The future of the Indian QSR ecosystem | The Financial Express

The future of the Indian QSR ecosystem

By 2025, the Indian QSR industry will have grown by 17.27 per cent and will be worth Rs. 827.63 billion.

QSR, restaurant, annual growth, fast food, beverage, online ordering, consumption, third-party vendors
Casual dining restaurants and QSR account for more than 74 per cent of the food market. Image: Reuters

– By Anubhav Dubey

Food and Indians have a unique relationship. The food market in India has grown steadily, and in 2018 it was valued at 3.7 trillion, with about 10 per cent annual growth. Casual dining restaurants and QSR (Quick Service Restaurants) account for more than 74 per cent of the market and are growing exponentially. The phrase QSR may be familiar to you, but for some people it is new, and they are unsure of what it is, how it works, and why it is the future of Indian restaurants. Therefore, let’s just review that.

What is QSR?

QSR, or Quick Service Restaurants, is a name of the industry for the fast food restaurants that offer you food that does not require much time for preparation and will be served instantly. It even costs you a minimum. Moreover, some quick restaurants focus on making a single dish. In these cases, the restaurants deploy skilled workers to prepare and serve that dish. Most of the time, the chains even offer you beverages and drinks that complement the food items, but this may not be necessary for every option. 

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How does a Quick Service Restaurant operate?

Quick Service Restaurants are the chain models. Most of the restaurants are established where the footfall remains maximum, which is why you will find these places near the movie theatre or shopping malls. To reduce cooking time, the food items are prepared centrally in the kitchen. The last step of heating and assembling the food and another assortment, such as sauces and dips, will be done on location. It is the only way the restaurant serves the food in a faster way.

Why is the Quick Service Restaurant the future?

Until now, it may be pretty clear that QSR has come a long way and offers several benefits to the people. Undoubtedly, it will make the future bright because of the following factors.

1. Growth of the young population

India has a population with more than 50 per cent under 25 years and more than 65 per cent under 35 years. India’s average age in 2020 is 29 years, compared to China’s average age of 37 years and Japan’s average age of 48 years. Young adults (18–35 years) enjoy eating out and even consider fast food to be delectable, and they spend a significant amount of their income on it. People in this age range are your ideal customers for the QSR chain which makes the growth of this sector more significant. People expect their food to arrive quickly when they visit a restaurant, and this is how these QSRs can profit.

2. Increase in per capita income

The Indian economy is growing rapidly at a 9.8 per cent CAGR, which fuels the country’s consumption. It has increased the number of times when Indians have food outside, that is about six times a month. And this number will increase and go up, backed by higher disposable income, which will also increase internet penetration.

3. Service of the internet in cosmopolitan cities

Now, the internet service has become more accessible than it ever was. Along with that, the online ordering window is also enhanced with time. Now tier-II and tier-III cities will have the same comfort and privilege. The quick-service restaurant is expanding its business, and even third-party vendors have spread their base in India.  

The Final Words

The Quick Service Restaurant, or QSR, has become more well-liked in both urban and suburban settings as a result of its success in adjusting to the changes. Its popularity will only increase in the future. By 2025, ResearchAndMarkets projects that the Indian QSR industry will have grown by 17.27 per cent and will be worth Rs. 827.63 billion.

(Anubhav Dubey is the Co-founder of Chai Sutta Bar)

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First published on: 14-10-2022 at 16:22 IST
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