1. (more than Rs.300) which may be more profitable.

1.     
Introduction:

 

The transformation of lifestyle of the average Indian
household, increased spending capacity highly correlated with the growing
national economy, increase in number of nuclear or small families, rise in
number of working women and the change in distribution of population from rural
to urban lands have a major role in increasing the traffic to restaurant in our
country. The industry has grown approximately 16-17% over the past 3-5 years
and makes up around 1.6% of the consumer wallet.35% of the restaurant market is
controlled by organized players. In the present day, they focus more on upper
segments such as Fine dines and pubs as they fetch average bill value per
customer (more than Rs.300) which may be more profitable. Their business model
initially was to focus on regional markets but later they changed their
strategy by expanding across the country so that they could become National
brands. Enhanced acceptance and interest for the western and international way
of life is another reason for the same. French, Italian, Mediterranean,
Mexican, Lebanese and Arabian cuisines have become quite popular in the
country.

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Fine dining restaurants are creating a bigger market in
the country and is gathering pace as far as growth of the segment is concerned.
Extra attention in this niche segment is always paid on the quality of the
cuisine and the dining experience. The above factors have somehow overweighed
the major challenge of Indian customers being price conscious and they are
willing to spend more for the holistic dining experience. As per the 2013 NRAI
report on food services in India the segment is currently growing at a 15% rate
and depends on largely the consumers in the upper segment of the income bracket
or the well-off class. The market has around 50 players currently with around
150 to 200 outlets spread across the country primarily in urban areas and is
valued around Rs. 1000 crores.

Many renowned chefs have tapped this opportunity and
have setup their own restaurant chains. Yellow Chilli by Sanjeev Kapoor serves
Indian cuisine is one of the well performing chains. Jiggs Kalra setup Punjab
Grill serving North Indian cuisine and along with his son Zorawar started
Masala Library and Pa PaYa.Pa PaYa serves Asian cuisine specializing in the
cooking technique of molecular gastronomy. Returning chiefs have also used the opportunity
well. They have upped the ante’ with their international menus blending well to
cater Indian needs and tastes. Vineet Bhatia from London has two restaurants
Azok and Ziya.Ian Kittichai from New York has set up Koh, a Thai Restaurant in
Mumbai who imports all of the ingredients. This gives the customer the exotic
feel of the cuisine.

India being an investment friendly country of late
with the ease of doing business index improving, many international chains are
already in the wait-list to set up their joints in the country. The typical Indian
foodie has exciting timing to look forward to in the future.