OPPORTUNITIES IN THE INDIAN FOOD SERVICE

MARKET
QSR, CASUAL DINING, FINE DINING, VENDING

SUMMARY
The Indian Food Service Industry is worth $41.3 bn and growing at a CAGR of 11%. It is expected to reach
$68 bn by 2018.
The size of Organized Indian QSR market is $0.62 bn, growing at a healthy CAGR of 20% and is expected
to reach $1.1 bn by 2017-18.
Delivery segment is a integral part not only of the Indian Food Service segment, but is also common for
Grocery stores, Liquor stores, vegetable vendors etc.
Major cities comprise of large workplace clusters and high density residential areas. Young Indian
Consumers are highly price sensitive.

Age Group Profile of Those Who Eat Out

11%

18%

18 to 20 years
21 to 30 years
31%

31 to 40 years
above 40 years
40%

CONSUMPTION EXPENDITURE COMPOSITION, FY 2013

Recreation, Education,
3%

Furniture, Appliances,
6%
Personal Care, 5%

Food and Beverages,

30%

Health, 5%
Clothing and Footware,
8%
Rent, Fuel and Power,
9%

Transport and
Communication, 17%

RETAIL MARKET OUTLOOK, FY2017

CAGR (FY 12-17)

25%

20%
15%
10%
5%
0%

-10%

0%

10%

20%

30%
Consumption

40%

50%

60%

25% OF OUR YOUTH PREFER HANGING OUT WITH THEIR

FRIENDS OVER OTHER OUTDOOR ENTERTAINMENT ACTIVITIES
Favourite outdoor entertainment activity

13-18 years

19-24 years

Gen Next(all youth)

Projected base

93,18,951

129,923,462

223,142,413

Movies at Cinema hall

13.90%

16.60%

15.50%

Go dancing at discos

0.40%

1.40%

1.00%

Pubbing/drinking with friends/family

1.20%

1.60%

1.50%

Eating Out

9.70%

10.40%

10.10%

Entertainment Parks

4.80%

5.90%

5.40%

Shopping/Window Shopping

4.70%

5.20%

5.00%

Spiritul sessions/satsangs

5.80%

8.90%

7.60%

Watch art & culture performance/events

4.40%

4.10%

4.20%

Generally hangout with friends

27.00%

23.80%

25.10%

Go for long walks

4.60%

6.80%

5.90%

Read in libraries

4.70%

4.20%

4.40%

Go on long drives

0.90%

2.30%

1.70%

Play favourite sports

8.10%

6.20%

7.00%

Going Out/picnic with family

7.20%

8.00%

7.70%

Visit Relatives/neighbours

15.70%

16.60%

16.20%

None

40.40%

37.30%

38.60%

Marketing Whitebook

73% OF THE YOUTH CONSIDER PRICE THE MOST IMPORTANT

CONSIDERATION WHILE MAKING PURCHASES
Buying Orientation

13-18 years

19-24 years

Gen Next(all youth)

Projected Base

93,218,951

129,923,462

223,142,413

Brand Image

64.00%

61.20%

62.40%

Price

73.00%

72.70%

72.80%

Performance quality

36.50%

37.40%

37.00%

Premium/advance features

13.80%

16.40%

15.30%

Design And Looks

30.10%

23.90%

26.50%

Ease of Usage

25.00%

27.90%

26.70%

Shopping Experience

15.70%

17.00%

16.50%

Reputation of the Company making the product/service

12.00%

11.70%

11.80%

Ease of payment/payment option available

9.60%

9.70%

9.70%

What most people around you are buying/using

7.10%

9.60%

8.50%

Recommendation by shopkeeper/dealer

5.10%

5.60%

5.40%

Recommendation by friends/relatives/colleagues

4.80%

4.30%

4.50%

The celebrity endorsing the brand

2.50%

2.10%

2.30%

Possibility of buying online

0.80%

0.50%

0.60%

Marketing Whitebook

GOING-OUT HABITS OF INDIAN YOUTH

Indian consumers, at least those who
can afford it, are increasingly dining
out, particularly in urban areas.
Eating out has evolved from an
occasion driven activity to an
occasion in itself. It has become a
form of entertainment for consumers
today.
Urbanizing double-income
households, changing lifestyles and
food preferences are spurring the
organized market within the dining out
sector.

Casual Dining and QSR Dominates the

Organized Indian Food Service Market
Casual Dining and QSR

70%

Pubs, Bars, Clubs and Lounges

12%

Fine Dining and Frozen Desserts

10%

Cafes

8%

Total Indian Food Service Market

100%

FOOD HABITS OF INDIAN YOUTH

31% of Indians are vegetarians for religious and cultural reasons while the rest of the population eat fish and meat

Hindus, the dominant element of the population, strictly abstain from eating beef

Consumption of pork is also limited to a relatively small base

Dining out is popular amongst many Indian consumers, particularly in urban areas, facilitated by busier lifestyles
and higher levels of disposable income. Indeed, value sales at full-service restaurants have increased steadily in
recent years, with consumers largely preferring independent rather than chained venues.
It is also becoming more common for some consumers to order food for takeaway to eat at home during the week
and then to dine out in restaurants
Since a dip in 2009, demand for home delivery/takeaway meals has been increasing steadily, with value sales
reaching nearly Rs2.2 billion in 2013.
Fast food has become highly palatable to the teens and consumers in their early twenties, with international fast
food chains like KFC and McDonalds, Subway, Dominos Dunkin Donuts particularly popular.
Young consumers consider eating at these places to be fashionable, allowing them to feel a part of the international
youth culture.
The menus in Indian outlets tend to differ from those in other countries with high consumption of beef. There is also
high demand for indigenous meals from independent fast food venues
Many consumers purchase snacks and other food items from the numerous street stalls and kiosks. Street food
like pav bhaji, dosas, pani puri etc are very popular in India.

INDIAN FOOD SERVICE MARKET TIMELINE: KEY PLAYERS

Franchisee Model
emerged in mid1990s

1970s and
1980s

Nirulas
Haldiram

Pre-1950

Honest
Restaurant
Saravana Bhavan
Wimpy

KFC
McDonalds
Pizza Hut
Dominos
Caf Coffee Day
1990s

2000-2010

Subway
CPK
Papa Johns
Jumbo King
Goli Vada Pav

Dunkin Donuts
Starbucks
Taco Bell
Pizza Express
Sbarro

2014 - present

Red Global Players

Blue Indian Players

GREAT INDIAN ETHNIC CUISINE MEDLEY

INDIAN FOOD SERVICE MARKET

Indian food services industry is estimated to be nearly worth USD 41.3 billion and is
growing at a healthy compound annual growth rate (CAGR) of 11%. The Organized
Food Service Industry is worth $13.79 bn (approx. 33% of total Indian Food Service
Industry) and growing at 17%.
The F&B food service sector in India comprises two distinct market segments:
a) Organised Chain and licensed standalone players across quick service restaurants, full service
casual and fine dining restaurants, hotels, bars and lounges, cafes and frozen desert formats
b) Unorganised Dhabas (Roadside restaurants serving as truck stops and serving Indian cuisine),
street stalls, halwai (sweet shops), road side vendors, food carts, etc.

Category

Current
Market
Share

CAGR

Expected Market
Share by 2017

Organized

30%

12-14%

45%

Unorganized

70%

8-10%

55%

FOOD SERVICE MARKET SIZE AND CONSTITUENTS

2018

2013

75,955

33,200

4,395

6,240

Caf

QSR

1,640

1,320

Frozen Casual Dine Fine Dine

Dessert/Ice
Cream

8,415
Pub, Bar,
Club and
Lounge

7,745

10,050

Caf

QSR

2,890

2,330
Frozen
Dessert/Ice
Cream

Casual
Dine

13,550

Fine Dine Pub, Bar,

Club and
Lounge

Size of the Licensed Standalone Food Service Market (INR Cr)

2018

2013
16,785

5,500
3,950
1,520

Caf

775
QSR

9,035
500

Frozen Casual Dine Fine Dine

Dessert/Ice
Cream

540
Pub, Bar,
Club and
Lounge

3,775
Caf

1,560
QSR

1,010

Frozen Casual Dine Fine Dine

Dessert/Ice
Cream

1,085
Pub, Bar,
Club and
Lounge

Size of the Chain Food Service Market (INR Cr)

Multiple Sources

AVERAGE SPENDS PER PERSON ACROSS FORMATS (Tickets Size)

Unorganized Formats
The unorganized segment dominates the Indian food service industry. It lacks technical and accounting standardization. It comprises Dhabas
and roadside eateries that have been the most common forms of restaurants and have traditionally addressed eating out requirements of
Indians.
1. Dhabas
2. Roadside Eateries (Street stalls, Hawkers, Trolleys, Standalone sweet shops)

Organized Formats

Avg Ticket
Size (Rs)

10-100

Avg Ticket
Size (Rs)

Fine Dining - A full service restaurant with a specific dedicated meal course. Dcor features high quality materials with an eye
towards the atmosphere desired by the restaurateur. The staff is usually highly trained. Fine dining restaurant usually targets
rich and upper middle class consumer segments and offers unique ambience and upscale service.

750-3000

Casual Dining - A restaurant serving moderately priced food in a casual atmosphere oriented towards affordable family dining.
Except for buffet style restaurants, these typically provide table service. This addresses the price point between fast food
establishments and fine dining restaurants.

250-750

Mainly serve alcohol and related beverages. Includes night clubs, sports bars, etc.
Example: F-Bar, Xtreme Sports Bar

500-3000

Quick
Service
Restaurant
s

They emphasize on speed of service, low cost and convenience. Also known as fast food outlets, for practical purposes, they
are essentially characterized by minimal table service and can have a take away and/or home delivery format.
McDonalds, Nirulas, Dominos, Haldirams, Subway, Bikanerwalas are some of the leading names in this category.

100-350

Food
Courts

A relatively nascent phenomenon and being popularized by mall developers; also present at other shared spaces (for example
airports, hospitals and office complexes).

100-300

Cafes

Comprises coffee bars and parlours (for example Barista Lavazza, Caf Coffee Day) and chai bars. These are casual
restaurants that emphasize on serving beverages and food is incidental.

100-200

Kiosks

A relatively new format which comprises Chinese food, corn, chat kiosks and those from established branded players like Caf
Coffee Day or Nirulas. Also includes ice cream kiosks

100-200

Dining

Bars and
Lounges

MAJOR EXPANSION IN SECOND AND THIRD TIER CITIES

High rental costs and increasing operating costs are impacting the growth of consumer foodservice, and
are set to do so in the future.
Many brands such as Dominos KFC and Subway opened a high number of outlets in 2012-2013 and will
continue to pursue expansion policies.

Companies are reaching out to second- and third-tier cities as the rents are low and sales are growing.
Off the 749 outlets operated by Dominos in India, 376 ( roughly 50%) are located in tier II and tier II
cities

2018 E

2017 E
2013
2010

Rs 6,780

Rs 19,260

2013
2010

Rs 5,260

Rs 2,520

Rs 5,220

Tier II & III Cities

Tier I Cities
Spending Pattern Per Household

$ 18,300

DRIVERS OF FOOD SERVICE MARKET IN INDIA

1. Favourable Demographics:
The majority of Indian consumption of fast food is driven by people between
the ages of 18 and 40.

Age

Population

<25

50 %

<35

65%

2. Increase in Income and Consumption Levels:

.

Indian GDP 6 %

Disposable Income

Indian Spend on Eating-Out

33,000 Crore Market size

3. Lifestyle Changes:
The shift to nuclear families and with both parents working has increased demand for affordable food
on the go and prepared ingredients to make cooking faster

4. Rising Number of Working Women:

Increase in working women has increased the spending of their disposable incomes on eating out or
serving ready-to-eat or to pick up prepared foods from QSRs

5. Foreign Direct Investment in India:

100% FDI (January 2012) in single brand retail under the government approval route, i.e., global single
brands in F&B food service can now have full ownership of their Indian businesses

CHALLENGES IN INDIAS FOOD SERVICE MARKET

1.

Food price inflation

A key factor affecting the consumer food services market, it is impacted by delayed monsoons, the economic
slowdown, and unfavourable demand-supply conditions. It keeps fluctuating and reached a peak of 18% in 2010.

2.

Fragmented Market
The QSR market has many small and mid-size unorganized players competing with large chain players. This
fragmented market reflects a number of challenges, including unclear format segmentation, varied consumer
options for eating out, and the lack of best practices for food services outlets.

3.

Real Estate Cost

High real estate cost tend to impact store profitability.

4.

Labour Acquisition and Cost

Manpower is a big challenge in the food services market, with an attrition rate of 25-30% and high cost of labour

5.

Fragmented Supply Chain and Sourcing

The industrys supply chain is fragmented in nature and marked by the presence of multiple intermediaries. The
lack of appropriate infrastructure, inadequate technologies, and the non-integration of the food value chain are
factors key to the wastage of nearly 30-40% of prepared food across the supply chain.

6.

Red Tapism
In India, obtaining the requisite licenses, e.g. health license, food safety license, police license, No Objection
Certificate (or NOC, from the fire department and the state pollution control board), etc. is a major obstacle
hindering the smooth operation of a restaurant. The process is not centralized as yet and requires filing
applications with individual stakeholders, which involves a lot of paperwork and is a time-consuming activity.

7.

Multiple Level of Taxes

The Indian restaurant industry is burdened with multiple taxes like VAT, excise, and service tax, besides different
state taxes

ACTIVE PRIVATE EQUITY INTEREST IN INDIAN FOOD SERVICE MARKET

Industry

Investor

Type

Deal Amount
( US$ mn )

Om Pizza - Papa John, Chili's

QSR

TVS Capital

Private Placement

8.3

Adigas Fast Food

QSR

New Silk Route

Private Placement

Undisclosed

Moshes

Caf

New Silk Route

Private Placement

Undisclosed

QSR, Lounge

Azim Premji

Private Placement

25

Box8 (Ponchos)

QSR

Indian Angel Network

Private Placement

Undisclosed

Devyani International Limited

QSR

India Advantage Fund Series III/ICICI Ventures

Private Placement

36.04

Hospitality

India Equity Partners Fund I

Private Placement

25.88

Casual Dining/QSR

Navis Asia

Private Placement

22.5

Fine Dining

SAIF Partners

Private Placement

22

Cuisine Asia

Casual/Fine Dining

Verlinvest

Private Placement

20

Pind Balluchi

Fine Dining

Everstone Capital

Private Placement

20

QSR

Sequoia

Growth

20

Ammi's Biryani

Casual Dining

SAIF Partners

Private Placement

Mast Kalendar

Casual Dining

Helion Venture

Private Placement

QSR

Sequoia

Private Placement

Casual Dining

CX Partners

Private Placement

18.3

Pub QSR

Mayfield Fund

Private Placement

Undisclosed

Casual Dining

Navlok Ventures

Private Placement

Undisclosed

QSR

Correa Hospiyality

Private Placement

Company

JSM Corp - HRC, California Pizza Kitchen

Sagar Ratna Hotels Private Limited

Nirulas
Speciality Restaurants

Amalgamated Coffee Bean and Trading

Company - CCD

Faasos
Barbeque Nation
Beer Caf
Manis Dum Biryani
Fishtro

WHAT IS A QSR (Quick Service Restaurant)

1.

A quick service restaurant (QSR) is characterised by fast food cuisine, minimal table
service and a fixed menu

2.

The food (or ingredients) is prepared in bulk in advance and is packaged to order

3.

QSRs are usually part of a restaurant chain or a franchise operation, which provisions
standardised ingredients and/or partially prepared foods and supplies them to each
restaurant through controlled channels. It is different from fine dining, as the latter usually
targets rich and upper middle class consumers

4.

Fine dining restaurants also offer a unique ambience and upscale service

5.

Although fine dining restaurants do not compete directly with QSR, a moderate casual
dining restaurant could be a competitor. It is pertinent to note that while QSRs typically
target customers within the age group of 16-35 years, a casual dining restaurant would
target people across age groups

6.

QSRs are able to compete with casual dining restaurants on the basis of factors such as
consistency in quality and speed of delivery.

KEY QSRs IN INDIA

Cafes
Pizzas
International Fast Food (Non-Pizzas)
Ice-Creams
Indian Fast Food (Key players)
Confectionaries

Confectionaries

132

Indian Fast Foods

6% 2%
10%

Outlets of Key Players (Nos. )

44%

419

Ice-Creams

645

International Fast Foods

(Non-Pizzas)

1001

15%
1515

Pizza Chains

23%

Cafes

2,939

500

1,000

1,500

2,000

2,500

3,000

3,500

GROWTH TRENDS IN QSR INDUSTRY

QSRs

Approx. No. of
Outlets

Expansion Plan

Caf Coffee Day

1,534

10-15 outlets
every month

Dominos Pizza

749

140-150 outlets
every year

Barista

180

Not Available

McDonalds

270

500 outlets in
three years

Pizza Hut

131

250 restaurants
by 2015

US Pizza

81

Not Available

Nirulas

85

Not Available

KFC

361

500 outlets by
2015

Costa Coffee

100

Not Available

High speed and consistent food service

and efficiency

Convenient locations with easy

accessibility from places of work,
commuter routes and shopping areas

Limited menu choice of standardized

items

Fast turnaround time through efficient

model of drive-thru and quick order
placement and delivery

Value proposition for customers due to

low average checks

BREAK UP OF MARKET SHARE FOR QSR

Indian
Brands
Rs 13.8
bn

Domino's
Rs 4.8 bn

Foreign
Brands
Rs 23.4
bn

Others
Rs 9.6 bn

KFC
Rs 2.45 bn
Pizza Hut
Rs 1.8 bn

Subway
Rs 3 bn

McDonald's
Rs 2.4 bn

Indian
Brands
37%

Domino's
20%

Others
40%

KFC
9%

Foreign
Brands
63%

Pizza Hut
8%
Subway
12%

McDonald'
s 11%

Vending

Ingredients Supply

Merchandise

Back End

Packaging
Logistics

Opportunities
in Food
Service

Cutlery and Food Design

Technology
Outlet Design
Franchising

Front End
Partnerships
Starting your own restaurant

VENDING OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Reseller Model
Brand, Delivery
Mechanisms

Food Services

Employees / Visitors
SMEs

Public Places

4 Star hotels

Entertainment Malls

3 Star hotels

Transport

Service apartments

Banking - BFSI

QSRs, Bakeries

Clubs

Corporate

Exhibitions

Caterers

Retail

Educational institutes

FMCs

Manufacturing

Restaurants

Air lines

Services Gyms, Salons, Spas,

Gyms

Railways

Car service centers,

Canteens

Guest houses

Car showrooms,

Events

Resorts

Architects, Lawyers,

Road side resorts

BPO/ IT / ITES / Software/

TEAS

Doctors, CAs

USE OF TECHNOLOGY IN INDIAN FOOD SERVICE MARKET

Customer Feedback System

Mobile Application Development

GPS is being widely used by restaurants to aid delivery.

Digital Menu

A fresh trend, largely observed in QSR segment, is the use of mobile apps for order-taking.
Since the input (address and order) is typed by the customer, chances of error are less.
As the demand for such apps are increasing, an opportunity with huge potential is observed.

GPS Enabled Delivery

Dedicated CRM systems are now being favoured and accepted by most restaurants in the
organized sector, thus creating a demand for such providers

Many restaurants now offer digital menu which is directly inked to the kitchen
This eliminates errors while order taking and also increases tables turnover rate

Mobile Point of Sale (MPOS)

These are mobile payment solution using debit/credit cards

Until recently, cash on delivery was the only mode of payment while delivering food.
However, plastic money being more prominent now, MPOS presents itself as a huge are for
development.

23

MARKET RESEARCH OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Market research is a very important component of business strategy

It is a key factor to maintain competitiveness over competitors

Market research provides important information to identify and analyse the market need, market size and
competition

With more and more players entering the food service space, the demand for market research service
providers are on the rise

FOOD DESIGN OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Food Designing

Focuses on capitalizing upon the visual aspect of culinary art

Responsible for a lot of visual appetizing that one gets to see at local eateries
Demand is on the rise since many of the up-scale restaurants like Oh Calcutta, Masala Library, The Table etc
and even some of the budget restaurants like Dominos Venkys Chicken require such services.

Localization

International restaurants and exotic cuisine makers rely heavily on localization

McAloo Tikki Burger, Peppy Paneer Pizza, Caviar Jalebi are some of the biggest examples
Presents a huge opportunity

24

PROCUREMENT OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Structure

Description

Commissaries

Commissaries directly source food products from suppliers and

deliver ready to eat food to the franchised outlet.

Buying Agency

A Buying Agency is an independent franchise-owned purchasing

cooperative. It negotiates with suppliers on behalf of all its
franchised outlets and aggregates demand

Supply Chain
Partners

SCPs deals with suppliers for fresh products, such as chicken

and vegetables, and delivers ready to eat food products to
restaurants

25

Most common among all channels.

Direct Sourcing The restaurant sources products directly from the processors,
vendor etc

STORE DESIGN, ARCHITECTURE AND CUTLERY SUPPLY

OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET
Store Dcor and Architecture:

Store dcor plays a major role on likability of a restaurant

Chained restaurants require uniform dcor across outlets
Designing the dcor and architecture of restaurants is on demand and supply is less
More restaurants = more opportunities
Very lucrative in monetary terms
Huge opportunity for Designers and Architects

Cutlery

With increasing number of restaurants, the demand for suppliers of cutlery is increasing
Competitive pricing and quality key to success
Not only restaurants, but vendors and caterers also require the services of such suppliers
Monogramed cutlery is also on demand

Supplies
In addition to cutlery, supplies like tissue, soap, sanitizer, towels, napkins, coasters etc. are also required on a regular
basis and are creating high demand

26

DISCOUNT AND COUPON AGGREGATOR WEBSITES

Indian customers actively seek out discount offers. Makes discount aggregator websites
lucrative opportunities.
Currently, there are 150 websites which are actively involved in coupon business. On a
conservative estimate, these sites generate a combined 6-7 million page views per month.
Around 4.6 million Internet users in India aged 15 and older accessed the coupons category
which is 10.4 % of the entire online population.
Estimated to grow in the next 2-3 years because of the growth in e-commerce purchases.

SUPPLY SIDE INGREDIENTS OPPORTUNITIES IN INDIAN FOOD SERVICE

MARKET
There has been an increasing demand in the Food Service Industry for domestic,
international and exotic ingredients
However, there are not many such partners,
present on the supply side who can offer:
1. Competitive and Uniform Price
2. Uniform Quality
3. Uniform Quantity
4. Back-end Integration
5. Hygiene Standards

This has led to a gap in the supply side of ingredients for such restaurants which presents a
huge opportunity with great potential

28

CATEGORY
CEREALS
DAIRY

INGREDIENT ITEMS
Wheat, Rice, Brown Rice, Barley, Oats, Pulses, Maize, Ragi, Semolina, Couscous, Millet, Gramflour, Riceflour, Wheatflour,
Soyaflour, Cornstarch, Quinoa etc
Milk, UHT Processed Milk, Cheese, Mayonnaise, Cottage Cheese, Milk Powder, Yoghurt, Butter, Ghee (Clarified Butter)

BEVERAGE-BASED
COMPLEMENTARY TO Coffee Beans, Tea, Green Tea, Fruit and Non-fruit syrups and Pulp, Nectars, Honey, Chocolate (Cocoa Beans), Vanilla,
DAIRY
NUTS AND DRY
Walnuts, Figs, Dates, Cashew, Peanuts, Raisins, Chestnut, Pistachio, Hazelnut, Almond, Apricot, Coconut
FRUITS
SPICES AND
CONDIMENTS

Nutmeg, Clove, Salt, Black Pepper, Dry Red Chillies, Rock Salt, Mustard, Turmeric, Cinnamon, Rye, Garlic, Cardamom,
Parsley, Asafoetida, Fenugreek seeds, Cumin, Poppy, Kokam, Ginger, Green peppercorn, Fennel, Cassia, Pomegranate,
Saffron, Star Anise, Aniseed, Marjoram, Tamarind, Dried mango

FRESH HERBS

Oregano, Basil, Bay Leaves, Coriander, Parsley, Mint leaves, Rosemary, Celery, Thyme, Lemongrass, Lemon leaves,
Cilantro, Curry leaves, Sage, Chives, Marjoram, Wheat grass, Rhubarb, Leek leaves, Makroot

VEGETABLES

Potatoes, Tomatoes, Chillies, Onions, Sweet corn, Baby corn, Leeks, Jalapenos, Paprika, Olives, Mushroom
(Oyster/Button), Lettuce, Capsicum, Bell Pepper, Spinach , Carrots, Beet, Radish, Artichokes, Beans, Cabbage, Brussels,
Red Cabbage, Asparagus, Broccoli, Eggplant (Brinjal), Leeks, Zucchini, Peas,

FRUITS

Pineapple, Apple, Custard apple, Litchi, Melons, family of Berries, Peach, Lemon, Avocado, Dragon Fruit, Passion fruit,
Mango, Banana, Citrus family, Guava, Papaya, Makroot, Rambutan,

POULTRY AND MEAT

AND SEA FOOD

Chicken, Turkey, Duck, Goat meat (Mutton), Lamb, Pork, Prawns, Fresh water and Sea fishes, Crabs, Sharks, Squids,
Clams, Oyster, Eggs
Mustard, Soya bean, Sunflower, Rice Bran, Vegetable, Olive, Coconut, Almond, Groundnut, Corn, Sesame, Chilli, Flaxseed,
Wheat Germ, Meat Fat, Cod Liver (Fish)

29

OILS

SOME KEY SUPPLIERS

Poultry

Frozen
Foods

Dynamix

Godrej Tyson

McCain

Parag

Suguna

Godrej Tyson

Amul

Zorabian

Flanders

Vista
Processed
Foods

Bakery
Mrs Bectors
Cremica

Exotic
Vegetables
Trikaya

Ketchup
Mrs Bectors
Cremica

Jal Agro Pvt.

Ltd.

Al-Kabeer

30

Cheese

MERCHANDISING OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Many restaurants, especially in the QSR space offer patrons (often kids) merchandising
alongside certain purchases. Example include McDonalds happy meal offer and Dominos
Kids meal

Other restaurants like Hard Rock Caf, Caf Coffee Day, Starbucks and Gloria Jeans have
dedicated merchandising within stores including

T-shirts
Mugs
Coffee hampers
Coasters
Posters

A lot of these merchandise, especially in the case of McDonalds happy meal are also used
as promotion material (Eg: Disney movies).

PACKAGING OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Indian Packaging Industry is valued at USD 19 Bn in 2014 and it is growing at 12% per
annum
The food and beverage occupy the largest share of about 85% in packaging industry, a figure
that is estimated to rise
Sustainability and bio degradable packaging missing

Light Weighing, easily transportable packaging missing

Only 600-700 packaging machine manufacturers of which 95% are in small and medium
sectors and located all over the country , so there is huge gap in demand and supply of food
packaging professionals

LOGISTICS SECTOR OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Warehousing :
Majority of operators are small to mid-sized entrepreneurs with limited capacity
Main players are government agencies like central and state warehousing corporations
The existing warehouses are of poor quality and are present in limited numbers without adequate
capacity

Cold Chain Storage :

About 40% of fruits and vegetables grown in India gets wasted, so the sector needs to grow at
much faster rate to meet the needs
With the poor electricity condition in the country the cost of operating such facilities is very high
So it provides an immense opportunity to organized players who can setup the infrastructure and
are able to provide the service through out the nation

LOGISTICS SECTOR OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Transportation

Important rail networks are oversaturated, rail fright

tariffs are high, transit time are long and uncertain,
terminal quality is poor, less flexibility in carrying
different types of product

Road transport faces challenges like poor road

quality with inadequate network coverage , high level
of fragmentation along with majority of unorganized
players in trucking industry, multiple check points

The current strength of frozen trucks inadequate to

meet demand

Manufacturers are increasingly outsourcing their

transportation needs

DEssence Hospitality is a Management Consulting, Business Strategy and M&A

Advisory firm based in Mumbai since 1998. We provide our services to QSRs, Casual
Dining, Fine Dining , 4-5 Star Hotels, Clubs, Resorts, Service Apartments, Vending
Solution Providers, Food Service Operators, Back end services providers in Tech etc
India Entry Strategy & Market Mapping

Business Consulting Services

Investment Services

Market Sizing

Corporate Strategy

Partner Search

Domain Report

Business Plans

Master Franchising

Feasibility Study

Growth Strategy

M&A Advisory

Entry Strategy

Turnaround Strategy

Target Search

JVs

Start-ups

Private Equity

Strategic Alliances

Business & Revenue Modeling

Assistance in Due Diligence

Partners

Marketing Strategy

Valuation

Market Mapping

Exit Strategy

Creation of Investment

Product Competitive Analysis

Dashboards

Industry Reports

Benchmarking Studies

White Papers

Package
Post Merger Integration

Chandni Sahgal
Director
DEssence Hospitality Advisory Services Pvt Ltd
303, Aar Pee Center,
11th Road, Gufic Compound,
MIDC, Andheri (E)
Mumbai- 400093
+91 9820075332
022-28228142, 28347425
chandni@dessenceconsulting.com
URL: www.dessenceconsulting.com,
www.dessencehospitality.com