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A HOT AND SPICY FOOD BUSINESS

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FOOD FRANCHISING CONTRIBUTES 28 PER CENT OF THE INDIAN FRANCHISE INDUSTRY, SIX PER CENT MORE THAN THE WORLD AVERAGE OF 22 PER CENT OF 3.95 TRfood_business1ILLION USD

In the last 7-8 years, the restaurant business has been surging ahead and has witnessed gigantic shift from unorganised eateries to organised food joints. The entire process is further buoyed by the franchise system. The food Industry is going through major transformations: specialised food chains and on-demand food subscriptions, are new trends that call for business opportunities. As eating out has become de rigueur, the restaurant trade is considered to be the next big business opportunity, and statistics speak for themselves. The Indian dinning average of once a week was the lowest in developing markets. However, in the last 5 years, it has increased to ‘eating out once in 4 days’, and trends Indicate this may become ‘eating out once in two days’ in a couple of years. On an average, consumers spend Rs 90-Rs 570 while eating out. Subsequently, returns for the restaurant business have touched 30-35 per cent a year. Over six billion USD will be spent in the next three years in the food services sector that would generate over 1,00,000 jobs, especially in India.

Today, food and restaurant business has it all — art, debt and equity. All these features are strikingly visible in Delhi’s Connaught Place, which has flourishing restaurants and is home to 165 bars and restaurants, all In the radius of 2 km. These serve 15,000 guests every night and 40,000 guests on weekends.

Business investment opportunities are galore in this sector. Listed are the
current trends in restaurant industry: Global fast food chains: Quick Service Restaurants are the fastest growing format in the global restaurant industry. India should vie for it: and localise it according to its requirements. Of the first ten restaurant chains in India, seven are international food brands.

FOOD TRUCKS + KIOSKS

Latest to join the band-wagon in the restaurant industry are food trucks and kiosks. The hit formula behind their success Is low Investments, and mobility to generate enough business from different locations.

INDIAN FAST FOOD CHAIN

Indian street food and regional food. served in hygienic set-ups makes for a great business investment. In this format, costs are kept under tight check, and can gross up to 45 per cent ROI.

NEW AGE ON-DEMAND DELIVERY FORMATS

Food delivery start-ups have bought new business models, where meals are based on the number of diners. Just like recipe boxes at home, hyperlocal delivery or Internet acting as a food ordering platforms is fast catching up.

COFFEE SHOPS

High-volume and low-transaction coffee shops have takers from diverse groups. Coffee shops provide the perfect settings for business meets, friends getting together and it is an apt venue for dating. Even though this business faces the staggering competition, it has lot of scope to grow and it’s doing good business for long time.

7 to 11 DINING CAFE

New restaurant formats are toying with diversification, with longer opening hours and multi-concept operations in one site. also adding take-away and retail elements in the business.

JUICE AND HEALTH BARS

Juice bars and smoothie cafés are small-scale businesses that can be started inside a gym, In a kiosk at the local mall or office complex.

BUFFETS RESTAURANTS

Especially popular with families and small groups, buffet restaurants operate according to a value-based business model with reasonable pricing.

FRESH AND FAST CASUALS

Increasingly, superior ‘food for the money’ is driving restaurant consumption patterns which are less competitive and more creative. Outlets like gourmet burger stores, sandwich bars having chef-driven menus or freshly made food servings with value additions, are making their mark.

SPECIALTY CUISINES

International food that were earlier about Chinese and Italian has today got specs of Greek, Lebanese, Nepalese, Turkish and Japanese and Korean food.

NIGHT CLUBS, LOUNGES AND BARS

Youth is the major crowd puller today; pubs, bars and nightlife are the new trends in the Industry and has the highest margin in food business going up to 80-85 per cent.

UNCONVENTIONAL LOCATIONS

Location dynamics have changed completely in food business. Restaurants am looking for out-of-the-box locations like educational institutions, railways and airports, central business districts. These were being neglected earlier but now offer a great consumer base.

AN INDUSTRY FOUNDED ON PARTNERSHIPS

As a restaurateur, getting growth loans from banks is difficult, and it is an accepted practice to strike partnerships. You can choose a partner who is involved in the operations of the business or one who only wants to see the profit and loss statement every quarter. Food franchising contributes 28 per cent of Indian franchise industry ahead to world’s average of 22 per cent of 3.95 trillion USD.

Source: TOI

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