We All know that, A fast food restaurant, that is also known as a Quick service restaurant (QSR) within the industry, is a specific type of restaurant that serves Fast food and has minimal table service.
But did you know that what's the origin of QSRs? How it emerged in all over the world? Or how it became most important segment of the Food industry.
So, in this blog you will going to get answer of those question which unanswered since long time.
The Food Industry of india comprises a wide range of food that contains North Indian food to South Indian food. Recently, a new category has also made a step within the food industry of India, that is Western food.
In Western food, You Might be thinking of popular dishes such as Pav Bhaji, Vada Pav, Dhokla or Modak so on, But here western food refers to food that has been originated from the another countries.
The western food such as Pizza, Pasta, Burgers, Sandwiches all others dishes established well its presence in the Indian Food Market.
Entry of the Westerns food in India
The Western food which is also known as Junk food by many of us Because of its unhealthy concerns. Irrespective of Unhealthy Food dishes, Indian are more enjoying to eat this food.
The origin of Burgers, Pizza, Sandwiches started in between the year Late 1980 and 1996. Domino's Pizza company opened its first store in January 1996, at New Delhi which was soon followed by several other foreign pizza chains like Pizza Hut and Papa John's.
The first Burgers was introduced by Wimpy - A US Based Company in year 1980s Via QSR, Followed by McDonald’s in the late 90s and the story continued from there to today's context.
QSR Players In India
India’s Food Services industry has come a long way from what it was before 1990s, when the number of
organized brands were very few and included home-grown brands like Haldiram’s, Nirula’s, Honest, Sarvana Bhavan and UK-based (now South Africa-based) Wimpy.
Today the Western food QSR players such as McDonald, Pizza hut, KFC, Domino, Starbucks, Subway are dominating in the Indian Market.
Key Parameters of the Listed QSR Companies
(i) Shareholding Pattern
(ii) Operating Parameters
(iii) Share of Organized and Unorganized Market
(iv) Market Share of The QSR Players
(i) By Outlet Count
(ii) By Revenue
(v) Advertisement expense as % of Net Sales
Consumer companies are continuously spending on marketing & advertising campaigns in order to remain competitive, retain a loyal customer base, increase in the brand awareness.
In India, food services companies are likely to invest 4%-6% of their net revenue on marketing, of which ~65%-70% is on conventional mass media & television marketing.
However, ~30%-35% is on online & digital media marketing.
Industry Outlook
- The QSR format seems to be the perfect mix of maintaining decent consumer connect along with being lucrative. Thus, over the years it has become an integral part of the industry as depicted by its ~11% contribution to the overall organized segment.
- The Indian food services industry, a key contributor to the economy with its vibrantly growing market, generated a total revenue of Rs. 8,36,661 Cr in CY20.
- The QSR channel made the largest contribution to the industry, with a revenue share of 34.1% amounting to Rs2,85,479 crore.
- The QSR channel expected to grow at a CAGR of 12.4% between CY20-25.
- The Food aggregators like zomato and swiggy will further play a vital role in the Increasing Demand push.
- Infact, Online partnerships have enabled restaurants to increase overall topline by 30% with incremental sales coming in from online channel.
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References: Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry’s Publications.
Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.
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