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Domino’s is now more than double of McDonald’s

Big fast-food chains KFC, McDonald’s and Café Coffee Day seems to be struggling to come back on the path of growth, as consumers of India are preferring pizzas over chicken meals, rolls, burgers and sandwiches. Domino’s is currently operating in India, with a 16.12% share in the food service Industry, with a revenue of INR1,000 billion, which is more than double the size of McDonald. McDonald’s share is 7.9% & Pizza Hut’s share is 4.8% in the Food Service Industry of India. The main reason behind the growth of Pizza players is due to its better services, which are offered by online portals.

The sale of Pizza segment is expected to cross INR100 billion by 2020. Combined sales of burgers, ice creams and chicken is now INR47 billion and Pizza sales alone stands at INR33 billion currently. Whereas burger market stands at INR15.9 billion.

According to TechSci Research, online portals will play big role in the growth of fast food chain restaurants. The restaurants chains should start offering its each food category through online sites with discounts. This combination of higher discounts with the comfortability and convenience of ordering and delivery of food, will help the food chains restaurants to grow, as majority of the consumers in India prefer to eat their meals at home, and if they are going out for having their meals, they mostly prefer other types of meal like Thai, Chinese and Italian, which actually shifts the customers, leading to lower growth.

According to recent report published by TechSci Research,India Food Services Market Forecast & Opportunities, 2020”, the market for food services in India is expected to grow at a CAGR of over 12% through 2020. Growth in the market is anticipated primarily on account of higher disposable income, improved standard of living and changing preferences of consumers. In addition, expansion of brands into tier II and tier III cities, is also a major factor which is expected to drive growth in food services market of the country over the next five years. In 2013, the market was dominated by unorganized and non-branded players, however, with growth of various foreign and domestic brands, these players are expected to lose their market to organized branded players. Segment-wise, dining food services segment was the largest contributor in India food services market in 2014, on account of the large number of dining restaurants in the country. The segment is expected to retain its dominance in the market over the forecast period as well. “India Food Services Market Forecast & Opportunities, 2020”.

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