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QSR Chains Bet on Flash Saks, Free Workshops for Kids to Push Growth


Moves aimed at increasing footfalls, besides building consumer trust & loyalty

Bangaluru: From hosting science classes and sending delivery boys dressed as Angry Birds to selling burgers for Rs. 1 in flash sales, western fast food chains such as McDonald’s, Taco Bell, Wendy’s, Carl’s Jr and Genuine Roaster Chicken are trying out new tactics to push sales amid slowing demand.

As newer players are entering the market, the QSR (quick service restaurant) industry is getting increasingly competitive. Therefore, we are creating brand differentiation and underlining our position uniquely to help increase brand relevance and affinity,” said Kedar Teny, director of marketing and digital at McDonald’s India – West & South.

The US burger giant has tied up with Sony Motion Picture for home delivery by mascots dressed as angry birds in a bid to maintain its growth momentum even as most players in the QSR segment in the country have been reporting single-digit or negative same-store sales growth since the past two years with consumers not eager to spend amid economic uncertainty.

Three other US-based restaurant chains that entered the country recently, Carl’s Jr, Genuine Roaster Chicken and Wendy’s, too, are trying innovative techniques to establish themselves in the market. After analyzing what consumers like the most, Carl’s Jr dipped the prices for those items by 50 % once a week per product.

Genuine Roaster Chicken, which will open its first India outlet in Mumbai this month, plans to send a fruit each to households around the store location on its opening day along with a list of health benefits of the fruit vis a vis the chicken it serves.

Wendy’s, which came to India last year, is organizing in-store free science workshops for kids in June to increase footfalls. For this, the company has tied up with an education startup Wonder lab.

“Instead of spending on advertisements, since we are new in this market, our focus is on building trust and loyalty. We are trying to identify the needs of consumers and hoping that all this will pay back,” said Jasper Reid, director of the holding companies of Wendy’s and Jamie’s Italian in India.

India’s QSR market is expected to touch 27,000 crore this year, according to Crisis forecasts. Most consumers prefer international players within restaurant chains, largely because most Indians still eat most of their meals at home, and hence when they go out for a meal, they prefer to try other types of cuisine.

Yum! Restaurants, which operates KFC in India, recently tied up with Mumbai Dabbawalas to deliver meals as it seeks new points of presence.

Taco Bell, an arm of Yum! Brands in India, gave Rs. 1 flash sales on all the products as part of its delivery-launch in March. In September, the restaurant did a silent disco preview party where the brand previewed the entire range of upcoming products in 2016.
Experts said such marketing techniques could rise further even as the overall market for pizza and burger in the country remains small compared to developing economies.

Source: Economic Times
(Photo: indiamarks)

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