Food In India
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Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type; Consumer foodservice by type and chained/independent
Executive summary
Consumer foodservice witnesses another year of robust growth
Consumer foodservice value sales grew at a strong 14% in India during 2006, second only to that of Vietnam and Indonesia. A robust economy which put more money in the hands of consumers and leading to growing disposable income, increases in the number of working women, and the convenience offered by these outlets all contributed to growth in 2006. Most consumer foodservice outlets have introduced delivery services as well and this has also helped value sales to grow. Catering to the bottom end of the income pyramid, street stalls/kiosks is the most common type of consumer foodservice outlet in India, followed by the ubiquitous full-service restaurants.

Indians lap up fast food as the rest of the world shuns it
Witnessing value growth of over 20% in 2006, India saw the most dynamic growth within fast food in Asia Pacific during 2006, with most other countries witnessing single-digit growth. Increased availability, novelty in terms of products and offerings, and convenience were all factors driving fast food growth in India during 2006. Brands such as McDonald’s and KFC are seen as family venues in India and most Indians attach aspiration value to them. With such outlets in their infancy and given the absence of any significant campaigns connecting ill-health and fast food, growth remains strong for this sector in India.

McDonald’s expands operations and holds the lead
McDonald’s remained the leading consumer foodservice player in 2006 with a 13% share of total chained consumer foodservice value sales. The company has built its growth over the review period on a host of measures including a strong supply chain, tailoring the menu and products to the local taste and pricing its products appropriately. In 2006, McDonald’s also expanded into South India by opening outlets in Bangalore and Hyderabad, for a total of 21 new outlets added nationwide during that year. Amalgamated Bean Coffee Trading Co Ltd grew the fastest in terms of outlets during 2006 however, with 204 outlets added across its two cafĩs/bars brands Cafĩ Coffee Day and Coffee Day Xpress.

Stand-alone outlets dominate value sales
Of the total consumer foodservice value sales in India during 2006, 80% was accounted for by stand-alone outlets. That said, retail, travel and leisure locations continued to chip away at the contribution of stand-alone outlets that year. Retail outlets have gained in popularity by virtue of their being seen by consumer foodservice players as high-footfall locations. On the other hand travel locations such as airports and railway stations have gained prominence as these provide the best means of following the increasingly mobile consumer.

Growth to remain strong as existing players expand and new players enter
With a constant value CAGR of 8% between 2006-2011, consumer foodservice in India is predicted to witness one of the fastest growth rates in Asia Pacific. During the same period, more than 500,000 outlets are predicted to be added, taking the total number of outlets in India close to 2 billion and second only to China in this region. While new domestic players are likely to make their appearance, a host of international companies are also expected to enter India. Some of the prominent brands which are predicted to make their foray include Starbucks, Burger King and Church’s Chicken. The existing brands, such as Cafĩ Coffee Day, McDonald’s, KFC etc, have also lined up expansion plans to move beyond the metro cities. As players continue to build strong regional brands, the franchising of outlets is expected to become more commonplace over the forecast period.

Product coverage
Coffee; Other hot drinks; Tea
Executive summary
“Chai” continues to be the most popular hot drink

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Consumer Foodservice And Such Outlets. (July 3, 2021). Retrieved from https://www.freeessays.education/consumer-foodservice-and-such-outlets-essay/