Trends in the Industry

Major Trends in QSR Industry in India – 

  1. Rise of Domestic QSR Food Chains who are going National rather than being a regional player. Increased access to Finances in the space has led to increased competitive pressure on International Brands operating in India.

  2. Rise in Off- premises Consumption – Mainly prompted by COVID19 related consumption patterns and rise of Third Party Aggregators – Swiggy and Zomato, which has influences customer consumption habits.

  3. Increase in Nutrition and Health Related Awareness – Forcing QSR companies globally to consider and include ‘Health’ food options in their menu.

  4. Increase in Environmental- Conscious Consumption – Customers are taking note of Environmental footprint, their consumption is leaving behind and this is influencing the way QSR chains operate.

  5. Increased Focus on Hygiene and Safety – Due to Covid19 Impact.

  6. Ghost Kitchens on the rise which possess competitive threat for QSR Industry.

  7. Rise in Fusion Food – Foreign Ingredients being used in Indian Traditional Dishes.

  8. Traditional Packaging and Store Formats making way for new Packaging and also store packaging. Increased focus on convenience amongst customers.

  9. COVID19 aftermath on the industry is expected to be huge – Particularly unorganized players. Multiple chains being consolidated due to lack of demand due to COVID19 related impact.

Source – ZebraResearch , QSR MagazineFICCI FoodZania Report 2018

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Industry Specific Risks

Major Risks in the Industry are –
1. Rise of Third Party Aggregator Apps
2. Rising Health Awareness among customers.
3. Lack of Organized Supply Chain
4. Risk from Master Franchise Owner
5. High fluctuation in Raw Material prices
6. Local Competition intensifying in the field.
7. New Retail Fomats coming up


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