OPPORTUNITIES IN THE INDIAN FOOD SERVICE

MARKET

QSR, CASUAL DINING, FINE DINING, VENDING

SUMMARY

•The Indian Food Service Industry is worth $41.3 bn and growing at a CAGR of 11%. It is expected to reach

$68 bn by 2018.

•The size of Organized Indian QSR market is $0.62 bn, growing at a healthy CAGR of 20% and is expected

to reach $1.1 bn by 2017-18.

•Delivery segment is a integral part not only of the Indian Food Service segment, but is also common for

Grocery stores, Liquor stores, vegetable vendors etc.

•Major cities comprise of large workplace clusters and high density residential areas. Young Indian

Consumers are highly price sensitive.

18%

40%

31%

11%

Age Group Profile of Those Who Eat Out

18 to 20 years

21 to 30 years

31 to 40 years

above 40 years

CONSUMPTION EXPENDITURE COMPOSITION, FY 2013

Recreation, Education, 3%

Furniture, Appliances, 6%

Personal Care, 5%

Health, 5%

Clothing and Footware, 8%

Rent, Fuel and Power, 9%

Transport and Communication, 17%

Food and Beverages, 30%

RETAIL MARKET OUTLOOK, FY2017

0%

5%

10%

15%

20%

25%

-10% 0% 10% 20% 30% 40% 50% 60%

CA

GR

(F

Y 1

2-17

)

Consumption

25% OF OUR YOUTH PREFER HANGING OUT WITH THEIR

FRIENDS OVER OTHER OUTDOOR ENTERTAINMENT ACTIVITIES

Favourite outdoor entertainment activity 13-18 years 19-24 years Gen Next(all youth)

Projected base 93,18,951 129,923,462 223,142,413

Movies at Cinema hall 13.90% 16.60% 15.50%

Go dancing at discos 0.40% 1.40% 1.00%

Pubbing/drinking with friends/family 1.20% 1.60% 1.50%

Eating Out 9.70% 10.40% 10.10%

Entertainment Parks 4.80% 5.90% 5.40%

Shopping/Window Shopping 4.70% 5.20% 5.00%

Spiritul sessions/satsangs 5.80% 8.90% 7.60%

Watch art & culture performance/events 4.40% 4.10% 4.20%

Generally hangout with friends 27.00% 23.80% 25.10%

Go for long walks 4.60% 6.80% 5.90%

Read in libraries 4.70% 4.20% 4.40%

Go on long drives 0.90% 2.30% 1.70%

Play favourite sports 8.10% 6.20% 7.00%

Going Out/picnic with family 7.20% 8.00% 7.70%

Visit Relatives/neighbours 15.70% 16.60% 16.20%

None 40.40% 37.30% 38.60%

Marketing Whitebook

73% OF THE YOUTH CONSIDER PRICE THE MOST IMPORTANT

CONSIDERATION WHILE MAKING PURCHASES

Buying Orientation 13-18 years 19-24 years Gen Next(all youth)

Projected Base 93,218,951 129,923,462 223,142,413

Brand Image 64.00% 61.20% 62.40%

Price 73.00% 72.70% 72.80%

Performance quality 36.50% 37.40% 37.00%

Premium/advance features 13.80% 16.40% 15.30%

Design And Looks 30.10% 23.90% 26.50%

Ease of Usage 25.00% 27.90% 26.70%

Shopping Experience 15.70% 17.00% 16.50%

Reputation of the Company making the product/service 12.00% 11.70% 11.80%

Ease of payment/payment option available 9.60% 9.70% 9.70%

What most people around you are buying/using 7.10% 9.60% 8.50%

Recommendation by shopkeeper/dealer 5.10% 5.60% 5.40%

Recommendation by friends/relatives/colleagues 4.80% 4.30% 4.50%

The celebrity endorsing the brand 2.50% 2.10% 2.30%

Possibility of buying online 0.80% 0.50% 0.60%

Marketing Whitebook

‘GOING-OUT’ HABITS OF INDIAN YOUTH

• Indian consumers, at least those who

can afford it, are increasingly dining

out, particularly in urban areas.

• Eating out has evolved from an

occasion driven activity to an

occasion in itself. It has become a

form of entertainment for consumers

today.

• Urbanizing double-income

households, changing lifestyles and

food preferences are spurring the

organized market within the dining out

sector.

Casual Dining and QSR Dominates the

Organized Indian Food Service Market

Casual Dining and QSR 70%

Pubs, Bars, Clubs and Lounges 12%

Fine Dining and Frozen Desserts 10%

Cafes 8%

Total Indian Food Service Market 100%

FOOD HABITS OF INDIAN YOUTH

31% of Indians are vegetarians for religious and cultural reasons while the rest of the population eat fish and meat

Hindus, the dominant element of the population, strictly abstain from eating beef

Consumption of pork is also limited to a relatively small base

Dining out is popular amongst many Indian consumers, particularly in urban areas, facilitated by busier lifestyles and higher levels of disposable income. Indeed, value sales at full-service restaurants have increased steadily in recent years, with consumers largely preferring independent rather than chained venues.

It is also becoming more common for some consumers to order food for takeaway to eat at home during the week and then to dine out in restaurants

Since a dip in 2009, demand for home delivery/takeaway meals has been increasing steadily, with value sales reaching nearly Rs2.2 billion in 2013.

Fast food has become highly palatable to the teens and consumers in their early twenties, with international fast food chains like KFC and McDonalds, Subway, Domino’s Dunkin Donuts particularly popular.

Young consumers consider eating at these places to be fashionable, allowing them to feel a part of the international youth culture.

The menus in Indian outlets tend to differ from those in other countries with high consumption of beef. There is also high demand for indigenous meals from independent fast food venues

Many consumers purchase snacks and other food items from the numerous street stalls and kiosks. Street food like pav bhaji, dosas, pani puri etc are very popular in India.

INDIAN FOOD SERVICE MARKET TIMELINE: KEY PLAYERS

• Nirula’s

• Haldiram

Pre-1950

• Honest Restaurant

• Saravana Bhavan

• Wimpy

1970s and 1980s

• KFC

• McDonald’s

• Pizza Hut

• Domino’s

• Café Coffee Day

1990s

• Subway

• CPK

• Papa John’s

• Jumbo King

• Goli Vada Pav

2000-2010

• Dunkin’ Donuts

• Starbucks

• Taco Bell

• Pizza Express

• Sbarro

2014 - present

Franchisee Model

emerged in mid-

1990s

Red – Global Players

Blue – Indian Players

GREAT INDIAN ETHNIC CUISINE MEDLEY

INDIAN FOOD SERVICE MARKET

• Indian food services industry is estimated to be nearly worth USD 41.3 billion and is

growing at a healthy compound annual growth rate (CAGR) of 11%. The Organized

Food Service Industry is worth $13.79 bn (approx. 33% of total Indian Food Service

Industry) and growing at 17%.

• The F&B food service sector in India comprises two distinct market segments:

a) Organised – Chain and licensed standalone players across quick service restaurants, full service

casual and fine dining restaurants, hotels, bars and lounges, cafes and frozen desert formats

b) Unorganised – Dhabas (Roadside restaurants serving as truck stops and serving Indian cuisine),

street stalls, halwai (sweet shops), road side vendors, food carts, etc.

Category

Current

Market

Share

CAGR Expected Market

Share by 2017

Organized 30% 12-14% 45%

Unorganized 70% 8-10% 55%

FOOD SERVICE MARKET SIZE AND CONSTITUENTS

Size of the Licensed Standalone Food Service Market (INR Cr)

Size of the Chain Food Service Market (INR Cr)

4,395 6,240 1,320

33,200

1,640 8,415

Café QSR Frozen Dessert/Ice

Cream

Casual Dine Fine Dine Pub, Bar, Club and Lounge

7,745 10,050 2,330

75,955

2,890 13,550

Café QSR Frozen Dessert/Ice

Cream

Casual Dine

Fine Dine Pub, Bar, Club and Lounge

2013 2018

1,520

5,500

775

3,950

500 540

Café QSR Frozen Dessert/Ice

Cream

Casual Dine Fine Dine Pub, Bar, Club and Lounge

2013 2018

3,775

16,785

1,560

9,035

1,010 1,085

Café QSR Frozen Dessert/Ice

Cream

Casual Dine Fine Dine Pub, Bar, Club and Lounge

Multiple Sources

AVERAGE SPENDS PER PERSON ACROSS FORMATS (Tickets Size)

Unorganized Formats Avg Ticket

Size (Rs)

The unorganized segment dominates the Indian food service industry. It lacks technical and accounting standardization. It comprises Dhabas

and roadside eateries that have been the most common forms of restaurants and have traditionally addressed eating out requirements of

Indians.

1. Dhabas

2. Roadside Eateries (Street stalls, Hawkers, Trolleys, Standalone sweet shops)

10-100

Organized Formats Avg Ticket

Size (Rs)

Dining

Fine Dining - A full service restaurant with a specific dedicated meal course. Décor features high quality materials with an eye

towards the “atmosphere” desired by the restaurateur. The staff is usually highly trained. Fine dining restaurant usually targets

rich and upper middle class consumer segments and offers unique ambience and upscale service.

750-3000

Casual Dining - A restaurant serving moderately priced food in a casual atmosphere oriented towards affordable family dining.

Except for buffet style restaurants, these typically provide table service. This addresses the price point between fast food

establishments and fine dining restaurants.

250-750

Bars and

Lounges

Mainly serve alcohol and related beverages. Includes night clubs, sports bars, etc.

Example: F-Bar, Xtreme Sports Bar 500-3000

Quick

Service

Restaurant

s

They emphasize on speed of service, low cost and convenience. Also known as fast food outlets, for practical purposes, they

are essentially characterized by minimal table service and can have a take away and/or home delivery format.

McDonald’s, Nirula’s, Domino’s, Haldiram’s, Subway, Bikanerwalas are some of the leading names in this category.

100-350

Food

Courts

A relatively nascent phenomenon and being popularized by mall developers; also present at other shared spaces (for example

airports, hospitals and office complexes). 100-300

Cafes Comprises coffee bars and parlours (for example Barista Lavazza, Café Coffee Day) and chai bars. These are casual

restaurants that emphasize on serving beverages and food is incidental. 100-200

Kiosks A relatively new format which comprises Chinese food, corn, chat kiosks and those from established branded players like Café

Coffee Day or Nirula’s. Also includes ice cream kiosks 100-200

MAJOR EXPANSION IN SECOND AND THIRD TIER CITIES

High rental costs and increasing operating costs are impacting the growth of consumer foodservice, and

are set to do so in the future.

Many brands such as Domino’s KFC and Subway opened a high number of outlets in 2012-2013 and will

continue to pursue expansion policies.

Companies are reaching out to second- and third-tier cities as the rents are low and sales are growing.

Off the 749 outlets operated by Domino’s in India, 376 ( roughly 50%) are located in tier – II and tier – II

cities

Rs 5,220

Rs 6,780

Rs 19,260

Rs 2,520

Rs 5,260

$ 18,300

Tier I Cities Tier II & III Cities

Spending Pattern Per Household

2010

2013

2017 E

2010

2013

2018 E

DRIVERS OF FOOD SERVICE MARKET IN INDIA

1. Favourable Demographics:

The majority of Indian consumption of fast food is driven by people between

the ages of 18 and 40.

2. Increase in Income and Consumption Levels:

.

3. Lifestyle Changes:

The shift to nuclear families and with both parents working has increased demand for affordable “food

on the go” and prepared ingredients to make cooking faster

4. Rising Number of Working Women:

Increase in working women has increased the spending of their disposable incomes on eating out or

serving ready-to-eat or to pick up prepared foods from QSRs

5. Foreign Direct Investment in India:

100% FDI (January 2012) in single brand retail under the government approval route, i.e., global single

brands in F&B food service can now have full ownership of their Indian businesses

Age Population

<25 50 %

<35 65%

Indian GDP 6 % Disposable Income ↑ Indian Spend on Eating-Out ↑

33,000 Crore Market size

CHALLENGES IN INDIA’S FOOD SERVICE MARKET

1. Food price inflation A key factor affecting the consumer food services market, it is impacted by delayed monsoons, the economic

slowdown, and unfavourable demand-supply conditions. It keeps fluctuating and reached a peak of 18% in 2010.

2. Fragmented Market The QSR market has many small and mid-size unorganized players competing with large chain players. This

fragmented market reflects a number of challenges, including unclear format segmentation, varied consumer options for eating out, and the lack of best practices for food services outlets.

3. Real Estate Cost High real estate cost tend to impact store profitability.

4. Labour Acquisition and Cost Manpower is a big challenge in the food services market, with an attrition rate of 25-30% and high cost of labour

5. Fragmented Supply Chain and Sourcing The industry’s supply chain is fragmented in nature and marked by the presence of multiple intermediaries. The

lack of appropriate infrastructure, inadequate technologies, and the non-integration of the food value chain are factors key to the wastage of nearly 30-40% of prepared food across the supply chain.

6. Red Tapism In India, obtaining the requisite licenses, e.g. health license, food safety license, police license, No Objection

Certificate (or NOC, from the fire department and the state pollution control board), etc. is a major obstacle hindering the smooth operation of a restaurant. The process is not centralized as yet and requires filing applications with individual stakeholders, which involves a lot of paperwork and is a time-consuming activity.

7. Multiple Level of Taxes The Indian restaurant industry is burdened with multiple taxes like VAT, excise, and service tax, besides different

state taxes

ACTIVE PRIVATE EQUITY INTEREST IN INDIAN FOOD SERVICE MARKET

Company Industry Investor Type Deal Amount

( US$ mn )

Om Pizza - Papa John, Chili's QSR TVS Capital Private Placement 8.3

Adigas Fast Food QSR New Silk Route Private Placement Undisclosed

Moshes Café New Silk Route Private Placement Undisclosed

JSM Corp - HRC, California Pizza Kitchen QSR, Lounge Azim Premji Private Placement 25

Box8 (Ponchos) QSR Indian Angel Network Private Placement Undisclosed

Devyani International Limited QSR India Advantage Fund Series III/ICICI Ventures Private Placement 36.04

Sagar Ratna Hotels Private Limited Hospitality India Equity Partners Fund I Private Placement 25.88

Nirulas Casual Dining/QSR Navis Asia Private Placement 22.5

Speciality Restaurants Fine Dining SAIF Partners Private Placement 22

Cuisine Asia Casual/Fine Dining Verlinvest Private Placement 20

Pind Balluchi Fine Dining Everstone Capital Private Placement 20

Amalgamated Coffee Bean and Trading

Company - CCD QSR Sequoia Growth 20

Ammi's Biryani Casual Dining SAIF Partners Private Placement 7

Mast Kalendar Casual Dining Helion Venture Private Placement 6

Faasos QSR Sequoia Private Placement 5

Barbeque Nation Casual Dining CX Partners Private Placement 18.3

Beer Café Pub – QSR Mayfield Fund Private Placement Undisclosed

Mani’s Dum Biryani Casual Dining Navlok Ventures Private Placement Undisclosed

Fishtro QSR Correa Hospiyality Private Placement 5

WHAT IS A QSR (Quick Service Restaurant)

1. A quick service restaurant (QSR) is characterised by fast food cuisine, minimal table service and a fixed menu

2. The food (or ingredients) is prepared in bulk in advance and is packaged to order

3. QSRs are usually part of a restaurant chain or a franchise operation, which provisions standardised ingredients and/or partially prepared foods and supplies them to each restaurant through controlled channels. It is different from fine dining, as the latter usually targets rich and upper middle class consumers

4. Fine dining restaurants also offer a unique ambience and upscale service

5. Although fine dining restaurants do not compete directly with QSR, a moderate casual dining restaurant could be a competitor. It is pertinent to note that while QSRs typically target customers within the age group of 16-35 years, a casual dining restaurant would target people across age groups

6. QSRs are able to compete with casual dining restaurants on the basis of factors such as consistency in quality and speed of delivery.

KEY QSRs IN INDIA

44%

23%

15%

10%

6% 2%

Cafes

Pizzas

International Fast Food (Non-Pizzas)

Ice-Creams

Indian Fast Food (Key players)

Confectionaries

2,939

1515

1001

645

419

132

0 500 1,000 1,500 2,000 2,500 3,000 3,500

Cafes

Pizza Chains

International Fast Foods (Non-Pizzas)

Ice-Creams

Indian Fast Foods

Confectionaries

Outlets of Key Players (Nos. )

GROWTH TRENDS IN QSR INDUSTRY

QSRs Approx. No. of

Outlets Expansion Plan

Café Coffee Day 1,534 10-15 outlets

every month

Domino’s Pizza 749 140-150 outlets

every year

Barista 180 Not Available

McDonald’s 270 500 outlets in

three years

Pizza Hut 131 250 restaurants

by 2015

US Pizza 81 Not Available

Nirula’s 85 Not Available

KFC 361 500 outlets by

2015

Costa Coffee 100 Not Available

• High speed and consistent food service and efficiency

• Convenient locations with easy accessibility from places of work, commuter routes and shopping areas

• Limited menu choice of standardized items

• Fast turnaround time through efficient model of drive-thru and quick order placement and delivery

• Value proposition for customers due to low average checks

BREAK UP OF MARKET SHARE FOR QSR

Foreign Brands Rs 23.4

bn

Indian Brands Rs 13.8

bn

Domino's Rs 4.8 bn

KFC Rs 2.45 bn

Pizza Hut Rs 1.8 bn

McDonald's Rs 2.4 bn

Subway Rs 3 bn

Others Rs 9.6 bn

Foreign Brands

63%

Indian Brands

37% Domino's 20%

KFC 9%

Pizza Hut 8%

McDonald's 11%

Subway 12%

Others 40%

Opportunities in Food Service

Back End

Vending

Ingredients Supply

Merchandise

Packaging

Logistics

Cutlery and Food Design

Technology

Outlet Design

Front End Franchising

Partnerships

Starting your own restaurant

VENDING OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Reseller Model Brand, Delivery Mechanisms

• Public Places

• Entertainment Malls

• Transport

• QSRs, Bakeries

• Exhibitions

• Educational institutes

• Restaurants

• Gyms

• Canteens

• Events

• Road side resorts

Food Services

• 4 Star hotels

• 3 Star hotels

• Service apartments

• Clubs

• Caterers

• FMC’s

• Air lines

• Railways

• Guest houses

• Resorts

Employees / Visitors

• SME’s

• BPO/ IT / ITES / Software/

TEAS

• Banking - BFSI

• Corporate

• Retail

• Manufacturing

• Services – Gyms, Salons, Spas,

Car service centers,

Car showrooms,

Architects, Lawyers,

Doctors, CA’s

USE OF TECHNOLOGY IN INDIAN FOOD SERVICE MARKET

• Customer Feedback System – Dedicated CRM systems are now being favoured and accepted by most restaurants in the

organized sector, thus creating a demand for such providers

• Mobile Application Development – A fresh trend, largely observed in QSR segment, is the use of mobile apps for order-taking.

– Since the input (address and order) is typed by the customer, chances of error are less.

– As the demand for such apps are increasing, an opportunity with huge potential is observed.

• GPS Enabled Delivery – GPS is being widely used by restaurants to aid delivery.

• Digital Menu – Many restaurants now offer digital menu which is directly inked to the kitchen

– This eliminates errors while order taking and also increases tables turnover rate

• Mobile Point of Sale (MPOS) – These are mobile payment solution using debit/credit cards

– Until recently, cash on delivery was the only mode of payment while delivering food.

– However, plastic money being more prominent now, MPOS presents itself as a huge are for development.

23

MARKET RESEARCH OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

• Market research is a very important component of business strategy

• It is a key factor to maintain competitiveness over competitors

• Market research provides important information to identify and analyse the market need, market size and

competition

• With more and more players entering the food service space, the demand for market research service

providers are on the rise

24

FOOD DESIGN OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

• Food Designing – Focuses on capitalizing upon the visual aspect of culinary art

– Responsible for a lot of visual appetizing that one gets to see at local eateries

– Demand is on the rise since many of the up-scale restaurants like Oh Calcutta, Masala Library, The Table etc

and even some of the budget restaurants like Domino’s Venky’s Chicken require such services.

• Localization – International restaurants and exotic cuisine makers rely heavily on localization

– McAloo Tikki Burger, Peppy Paneer Pizza, Caviar Jalebi are some of the biggest examples

– Presents a huge opportunity

PROCUREMENT OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

25

Structure Description

Direct Sourcing

Most common among all channels.

The restaurant sources products directly from the processors,

vendor etc

Commissaries Commissaries directly source food products from suppliers and

deliver ready to eat food to the franchised outlet.

Buying Agency

A Buying Agency is an independent franchise-owned purchasing

cooperative. It negotiates with suppliers on behalf of all its

franchised outlets and aggregates demand

Supply Chain

Partners

SCPs deals with suppliers for fresh products, such as chicken

and vegetables, and delivers ready to eat food products to

restaurants

STORE DESIGN, ARCHITECTURE AND CUTLERY SUPPLY

OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Store Décor and Architecture: • Store décor plays a major role on likability of a restaurant

• Chained restaurants require uniform décor across outlets

• Designing the décor and architecture of restaurants is on demand and supply is less

• More restaurants = more opportunities

• Very lucrative in monetary terms

• Huge opportunity for Designers and Architects

26

Cutlery • With increasing number of restaurants, the demand for suppliers of cutlery is increasing

• Competitive pricing and quality key to success

• Not only restaurants, but vendors and caterers also require the services of such suppliers

• Monogramed cutlery is also on demand

Supplies • In addition to cutlery, supplies like tissue, soap, sanitizer, towels, napkins, coasters etc. are also required on a regular

basis and are creating high demand

DISCOUNT AND COUPON AGGREGATOR WEBSITES

• Indian customers actively seek out discount offers. Makes discount aggregator websites

lucrative opportunities.

• Currently, there are 150 websites which are actively involved in coupon business. On a

conservative estimate, these sites generate a combined 6-7 million page views per month.

• Around 4.6 million Internet users in India aged 15 and older accessed the coupons category

which is 10.4 % of the entire online population.

• Estimated to grow in the next 2-3 years because of the growth in e-commerce purchases.

SUPPLY SIDE INGREDIENTS OPPORTUNITIES IN INDIAN FOOD SERVICE

MARKET

• There has been an increasing demand in the Food Service Industry for domestic,

international and exotic ingredients

• However, there are not many such partners,

present on the supply side who can offer:

1. Competitive and Uniform Price

2. Uniform Quality

3. Uniform Quantity

4. Back-end Integration

5. Hygiene Standards

• This has led to a gap in the supply side of ingredients for such restaurants which presents a

huge opportunity with great potential

28

29

CATEGORY INGREDIENT ITEMS

CEREALS Wheat, Rice, Brown Rice, Barley, Oats, Pulses, Maize, Ragi, Semolina, Couscous, Millet, Gramflour, Riceflour, Wheatflour,

Soyaflour, Cornstarch, Quinoa etc

DAIRY Milk, UHT Processed Milk, Cheese, Mayonnaise, Cottage Cheese, Milk Powder, Yoghurt, Butter, Ghee (Clarified Butter)

BEVERAGE-BASED

COMPLEMENTARY TO

DAIRY

Coffee Beans, Tea, Green Tea, Fruit and Non-fruit syrups and Pulp, Nectars, Honey, Chocolate (Cocoa Beans), Vanilla,

NUTS AND DRY

FRUITS Walnuts, Figs, Dates, Cashew, Peanuts, Raisins, Chestnut, Pistachio, Hazelnut, Almond, Apricot, Coconut

SPICES AND

CONDIMENTS

Nutmeg, Clove, Salt, Black Pepper, Dry Red Chillies, Rock Salt, Mustard, Turmeric, Cinnamon, Rye, Garlic, Cardamom,

Parsley, Asafoetida, Fenugreek seeds, Cumin, Poppy, Kokam, Ginger, Green peppercorn, Fennel, Cassia, Pomegranate,

Saffron, Star Anise, Aniseed, Marjoram, Tamarind, Dried mango

FRESH HERBS Oregano, Basil, Bay Leaves, Coriander, Parsley, Mint leaves, Rosemary, Celery, Thyme, Lemongrass, Lemon leaves,

Cilantro, Curry leaves, Sage, Chives, Marjoram, Wheat grass, Rhubarb, Leek leaves, Makroot

VEGETABLES

Potatoes, Tomatoes, Chillies, Onions, Sweet corn, Baby corn, Leeks, Jalapenos, Paprika, Olives, Mushroom

(Oyster/Button), Lettuce, Capsicum, Bell Pepper, Spinach , Carrots, Beet, Radish, Artichokes, Beans, Cabbage, Brussels,

Red Cabbage, Asparagus, Broccoli, Eggplant (Brinjal), Leeks, Zucchini, Peas,

FRUITS Pineapple, Apple, Custard apple, Litchi, Melons, family of Berries, Peach, Lemon, Avocado, Dragon Fruit, Passion fruit,

Mango, Banana, Citrus family, Guava, Papaya, Makroot, Rambutan,

POULTRY AND MEAT

AND SEA FOOD

Chicken, Turkey, Duck, Goat meat (Mutton), Lamb, Pork, Prawns, Fresh water and Sea fishes, Crabs, Sharks, Squids,

Clams, Oyster, Eggs

OILS Mustard, Soya bean, Sunflower, Rice Bran, Vegetable, Olive, Coconut, Almond, Groundnut, Corn, Sesame, Chilli, Flaxseed,

Wheat Germ, Meat Fat, Cod Liver (Fish)

SOME KEY SUPPLIERS

30

Cheese

Dynamix

Parag

Amul

Flanders

Poultry

Godrej Tyson

Suguna

Zorabian

Vista Processed

Foods

Al-Kabeer

Frozen Foods

McCain

Godrej Tyson

Bakery

Mrs Bector’s Cremica

Exotic Vegetables

Trikaya

Jal Agro Pvt. Ltd.

Ketchup

Mrs Bector’s Cremica

MERCHANDISING OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

• Many restaurants, especially in the QSR space offer patrons (often kids) merchandising

alongside certain purchases. Example include McDonalds’ happy meal offer and Domino’s

Kids meal

• Other restaurants like Hard Rock Café, Café Coffee Day, Starbucks and Gloria Jeans have

dedicated merchandising within stores including

• T-shirts

• Mugs

• Coffee hampers

• Coasters

• Posters

• A lot of these merchandise, especially in the case of McDonald’s happy meal are also used

as promotion material (Eg: Disney movies).

PACKAGING OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

• Indian Packaging Industry is valued at USD 19 Bn in 2014 and it is growing at 12% per

annum

• The food and beverage occupy the largest share of about 85% in packaging industry, a figure

that is estimated to rise

• Sustainability and bio degradable packaging missing

• Light Weighing, easily transportable packaging missing

• Only 600-700 packaging machine manufacturers of which 95% are in small and medium

sectors and located all over the country , so there is huge gap in demand and supply of food

packaging professionals

LOGISTICS SECTOR OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

• Warehousing :

– Majority of operators are small to mid-sized entrepreneurs with limited capacity

– Main players are government agencies like central and state warehousing corporations

– The existing warehouses are of poor quality and are present in limited numbers without adequate

capacity

• Cold Chain Storage :

– About 40% of fruits and vegetables grown in India gets wasted, so the sector needs to grow at

much faster rate to meet the needs

– With the poor electricity condition in the country the cost of operating such facilities is very high

– So it provides an immense opportunity to organized players who can setup the infrastructure and

are able to provide the service through out the nation

LOGISTICS SECTOR OPPORTUNITIES IN INDIAN FOOD SERVICE MARKET

Transportation

• Important rail networks are oversaturated, rail fright

tariffs are high, transit time are long and uncertain, terminal quality is poor, less flexibility in carrying different types of product

• Road transport faces challenges like poor road quality with inadequate network coverage , high level of fragmentation along with majority of unorganized players in trucking industry, multiple check points

• The current strength of frozen trucks inadequate to meet demand

• Manufacturers are increasingly outsourcing their transportation needs

D’Essence Hospitality is a Management Consulting, Business Strategy and M&A

Advisory firm based in Mumbai since 1998. We provide our services to QSRs, Casual

Dining, Fine Dining , 4-5 Star Hotels, Clubs, Resorts, Service Apartments, Vending

Solution Providers, Food Service Operators, Back end services providers in Tech etc

Investment Services Business Consulting Services India Entry Strategy & Market Mapping

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• Master Franchising

• M&A Advisory

• Target Search

• Private Equity

• Assistance in Due Diligence

• Valuation

• Creation of Investment

Package

• Post Merger Integration

• Corporate Strategy

• Business Plans

• Growth Strategy

• Turnaround Strategy

• Start-ups

• Business & Revenue Modeling

• Marketing Strategy

• Exit Strategy

• Dashboards

• Industry Reports

• Benchmarking Studies

• White Papers

• Market Sizing

• Domain Report

• Feasibility Study

• Entry Strategy

• JV’s

• Strategic Alliances

• Partners

• Market Mapping

• Product Competitive Analysis

Chandni Sahgal

Director

D’Essence Hospitality Advisory Services Pvt Ltd

303, Aar Pee Center,

11th Road, Gufic Compound,

MIDC, Andheri (E)

Mumbai- 400093

+91 9820075332 022-28228142, 28347425

chandni@dessenceconsulting.com URL: www.dessenceconsulting.com,

www.dessencehospitality.com