The Indian Fast Food Market Has Been Witnessing Rapid Growth on the Back of Positive Developments and Presence of Massive Investments

8/3/2019 The Indian Fast Food Market Has Been Witnessing Rapid Growth on the Back of Positive Developments and Presence of Massive Investments

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consideration is given on competitive landscape to enable clients to understandmarket structure and growth prospects

Indian Fast Food Market Analysis´ provides extensive research and objective

analysis of the fast expanding fast food market in India. The report has analyzed allthe vital industry trends and possible growth areas for future expansion. It alsoanalyses important driving forces in detail which will help clients to understand themarket better

A global sense there is no doubt that McDonald's, KFC, Pizza Hut and Subway areamongst the most prominent restaurant brands. All these names and many othersare instantly recognizable as fast foods outlets in most countries throughout theworld. In 2013, the global fast food market is forecast to have a value of $200 billion,an increase of 29.3% and a volume of 94.7 billion transactions, an increase of 10.4%since 2008.

With a rapidly growing middle class population and a changing lifestyle, India isblessed with one of the fastest growing fast food markets of the world. The Indianfast food market is growing at the rate of 30-35% per annum. Almost all big fast foodbrands of the world have succeeded in making their presence felt in the country andmost of them are posting appreciable growth

Market players;

1) KFC2) MC DONALD¶S

3) PIZZA HUT4) DOMINOS PIZZA

Market size;

1. Dominated by McDonalds having as many as 200 outlets 2. 140 restaurant of pizza hut in india 3. Kfc plan to open 100 outlet till 2010

Home Delivery: Has it Become aNecessity for a Fast Food Chain

to Penetrate in a Market?



4. McDonalds, one of the worlds leading fast food service companies, was launched in Indiaway back in 1996. However, it launched its home delivery services called McDelivery in India

only on March 15, 2004, almost after 8 long years of being in operation in India. Probably, it either realised the potential of home delivery services late or may be it didnt want to incurinvestments in home delivery services in the initial years of its operation in India. Sensing thegrowing potential of home delivery, in the year 2007, McDonalds planned to invest Rs. 3

crore to strengthen its home delivery services and launched a single home delivery number

6600666 in order to penetrate into the market deeper. At that point of time, McDeliveryaccounted for almost 5% of the overall sales and investment in McDelivery services was

aimed at taking this share to 7.5% by 2008.

5. McDonalds did not place any restriction on the minimum order value from the verybeginning, rather it charged a flat fee of Rs. 10 per order irrespective of the order value

initially. Today, this fee stands at Rs. 20 per order after more than 6 years of the introductionof this offering. It has deployed an Interactive Voice Response (IVR) system which hasoptions for placing the order, tracking the order status, lodging the complaints and knowingthe promotional offers. However, to take the order from the customer and subsequently

forward it to the nearest outlet, McDonalds has to run a call centre which comes with a cost.Moreover, during the peak hours, customers may have to wait a little longer to get theirorders registered with the call center executives. The best thing however is that once a

customer registers for McDelivery, whenever he makes a call again to place an order, he isgreeted by the customer care executive with his name and he is not required to tell hisaddress for the delivery of the required food items.

6. In order to reduce the call centre costs and to give customers an option where they will no

longer be required to wait for placing their orders through phone even during peak hours,McDonalds introduced the order registration through web also from this year onwards inIndia. If this model becomes succesful, it will be a win-win situation for both the customers

as well as the company. The company expects web delivery mode to contribute 5% towardssales. In all, home delivery share (combining both phone as well as web modes) is expectedto be at least double-digit percentage of sales.

7. Probably, McDonalds started its home delivery only after looking at the success of the otherplayers in the fast food market. But, today home delivery has become an important part of

the McDonalds supply chain. After all, managing home delivery also involves deliveringright food items at the right time in right quantity and right quality at the right address.

Almost all popular fast food chains in India do have home delivery model in their businesssystem. Some food chains earn more from home delivery than in-person visits of thecustomers. That is why, probably, home delivery has become a necessity for a fast food chain

to penetrate in a market!

Constantly experimenting with the tastes of consumers by mixing western and 'desi' menus, fast food industry

has seen a rapid growth in last few years, thanks to high disposable incomes and greater exposure to multiplecuisines.

A lot of Indians are travelling abroad experiencing changes in lifestyle and are keen on experimenting with food,say experts.

"Our comparable sales in metros have been nearly 20 per cent in 2010 and as the fast food market continues toexpand across the country and across various consumer segments, there is tremendous scope for expansion,"says Vikram Bakshi, MD, McDonalds India [ Images ] (North & East), adding that they are targeting to openaround 40 plus stores in the country soon.

McDonald's made its India debut in 1996 with one outlet at Basant LoK in Delhi [ Images ] and at present, it has211 restaurants of which 105 are in North & East India and 106 in West & South India.



Apart from metros, McDonald's is fast reaching rural areas as well, as there are 14 outlets in Haryana, 11 inPunjab [ Images] and 28 in Uttar Pradesh [ Images ]. "With ever increasing pool of working population, nuclear families and a progressive middle class, the demand for fast food already on the rise will see a tremendousgrowth in future also," says Ritu Chaudhri, VP Marketing, Nirulas.

Nirulas has 80 outlets (company owned and franchised) in 7 cities across Delhi, Uttar Pradesh, Uttaranchal,Haryana, Rajasthan [ Images ] and Punjab and are planning to open 70 more till 2012.

The move to 'localise' the fast food tastes has paid rich dividends and increased brand loyal customer base for the companies. Pizza Hut is known to introduce Indianised version of pizzas to attract the local customer base.

"We launched products like Karahi Paneer, Teekha Paneer and Karahi Chicken long t ime ago and it was acomplete success. Soon, you will see more of such products," says Umesh Kumar, Manager, Pizza Hut, CP.Bakshi says the age old saying of 'when in Rome, do as the Romans do' holds the USP.

"Keeping in view the strong liking of north Indians towards spicy stuff, we had to introduce in our menu dishes likeMcAloo Tikki Burger, Pizza McPuff, McVeggie," he says. To reposition itself as the preferred choice for youngadults, Nirula's also launched its Desimania campaign.

"For our Desimania campaign last year, we had launched a new range of western fast food with a Unique 'Desi'Twist. The menu included a tempting new variety of teekha pizzas, chatpata burgers, refreshing beverages andsome uniquely desi sundaes which became very popular with our customers," says Chaudhri.

The consumer spending on processed food has increased at an average rate of 7.6 per cent annually from 2008

to 2010 and this is expected to rise at an average of around 8.6 per cent until 2012, according to a report by Assocham

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The Indian Fast Food Market Has Been Witnessing Rapid Growth on the Back of Positive Developments and Presence of Massive Investments