Why QSR Industry still has a very bright future?
The year 2017 proved to be a rollercoaster year for the entire quick service restaurant (QSR) industry. The demonetization exercise, GST and ban on liquor near highways threw challenges that were not only unpredictable, but also of huge magnitude for the entire QSR industry. Although these challenges gave rise to unimaginable inconveniences, they didn’t succeed in breaking down the economic backbone of the industry. If anything, the entire industry rose to these challenges as it closed the 2017 year with a very healthy balance sheet.
According to a recent article in Economic Times, the big names in QSR like KFC, Domino’s Pizza, Mad Over Donuts and McDonald’s reported increased sales and profit in second half of the year. This impressive performance in the wake of insurmountable challenges reflects the resilience of the entire industry. Although the Economic Times article did not mention anything about the unbranded & small players, their contribution in industry’s recovery certainly cannot be ruled out. However, the main essence to be drawn from this unexpected recovery is that the fast food industry has unwavering appetite for growth.
This appetite for growth, of course, cannot be possible without the help of the ever hungry Indian foodies. Their unsurpassable hunger is what continues driving QSR’s growth even in the face of adversity. If a report by Cyber Media Research is to be believed, then Indian foodies can spur the entire organized fast food industry to nearly $5 billion industry. However, the picture is not entirely rosy as great challenges continue to persist for the whole industry. High rentals, declining footfalls in malls and slow economic recovery will continue to pose challenge for QSR players even in forthcoming years. These factors had already led to shutting down of scores of cafes and fast food restaurants from 2013 to 2016. But some experts partly blamed the reckless growth and unfeasible business models for these shutdowns, while arguing that QSR players following good business practices will continue to thrive irrespective of the business sentiments.
All said and done, despite all the problems the fast food chains still have a very bright future in India. That’s one message that can be drawn from the eventful 2017 year. Above all, the year has taught that if QSR players play their cards well, they can fend off any challenges. Of course, how well they play their cards will all depend on their business acumen and decision making skills.
On the sidelines, other encouraging developments are also helping QSR players to cope well with unpredictability of the business. For instance, the introduction of automation has seriously helped scores of fast food restaurants in resolving their quality and labor issues. On this front, Mukunda Foods has been the one company that is proving to be great asset for QSRs across the country. The unimaginable benefits brought forth by our inaugural product Dosamatic machine has proven beyond that automation is need of the hour for the entire fast food restaurants. Now almost same benefits are been offered by our second product Doughtbot, which is another feather in the cap of our proud company.
We hope to launch similar products in the future and continue with our quest to not only help the QSR industry to stand on its feet, but even greater success in the coming decades.