Industry News

Quick service restaurants following new tactics to target customers

India: Services starting from giving science classes, to sell burgers for Re 1 and delivery of products by the persons dressed as Angry Birds are some of the new strategies that food chain giants such as McDonalds, Taco Bell, Wendy's are practicing these days to increase sales and slow demand. With increasing competition by the entry of new player in the market, forcing existing players to go for newer strategies to differentiate its brand and to position itself in the market.

Majority of the Quick Service Restaurants are facing negative or flat growth in the number of stores from past two years. New entrant in this industry Carl's Jr dropped the prices of those items, which are mostly preferred by customers in India. Moreover, Genuine Broaster Chicken is planning to send a fruit to households near to its first store location in Mumbai in this month.

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”.

According to TechSci Research, the restaurants main aim should be to build trust and loyalty of its customers by identifying their preferences needs & wants. Instead of spending heavily on advertisements and marketing, the players should try to spend on the needs of consumers, which will ultimately help these food chain in increasing its sales. Online portals will also play a big role in the growth of fast food chain restaurants. The restaurants chains should start their food offering through online sites along customer delighting offer like goodies, discounts etc to make and retain customers. This combination with comfortability and convenience of ordering and delivery of food, will help the food chains restaurants to grow.