QSR Industry In India, Sample of Business plans

8 pages, 3986 words

Executive Summary



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.

Industry Overview

7% of the total restaurant market comprises of QSRs



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.

1 page, 396 words

The Essay on Fruit And Vegetable Juice Market In India To 2018

This industry report offers the most up-to-date market data on the actual market situation, trends and future outlook for fruit and vegetable juice in India. The research includes historic market data from 2007 to 2013 and forecasts until 2018 which makes the report an invaluable resource for industry executives, marketing, sales and product managers, analysts, and other people looking for key ...

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

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

Tier

cities

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

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

25% of population

eats out at least twice

a month and spends

Rs.150-Rs.500 / meal

Urbanization

Youth

Spending

Expanding

Middle Class

3 pages, 1463 words

The Essay on Green Farms Market Marketing Supply

Model Marketing Plan Executive Summary & Table of Contents: Due to the fact that in the Macadamia Nut processing industry there is a high demand for the end product, and that there is much competition among processors to gain supply side customers (producers), marketing efforts need to be focused of the attraction of suppliers apposed to end users customers. Green Farms' objectives are to ...

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

Total population of Gen

Next (13-24 Age Group)

Total population of Gen

Next living in urban areas

Household Distribution By Annual Income

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

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

STRENGTH

OPPOTUNITIES

• Burgeoning middle class

• Risk-sharing in a franchise

based model

• Abundance of cheap labour in

India

• Increase in malls and

Positive

multiplexes

6 pages, 2579 words

The Term Paper on Levi’s Dockers – creating a sub-brand

Qn 1) Explain what is Levi’s brand image and what makes up its brand equity. In this regard, assess the role of its flagship 501 jeans product. (40 marks) Brand image can be defined as perceptions about a brand as reflected by the brand associations held in consumer memory. It is basically what exists in the mind of consumers, total of all the information they have received about the brand ...

• 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

Particulars

Low Cost in terms of

initial investment as

well as operating cost

Target Audience Profile

The Business plan on Coffee Shop

1.EXECUTIVE SUMMARY One Stop Cafe is taking advantage of the coffee shop rage that has been sweeping the country. Along with taking advantage of this trend, the cafe is also planning for the future. The Cafe is also marketing itself as a full service restaurant to maintain stability, in case the coffee trend begins to fizzle. One Stop Cafe is a theme coffee shop. It is provides customers with high ...

Experience

Ambience

QSR Formats and Locations

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

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



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.

1 page, 260 words

The Essay on Fast Food Chains in India

Fast food chains in India Fast food chains across India are growing because of the rapid urbanisation. Despite the slow economic growth, the fast food chain owners are busy introducing new ideas and concepts in the menu by lowering the prices for restaurant and lure their customers. Fast food chains have changed conventional from of Indians eating home-cooked meals and every family especially on ...



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



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.

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

• 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

• 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



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

2 pages, 929 words

The Essay on Pizza Hut

Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has captured a dominant and significant share of the pizza market and has maintained an impressive growth rate of over 40 per cent per annum. Pizza Hut now has 95 outlets across 24 cities in India; and employed nearly 4,000 people by end of 2004. Yum! has invested about US$ 25 million in India so far; this ...

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

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

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

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

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

Sales Break-up: Segment-wise

20%

16%

Pizzas

Home Delivery

Beverages

Over-the-Counter

Others

80%

Source: indiainfoline.com, dominos.co.in

Critical Success Factors of Dominos India

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

Key Players‟ Profiles

Key Player Profiles

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

–

Bangs Fried

Chicken

Fried Chicken

Bangs India

India

South Zone

Dine-In, Food

Courts

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

–

Pizza Corner

Pizzas

Global Franchise

Architects

India

South Zone

Dine-In, Delivery

–

US Pizza

Pizzas

United Restaurants Ltd.

India

PAN-India

Dine-In, Delivery

–

Smokin‟ Joes

Pizzas

Smokin‟ Joes Pizza Pvt.

Ltd.

India

PAN-India

Dine-In, Delivery

–

Garcia‟s

Pizzas

Garcias Famous Pizza

India

West Zone

Dine-in, Delivery

To add 20

outlets

Slice of Italy

Pizzas

Green House & Hestoft

Foods Pvt. Ltd.

India

North Zone

Dine-In, Delivery

–

Key Player Profiles

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

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

40 outlets by

2012

Kent‟s Fast Food

Burgers

Kents Fast Food

India

North Zone

Dine-In

–

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

100 outlets by

2015

Falafel Veg.

Hummus House

Lebanese

Mirah Group

India

Mumbai

Dine-In,

Kiosks

100 outlets by

2011

Wimpy

Burgers

Famous Brands Ltd.

Delhi

Dine-In

–

Yo! China

Asian

Moods Hospitality

Pvt. Ltd

Delhi,

India

PAN-India

Dine-In,

Kiosks

80+

–

Key Player Profiles

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

–

Jumboking

Vadapav

Jumboking Foods

pvt.ltd.

Mumbai,

India

West Zone

Express,

Restaurant &

Takeaway

250 outlets by

2011-12

Kaati Zone

Mughlai

East West Ethnic

Foods Pvt. Ltd.

Bangalore

, India

South Zone

Dine-In

–

Mast Kalandar

Indian

Spring Leaf Retail Pvt.

Ltd.

Bangalore

, India

South Zone

Dine-In

–

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

–

Haldiram‟s

MultiCuisine

Haldiram Snacks Pvt.

Ltd.

Delhi,

India

North Zone

Dine-In

–

Bikano Chat Cafe

MultiCuisine

Bikanervala Foods

Pvt. Ltd.

Delhi,

India

North Zone

Restaurant,

Institutional Tuck

Shops, Food Cart

–

Sagar Ratna

MultiCuisine

Sagar Ratna Hotels

Pvt. Ltd.

Delhi,

India

North Zone

Dine-In, Food

Court

–

Tibbs Frankie

Frankie

J.Tibbs & Co.

Mumbai,

India

West Zone

Kiosks

20+

Key Players‟ Segmentation

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

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

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

No. Of Outlets v/s Geographical Spread of

Pizza Chains

Pizza Chain

Outlets

Spread

Origin

Indian

PAN-India

Indian

South Zone

International

West Zone

International

West Zone

Indian

Slice of Italy

North Zone

Indian

Chain

Outlets

Cities

1090

120

PAN-India

Indian

364

PAN-India

International

McDonalds

210

PAN-India

International

Pizza Hut

171

PAN-India

International

Barista

230

PAN-India

Indian

Subway

No. of Outlets

PAN-India

Dominos

115

Café Coffee

Day

No. of Cities

International

Garcias

PAN-India

Papa Johns

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

India

171

Pizza Corner

International

Smokin Joes

Geographical Spread

PAN-India

US Pizza

364

Pizza Hut

No. of Outlets

Dominos

200

PAN-India

International

KFC

110

PAN-India

International

Spread

Origin

Trends and Future Prospects

Big brands – Small cities – Small formats

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



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



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

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

About D‟Essence

Our Services

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



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

Similar Papers