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.