The good news for the QSR industry from this budget is that the tax exemption limits / slabs have been increased for individuals. Hence their disposable income increases. This will definitely increase consumer spending. This is a critical aspect for the economic growth and development of any country & especially India which is a mass market & a developing economy.

The transformation of Indian consumers’ lifestyles over the years has tremendously helped the IEO (Informal Eating Out) industry to grow and expand. In the IEO segment Quick Service Restaurants (QSR) is currently pegged at about 18% of the IEO market in India.

In the wake of spiraling food prices it is noteworthy that consumer spending in India has fortunately not witnessed dramatic declines in sentiments like other developed economies. But this doesn’t construe to consumers overspending but rather treading cautiously by resorting to wise spending. Today the consumer is well aware of his choices & always seeks value. During recession the broad IEO segment has shown a degrowth across consumer categories. Even as fine dining restaurants witnessed a 30-40 per cent dip in sales due to recessionary trends, QSR brands in India registered nearly a 30 per cent growth over the same period. This clearly showcases the consumers need for value.

Indian shoppers have undergone a sea change when it comes to shopping options owing to higher degree of disposable income in the hands of the consumer. Other reasons like - rising number of nuclear families, exposure to global trends, increasing number of employed women, increase in the number of dual-income households - have had a significant impact on the eating out trends and growth of the fast food industry. One strong reason is the young population accounting to 60% of the total population, with high disposable income and willing to spend more on eating out at chained fast food outlets or Quick Service Restaurants.

Apart from running the operations with skilled and courteous manpower, forming the backbone of the system, for a QSR faced with strong local and domestic competition it has become integral to always think ahead of its time and tap the right audiences with the right techniques. This has been best exemplified by constant innovation with respect to the menu and therefore introduction of new variety of products to fulfill the demand of each and every segment of the society. Realizing the potential in Tier II cities as emerging markets and where the eating out culture has caught up – QSR’s have ventured into those geographies as well. Convenience emerges as a clear distinguisher. Consumers need & seek convenience at every step of the way.

QSR’s even though in the nascent stage have responded well to the trust envisaged in them. They have been doling out quality food with excellent service and giving value propositions to the customers & also being convenient to them – all at the same time. This truly is the hallmark of a successful QSR.

Today the consumer is truly the king & hence it is important to understand him & his environment as they fuel growth. With consumer confidence being on a high & young India poised to grow – the QSR is clearly seen as an emerging subset of the IEO industry & is all set to grow phenomenally in the near future.