Industry Specific Risks faced by the companies are –
- 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.
- 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.
- Lack of Organized Supply Chain for QSR companies operating at National Scale.
- Risk of Master Franchise Agreement Termination – The master franchise owner can cancel the agreement in case of any non-compliance.
- High fluctuation in raw material prices – Dairy, Vegetables, Packaging Products and so on.
- 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.
- New Innovative Retail Formats – Rise of Cloud Kitchen, Food Trucks and Ghost Kitchens can impact the larger QSR Chains.