foodService India - September - October 2018

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Consumer needs are changing along with the various
parameters that go beyond the demographic profi le. While the
annual average spending of middle class households in India’s
Tier-I cities has increased by over 35 per cent on fast food
restaurants in the last two years, those in Tier-II & III cities are
also spending much higher on fast food restaurants. Today,
more than 65 per cent of the Indian population is aged less
than 30 years and exposed to international brands.
One sector that has managed to reap the dividends of
this teeming demographic bulge is the foodservice industry,
particularly in the QSR segment. There is an increase in the
demand for QSRs, pubs and cafes as people are seeking
convenience in varied formats. At the same time, the trend
amongst diners to opt for cuisines that mirror their lifestyle
is fast catching up. Preference for ingredients like truffl es,
artichokes, asparagus, Australian lamb, Norwegian salmon,
black bean sauce, microgreens, organic food, etc., have found
their way to Indian F&B counters. The blending of cuisines, like
Italian with Thai, is another evolved customer choice and even
casual dining players are offering Chinese, authentic Italian,
fi ne French, American, Lebanese cuisine, etc., which were
once considered specialty and fi ne-dining dishes.
To keep up with the trends, the restaurant industry is pulling
out all the stops to make food more innovative and interesting.
Customers are being wooed with “street food” options served
in a hygienic setting and good ambience. All of this is par for
the course but to keep pace with the growing demand and
drive growth, the industry will have to look beyond the metros
and Tier I cities to a number of Tier II and III cities, which may
offer better growth prospects for players across sectors.