Indian QSR industry to touch $2 billion by 2016-17

CRISIL Research estimates show India’s organised quick service restaurant (QSR) market size to be worth Rs 58 billion in 2013-14. The industry is expected to grow at 26 per cent CAGR (Compound Annual Growth Rate) over the next three years to Rs 117 billion by 2016-17. Nevertheless, its share will remain a miniscule 2-3 per cent in comparison to the overall domestic food services industry. [National Restaurant Association of India estimates the size of the domestic food services industry (organised and unorganised) at Rs 2,476 billion in 2013, and projects about 11 per cent annual growth to Rs 4,080 billion by 2018].

Growth of QSR industry
Growth to be driven by outlet expansions
The QSR industry’s growth over the next three years will be primarily propelled by an average 16-18 per cent growth in store additions. During this period, same-store sales growth will be muted, averaging 6-8 per cent (significantly lower than 12-15 per cent average of last three years). We expect same-store sales to remain lower in the near-term but pick up later.

Established players are expected to account for about two-thirds of store additions. Among the established QSR chains, foreign players, namely Domino’s Pizza, Subway, McDonald’s, KFC and Pizza Hut, are together expected to comprise about 40 per cent of overall store additions. The contribution of relatively new entrants will also be significant at over 30 per cent share; brands such as Dunkin Donuts and Krispy Kreme that have entered the market in the past two years are expected to rapidly expand their store network. Players such as Burger King, Wendy’s and Johnny Rockets are slated to enter the market as well.

In the case of same-store sales, growth will largely be from price hikes; QSRs have been raising prices by 5-6 per cent annually. However, average transactions per outlet will stay relatively flat mainly due to a more mature store profile (stores operating for over two years) for the bigger brands and higher competition. New entrants, though, could see an increase in transactions per outlet.

Same-store sales growth to pick up; historical levels unlikely
Same-store sales growth, which was robust at 20-25 per cent in 2010-11 and 2011-12, plummeted in 2012-13 and 2013-14. Cannibalisation due to opening of multiple outlets in the same catchment area, stiff competition, and economic slowdown leading to decline in discretionary spending, coupled with high food inflation, impacted same-store sales. Same-store sales of both Jubilant FoodWorks (master franchisee for Dominos and Dunkin Donuts in India) and Hardcastle Restaurants (franchisee for McDonald’s in the south and west) edged lower by 2 per cent and 9 per cent, respectively, in the first quarter of 2014-15 compared to growth rates of 25-30 per cent in 2011-12. Yum Restaurants India divisions’ same-store sales dipped by 4 per cent during the July-September 2014 quarter.

Same-store sales of Dominos and McDonald’s declining
CRISIL Research expects same-store sales to gradually pick up, aided by improvement in discretionary spending triggered by economic recovery: after a sub-5 per cent growth rate for two consecutive years, the Indian economy is expected to pick up in 2014-15 and 2015-16. 

However, same-store sales growth will not rebound to historic levels of 20-25 per cent because of increasing competition and cannibalisation, especially in metros and tier I cities. Also, a mature store profile will limit any sharp improvement in same-store sales growth for the established brands – close to two-thirds of the total stores for larger brands such as McDonald’s and Domino’s are more than two years old. Hence, large QSR chains have been gradually moving to tier II and III cities, where competition is limited.

Foreign brands to maintain dominant position
Foreign brands dominate the QSR industry with over 60 per cent market share (in terms of number of outlets). In terms of value, the market share of foreign brands is higher vis-à-vis domestic brands as most have better average transaction size as well as number of transactions per outlet. The strong brand image and larger store area allows foreign brands to cater to larger number of customers.

Riding on the success of these international brands, the Indian market also witnessed the emergence of domestic brands such as Jumbo King, Goli Vadapav, Faaso’s, Kaati Zone, Yo! China and Smokin’ Joes. However, most domestic players have been struggling to adapt to the quick service format.

Over the next three years, CRISIL Research does not expect a drastic change in the ratio of Indian and foreign QSR brands.

Foreign brands have been successful in tier I cities and are now expanding rapidly into tier II cities. These brands typically operate through the franchise model, which is an efficient way to scale up operations as it reduces capital burden.

By contrast, Indian brands are finding it difficult to scale up operations. Over the last two years, store additions of Indian brands were a mere one-tenth that of foreign brands. Some Indian brands such as Fasoo’s revamped their strategy to achieve scalability. Indian players need to build their brand image; one of the tools to do this is by ensuring standardisation across product offerings by efficiently managing the logistics chain.

Foreign cuisines more adaptable to QSR format
Foreign cuisines have a dominant share of the QSR market due to easier adaptability to the cold storage format and their quick-to-serve nature; pizzas, burgers and sandwiches account for about 85 per cent of the total market size in value terms. Indian food, which is prepared through complex processes using several ingredients, is difficult to translate into an assembly line production model. However, domestic players such as Goli Vada Pav and JumboKing are trying to adopt the successfully implemented cold storage model to their domestic cuisines.


Market share break-up based on cuisines 2013-14E (value terms)
Interestingly, many players are also adding new products to their menus. A case in point is Domino’s Pizza, which launched wraps in May 2014. McDonald’s also now offers wraps. At Pizza Hut, non-pizza menu comprises about 50 per cent of the menu.

Severe competition in QSR especially in metros / tier I cities
The Indian QSR market is highly competitive where players compete through core offerings and product variations not just among the organised segment but also among the huge unorganised market. Customers now even have various options and preferences to choose from.  

The degree of competition can be understood by the fact that the same brand has multiple stores catering to the same micromarket, in addition to the presence of other QSR brands serving similar food. One such instance is the presence of two stores of the same brand in a single mall, one for dine-in and the other for delivery.

Competition in the burger segment will also increase with large global players, namely Burger King, Fatburger, Wendys and Johnny Rockets, expected to enter the market. Johnny Rockets recently opened an outlet in Delhi and Gurgaon. The US burger chain, Burger King, plans to open stores in Mumbai and Delhi this year through the franchisee route. American burger chain, Fatburger, has appointed Vazz Foods as its master franchise in India.

In the donuts segment, Mad over Donuts was enjoying a near monopoly in India since its entry in 2008. However, the entry of Dunkin Donuts and Krispy Kreme has increased competition within this category as well. Dunkin Donuts, which sells burgers and donuts, entered India in January 2013. Krispy Kreme recently entered India through a franchise agreement with Citymax Hotels India Pvt. Ltd.

Foreign chains move towards tier II, III, new entrants – metros
Having set up operations in the metros, large chains such as Domino’s and McDonald’s are increasingly expanding their presence in tier II and III cities. Over the last one year, Domino’s strengthened its presence in cities such as Bhiwadi (Rajasthan), Korba (Chhattisgarh), Rajahmundry (Andhra Pradesh), Aligarh (Uttar Pradesh), Hoshiarpur (Punjab), Belgaum (Karnataka), Dharamshala (Himachal Pradesh) and Rangpo (Sikkim). Over the last one-and-a-half years, Hardcastle (McDonald’s) has opened outlets in tier II cities such as Coimbatore, Mysore, and Kochi in the south and Rajkot and Mehsana in the west.

Such expansions help utilisation of cheaper real estate in smaller cities, but also allow large chains enter relatively untapped markets. Opening outlets near highways allows the large chains to draw benefits from cheaper real estate and cater to customers who are constantly on the move. However, the relatively new entrants, especially the domestic QSR brands, will remain focussed on bigger cities to establish their presence and enhance brand recall.

Going forward, we expect QSR growth to be higher in tier II and III cities owing to the huge opportunity to expand in these markets. With metros already saturated, we expect major expansion to take place in tier II and III cities. As disposable incomes in semi-urban areas have increased and aspirations to experience brands have gained momentum, there is good potential in tier II and III cities. Hardcastle Restaurants, the master franchisee for western and southern India for McDonald’s, plans to invest about Rs 7 billion over the next five years to expand its restaurant network primarily focussing on tier II and III cities.

HOTEL MANAGEMENT BOOKS (S-Z)

LIST OF BOOKS FOR HOTEL MANAGEMEN
S.NO AUTHOR TITLE
351 Valeric Ferguson Ed. Sensational Starters
352 The Kitchen Collection Sensational Summer Food
353 Anu Shetrpal Serveshrest Chiken Pakvan
354 Murdick, Robert G. Service Operations Management
355 Satya Narayan Shakahari : Quick & Easy Veg. Cooking
356 The Kitchen Collection Simple & Speedy Microwave Cooking
357 Valeric Ferguson Ed. Simple Salads
358 Valeric Ferguson Ed. Simple salads and Dips
359 The Kitchen Collection Simply Salads
360 Nita Mehta Snacks
361 Tarla Dalal Snacks & Mocktails
362 The Kitchen Collection Snacks & Suppers
363 The Kitchen Collection Soups & Starters
364 Schwimmer, Sigmund Source Book of Food Enzymology
365 Nita Mehta South Indian : Favourites
366 Valeric Ferguson Ed. Spectacular Soups
367 Dave Broom Spirits & Cocktails
368 Stuart Walton Spirits & Liqueurs
369 Manisha Kanani Step by step 50 classic curries
370 Rosemary Wadey Step-by-Step Picnics
371 Carol Bowen Step-by-Step The Cooking
372 Janet Illsley Ed. Step-by-Step Vegetarian Cook Book
373 Stephen Binder Strategic Corporate Facilities Management
374 Valeric Ferguson Ed. Stunning Garnishes
375 Michael Colleer Success in Principles of Catering
376 John Murray Sucess in Principles of Catering
377 Lynn Van Der Wagen Supervision and Leadership in Tourism
378 Nita Mehta’s Taste of Gujarat
379 Madhur Jaffrey Taste of India
380 Madhur Jaffrey Taste of India
381 Nita Mehta Taste of Punjab
382 Winto ,Andrewl Techniques of Food Analysis
383 E.B. Bennion Technology of Cake Making
384 The Kitchen Collection Tempting cakes & Bakes
385 N.C. Goyal Text Book of Hotel Maintenance
386 Judith Ferguson The All American Cook Book
387 Nita Mehta The Art of Baking
388 George Ellis The Australian Bar Attendants
389 Russell Steabben The Bartender’s Guide to Cocktails
390 Madge Rosenberg The Best Bread Machine Cook Book Ever
391 Collister, Linda The Bread Book
392 Sand Ingramh Medlic The Business of Hotel
393 Maria Costantino The Cocktail : Handbook
394 Cadbury The Complete Cadbury’s Cook Book
395 B. Verhoef The Complete Encyclopedia of Beer
396 Koneman The Complete Food Guide
397 Alan Titchmarsh The Complete Gardener
398 Robert T Gorden The Complete Restaurant Management
399 Karan Davis Cutler The Complete Vegetable & Herb Gardner
400 Larousse The Concise Larousse Gastronomique
401 Robert J Cortine The Concise Lorousse Gastronomique
402 Alex, Maceormick The Dried Flower Arranger
403 Paul Cullen The Food & beverage Manager
404 Geoff Tansey The Food System : A Guide
405 Rhodri Thomas The Hospitality Industry Tourism in Europe
406 Master Chef The Indian Menu Planner
407 J.O. wahn The lore of Spices
408 J.O.Swahn The Lore of Spices: Their History
409 Andrew Maclauchlan The making of a Pastry
410 Rhodri Thomas The Management Of Small Tourism
411 Schneider, Madelin The Professional Housekeeper
412 Helen Arthur The Single Malt Whisky Companion
413 Kinton, Ronald and C The Theory of Catering
414 Mitchell Beazley The World Atlas of Wine
415 Ronald Kinton Theory of Catering
416 Krishna Arora Theory of Cookery
417 Nirmal Kumar Tourism & Economic Development
418 V.K. Gupta Tourism In India
419 A.K. Singh Tourism Management & Marketing
420 Kim Inglis Ed. Tropical Herbs & Spices of India & Sri Lanka
421 Good Housekeeping Ultimate book of Fresh & Dried Flower arrangements
422 Janice Murfitt Ultimate Cake Decorator
423 Hamlyn Ultimate Cocktail Book
424 Rosemary Wilkinson Ed. Ultimate Desserts Cook book
425 Watton , Stuart Ultimate Encyclopedia Wine & Beer
426 Juliano Uncook Book : New Vegetable
427 Valeric Ferguson Ed. Vegetarian Classics
428 Valeric Ferguson Ed. Vegetarian Italian Cookbook
429 Myru Shackley Visitor Management
430 Graham Brown Waiters Hand book
431 Grahm Brown Waiter’s Handbook
432 Steven Labensky Webster’s New World Dictionary of Culinary Arts
433 June Payne-Palacio West & Woods Introduction to Food Service
434 Tennaut, Carol What’s Cooking Fish & Sea food
435 Dave Bruom Whisky
436 Zoeeklein, Bruce Wine Analysis & Production
437 Stuart Walton Wine Guide
438 Brain Glover World Encyclopedia of Beer
439 Ingram, Christine World Encyclopedia of Bread
440 Juliet Harbutt World Encyclopedia of Cheese
441 Christine Ingram World Encyclopedia of Vegetables
442 Stuart Walton World Encyclopedia of Wine

HOTEL MANAGEMENT BOOKS (J-S)

LIST OF BOOKS FOR HOTEL MANAGEMEN
S.NO AUTHOR TITLE
241 The Kitchen Collection Just Desserts
242 Withde, Elizabeth Kitchen Book
243 Langenscheidts Langenscheidts Eurodictionary German
244 Larousse Larousse Gastronomique
245 Christopher Foulkes Larousse Pocket Encyclopedia of Wine
246 The Kitchen Collection Light & Easy Pasta
247 Segrave Foulkes Lorousse Encyclopedia of Wine
248 Valeric Ferguson Ed. Low Calorie Cookbook
249 Nita Mehta’s Low Calorie Recipes
250 Haveen Choudhary Low calorie Recipes
251 Valeric Ferguson Ed. Low Fat Cooking
252 Valeric Ferguson Ed. Low Fat Dream Desserts
253 Valeric Ferguson Ed. Low Fat Pasta
254 Auguste Escoffier Ma Cuisine
255 B.K. Chaturvedi Making of a Chef
256 Dr. Jagmohan Negi Managing Hotels & Restaurants
257 Peter Jones Management of Food Service Operations
258 C.P. Yadav Management of Hotel & Catering Industry
259 Stephen F. Witt Management of International Tourism
260 Catherine F Sullivan Management of Medical Food Service
261 Michael L. Kasavana Managing Front Office Operation
262 Negi, Jagmohan Managing Hotels and Restaurants
263 Philip Kotler Marketing for Hospitality & Tourism
264 The Kitchen Collection Marvelous Mid – Weak Meals
265 The Kitchen Collection Meals from the Mediterranean
266 Valeric Ferguson Ed. Meat Classics
267 Wong ,Dominic W.S. Mechanism & Theory in Food Chem.
268 Jaksa Kivela Menu Planning
269 Jaksa Kivela Menu Planning: For the Hospitality Industry
270 Nita Mehta Microwave : Non veg Cookery
271 Nita Mehta Microwave: Vegetarian Cookery
272 Winton, Andrew L Milk and milk products
273 Reese Dubin Miracle Food Cures From the Bible
274 Nita Mehta’s Mocktails & Snacks
275 L.J. Hanneman Modern Cake Decoration
276 Thangam E. Philip Modern Cookery
277 Nita Mehta’s More Paneer
278 Nita Mehta Mughlai : Vegetarian Khana
279 Valeric Ferguson Ed. Mushroom Cookbook
280 Pathak V.N. Mushroom Prod. & Processing
281 Harveen Chaudhary Navratri
282 Oz Clarke’s New Essential Wine Book
283 Tom Stevenson New Sotheby`s Wine Encyclopedia
284 Sally ann Berk New York Bartender’s Guide
285 The Kitchen Collection No Fuss Dinner Parties
286 The Kitchen Collection No Meat Cookbook
287 Joy Davies Noodles & Pasta
288 Valeric Ferguson Ed. Novelty Cakes
289 Valeric Ferguson Ed. One Pot Meals
290 Nick Johns Operational Techniques for the Hospitality Industry
291 Loeseoke, Harry W.V. Outlines of Food Technology
292 Nita Mehta’s Paneer : All the Way
293 Nita Mehta’s Paneer aur Alu
294 Valeric Ferguson Ed. Party Food
295 Nita Mehta Party Food
296 Julia Della Pasta
297 Jeni Wright Pasta Bible
298 Alexandria, Virgenia Pasta Light
299 Valeric Ferguson Ed. Pastry Classics
300 Stuart Walton Perfect Barbecue Book
301 The Kitchen Collection Perfect Party Food
302 The Kitchen Collection Perfect Puddings & Desserts
303 Valeric Ferguson Ed. Perfect Sauces
304 Garil Duff Pickles Relishes
305 Gail Duff Pickles, Relishes & Chutneys
306 Larousse Pocket Enclclopedia of Wine
307 Mansfield, Sally Potato
308 Victor Ceserani Practical Cookery
309 Janice Murfitt Practical Encyclopedia of Cake & Cake Decoration
310 J. Inder Singh Kalra Prashad : Cooking with Indian Master
311 Anuradha Sinha Pressure Cooking
312 Boulton, Roger B Principles & Practice of Wine Making
313 Paul R. Dittmer Principles of Food Beverage & Labor Cost Controls
314 Paul R. Dittmer Principles of Food Beverage and Lab
315 Alan Pannett Principles of Hospitality Law
316 Baker, Sue and Bradley Principles of Hotel Front Office Operation
317 Sue Baker Principles of Hotel Front Office Operations
318 Institute Of America Professional Chef [HOTEL MANAGEMENT]
319 Brian Verghese Professional Food & Beverage [HOTEL MANAGEMENT]
320 Manoj Madhukar Professional Housekeeping
321 Robert J. Martin Professional Management of House Keeping Operations
322 Shaline Singh Ed Profiles of Indian Tourism
323 Michael Flynn Public House & Beverage Management
324 Nita Mehta Punjabi : Non Vegetarian Khana
325 Mitchell Beazley Q2 Clarke`s New Essential Wine
326 Andrew Lockwood Quality Management in Hospitality
327 Ronald F. Cichy Quality Sanitation Management
328 Valeric Ferguson Ed. Quick & Easy Chinese
329 Valeric Ferguson Ed. Quick & Easy Curries
330 The Kitchen Collection Quick & Easy main Meals
331 Valeric Ferguson Ed. Quick & Easy Pizzas
332 Gill, Shirley Quick & Easy Pizzas
333 Jayandra Kumar Quick & Easy Rajasthani
334 Valeric Ferguson Ed. Quick & Easy Wok Cookbook
335 The Kitchen Collection Quick & Tasty Pasta
336 The Kitchen Collection Quick Cooking
337 Nita Mehta Quick Meals
338 Vina Khandelwal Relish Food : The Vegetarian Way
339 Mahmood A. Khan Restaurant Franchising
340 Robert Christie Mill Restaurant Management
341 Jeff B Katz Restaurant Planning Design & Construction
342 Purobi Babbar Rotis & Naans of India
343 Shapton, A David Safe Processing of Foods
344 David A Shapton Ed. Safe Processing of Foods
345 Nita Mehta Sarvshrest Shakahari Vyanjan
346 Collister, Linda Sauce Book
347 Schwartz, Oded Sauces & Salads
348 Maria Costantino Savoy Cocktail Book
349 Faridi, Hamed Ed Science of cookie & cracker, Processing Tech.

HOTEL MANAGEMENT BOOKS (G-J)

LIST OF BOOKS FOR HOTEL MANAGEMENT
S.NO AUTHOR TITLE
181 Good Housekeeping Good Housekeeping : Cookery Book
182 The Kitchen Collection Great Barbecue
183 Christine Frane Great Big Barbecue Cook Book
184 Hilaire Walden Great Big Cookies Book
185 Valeric Ferguson Ed. Great Chicken Dishes
186 Valeric Ferguson Ed. Great Egg Cookbook
187 Valeric Ferguson Ed. Great Fish Cookbook
188 The Kitchen Collection Great Food for Kids
189 Valeric Ferguson Ed. Great Garlic Recipes
190 Detty Crocker’s Great Main Dishes without Meat
191 Valeric Ferguson Ed. Great Noodle Dishes
192 Valeric Ferguson Ed. Great Rice Dishes
193 Nita Mehta Green Vegetables
194 Blank F.C. ed. Handbook of Foods & Nutrition
195 Anuradha Sinha Healthy & Delicious Food For Children
196 The Kitchen Collection Heavenly Chocolate Recipes
197 Valeric Ferguson Ed. High Fiber Cookbook
198 K.C. Bhanja History of Darjeeling & the Sikkim Himalaya
199 Gray, William S. Hospitality Accounting
200 Ursula Johnes Hospitality & Catering A Closer Look
201 Carl Riegel Hospitality & Tourism Careers: Blue print Success
202 Anna Graf Williams Hospitality ,Cases in Marketing & Operations
203 William S.Gray Hospitality Accounting
204 Anna Graf Williams Hospitality Cases in Marketing & Operations
205 Manoj Madhukar Hospitality industries in next Millennium
206 Neil Wearne Hospitality Marketing
207 Derek Taylor Hospitality Sales & Promotion
208 Malcolm Foley Hospitality, Tourism & Leisure Management
209 Valeric Ferguson Ed. Hot & Spicy
210 B.K. Chakravarth Hotel & Catering Edu. In India
211 Rajender Singh Ed. Hotel & Hospitality Management
212 Tara Chand Hotel & Restaurant Management
213 Tara Chand Hotel and Restaurant Management
214 Ravi Aggarwal Hotel Front Office : Systems & Procedures
215 Bardi, James A. Hotel Front Office Management
216 Sudhir Andrews Hotel Front Office Training Manual
217 Sudhir Andrews Hotel Housekeeping: Training Manual
218 Pragati Mohanty Hotel Industry & Tourism in India
219 U.K. Singh Hotel Management
220 Denney G. Rutherford Ed. Hotel Management & Operations
221 Joan C. Bransen Hotel, Hostel & Hospital Housekeeping
222 Hugh Johnson’s How to enjoy your Wine
223 Hugh Johnsons Hugh Johnsons’s Pocket WineBook
224 Jagmohan Negi Human Resource Development & Management in the Hotel
225 R.K. Malhotra Human Resource Issues in Hotel Industry
226 Joanna Farrow Ice Cream & Iced Desserts
227 Jane Suthering Ice Cream Sorbets & Other Cool Delights
228 Valeric Ferguson Ed. Ice Creams & Sorbets
229 Ken Jones Icebreakers
230 Conrad Lashley Ed. In Search of Hospitality
231 Pran Seth India : A Traveller’s Companion
232 Loukie Werle Ingredient
233 Philip Burnard Interpersonal Skills Training
234 John R. Walker Introduction to Hospitality
235 Pran Nath Seth Introduction to Travel & Tourism
236 Marian Bennion Introductory Foods
237 Flo Bayley iII Contes Anna Italian Kitchen : Gli Antipasti
238 Nita Mehta’s Italian: Vegetarian Cookery
239 Valeric Ferguson Ed. Jams, Jellies & Preserves
240 Mehta, Neeta Jhatpat Khana