Aug. 30, 2013
The growth of the Indian foodservice industry is expected to jump from 75000 crore to 1,37,000 crore by 2015, according to new research from the Indian Restaurant Congress held this week.
Consumers are driving this growth and are seeking quick-service concepts, as well as healthy concepts, quality food and prompt service, according to a news release.
"The Indian restaurant business is growing at a rate above the world's average year-on-year growth, significantly increasing its share in the global pie," said Guarav Marya, chairman, Franchise India.
Pizza, in particular, is benefitting from this growth. Ajay Kaul, CEO of Jubilant FoodWorks Ltd. (Domino's operator in the India market), said it used to be "daunting" to initiate talks about pizza because it meant changing consumer preferences from traditional Chappatis.
"For every restaurateur, it is very much imperative to establish any new concept in (the) Indian market with (a) value for money proposition to gain the initial pull," Kaul said. This strategy worked for McDonald's and is starting to "open the floodgate of demand" for the Domino's brand, as well.
"However, every product should not be developed with the same strategy as it tends to lose the essence of the product. A discrete marketing strategy on pricing and product puts you in the zone of value for money aspect at one end and good product at the other," Kaul said.
Read more about restaurant industry trends.