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”.