Industry Specific Risks

Industry Specific Risks faced by the companies are

  1. Rise of Third Party Aggregator Apps in India – This is leading to concentration of demand with a middleman. Can potentially lead to higher bargaining power with these Third Party Aggregators over QSRs.

  2. Nutrition and Health Concerns is becoming a major factor in the decision making process by the customers – Can impact demand for entire QSR industry in general.

  3. Lack of Organized Supply Chain for QSR companies operating at National Scale.

  4. Risk of Master Franchise Agreement Termination – The master franchise owner can cancel the agreement in case of any non-compliance.

  5. High fluctuation in raw material prices – Dairy, Vegetables, Packaging Products and so on.

  6. Local Competition intensifying in the field – Increased Investor attention in the industry leading to lot of regional players scaling up nationally. This can potentially impact profitability.

  7. New Innovative Retail Formats – Rise of Cloud Kitchen, Food Trucks and Ghost Kitchens can impact the larger QSR Chains.

Source – ZebraResearch, Burger King India DRHP

Related Articles

Trends in the Industry

1. Rise of Domestic QSR Food Chains
2. Rise in Off-premises consumption
3. Increase in Health Awareness amongst customers
4. Environmentally Aware consumption
5. Increased Focus on Hygiene and Safety
6. Ghost Kitchens on the rise
7. Rise in Fusion Food
8. Consolidation and Shutdowns in the Industry forced due to COVID19 impact


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