Full-Service Restaurants in India

PROSPECTS

Asian full-service restaurants continues to characterise the category

Asian cuisine, especially Indian and Chinese, continued to be the most popular cuisine of choice amongst the consumers. Indian is preferred, as it is the local food of the country, though it varies from region to region, such as Punjabi, Maharashtrian, South-Indian, Gujarati, Rajasthani and Bengali.

Category targets “experience”-driven consumers

The full-service restaurants category in India is one of the most competitive in the world, with average disposable incomes increasing and the number of people eating out regularly continuing to grow. The “experience more” trend is extremely relevant and applicable in this category, with consumers demanding more immersive and exciting dining, thus creating opportunities for higher-end players and brands willing to develop alternative dining experiences.

Social media platforms become strong marketing tool for industry players

Social media platforms such as Instagram are aiding growth of full-service restaurants. Consumers who dine out are taking to social media to share their experiences.

COMPETITIVE LANDSCAPE

Leading players differentiate strategies to remain competitive

Pizza Hut was the leading brand in 2019 followed by Barbeque Nation and Indian Hotels. Both Pizza Hut and Barbeque Nation continued to open outlets during the year, while Barbeque Nation and rajdhani also began exploring e-commerce food delivery.

Competition set to intensify amongst chained operators

Over the coming years, restaurants will face stronger competition given the overwhelming array and variety of consumer foodservice outlets. Thanks to strong consumer demand, location prices are expected to rise gradually, mostly within premium areas, thus offering more investment possibilities to chained restaurants at the expense of independent players.

Independent operators continue to characterise the channel

Like all other foodservice channels in India, full-service restaurants continued to be characterised by independent operators in 2019. However, the number of chains continued to grow more rapidly, whilst also registering stronger current value growth and transaction volume growth than independents.

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