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Quick Service Restaurant

Companies like KFC, McDonald’s, Taco Bell, Burger King, Pizza Hut, and Subway are examples of famous QSR restaurants. These all prioritise speed of service.

 

They might appear in food courts or have a drive-thru window and are able to service many customers at a time very quickly.

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The types of food available will usually be something you can eat with your hands, such as a burger, wrap or chicken wings. The menu is usually highly specialized and limited, e.g. It’s a burger place. The food will also be cheaper than eating at one of the other types of restaurants.

Image by We The Creators

Society is fast, fast food, fast cars, fast everything.’

QSR stands for ‘Quick Service Restaurant,’ which is an official term meaning ‘fast food’ establishment. The decor is generally cheaper with modern seating and tables. You order at the counter and bring your own food to the table in most instances. That, or you just take it to go.

  • Limited menu items, generally consisting of burgers, wraps, sandwiches, and/or pre-packaged salads

  • Most food is ordered for takeaway

  • Price points typically range between INR 100-INR500 per meal.

  • These restaurants usually provide plastic seating and tabletops

  • Table service is rarely provided in a QSR

Quick Service Restaurant (QSR) Market in India 2021

A quick service restaurant (QSR) is a fast-food outlet where people pay for food at the counter before consumption. QSRs have both fast-food cuisines and small table services to cater to youngsters' and working professionals' requirements. QSR market has been experiencing steady growth over the past few years. During the FY 2016 – FY 2020 period, the QSR market increased at 17.27% and is expected to reach INR ~827.63 Bn by FY 2025.

QSR has gained popularity due to growing eating-out habits, rising disposable income, changing lifestyle, and the online food delivery system's growth. Both chain QSR and standalone QSR segments are expected to contribute equally to the market's development during the forecast period.

Major players operating in the Indian QSR market include Burger King India Pvt. Ltd., Jubilant Food Works Limited, Burman Hospitality Private Limited, Jumbo king Foods Private Limited, and many mores.

Impact of Covid-19

The pandemic and the prolonged global lock down severely impacted the food service market in India. In the middle of March 2020, the Government of India temporarily closed all hotels, restaurants, and food courts across the country as a precautionary measure to contain the spread of COVID-19.

 

In response to the COVID situation, QSRs have increasingly turned to the food delivery sector. Many food service companies have adopted take-away services to deliver safe, hygienic, and customized orders to their customers.

Market segment insights

  • In FY 2020, chain QSRs held the highest market share (~54.2%) in India’s overall QSR market.​​

 

  • An increase in consumers’ propensity to eat out and a growing number of innovative fast-food chains are the driving factors for chain QSRs segment. ​

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  • ​Besides, innovative payment systems and point of sales systems are the primary factors for the growth of the chain QSRs segment in the QSR market.

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  • Based on the model, the take-away and home delivery segments are expected to expand at a higher growth rate of around ~18.0% and ~17.4%, respectively, between the FY2021 and FY2025 period as compared to dine-in segment

Image by Chad Montano

Key growth drivers of the market

The increasing trend of eating out in urban cities in India, across all the economic classes, without the need for any special occasion, has boosted the demand for QSRs. People increasingly prefer eating outside as a part of their leisure outings or shopping experience. This trend is mainly visible among the millennial age group of 25 to 40 years. Moreover, with the growing exposure to international lifestyles and culture, people have started developing their tastes and are eating out at restaurants more often to have different cuisines.

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Rapid urbanization due to the increase in population and economic growth and the rise in disposable income of people have led to the penetration of eating out culture in the country. Per-capita monthly income in India is estimated to have increased by 6.8% to INR 11,254 in FY 2020 from INR 10,534 in FY 2019. Besides, an increasing number of fast-food franchises in untapped areas and expansion of tier II and tier III cities have led to the rise in the number of quick service restaurants.

Key deterrents to the growth of the market

Setting up restaurants in India is a very time-consuming and tiresome process since it requires multiple government clearances. Apart from that, the lack of a skilled workforce is another major challenge faced by quick foodservice providers, primarily in small cities and towns.

Companies covered

  • Burger King India Pvt. Ltd.

  • Jubilant Food Works Limited

  • Burman Hospitality Private Limited

  • Coffee Day Global Limited

  • Devyani International Limited

  • ​​Jumbo king Foods Pvt. Ltd.

  • Sapphire Foods India Pvt. Ltd.

  • Subway System India Pvt. Ltd.

  • Tata Starbucks Private Limited

  • Westlife Development Limited

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