From burgers to pizzas, sandwiches to parathas, the Indian fast food industry has it all. Craig Fonseca takes a look at this booming retail segment  Fast food in India has come a long way from roadside chaats and samosas. Today, fast food has taken on a whole new meaning. Fast food today is synonymous with large outlets, hygienic and standardised operations and uniformed staff. Globalisation is greatly changing society and culture in terms of consumer choices, lifestyle, individual preferences, socialisation and customs. These changing factors are changing specific aspects of marketing for fast-food chains such as McDonaldís, KFC, Subway, Nirulas, Pizza Hut and Dominos. With a number of international fast-food chains making their presence felt all across India and national fast-food chains on the rise, the fast-food market is set for steady growth in the years to come.A report released by the National Restaurant Association of India (NRAI) reveals that the Indian quick-service industry the fastest-growing restaurant segment in the Asia-Pacific region, with an annual growth of about 20 per cent. In the Indian market, outlets can be seen in various forms-from standalone kiosks to huge multi-storied restaurants. While most fast-food chains today work on a franchising model to expand their business, a few still expand through ownership of each store. The Evolution of Fast Food The credit for the concept of modern fast food goes to the Americans. Fast food evolved from drive-in restaurants, which were hugely popular in the early 1940s due to the rising popularity of cars at that time. Brothers Richard and Maurice McDonald, who also owned such a restaurant, decided that they wanted to make food faster, sell it cheaper and spend less time and effort on worrying about cooks and waiters. The brothers came up with a system that resembled an automobile assembly line. This system, which they christened the Speedee Service System, brought them fame and recognition. Restaurateurs from all over America visited their restaurant to see this new 'fast-food system'. The McDonald brothers introduced many changes in the design of the restaurant kitchen, which can be seen in most fast-food restaurants today. Instead of having lots of different equipment and stations for preparing a wide variety of food, the Speedee kitchen had: A very large grill where one person could cook many burgers simultaneously A dressing station where people added the same condiments to every burger A fryer where one person made french fries A soda fountain and milkshake machine for desserts and beverages A counter where customers placed and received their orders.  From the beginning, fast food was always intended to be eaten on the go, without the use of cutlery or plates. In the US, fast food covers a wide variety of food items ranging from hamburgers, pizza and sandwiches to tacos, fried chicken and hot dogs. However, many fast food chains also offer customers 'slower' foods like salads and mashed potatoes.
Factors Of Growth Fast food is one of the fastest-growing food segments in the world. The Indian fast-food industry is growing rapidly for many reasons. One of the strongest factors driving the popularity of fast food in India is the influence of Western culture. The influence of the media and the Western is encouraging more and more Indians to experiment with foods which were relatively unheardof a few years ago. Apart from this, a variety of socioeconomic factors come into play in the growth of the fast-food industry. The following factors have played a deciding role in Indiaís evolving fast-food market. Changing gender roles: With the increasing number of women going out of their homes to work, fast food is becoming a convenient replacement to home-cooked food as it is quickly and readily available, an easy and convenient alternative to home-cooked food. 'The working classes anyway with hectic lifestyle prefer to have a meal at the food chains and cafes. With life becoming more and more fast-paced, hectic, gender equality in terms of working/career, and earning the living by both the member (wife & Husband), cooking at home is becoming less and less prevalent,' says Saurabh Swarup, Head, Marketing & Product Development, Barista Coffee Company Ltd. Convenience: Fast food is perhaps the most convenient food for any family. With the number of choices available today, it caters to everyoneís taste buds. With students and workers moving away from their families for studies or work, often find it easier to pick up and consume food while travelling. Chains often offer a variety of products at a single location which add to the convenience factor. Growing population: With the second-largest population in the world, India has huge potential for growth in the fast-food industry. A predominantly young population also ensures the success of fast-food chains.  Hurdles For Fast-Food Retail As with any other industry, the fast food industry faces its unique share of problems in India. Hurdles which were not a problem a few years ago have now become an important part of any business with every retailer trying to cut down on resources and costs. Cultural Challenges Perhaps one of the greatest challenges faced today by the food industry in India is the diverse culture that prevails. People belonging to different cultures have different eating customs and habits. It is important for any fastfood chain in India to keep such diversity in mind in order to be successful. Vegetarianism also plays an important role in Indian culture. One of the biggest concerns in India is ensuring that vegetarian food has absolutely no contact with non-vegetarian foodstuff. 'McDonald's has adapted very well to Indian culture. The chain clearly mentions that it serves 'No beef or pork'. There are separate kitchens for vegetarian and non-vegetarian preparations,' says K Ramakrishnan, President-Marketing, Cafe Coffee Day.
To deal with culture clashes, many fast food chains have introduced region-specific menus to appeal to the local tastes. In states like Gujarat and Rajasthan, where the majority of the population is vegetarian, a large portion of the menu is made up of vegetarian dishes, as compared to a state like Maharashtra or West Bengal. Multi-national fast-food chains adopt an 'Indianised' menu. 'Multinational food chains have not only altered burger fillings and pizza toppings to suit native tastes, but have also started exporting these new dishes to international markets. The international community is getting a taste of the Indian menu, be it McDonald's Pizza McPuff, Pizza Hut's Tandoori Chicken Makhani and Papa John's Chicken Tikka Pizza,' says Mr Swarup.  Being Eco-Friendly With the issues of global warming and shortage of resources, there is an increased pressure on companies, particularly fast-food chains, to adopt eco-friendly practices. Paper plates, napkins, polyurethane containers, plastic cups and tableware, drinking cartons or PET (polyethylene terephthalate) bottles are used extensively to package the products, and these are all disposable. Many of these items are tossed into the garbage instead of being recycled. As concerns about waste reduction increase, many fast-food chains have taken note. Although there is no law forcing companies to adopt green practices, fast-food companies are voluntarily going in for these solutions. For example, Caf'E Coffee Day has made a number of efforts to ensure that their business is eco-friendly. 'We actively encourage on-premises consumption which obviates the need for packaging materials. Most of our takeaway packaging is bio-degradable. At the cafÈ as well, most packaging is biodegradable. Even the lighting at our cafÈs is CFL-based, which reduces energy consumption. All our cafes have an extensive glass fa'ade, which allows extensive natural lighting, thus avoiding the need for artificial lights during the day,' adds Mr Ramakrishnan.
Ensuring Product Quality A distinguishing factor for any fast-food chain is its ability to offer standardised products to customers across all its outlets. This is done mainly through standardising operations, services and overall business procedures. A standard, high-quality product is what helps an outlet create and maintain its brand image. The following are quality control measures fast-food chains implement to achieve standardisation.
Standard Purchase Specification: The purchasing made by each outlet is uniform in terms of quality, size and quantity, subject to demand. Since the input is the same across all outlets, the output across all outlets is expected to be the same. Standard Production Process: The production process for every item on the menu is standard across all the outlets of any food chain. There are fixed recipe and measurement spoons for every dish prepared across all the restaurants of a food chain. For example, if two spoons of salt are used in one Pizza Hut outlet, the same measurement will be used in another outlet as well. Another important quality-control measure is ensuring that the working area of any fast-food chain is hygienic and clean. 'On an average, cleaning is done three times in a day for most multinational food chains. Once in a month, the outlet is closed for a complete cleaning and overhaul. Replacements are also one of the most important things food chain as the crockery and cutlery are used to wear and tear and it being one of the strategic things in this industry,' says Mr Sawarup.  Fast-food trends in India Fast food in India has evolved greatly from roadside stalls thanks to certain trends in the Indian market. Smaller Cities With the fast-food industry having established its presence in metros, fast-food chains are now looking to tap the smaller cities. Both national and international fast-food operators are looking to expand throughout the country, and are not leaving the tier-II and tier-III cities out of their plans.
Leading international fast-food chains like McDonaldís, Dominoís Pizza and KFC say that onefourth of their sales in India come from smaller towns and cities. This is expected to grow further as urbanisation makes a larger impact on these towns. As part of their expansion into smaller cities, the fast-food chains use innovative ways to connect with their potential customers in these cities. For example McDonald's has launched various social initiatives to connect with local customers. It recently ran a water awareness campaign in Gwalior, which faces serious water scarcity. The exercise involved giving simple tips to people to use water efficiently. The mascot, Ronald McDonald, hosted shows and slogan contests across the city. In Agra, McDonald's organised an anti-plastic-bag campaign during which McDonald's officials cleaned up the city alongside school students. Food Courts Food courts are an integral part of any mall today. Earlier just an add-on feature, food courts have now grown to become the biggest anchor at any mall. Hungry shoppers are looking out for a quick snack to satisfy their hunger. Food courts have immense potential for fast-food operators. Food courts often have smaller outlets and fewer staff, which means lower operational costs than standalone stores.
However, food courts do come with their share of obstacles and problems. Many fast-food operators feel that not enough thought goes into designing the food court in a mall. 'The fact remains that developers still view food courts as a piece of real estate to be offloaded for maximising revenues. Very little thought goes towards developing food courts as the star attraction, and even less thought goes towards designing one,' says Tej Pavan Gandhok, CEO, Lite Bite Foods. He also adds, 'Food courts need to be viewed at par with other essential service utilities like housekeeping and need to be developed as important hooks to bring in footfalls.' Drawing in footfalls in a food court is no problem. However, the ability to convert these footfalls into business is what makes a fast-food operator successful. 'A fast-food operator in a food court has to compete with several options and competitors for the customer's attention. To gain this, frequent programmes and promotions need to be executed to drive customers to the outlets,' says Mr Ramakrishnan.  Street Food Street food has always been a craze in India. With the huge diversity in India, there is something for everyone when it comes to street food. However, with people becoming more health-conscious, they have started looking at street food as unhygienic and unclean. All this changes when the consumer sees a brand name and hygienic shops serving this food. Street food has taken on a new avatar, with signboards above a shop and workers with gloves. On the Fast Track While the fast-food category comprises a number of recent entrants who have recognised the huge opportunity in the Indian market, the fact remains that there are very few dominant players in each sub-category. Each player needs to constantly reinvent itself to keep a strong foothold in the market. With fast-food chains finding their niche and looking to create a nationwide footprint, the fast-food industry shows signs of tremendous growth in the coming years. |
