BY ROBIN GHOSH ,
ECONOMIST AND BUSINESS MENTOR
KOLKATA, 12 AUGUST 2024:
Food business, especially the QSR business in India, is going through a turmoil of weak demand because of a fall in discretionary spending due to inflation and rise in cost of living..
The evidence of this falling trend is the following piece of information. During first quarter of this financial year, the QSR business reflects quite a slump.
Macdonald, KFC, Piza Hut, all of them witnessed fall in customer demand due to rise in raw material prices, pull back on discretionary spending and mom and pop stores.
Be that as it may, QSR chains believe that it is a short term phenomenon and long term outlook is bright. It is indeed so.
According to a report by National Restaurant Associates of India, Indian food services market is estimated at Rs 5.7 trillion with organised QSR chain currently valued at Rs. 67560 crores.
The market is estimated to grow 8.1 percent annually to reach Rs. 7.8 trillion by 2028.
While the future is bright, the QSR sector realise that with the expanding market , there will be increasing competition and hence they have to invent new value and menu offerings.
No wonder we find QSR business is reinventing itself. Innovating itself. Scaling itself.
- WOW Momo is launching Wow Kulfi
- Â Macdonald planning to offer Meal option
- Â Domino’s considering dine- in restaurants.
The most interesting event is WOW Momo’s adventure about creating WOW kulfi. What a creative business strategy. In the first month of launching it clocked Rs. 1 crore sales.
What a magical conversation. Converting roadside cusine into a charming brand
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