Indian Fast Food Industry
Bureau, I. (2017, July 5). Feasting on Fast Food: What makes India’s QSR market tick states that India’s Quick Service Restaurants (QSR) market is growing at a compounded annual growth rate (CAGR) of 25 per cent and is estimated to be at Rs 8,500 crore currently. within five years, the QSR sector in India is likely to grow three-fold to Rs 25,000 crore.
QSRs have grown by focusing on reasonable and competitive pricing along with service to growing consumers need as convenience, increased appetite, and craving for international food.
In India, fast food restaurants began to rise in trend about 22 years ago with the entry of McDonald’s in 1996. Numerous worldwide brands took action accordingly from that point forward, either through company-owned stores or the franchisee model or a mix of both.
Factors leading to its growth: –
Environment – Ease of access of capital to enterprising companies than it was before.
Demand – Changing demographics, increase in income, urbanization, growth in organized retail and demand for hygienic food.
Supply – Improvement in infrastructure and private investment in cold chain networks across the country and that has made access to quality raw material a reality.
Many food chains manage a strong position in India by Indian-ising their menu for consumers palate, the best example being McAloo Tikki which became the best-selling item for McDonalds.
On December 5th, 2017, McDonald’s announced it would be bringing back the “Dollar Menu” on January 4th of 2018. The menu includes Sausage Burrito and the McChicken for a single dollar, targeted to bring consumers a new value menu. They hope that their cheaper prices will make them a more cost-effective alternative to their main competitors.
Top ten in India
Café Coffee Day
Haldiram’s have a bigger hand over international brands like Domino’s and McDonald’s put together. It is currently twice the measure of Hindustan Unilever’s packaged food division or Nestle Maggi and larger than the India turnover of Domino’s and McDonald’s put together. Haldiram Manufacturing, which serves in North India, held Rs 2,100 crore in revenues. Haldiram Foods, catering to West and South India, had annual sales of Rs 1,225 crore. And Haldiram Bhujiawala, which does business in East India, earned revenues of Rs 210 crore. Haldiram’s, the Indian native brand which started the trend of snacks and street food in an organised segment has a revenue of Rs 3,500 crore, much more than the combined revenue of Domino’s (Rs 1,733 crore) and McDonald’s (Rs 1,390 crore).
McDonald’s in India
McDonald’s in India is a joint-venture under the proprietorship and management of two Indians, Amit Jatia and Vikram Bakshi. Amit Jatia is managing executive of Hardcastle Restaurants Pvt. Ltd. owns and spearheads McDonalds in west ; south India. However, McDonald in North and East India are managed and owned by Vikram Bakshi who is the owner of Connaught Plaza Ltd as well (McDonald’s India, 2009).
McDonald’s is having over 170 restaurants in India due to its success and leadership spanning over 12 years in the Indian Industry. Company spent four years in developing its unique chain, resulting in bringing a revolution in the industry in terms of food handling. This investment benefited farmers in terms of avoiding risks associated with food handling and consumers in terms of provision of fresh and quality food products at great value (McDonald’s India, 2009).
McDonald’s vs Vikram Bakshi
The long-drawn-out battle between McDonald’s and its India partner Vikram Bakshi is far from over. In current developments, the fast-food giant has closed about every one of its outlets east India and several others are on the verge of closing down due to ‘abrupt disruption’ in supply. All of such happened only after McDonald’s removed Vikram Bakshi as the Managing Director of Connaught Plaza Restaurants Limited (CPRL) in August 2013.
McDonald’s joint venture partner Vikram Bakshi said a total of over 80 outlets in east India have been shut because of the move by logistics partner, and others (in north India) were also under pressure due to supply crunch.