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QSR Industry In India Essay

Executive Summary
4

India is witnessing rapid urbanization of small towns and growth of mid-sized cities. This along with rising population in key metros and higher disposable incomes is fuelling growth in every industry. 35% of India‟s population will be in urban centres by 2020 totaling to 53 crores compared to the current urban population of 32 crores.

Consumer markets are being driven by the country‟s youth population. Be it college goers or the young working class, exposure to the international environment and culture, has created a demand for world-class products at affordable prices.

This has led to the rise of Quick Service Restaurants (QSRs) in India, the fastest growing segment in the eating out market. By 2012, there will be at least 2000 more QSR outlets across India.

With QSR giants like Starbucks and Dunkin‟ Donuts yet to foray in the market, there is a lot to look forward to.

5

Industry Overview

7% of the total restaurant market comprises of QSRs
6

The Indian fast food market is growing at an annual
rate of 25-30 per cent, Foreign fast food chains are

Estimated Size of the Indian Restaurant
Industry

Organized
Eating Out
Market,
Rs. 8600 Cr.
Growth : 20%
(20%)

aggressively increasing their presence in the country.

The market is dominated by global brands like
McDonalds, KFC and Dominos specially in the
organized fast food segment. Growing trend of

Unorganized
Market, Rs.3
4400 Cr.
(80%)

Growth : 5-6%

consumption of new cuisines and increasing brand
awareness has led to the increase of global players.
The new age Indian consumers have also played a

QSR Market
Rs.3000 Crores
7%

significant role.

Organized modern formats like malls, multiplexes and
Organized Restaurant
Market (Except QSRs)
Rs.5600 Crores
13%

food courts have also become a favoured destination.
Larger companies are teaming up with small

franchisors to set-up their brand.

QSRs started with big metros, but are now building
their

presence

in

Tier

2

cities

like

Unorganized Restaurant Market
Rs.34400 Crores
80%

Pune, Ahmedabad, Chandigarh and Bangalore.
Sources: www.nrai.org,, www.rncos.com

Total
Restaurant
Industry Rs. 43000
Crore

Market Segmentation
7

Restaurant
Industry
•Road-side location
•No technical standards
•No accounting
standardization

Unorganized

Full-Service
Restaurants

QSRs

Fine Dining

Take-away

Casual
Dining

Organized

Home
Delivery
Eat-in

Bars and
Lounges

•Accounting Transparency
•Organized Supply Chain
•Quality Control
•Sourcing Norms
•Multiple Outlets
•Dominated by Global Players

Kiosks/Carts

Highest growth segment.
Maximum Footfall due to increasing
traffic at airports, railway
stations, malls, multiplexes and
supermarkets

Growth Drivers
8
25% of population
eats out at least twice
a month and spends
Rs.150-Rs.500 / meal

Urbanization

Youth
Spending

Expanding
Middle Class

2%
11%

Better
logistics

A younger and richer India is fuelling rapid growth in the
eating-out segment

29%

Affuent
Upper Middle Class

300 million
29.5 % or 88.5 million

Key consumption areas

2%
5%

Total population of Gen
Next (13-24 Age Group)
Total population of Gen
Next living in urban areas

Household Distribution By Annual Income
1%

Nuclear
families

Mall and
Multiplex
boom

Clothing & accessories, Food,
Entertainment and durables

Spending Power

Rs.3000-40000 per month

Lower Middle Class
86%
64%

Bottom of the pyramid

Urban youth behaviour


2010

2020

Sources: Marketing Whitebook 2011-12, Economic Times, MGI

Socially active
Hangs out at coffee shops
and malls
Prefers to be seen at the
right places
Expresses one‟s identity
through choice of brands
consumed

Maintaining Consistency in product and quality of service are the biggest challenges faced by QSRs
9

Challenges
Demand Side

Supply Side

Health and hygiene
concerns among buyers

Maintaining Quality of
Service

Acquiring Key Talent

Building a costeffective supply chain

QSR customers are
very easy to sell to, but
also very easy to lose

Localization of Menu

Managing high attrition
rate amongst junior
level employees

Establishing a supply
chain in a new region

Beating local
competition

Standardization of
product across outlets

Low entry barriers

Monitoring multiple
outlets
Reducing service time
– efficient assembly
line

Talent

Supply Chain

Monitoring quality of
products procured from
third parties

SWOT Analysis
10

STRENGTH

OPPOTUNITIES

• Burgeoning middle class
• Risk-sharing in a franchise
based model
• Abundance of cheap labour in
India

• Increase in malls and

Positive

multiplexes
• Increasing youth spending
• Urbanization

WEAKNESS

THREATS

• Sourcing Talent

• Food Inflation

• Monitoring franchisees

• Product imitation

• Maintaining quality standards
across outlets

• Understanding Indian tastes

Internal Factors

• Price Competition
• Dependency on third parties

• Local Competition

External Factors

Negative

Urban Youth Make Up The Prime Target Audience
11

Particulars
Low Cost in terms of
initial investment as
well as operating cost

Target Audience Profile

Category

Young Urban Professionals on
the move

Low Risk
Key
Features of
a QSR

Teenagers

High Impulse products

Students

Best Retail Locations

Multiplex audience

Competitive Prices

Shoppers
Target Audience Behaviour

Age group

16-35

Hygiene & Taste conscious

Location

Cities and towns

Social Class

Middle and Upper Middle
Class

Lifecycle

Dependent and Pre-Family*

Brand conscious
Westernized culture

Seeking international standards
Value seekers
Experimental

*based on Sagacity Lifestyle Model

12

Working of a QSR

Brand Image, Ambience and Overall Experience are important
intangible factors for QSR customers
13

A QSR is meant to create instant interest in the mind of the consumer. It has to have

Intangible parameters that make
a QSR successful

Mass appeal

Brand

A unique experience


A characteristic ambience

A strong brand identity

One cannot find Ronald at any other burger joint except
McDonalds.

The service, which is the only human touch, plays a big role in creating a
unique experience. A lot of time and resources are spent on training the staff ,as they represent the brand. KFC employees are expected to live up to their 3 F‟s to create to perfect environment – Fun, Friendly and Familiar.

In an effort to maintain the same experience across outlets, the service, interiors and menu items are standardized .

Experience

Ambience

QSR Formats and Locations
14

QSR FORMATS

LOCATIONS
Malls

Restaurants
Tourist hubs
Food Court Counters
Corporate hubs
Kiosks/Food Carts
Take-away/Delivery
Drive-ins

Shopping Centers
Multiplexes
Airports/ Railway Stations

Setting up a Franchise Outlet
15

Initial Qualification
• Application Review
• Background and Credit
Check
• Assess training needs
• Signing of Franchise
Disclosure Document
• Verify Assets

Site Registration
• Franchisor sends
site registration to
brand for approval
• Franchisee remits
funds

Operation Plan

Site Exploration and
Securing Control

• Prospective
franchisee makes an
operation plan which
is reviewed
thoroughly

Franchise Onboarding
• Franchisee
arranges for
Financing
• Hires a Team
• Franchisor
provides Support
and Training
• Builds Restaurant
• Supports in Grand
Opening

• Determine Site
Selection Strategy
• Identify focus areas
• Franchisor completes
Action Plan for Trade
Area
• Franchisee negotiates
for the site and sends
letter of intent

Franchisor’s Role after the launch
• On-site Training is provided for every procedure.
• The Franchisor has an approved vendor list from
where the ingredients can be sourced.

• They have an annual promotional and advertising
plan that they implement with the support of the
franchisees.

• Quality checks are conducted via Consumer
Feedback, Food SafetyAudits and Standard Audits

Managing Human Resources
16

Acquisition

When QSRs come to India, they find it difficult to get experienced talent for

Human Resource Tree at
at a typical QSR outlet

strategic positions. There are very few people with relevant experience, Restaurant
Manager

especially in a global firm. Poaching employees from competitors would mean

huge incentives and salary raises. Thus a lot of companies hire people in the same function but from a different industry.

First Asst.
Manager

Support & training

The franchisors offer support and training to the franchisees for effectively

Trainee
Manager

running the small format franchise business. Training is conducted at 3 stages: 

Induction

On-going

Refresher

Retention

Trainee Floor
Manager

Out of 10000 emloyees, KFC has to replace 7000 employees each year. This means cost for fresh recruitments, training and relieving employees is very high. Dominos has increased salaries of store front employees by 20% and implemented an incentive plan in order to reduce attrition rate.

Training
Squad
Crew
Member

Second Asst.
Manager

Marketing Strategies
17

QSRs have to play on their strengths to create and communicate a brand promise.

The brand promise can be anything from fast service to low prices to healthy food.

Successful QSR chains have been able to take their brand promise very effectively to the masses.

1

• A large burger chain targeted the value seeker community and created highest value for money as its brand promise.

2

• India‟s largest Pizza chain targeted the customers who wanted fast service at their doorsteps. It created the brand promise of assured fast delivery and communicated it with its “30 mins or its free” campaigns

3

• A large coffee shop chain wanted to position itself as not just a coffee shop but a place to hangout with friends and family. They marketed themselves with the tag line “ A lot can happen over coffee” which clearly communicated that they wanted their customers to have a complete experience much beyond just coffee.

Pricing Strategies
18

Its important for QSRs to price their products carefully because of the stiff competition that they face.

The strategy is to price their products in such a way that the maximum number of customers can be retained and at the same time higher margins are abstracted from the customers who do not mind paying more for extra value. This is achieved by:

DIFFERENTIAL PRICING

Pricing the base product aggressively and keeping higher
margins on the side orders

This strategy is for the price conscious consumer who sees
great value in the base product and can choose to not take
the side orders

At the same time it allows the QSR to charge the customer
for whom price does not matter, much more through the
high margin side orders

Most QSRs keep fighter brands in their menu to remain
competitive.

VALUE PRICING
Value combos allow the QSR to sell more no of
high margin products with the low margin base
products.

Eg: QSRs try to sell more French fries and cold
drinks through their value meals. Pizza chains sell
more garlic bread and cold drinks through their
value meals

Growth Strategies of QSRs
19

A large burger chain in India has the highest foot fall amongst all countries, but the lowest average bill. Growth in India is achieved based on volumes, hence every QSR is looking to expand its presence .

A coffee trading company who supplies coffee beans, started a retail business of coffee shops all over India.

Forward
Integration

A casual restaurant chain diversified into food court stalls., thus entering the QSR market.

Horizontal
Diversification

A coffee shop chain diversified its coffee shops business by establishing express outlets and coffee machines.

Concentric
Diversification

A soft drink giant branched out to form a new company with
Pizza and Fried Chicken chains in its umbrella. It sold off its stake, but is in a lifetime contract with the firm

Lateral
Diversification

Menu Planning
20

Menu Selection is critical, especially when localizing in markets like India and China where traditions, religion and local taste are cannot be ignored. Enlisted below are some of the important factors:

Size of outlets

Target in terms of
demographics

Local taste preference

• QSRs do not keep the full menu at all outlets.
• Instead they include only a few high volume products at outlets with space limitations like food courts and express kiosks

• Depending upon the age group they are targeting, QSRs have to adjust their menus.
• QSRs targeting older age groups have to include healthier and more traditional food items in their menus where as QSRs targeting the youth can have more experimental and/or fast food items.

• Product adaptation according to customer preferences is really important for QSRs to succeed.
• International chains in India have to adjust their menus to include more vegetarian and spicy items. A Fried Chicken brand has the most extensive range of items in India amongst all its worldwide outlets

• Most QSR giants avoid using beef and pork due to cultural taboos.

The 4 pronged approach to ensure standardization across all outlets 21

Standardized aspects of every outlet
There are 4 important factors that enable standardization for a restaurant with multiple outlets:

Training

Equipment
•Every new employee has to go through a specific pre-designed training program for that level of employment.

Recipes

Procurement
of Products

•The same machines are used by all outlets for making the dishes. Standard recipes have to be followed by the chefs who receive thorough training for the same.
•QSRs have centralized approved vendors from where they procure and process raw materials. They also procure finished products like spices and condiments from the same vendor and distribute it.

Case Study – Dominos India
22

60
9000+
400
364
9000

Jubilant Foodworks Ltd. operates the 364 Dominos

international markets

outlets in India, pursuant to a Master Franchise
Agreement

International,

which

operate Domino’s pizza delivery stores and the
associated trademarks in the operation of stores in
India, Nepal, Bangladesh and Sri Lanka. The pizza

million pizzas sold each year

employees in India

Domino’s

provides them with the exclusive right to develop and

outlets worldwide

outlets in India

with

stores in Sri Lanka are operated by their subfranchisee, DP Lanka.

It is the largest Pizza chain in India, way ahead of its
immediate competitor Pizza Hut with 50% of market
share in the Indian Pizza market and 70% market share
in the home delivery market.

Source: dominos.com, dominos.co.in, reuters.com

Case Study – Dominos India
23

Particulars

Market share in the Indian Pizza market – 50%
Market share in the home delivery segment –70%

Sales Per Day Per Outlet

Rs.56600

80% of their sales come from the Pizza segment, and

EBIDTA margin (9M FY2011)

18%

the remaining is attributed to beverages and side items. Same Store Sales Growth (9M

38.7%

80% of sales come from home delivery and 20% from

65%

FY2011)

Market Share

OTC sales.

Sales Break-up: Cuisine-wise

4%

Sales Break-up: Segment-wise
20%

16%
Pizzas

Home Delivery

Beverages

Over-the-Counter

Others
80%

80%

Source: indiainfoline.com, dominos.co.in

Critical Success Factors of Dominos India
24

Critical Success Factors
1. Delivery-oriented model reduces cost
2. Dominos has a vertically integrated supply chain. (as seen below) 3. Franchising model

Supply Chain of Dominos

Regional
warehouse

Raw
Material
Supplier
(Approved
vendor)

Regional
Centralized
Facilities for
processing raw
material like dough
– 4 centres across
India

Refrigerated
trucks carry
the finished
items to retail
outlets

Retail Outlets Items are prepared
based on orders and
sent to end consumer

25

Key Players‟ Profiles

Key Player Profiles
26
Name

Cuisine

Parent Company/
Master Franchisee

Origin

Location

Formats

Outlets

Expansion
Plans in India

McDonalds

Burgers

Hard Castle Restaurants
Pvt. Ltd

USA

PAN-India

Dine-In, Food
Courts, Drive-in

210

To add 20-25
outlets by 2013

KFC

Fried Chicken

Devyani International
Ltd.

USA

PAN-India

Dine-In, Food
Courts

110

500 outlets by
2015

Chicking

Fried Chicken

Mirah Group

UAE

South Zone

Dine-In

14

Bangs Fried
Chicken

Fried Chicken

Bangs India

India

South Zone

Dine-In, Food
Courts

7

100 outlets by
FY2011

Pizza Hut

Pizzas

Devyani International
Ltd.

USA

PAN-India

Dine-In

171

300+ outlets by
2015

Dominos

Pizzas

Jubilant Foodworks

USA

PAN-India

Dine-In, Delivery ,
Food Courts

364

To add 70
outlets in 2011

Papa Johns

Pizzas

Om Pizzas& Eats

USA

West Zone

Dine-In

25

Pizza Corner

Pizzas

Global Franchise
Architects

India

South Zone

Dine-In, Delivery

50

US Pizza

Pizzas

United Restaurants Ltd.

India

PAN-India

Dine-In, Delivery

77

Smokin‟ Joes

Pizzas

Smokin‟ Joes Pizza Pvt.
Ltd.

India

PAN-India

Dine-In, Delivery

52

Garcia‟s

Pizzas

Garcias Famous Pizza

India

West Zone

Dine-in, Delivery

20

To add 20
outlets

Slice of Italy

Pizzas

Green House & Hestoft
Foods Pvt. Ltd.

India

North Zone

Dine-In, Delivery

16

Key Player Profiles
27
Name

Cuisine

Parent Company/
Master Franchisee

Origin

Location

Formats

Outlets in
India

Expansion
Plans in India

Barista

Coffee Shop

Barista Coffee
Company Ltd.

India

PAN-India

Espresso bars,
High end cafes

230

Costa Coffee

Coffee Shop

Devyani
International Ltd.

England

PAN-India

Cafes

75

300 outlets by
2014

CCD

Coffee Shop

Amalgamated Bean
Coffee Trading Co.

India

PAN-India

Cafes, Mall &
Airport kiosks,
Office outlets

1090

To add 200+_
outlets by 2014

Gloria Jean‟s

Coffee Shop

Citymax Hospitality

Australia

Metros

Cafes

15

40 outlets by
2012

Kent‟s Fast Food

Burgers

Kents Fast Food

India

North Zone

Dine-In

15

Subway

Submarine
Sandwiches

Subway Systems
India Pvt. Ltd.

USA

PAN-India

Dine-In, Food
Courts

200

250 outlets by
end of 2011

Tacobell

Tex-Mex

Yum Restaurants

USA

Bangalore

Dine-In

3

100 outlets by
2015

Falafel Veg.
Hummus House

Lebanese

Mirah Group

India

Mumbai

Dine-In,
Kiosks

8

100 outlets by
2011

Wimpy

Burgers

Famous Brands Ltd.

UK

Delhi

Dine-In

3

Yo! China

Asian

Moods Hospitality
Pvt. Ltd

Delhi,
India

PAN-India

Dine-In,
Kiosks

80+

Key Player Profiles
28
Name

Cuisine

Parent Company/
Master Franchisee

Origin

Location

Formats

Outlets

Expansion
Plans in India

Dosa Plaza

South Indian

Prem Sagar Dosa
Plaza Pvt. Ltd.

Mumbai,
India

PAN-India

Dine-In, Food
Court

35

Jumboking

Vadapav

Jumboking Foods
pvt.ltd.

Mumbai,
India

West Zone

Express,
Restaurant &
Takeaway

43

250 outlets by
2011-12

Kaati Zone

Mughlai

East West Ethnic
Foods Pvt. Ltd.

Bangalore
, India

South Zone

Dine-In

15

Mast Kalandar

Indian

Spring Leaf Retail Pvt.
Ltd.

Bangalore
, India

South Zone

Dine-In

21

Nirula‟s

MultiCuisine

Nirula‟s Corner House
Pvt. Ltd.

Delhi,
India

North Zone

Dine-In, Kiosks

80+

To add 50
outlets by 2012

Kailash Parbat

MultiCuisine

Kailash Parbat
Restaurants Pvt. Ltd.

Mumbai,
India

PAN-India

Food Court Stalls

15+

Comesum

MultiCuisine

RK Group

Delhi,
India

PAN-India

Dine-In, Delivery

11

Haldiram‟s

MultiCuisine

Haldiram Snacks Pvt.
Ltd.

Delhi,
India

North Zone

Dine-In

18

Bikano Chat Cafe

MultiCuisine

Bikanervala Foods
Pvt. Ltd.

Delhi,
India

North Zone

Restaurant,
Institutional Tuck
Shops, Food Cart

68

Sagar Ratna

MultiCuisine

Sagar Ratna Hotels
Pvt. Ltd.

Delhi,
India

North Zone

Dine-In, Food
Court

53

Tibbs Frankie

Frankie

J.Tibbs & Co.

Mumbai,
India

West Zone

Kiosks

20+

Key Players‟ Segmentation
29

Segmentation based on Size of
the Chain
Local Chain
Jumboking

National Chain

International
Chain

Segmentation based on
Cuisine
Pizzas

Burgers &
Sandwiches

Coffee
Shops

Indian

Specialty
Cuisine

Dominos

McDonalds

CCD

Comesum

Jumboking

Pizza Hut

KFC

Barista

Sagar Ratna

Yo!China

Pizza Corner

Wimpy

Costa
Coffee

Kailash
Parbat

Tabobell

Papa Johns

Subway

Gloria
Jeans

Mast
Kalandar

Falafel

Pizza Hut

Smokin Joes

Kents Fast Food

Kaati Zone

Tibbs
Frankie

Barista

Pizza Corner

Garcia‟s

Haldirams

Haldiram‟s

Café Coffee Day

Papa Johns

Slice of Italy

Nirulas

Sagar Ratna

Tibbs Frankie

Tacobell

US Pizza

Bikano Chat
Cafe

Comesum

McDonalds

Nirulas

Dosa Plaza

KFC

Mast Kalandar

Kailash Parbat

Subway

Kaati Zone

Yo! China

Wimpy

Garcia‟s

Smokin‟ Joes

Dominos

Falafel‟s

US Pizza

Bang‟s Fried
Chicken

Bikano Chat
Café

Costa Coffee

Kents Fast Food

Gloria Jeans

Geographical Segmentation
30
PAN-India :
International Cuisine
McDonalds*
NORTH ZONE
Nirula‟s
Haldiram‟s
Bikano Chat Café
Slice of Italy
Kent‟s Fast Food
Sagar Ratna
Wimpy

PAN-India : Coffee
Shops
Gloria Jean*

KFC*

Costa Coffee*

Subway*

Barista

Pizza Hut*

Café Coffee Day

Dominos*
US Pizza
Smokin‟ Joes

WEST ZONE
Papa Johns*
Garcia‟s
Falafel
Jumbo King

PAN-India : Indian and
Specialty Cuisine

Dosa Plaza
Comesum

65% of Dominos‟ revenues are
contributed by the top 7 cities
out of 70 cities it is present in.
50% of their outlets are in
Maharashtra, New Delhi and
Karnataka

SOUTH ZONE
Pizza Corner*
Chicking*
Tacobell*
Kaati Zone
Bangs Fried Chicken
Mast Kalandar

*International Brands

Kailash Parbat
Yo! China
Tibbs Frankie

Key Players‟ Positioning
31

PAN-India

Ethnic
Cuisine

Ethnic
Cuisine

PAN-India
Pizza Hut
Dominos

Comesum*
Dosa Plaza*
Kailash Parbat*

Yo! China*

Café Coffee Day*
Barista*
Gloria Jeans
Costa Coffee

Sagar Ratna*
Haldiram‟s*
Mast Kalandar*
Jumbo king*
Kaati Zone*
Bikano Chat Café*
Nirula‟s*

Zonal

Tacobell
Falafel

Pizza Corner
Papa Johns
US Pizza*
Smokin Joes*
Slice of Italy*
Garcias*

McDonalds
KFC
Wimpy
Subway International

Cuisine

Chicking
Bang‟s Fried Chicken*
Kent‟s Fast Food*
Tibb‟s Frankie*International

Cuisine

Zonal
*Indian originated chains

Dominos and Café Coffee Day are the largest QSRs in India in terms of reach and number of outlets
32
No. Of Outlets v/s Geographical Spread of
Pizza Chains

Pizza Chain

Outlets

Spread

Origin

Indian

52

PAN-India

Indian

50

South Zone

International

25

West Zone

International

20

West Zone

Indian

Slice of Italy

16

North Zone

Indian

Chain

Outlets

Cities

1090

120

PAN-India

Indian

364

87

PAN-India

International

McDonalds

210

45

PAN-India

International

Pizza Hut

171

34

PAN-India

International

Barista

230

30

PAN-India

Indian

Subway

No. of Outlets

PAN-India

Dominos

115

77

Café Coffee
Day

No. of Cities
65

International

Garcias

15

PAN-India

Papa Johns

No. Of Outlets v/s No. of Cities of top brands in
India

171

Pizza Corner

15

International

Smokin Joes

5
10
Geographical Spread

PAN-India

US Pizza

0

364

Pizza Hut

No. of Outlets

Dominos

200

26

PAN-India

International

KFC

110

21

PAN-India

International

Spread

Origin

33

Trends and Future Prospects

Big brands – Small cities – Small formats
34

Locations
Large chains
expanding to smaller
cities

Domestic chains
setting up in big
cities

Formats

Cuisines

Technology

Express Outlets

Basic street Foods
entering organized
market –
Vadapav, Ice Gola

Online ordering
systems

Smart Carts/Kiosks

Regional cuisines–
Kebab Lucknow
Wale, Malwaneez

IVR system for
placing order and
making payment via
Credit Card

Kiosks have managed to attract
huge footfalls at sales points.
Even big chains are now
customizing their outlets to
smaller models like „express‟
and „stand-ins‟

Integration of
concepts – so
Mcdonalds serves
coffee and CCD
serves sandwiches
Menu diversification
by introducing
Indian flavours –
Chicken
TandooriSub at
Subway

Investors are queuing up to get a big slice of the pie
35

With the number of QSRs growing at 30% per year, the industry is attracting investors‟ interest, especially after the IPO of Jubilant Foodworks, the master franchise of Dominos Pizza in India

ICICI Venture acquired 10% stake i.e. $55 Million in Devyani International who is the franchisee of KFC, Pizza Hut and Costa Coffee in India

Also Mast Kalandar, a Bangalore-based QSR chain, secured a second round of investment from Helion Venture Partners, Footprint Ventures and Salarpuria Group.

Chinese cuisine QSR Yo! China received funding of $5.5 Million from Matrix partners

Accel Partners invested in Bangalore-based fast food chain Kaati Zone.

Source: vccircle.com

QSR giants Dunkin Donuts and Starbucks set to foray into the Indian market
36

Dunkin’ Donuts- Jubilant FoodWorks is to develop, sub-franchise, and operate more than 500 Dunkin‟ Donuts restaurants throughout India over the next 15 years. The first Dunkin‟ Donuts locations are expected to open by early 2012. The Agreement marks the largest international store development commitment in Dunkin‟ Donuts‟ history.

Starbucks – Tata Coffee is to bring Starbucks , the world‟s largest coffee chain to India through a Joint Venture
Quiznos – The US-based subway restaurant chain has signed a master franchise agreement with Arjun Valluri for setting up outlets in Southern India.

Source: www.dunkindonuts.com, www.trak.in, U.S. Franchise Trade Mission Participants Profile, April 10-15 2011

Sources
37

Research firms

Technopak

IBEF

Marketing Whitebook 2010-11, 2011-12

Mckinsey Global Institute

www.rncos.com

www.nrai.org
Company Websites

www.yum.com

www.mcdonaldsindia.com

www.dominos.co.in
Other websites

Hospitalitybizindia.com

Indiaretailing.com

Franchiseindia.com
Newspapers

Deccan Herald

Economic Times

Business Standard

DNA

38

About D‟Essence

Our Services
39

D‟Essence Hospitality is Boutique Management Consulting firm based in Mumbai which provides specialty consulting services for the entire spectrum of the hospitality industry with a special focus on hotel operators, builders and
investors

Feasibility Studies

Management Model Viability

Technical Viability

Economic and Financial Model Viability


Market Viability
Business Model Viability

Exit Strategy Viability

Site Analysis – We have vast experience in project planning & site selection. In many cases it has been seen that planners & architects normally look into a project from design and land-use perspectives. But we do detailed site and market analysis to determine the viability of the project from financial and investment standpoint.

India Entry Strategy – We help our clients to develop suitable market entry strategies through analyzing entry barriers (ease), geographical factors, incumbents‟ resistance and routs to market.

Management Contracts – Branded operators have very stringent clauses in the contracts. To deal with them needs deep understanding of the domain and effects of each clause on the profit margins. D‟Essence Hospitality Services makes full use of its expertise in understanding the management contracts and negotiating it for best acceptable terms.

Our Services
40

Key Recruitments
D‟Essence Hospitality is dedicated to becoming India‟s leading executive search firm exclusively serving the Hospitality Industry. Our search team enables you to recruit for executive level management, divisional managers, general managers, culinary, finance, sales and marketing, food and beverage, engineering

professionals who will all, directly affect and drive the profitability of your organization 

Acquisitions
From our years of experience, we advise our clients on which assets to buy and when to buy and based on our recommendations they devise strategies for buying assets. We also provide assistance to our clients to develop assets disposal strategies in order to maximize project performance

Business Model and Business Plan
We assist our clients in the business planning process and then prepare a plan based on the available resources and their business objectives. Our Business Planning services include feasibility studies, business formation plans, strategic plans, new product plans, marketing and promotional plans,
etc.

Fund Raising

Mentoring

Growth Strategy

THANKYOU

D‟Essence Consulting
303, Aar Pee Center,
11th Road, Gufic Compound,
MIDC, Andheri (E)
Mumbai- 400093
Tel +91 22 28347425
www.dessencehospitality.com


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