In an exclusive interaction with SupportBiz, Prateek Mittal, MD of S.G.Mittal Enterprises, shared his views about the potential of the QSR market in India. He also highlighted his group’s plans for a pan-India presence.
Edited excerpts from the interview:
With the introduction of FDI in multi-brand retail in India, what expectations do you have from the future of QSR in India?
FDI in multi-brand retail would directly mean more investment, which will lead to expansion by larger back-end players. This will, in turn, increase the opportunities for smaller QSRs in the market. It will become easier for QSRs to expand into markets which were not possible to penetrate earlier due to constraints on local procurement of certain food items.
To sum it up, the Indian QSR market can expect expansions and better investment flow, as several opportunities will emerge. The Indian fast food business will get a great boost from global QSR chains, which have stronger back-end operations.
What scope do you foresee for young entrepreneurs in terms of building new businesses in the organised QSR market in India?
This market has great scope, as consumers, especially young professionals and students, are stepping out more and are more willing to try out new places and cuisines. The eat-at-home culture is slowly dying with a growing economy, as people are adapting to a western lifestyle. The QSR segment is growing rapidly.
What is the size of the Indian food and beverage market, especially from the fast food restaurant perspective?
Today, the Indian food and beverage industry is witnessing an exciting phase, especially the restaurant and cafe sectors. According to estimates, the Indian restaurant industry is burgeoning annually at the rate of 5-6%, with an earning of Rs. 430 billion, out of which the organised segment constitutes only 16-20%. With the present high annual growth of 20-25%, its share is expected to increase to 45% by 2015.
On the other hand, India's organised coffee retail sector is pegged at Rs. 1000 crore. Several existing national and international players are consolidating their market positions and planning further growth.
Interestingly, there are many foreign F&B brands which are doing exceptionally well in India. Restaurant brands such as McDonald’s, Domino’s, KFC, Pizza Hut and Subway, and cafe brands like Gloria Jean’s, Barista Lavazza and Costa Coffee are well-recognised names here. However, most of these brands have relied on the franchise growth model to swiftly expand their presence across India. Inspired by the immense success of these brands, there are many international F&B concepts that are vying for a similar presence in India.
Please share some details about your QSR brand, Torrp-it-up. What is your USP?
As a brand, we are target the young Indian population. We started our first outlet in the suburban district of Lokhandwala, Andheri, in Mumbai in 2008.
Our restaurants have a unique self-service concept, where customers are offered the choice of custom-making their own meal. Our hot and grilled delicacies are sure to be relished more, because they are made according to the suggestions of health-conscious customers. At Torrp-it-up, one will encounter great, out-of-this-world tastes conjured up using only the best of ingredients.
Apart from just catering to the Indian palette, we also offer a wide collection of international flavours such as spicy Arabic potato and Thai tofu.
We also concentrate majorly on the service and delivery aspect, which, in turn, makes us stand out from competition.
Please share your expansion plans for Torrp-it-up.
We plan to go pan-India very soon, with a roll-out of about 300 outlets. Our target cities would be both Tier-1 and Tier-2 cities.