McDonald’s UK overhauled its app experience, including the launch of McDelivery in partnership with UberEATS, and invested heavily in World Cup 2018 promotions to drive adoption. The efforts paid off and the app shot to #10 by smartphone MAU in July 2018, up 10 ranks year-over-year.

Similarly, Burger King leveraged location-based offers within 600-feet of a McDonald’s to unlock a Whopper for 1 cent through its app in December 2018.

“Mobile offers a treasure trove of data on consumer preferences and can be leveraged for strategic personalized and relevant promotions such as this,” added the report. As these efforts paid off — Burger King hit #1 for daily iPhone downloads of Food and Drink apps in the US on Dec 4, and retained that rank for 9 straight days. “Not to mention, the app hit #2 on Dec 5 for overall downloads. This was a significant jump in performance relative to November 2018,” it further added.

Hence, we can say that quick service restaurants have been growing fast like no other sector as people look out for value for money option, convenient.

Ved is an eternal optimist and nothing seems to bring him down. He faced numerous hurdles during his stewardship but he just kept going. Ved has a keen strategic mind and is always in search for innovative ways for building business. He has been with the organization for over 14 years and has grown the company over four times.

Creating a Safe Experience

Our whole motive is to find solutions which are compostable in nature and that gets into food service sector. We want to serve a product with certain ethos because it creates a different experience altogether. All our products are made up of sugarcane base. We mould them into shape keeping in mind that if any person throws it away then it should not harm the nature and go back to the earth itself. People today are getting much conscious about not only what they eat but how they eat and that is where we come in. We create joy by being friendly with the environment.

Manufacturing Recyclable Products

When customers see a product which is not made up of any harmful stuff instead it looks more natural then the experience enhances automatically. Our way of producing the product is peculiar as a matter of fact. There is no aroma migration, one can use the same product for microwaving, baking cakes and even freezing. We do a lot of R&D around the product in order to provide the right experience for the person eating food.

Eating Safe

Lots of food in India is served on Styrofoam and plastic. We don’t realize that these products have carcinogens’ which are basically cancer causing chemicals as people eating in those are inheriting chemicals in themselves. The other side is the cleanliness issue whereas our product is completely untouched by hand even throughout the production cycle and on the top of everything, it is made up of natural ingredients. That’s how we use the idea of eating safe.

Innovation is the Key

Our whole psyche comes from the idea that we have to keep producing more and more healthy products. Also, our product is an innovation in itself as it is completely out of the box. We actually studied eating trends across the country and designed our products accordingly. We did a good homework on what a consumer really wants and made the products modular. We have our own 3D printers where we can form out whatever customer wants from us. We are friendly for the people who are actually looking for the solutions. 

Restaurant industry is going through a transformation phase focusing customer convenience through interactive technology, fun and quirky stores, on the table service amongst others. These days’ restaurants especially the global brands like KFC, Pizza Hut and McDonald’s are reviving the in-store experience for their customers bringing more innovation into the business breaking the monotony and cookie cutter approach, with each store incorporating an element of localization and standardisation.

Breaking the monotony

McDonald’s which began its journey by introducing the concept of burgers in India has rolled out a new store experience as it has marked its 21^st year of operations in the country. The restaurant chain has embarked on a brand revolution in the quick service restaurant industry with the launch of its first ‘Experience of the Future’ restaurant (EOTF) in Mumbai. Located at CR2 Mall at Nariman Point, the store features customizable menu options, new technology and a best-in-class customer experience. As part of its brand transformation, the company has evolved its menu, ordering processes and staff roles to bring greater control, convenience and personalization to its customer.

“With the EOTF restaurant, we are kicking off a bold and progressive plan to transform the customer experience. We want our customers to walk in and be wowed by the experience that’s modern and personalized, but still the McDonald’s they know and love. Over the past 20 years, we have constantly strived to bring more innovation and convenience to our customers. With the launch of EOTF, we want to provide customers with utmost convenience and brand new menu choices,” shares Amit Jatia, Vice-Chairman, Westlife Development Limited, adding that the brand has always listened to customers, and this ambitious plan is exactly what they’ve asked them to do.

Similarly, KFC has started building ‘KFC Hangouts’ strengthening its focus towards becoming the most desirable QSR brand in the country, KFC launched its first Hangout in Bangalore in mid-2016, followed by 9 more cities in the last 6 months. Currently the QSR chain is running 19 KFC Hangouts in 10 cities across the country, with plans to expand to other cities in the coming months. KFC Hangouts is first for any global QSR chain; the décor of the stores seamlessly integrates elements from popular city landmarks. “What makes these different from the ‘typical’ QSR format is that it breaks away from the “cookie cutter” approach to QSR design. While the overall design philosophy remains consistent across we do have the liberty to add local elements to build relevance in our markets – making each restaurant unique. The décor of these KFC restaurants seamlessly integrates elements from popular city landmarks. For example, the ‘KFC Hangout’ that you can see at RT Nagar in Bangalore, for instance, captures the city’s iconic TV Tower as a design element,” says Rahul Shinde, MD- KFC India.

What’s in store?

Using self-order kiosks, customers will be able to customize and build their own perfect burgers and skip the front counter entirely, with their food being served right at their table. Customers will also be able to enjoy interactive table-top games whilst they share a meal and even charge their smart phones using wireless charging devices in a contemporary and stylish ambience. The result is a more comfortable and personalized experience when they are inside a McDonald’s new store. From enhanced guest experience, advanced convenience, sustainability, wholesome food choices, the new McDonald’s India is driving the customer experience forward at full speed and bringing unrivaled innovation to the Quick Service Restaurant industry.

Likewise, KFC’s new format stores are intimate and informal, making them the perfect hangout zone for every mood and occasion. KFC Hangouts have a rustic feel, with an interesting mix of wooden and metal furniture, brick walls and earthy lamps, and offer an environment that subconsciously makes consumers let go of any inhibitions thus allowing them to kick back, relax and enjoy a finger lickin’ good meal.

Hence, we can say that with customer gaining ground, brands are now focusing more on elaborating customer experience and introducing local flavours into the restaurant menu and décor. 

Working with companies like Max New York Life Insurance Co. Ltd, Bharti Airtel Limited, Onida (MIRC Electronics Ltd.) Rayomnd Andrews who always had a passion to do something of his own co-founded the company Biryani Blues with his wife Aparna. Today, the husband-wife duo has opened around 10 outlets in the region.

When and what was the idea that made you open Biryani Blues?

My wife and I both were working with the financial service agency. The restaurant was started in March 2013 before that we tried a small catering but the margins were very low and hence we thought of doing something else. Coming from Hyderabad we really missed the original Hyderabadi biryani in Delhi-NCR. If somebody really likes to have the piece of Hyderabadi biryani they either order it via courier or fly down to Hyderabad to taste the biryani. We wanted to do the business from very long time. Our passion for food and the fact that we are from Hyderabad made us open Biryani Blues.

How the first restaurant came into existence?

We identified a small location at Gurgaon Supermart to serve food and we were clear that we wanted to do large business. We invested in building technology, commissary, central kitchen and ERP to manage our orders and all.

What is that one thing which makes your customers come back to you?

I think the first and foremost thing that a customer would look in is value for money. And, I believe we are one of the best in that segment. We are always been an economy brand and not a cheap brand. We are a brand that gives value for money to the customer. We buy best quality ingredient and the processes we use is high quality capex. We have invested a lot in it so that our end customer is getting the best products.

What is your repeat rate of customers?

On a two month note our repeat rate of customer is around 40 to 45 per cent. In dine in its very difficult to say which customer has re-visited you. Now we have started tracking people on wi fi so that when the number is registered with the wi fi access we are able to analyse and keep a tab on the footfall.

Why is it difficult to track customers during dine in?

During dine in people generally come to chat with friends discuss on a meeting and food is the side thing. 90 per cent of our diners come and go and we don’t know who they are?

What is your expansion plan?

We recently opened Aerocity Vasant Kunj, we will be soon opening Malvia Nagar in next few weeks.

What is your USP?

We are poised to give the same standards at all our outlets. Though we have kept lots of menu from Hyderabad but our focus is on Biryani.

What is the daily order that you get on an average?

Now, with 8 restaurants we do 1000 orders a day that makes a net sale of Rs 1.3 to Rs 1.4 crore sales. Our focus is to grow delivery as we are a QSR restaurant. Our end target is if somebody wants to have biryani in Delhi-NCR he should be able to get it delivered within 30 minutes.

What is your way ahead?

We have got private equity funding and one of the senior person is on board now who is the ex CEO of dominos India and has brought lot of value to run a business especially in a delivery model. We are very careful in which place and what location we open so that we have breakeven at each store.

What is your plan taking your brand to other regions?

We are Delhi NCR focus brand and we are focused to build this market first as 25 per cent of India’s restaurant revenue comes from this market. We want to open at least 30-35 outlets in Delhi alone. Time limit depends on how things work. We won’t open a more than a few outlets in a quarter.

What is your unique marketing practice?

We are targeting only social media as marketing though we did one or two radio ads to promote the brand and the outlet location. We don’t spend too much on marketing, its word of mouth publicity that we believe in.

What is the training given to the disabled people to bring them to work?

Yum!’s mission is ‘Growth with a big heart’ which translates into our strong belief of giving back to the communities in which we work and live, making a positive difference in the lives of all stakeholders. One of the initiatives undertaken to bring alive this mission is to serve the community in a meaningful manner by providing employment to the specially-abled (hearing and speech impaired) which is imperative for their empowerment. This programme was launched in the country through our flagship brand – KFC. To achieve the desired goal of growth of such employees, we have worked a 360-degree approach which works right through hiring to the career progression – through training, enabling work environment, engaging with them and assisting their development for growth.

How is the response so far?

As a testimony to our achievements in this regard, KFC was awarded with the prestigious National Award for the Empowerment of Persons with Dissabilities-2014 by the Ministry of Social Justice and Empowerment, Department of Disability Affairs, Government of India. The award recognized our contribution as an employer of people with disabilities providing them the opportunity to harness their professional aspirations and potential.

How are they hired?

We work very closely with NGO’s like DEF Hyderabad & VRC Hyderabad, Silence Kolkata, Traain Mumbai in their respective cities to build up this noble cause. We use their expertise to recruit & sensitize our store teams. We also have an internal team that supervises and closely manages the entire program.

What is the procedure of getting them ready?

We have a detailed orientation program for our specially-abled employees. It incorporates the use of visual training aids and technology to induct them into the system. We also have an internal team that supervises and closely manages the entire program. Moreover, we have also partnered with different organizations in different cities, who train our managers and interpreters in specially-abled KFC outlets. In addition, we have instituted a special curriculum at our Yum! Academy and since its inception in November 2012, it has completed 2 batches and facilitated the training of 54 specially-abled youth.

What is the salary offered to them? Is it the same as others?

We believe in creating equal opportunities for all our employees. The pay-scale is therefore same for all. Through our initiatives we have instilled a sense of faith and belief in them, making them feel same as other employees.

What is the hiring process?

We have tied up with NGO’s like DEF Hyderabad & VRC Hyderabad, Silence Kolkata and Traain Mumbai in respective cities to build up this noble cause. We use their expertise to recruit & sensitize our store teams. We also use channels likeadvertising, pamphlets, word of mouth, database SMSing etc. to source employees. To induct them into the system, we work on a 360-degree approach which works right through hiring to the career progression. We train, engage, assist and enable a sound work environment for them to achieve desired goal of growth.

How many employees are presently disabled at KFC?

The Yum! Academy works in line with our commitment to ‘Growth with a Big Heart’ and since the inception of this program in November 2012, Yum! Academy has completed 12 batches and facilitated the training of 250 specially-abled youth. The Special KFC initiative provides employment to the deaf community and the Yum Academy provides skills to persons in the deaf community who are interested in seeking jobs in the retail hospitality sector. From having started this programme with one KFC store, it is now running successfully across 19 stores. We plan to open 1 specially-abled store for every 10 stores we have.

How does their growth look like?

Their growth looks extremely promising. Our recent achievement in this regard has been the six speech and hearing impaired Shift Managers who successfully cleared our internal process to rise through the ranks and very soon we will have our first specially-abled Restaurant General Manager soon. We have come across so many instances that accentuate the amount of affirmative change these specially-abled employees witnessed in their lives after their employment with KFC. We have witnessed an increased sense of pride not in just the specially-abled working at KFCs but also their family and peers. With this initiative, we want to give these specially-abled employees the same platform as anyone else who wants to grow in KFC’s fold. 

When and how did you planned to bring Mr. Sub to India?

I came across this brand around a year and half back, and then I talk to MTY group which owns the franchisee of the brand, who were looking to expand globally at that point. And as Indian consumers can relate to the name Sub with the brand and the product it offers. I thought of bringing it to India.

What is your expansion plan for the brand into the Indian market?

We are looking at close to 25 stores by March in Delhi, Mumbai, Bengaluru, Pune and Hyderabad. All stores will be company owned expanding to around 250 stores in next two and half years.

You opened your first outlet at SDA market. Why IIT as location?

I want to try giving my product with the target customers who are students and IIT is a hub. And hence this market catches the crowd. I want to generalise and then take this product forward.

What is the average footfall received and where can we see the other outlet coming up?

At SDA market around 350-400 people walk every day. We recently opened our second outlet at West Patel Nagar. What are your target locations for next phase of expansion?

We are looking at locations like CP, Defence Colony and GK-1, Vasant Kunj, Gurgaon, Model Town, Rk Puram, Kamala Nagar, Gurgaon- Sector 29 amongst others.

Tell us something about Mr. Sub and its offerings?

Mr. Sub has a concept of making one’s own sub. We are close to 12-15 Veg and Non Veg sub. Customers can also convert any sub into wraps.

What competition do you see from Subway as they are also running in the same segment?

There is huge competition in the market today, but I believe in my product. However, Subway is one of the largest consumer brands today in the world and in India they are predominant. They have made the Indian consumer understand what sub is.  Meanwhile, I want to offer the right sub to the customers which they are actually looking for.

How much is western flavours there in your menu?

We do have western flavours in our menu but majorly it is customised for the Indian market. We have 100 per cent local suppliers. We have top meat supplier, vegetarian supplier and bread is also done in house only.

Who are your target customers?

Our target customer is generally between 14-30 years.  

What is the business format for operating a Subway franchisee outlet in India?

Subway is a privately held company and the world’s largest restaurant chain. All Subway restaurants are individually owned and operated by independent franchisees and there are no company-owned stores. The brand operates globally on a franchise-based business model. It offers great franchise opportunities to entrepreneurs who believe in the Subway brand and desire to be a part of its success story. The low start-up cost, simple operation and flexible floor plans make the chain appealing to potential franchisees. Besides traditional restaurant formats, Subway franchisees can also opt for non-traditional restaurant locations like airport terminals, hospitals and universities.

What are the supports Subway provide to its franchisees?

The company provides training and support to franchisees through its world headquarters in Milford, Connecticut, USA; five regional offices and various country offices across the globe. This facilitates seamless integration of franchisees into Subway family. Franchisees are supported by dedicated locally based Development Agents and their staff that provide additional business expertise.

What are the elements that one needs to keep in mind while choosing a Master franchisee and a Sub-franchisee?

All Subway restaurants are individually owned and operated by independent franchisees. We do not have Master franchisees in our system but many of our franchisees are multiple unit operators. The main consideration would be investment followed by management bandwidth to operate multiple outlets.

Facts about Subway franchise:

How does one decide on locations? Is the franchisor or the franchisee responsible for taking such decisions?

Given Subway’s flexible floor plans almost any site could be utilized to open a Subway restaurant. If any entrepreneur is keen to become a Subway franchisee and has a property that could make for a great Subway restaurant location, he/she can submit their location to the development agent for review.

All real estate selections for Subway restaurants begin with a proposal to a local Development Agent submitted as described above. The initial draft of the lease for desired locations is sent to a representative of Subway Real Estate LLC. (SRE) SRE then negotiates provisions with the landlord and arrives at a lease that meets both the landlord’s and tenant’s needs. The final decision to open a Subway restaurant at a location is taken by the development agent.

What is the Revenue Sharing model between the two?

Subway has a royalty of eight per cent and marketing fund contribution of 4.5 per cent

What is the Growth Prospects and Future agenda for the segments in India? Who is your top selling franchisee?

It was in 2001 that Subway opened its first store in the Indian market. Today, Subway has 500 plus restaurants in more than 70 Indian cities and expects to add 100 more restaurants by the end of this year.

Indian quick service restaurant segment has seen many new brands making inroads into the market. Indian QSR market has remained largely unaffected by the economic slowdown and touched nearly around $50 billion from Rs $35 billion in 2013. The segment is growing at a very fast pace.

Brands on demand

Indian fast food majors like Cafe Coffee Day, Yo! China, Haldiram’s, Nirulas, Sagar Ratna and Bikanervala have met all the global necessities to meet the demands of the local customers, who are becoming an adaptor of global QSR outlets. Not only this, the regional QSR chains like Shiv Sagar, Bangs and Ammi’s Biryani created a milestone in competing to their foreign counterparts, but have also adapted their strategies on how to target the over growing demands of their customers.

Meanwhile, we have seen that, global players have tweaked their menu keeping in mind the taste and preferences of Indian customers. We have seen that major global QSR chains, which are entering India, have to localise their offerings before establishing themselves here.

Indian chains have now realised that people here are rushing towards convenience and value that these QSR chains offer and there is a wide gap in the market in terms of authentic Indian Cuisine being served in a quick service format and thus, they ventured into Indian QSR segment to address the local customers with its Innovative concept.

“The Usp of Hello Curry is ‘Indian Food with western quick service efficiency’, many of the QSRs present nationwide today are catering a niche with western products. Hello Curry will be unique with its positioning as the first QSR with complete range of Indian cuisine,” says P Sandeep, Co-Founder, Hello Curry.

Placing it right

Quick service is one of the challenges Indian QSR players are facing with Indian food, as the main preparation itself takes 15 to 20 minutes for preparing a dish. The restaurants have to innovate on processes and technology to develop ways to serve a customer flat in 2 minutes across the counter or 30 minutes in case of a home delivery.

After years of learning from global players, Indian QSRs are now quick to adapt to social media. They are now trying their hands at cracking the social recipe to success by posting new recipes on Facebook and Twitter or promoting it through Instagram and they are becoming quite close to cracking the code of the social marketing strategy which entered India via global route.

“As we are all young entrepreneurs, we are from the tech world of today. Hence, social media is one of the biggest assets of marketing. We are available on Facebook, Instagram, Zomato and we are connecting our consumers through WhatsApp. We are also doing PR and media activities, but I am not in the mainline PR advertising because I believe that word-of mouth is the best tool for advertising, where food works as a marketing tool itself,” says Sachet Shah, Go Panda (one of the partner).

While many international chains have set its footprint across the country, the Indian home grown chains have fought bravely to catch up with them. Cafe Coffe Day, Yo! China and Haldiram’s have set the traditional scene in India and are also leveraging social media by rightly placing themselves in the social gathering.

“There are many reasons for the success of our restaurant. But the major reason is that we operate in the Chinese food segment, which is the most desired cuisine among youth as they are the main consumers today. When we talk about eating out trend, I think we are operating in a segment which is massively catering to the youth. We create fun at our restaurant, we are value for money restaurant, our restaurants are trendy, we offer innovation and are present at the right location. The strategies help us gain an edge over others. We are here for 11 years building brand because brand brings consistency and the ability to stay requires time,” shares Ashish Kapur, MD & Co-Founder, Yo! China.

Thus, we can say that the growing trend in the QSR segment is becoming more of a social engagement rather than restaurants coming up with new products and keeping it to their specific target group.