market research report: restaurant market in india 2010
DESCRIPTION
For the complete report, get in touch with us at: [email protected] Restaurants and traditional food joints has been an age old concept with the dominance of a large number of unorganized players operating as street vendors, roadside eateries and stand-alone restaurants. However, with growing urbanization and changing lifestyles, the organized players have occupied a firm foot hold in this market which is worth INR 580 bn and shows huge potential for growth in future. The increasing trend of eating out coupled with the increasing share of young population has driven the market. The report begins with the market overview section providing the size of the restaurant or the food service market in India with a brief description of the various segments that exist in the market and the penetration of the organized players in the various segments. An analysis of the drivers explain the factors for growth of the industry including growing disposable income, favourable demographics, changing lifestyles and preferences, increasing proportion of take away food and increasing number of working women. The key challenges identified encompass cumbersome licensing, food price fluctuations, high cost of real estate and lack of skilled manpower. Key trends have also been analyzed including foreign players foraying into the Indian market, brand expansion into smaller cities, Indian brands exploring the foreign market, growth in food franchising and emergence of theme-based cafes and restaurants. The competition section provides an overview of the competitive landscape in the industry illustrating the share of organized and unorganized players and the entry route for the foreign players into the Indian market. It also includes brief profiles of major domestic companies in each segment of the organized restaurant market.TRANSCRIPT
Restaurant Market – India
May 2010
2RESTAURANT MARKET IN INDIA 2010 .PPT
SAMPLE
Executive Summary
Market
Drivers &
Challenges
Trends
Competition
�Restaurant/Food service market in India was valued at INR X mn in 20--; Growing at the rate of
Y% annually
�Food Service market includes - Fine Dining Restaurants; QSRs or Fast Food Chains; Cafes and
Coffee Joints
�Changing consumer lifestyles, increasing urbanization and higher frequency of eating out has
fueled growth in the market
Drivers:
� Growing disposable income
� Favourable demographics
� Changing lifestyles and preferences
� Increasing proportion of take away food
� Increasing number of working women
Challenges:
� Cumbersome licensing
� Food price fluctuations
� High cost of real estate
� Lack of skilled manpower
�Foreign players foraying into Indian market
�Brand expansion into smaller cities
� Indian brands exploring the foreign market
�The market is dominated by the unorganized food service providers
�Major players include a large base of foreign brands who have a huge consumer base in the Tier 1 and Tier 2 cities
�Organized players are eyeing the major retail chains and high footfall locations as the next emerging target for setting up outlets
�Growth of food franchising
�Emergence of Theme-based cafes and
restaurants
3RESTAURANT MARKET IN INDIA 2010 .PPT
•Market Overview
•Drivers & Challenges
•Trends
•Competition
4RESTAURANT MARKET IN INDIA 2010 .PPT
SAMPLE
Restaurant market in India is growing fast due to the
increasing number of people eating out
•Restaurant/Food service market in India has
witnessed tremendous growth in recent years
•With increasing number of people eating out
the industry offers major opportunities to the
players to capture a larger consumer base
•Changing demographic, rising income levels
and increasing urbanization has also fueled
market growth
•The growing segment comprises of formats
like fast food chains, cafes and fine dining
restaurants
•There is an increasing trend of Indian players
exploring the foreign market
•Target consumer group lies in Tier I & II cities
•Constant innovations with the product
varieties has proved to be a strong growing
aspect for the players
Overview Market Size
Source:
0
100
200
300
400
500
600
a
2007
b
2008
X%
INR bn
5RESTAURANT MARKET IN INDIA 2010 .PPT
Drivers & Challenges
Increasing proportion of take away
food
Increasing number of working women
Changing lifestyles and preferences
Favourable demographics
Growing disposable income
Drivers
High cost of real estate
Lack of skilled manpower
Food price fluctuations
Cumbersome licensing
Challenges
6RESTAURANT MARKET IN INDIA 2010 .PPT
Key Trends
Foreign players foraying into
Indian market
Growth of food franchising Indian brands exploring the
foreign market
Brand expansion into smaller
cities
Emergence of Theme-based
cafes and restaurants
Trends
7RESTAURANT MARKET IN INDIA 2010 .PPT
SAMPLE
Food service market provides huge opportunities for the
organized service providers to increase their footholds
• Traditionally, the Indian consumers have been eating at
roadside eateries and dhabas and stalls which still
occupy a major share of the unorganized sector
• The market is highly competitive with a large number of
Indian and foreign players
• Indian food service market is dominated by global
players, specially in the organized fast food segment
• Growing trend of consumption of multi cuisines and
increasing brand consciousness has led to the increase
of global player footprints
• Organized modern formats like malls and supermarkets
have also become a favourite destination for the outlets
• Master companies are readily tying up with small
franchisors and mall owners to promote their brand
Overview
Source:
Market Entry Route – Foreign Players
Market Segmentation
Entry Route
Company Owned Stores Franchised Stores
X%
Organized Segment
Y%
Un-Organized Segment
8RESTAURANT MARKET IN INDIA 2010 .PPT
SAMPLE
Major Fast Food Players (2/6)
Y
X
No. of Outlets
• It was started by X entrepreneurs and the first outlet was opened in Mumbai in
July 19--
• It has outlets in Mumbai, Pune, Surat, Ahmedabad, Rajkot, Nasik, Aurangabad,
Kolhapur, Chandigarh, Jammu, Chennai, Bhubhaneswar, Goa and Bangalore
• It serves product 1, product 2, product 3, product 4 and product 5
Company B
• It started ‘X' restaurant and introduced A for the first time in India in the 19--s
• In June 20--, Company P, MR. X acquired the Company A
• It has a network of fast food chains like Brand 1, Brand 2, Brand 3 and Brand 4
and owns restaurant brands like ‘Brand 5’, ‘Brand 6’ and ‘Brand 7’
• It operates its restaurants in cities like Panipat, Dehradun, Chandigarh, Jaipur,
Meerut, Pathankot
• It also operates outlets at fuel stations with association with X Corporation at
Dwarka, Punjabi Bagh, Janakpuri, Gurgaon and Chandigarh
• It also has a national tie-up with Y and has opened projects in Delhi, Jaipur
Expansion Plans:
• It plans to open ~X new units in the next A years
Company A
Business DescriptionCompany
Source: Note: This list is not exhaustive; No. of Outlets is indicative
9RESTAURANT MARKET IN INDIA 2010 .PPT
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The Restaurant Market - India report is a part of Research on India’s Food & Beverage Industry
Series.
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