We have already seen that Indian Organized Food Industry occupies a 15% market-share within the overall food services industry. The quick service restaurants (QSR) / Fast Food format has been one of the fastest growing ir-respective of the economy and global environment with a CAGR of 20%-22% over FY06-FY11 (around 25% more recently). The key factors driving growth of the QSR segment are as highlighted,
What is Contributing to the Rapid Growth of Quick Service Restaurants / Fast Food Chains in India?
Demand Side analysis
- Growing working population – The share of population between 15-59 years of age has increased from 55% in 1991 to 63% in 2011.
- Growing Disposable Income – Disposable income for over two-thirds of Indian households has shifted from US$1000-US$5000 in 2000 to US$2500-US$10000 in 2010, (in current value terms).
- Increasing number of working women 51% of those who eat out at least once in a month are females.
- Increase in nuclear families 1.5%-2.0% of joint families give rise to nuclear families in India each year.
Supply in QSR / Fast Food Remains Robust – Encouraging Market
- Diversification of cuisines – Restaurants have started serving multiple cuisines amidst the growing popularity of international food and styles.
- Improved restaurants experience – Focus of eating out is shifting from food being a necessity to entertainment including live performances, music and other entertainment activities.
- Entry of international players Global players are entering India and food franchising is gaining popularity.
- Improving retail infrastructure Development of malls and multiplexes has popularized kiosks and food courts as food centres
What say ? Don’t you think Fast Food has a Long Way to go ?