Vital for Indian quick-service chains to develop own infrastructure

By RJ Whitehead 25-Feb-2013

The rapid change in India’s food consumption habits has spurred domestic and foreign quick service restaurant (QSR) chains to implement aggressive expansion plans. 

And according to a new Rabobank report, this growth is set to accelerate. However, to sustain their growth and develop their profits, QSRs will have to build their own supply chains from the ground up—not an easy task in a country with a woefully underdeveloped and often corrupt infrastructure.

“QSRs in India will see double-digit growth in the medium- to long-term as food consumption habits there are changing fast,” said Asitava Sen, head of Rabobank India F&A Research & Advisory. 

“A young population, higher rate of urbanisation, larger disposable incomes, higher protein consumption, increased participation of women in the workforce and exposure to western lifestyles are leading to the experimentation with, and adoption of, new dietary habits and more occasions to eat out for all levels of society”. 

Perfect timing
As a result, Sen believes the time is right for global and Indian QSR chains and their supply chain partners to expand in India. This growth will support the development of a new generation of Indian food processors and supply chain partners, with significant potential for “commissaries” to establish themselves as a link between QSRs and food producers and processors.  
The Indian foodservice industry was worth a total of Rs460bn (US$8.6bn) in 2011 and is expected to see compound growth of 10% until at least 2015. 

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