Why We’re Excited About The Fast Food & Cafe Convention!

The QSR industry in India is an aggressively growing industry but the obstacles that it faces today are also equally challenging.

As per NRAI’S India Food Services Report 2016, the size of the QSR market was estimated at 9,125 crores in 2016.It is expected to grow at a CAGR of 22% to reach 24,665 crores. The QSR segment is expected to pick up the pace as foreign brands are constantly entering the market, but will this growth be a good one, and will it be sustained?

Although the Indian market is a growing one, there are a lot of factors contributing to the QSR industry’s stagnancy.

  • Firstly, since more sophisticated restaurants are propping shop, consumer preferences are getting refined.
  • Secondly, consumers might not prefer fast food options, opting for healthier ones.
  • Lastly, the trend of eating out, in general, has also declined in recent years.

Expansions on the rise?

These days, it seems big brands shutting are down their outlets all over the place. It seems that expansion has also taken a hit, and brands haven’t been able to meet their targets. If we look at brands like Jubilant Food Works Ltd, Domino’s and Dunkin’ Donuts, they are growing at a very slow pace. Domino’s will only open 40-50 outlets this year as opposed to the target of 150, and Dunkin’ Donuts is only looking at about 3-5 new ones.

Reports suggest that other brands like Johnny Rockets and Carl’s Jr are also far from achieving their targets. Some of the reasons attributed to this trend are demonetisation, high rent, corruption, high supply as compared to demand, to name a few.

Which brings us to the need of the hour – The Fast Food & Cafe Convention.

The Fast Food & Cafe Convention on 29th November in New Delhi is being organised to bring together the best minds in the QSR business today to share their knowledge and insights.

How are they facing these challenges on a daily basis? How does India react to newer forms of fast food? What is the right expansion strategy in the current business environment? We are excited to hear from Alok Pandey from Domino’s, Kabir Jeet Singh from Burger Singh and Raghav Verma from Chaayos and many other established players.

Technology – The only route to GROWTH 2.0

The QSR industry is heavily dependant on technology. With orders being a huge pie of their revenues and with ordering in being majorly accepted by Indian metro audiences, it is imperative to put in place today a mechanism that helps streamline a brand’s daily orders.

An interesting session to look out for will be by Sahil Jain, Co-Founder & Product Head at Dineout who will throw light at everything new & latest in technology solutions for QSR brands in India and the world.

Conquering the Ordering Game

Playing a major role in the QSR industry, online ordering can get very tricky at times. Now that there has been a rise in mobile ordering, third-party deliveries and various online ordering platforms, managing high volumes can be a real challenge. Can technology intervene and smoothen things out? All this and much more to be discussed at this much-awaited event.

The most definitive event in the world of QSR, this one is a must attend.

inResto is the official Food Tech Partner for Fast Food & Cafe Convention 2017.

Follow inResto for updates about the event.

Here’s Why You Must Know About Restaurant Tech Live 2017

A great platform to learn all about the new technologies and services that are contributing to the restaurant business, Restaurant Tech Live is a major European exhibition taking place in London this September.

What it is.

Restaurant Tech Live is a platform that’ll showcase the latest tools, technology, systems and adjustments that are reshaping restaurants across the globe. Along with this, there will also be a lot of industry experts from around the globe, sharing their insights and know-how on cutting-edge technology to make your restaurant stand out.

What to Look Forward to.

They’ve got headline speakers, panel sessions, seminars, technology innovation awards, industry-leading suppliers and a restaurant and bar design show planned for the 2-day long event.

How To Deal With A Technology Overload by Ankit Mehrotra (Co-founder at Dineout)

We’re excited about Dineout’s co-founder, Ankit Mehrotra giving a speech on how restaurateurs are swamped with multiple technology solutions and how to deal with it. Whether it’s managing daily customers, e-menus, feedback from multiple platforms or monitor the POS reports, it’s more effective and efficient to get all information in one place. Catch him at the convention to know more about this intriguing topic!

Apart from his session, we are also looking forward to see and hear insights by the head of systems at the Jamie Oliver restaurant group, market growth officer at Pizza Hut, former CEO at Crushh, besides other speakers.

Exclusive Offer!

Get a flat 50% discount when subscribing for any of our products, only at Restaurant Tech Live, 2017!

Find us at Stand 1160

You can also follow inResto on twitter here and Ankit Mehrotra here for further updates about the event.

Here’s How The GST Will Impact The Restaurant Business.

GST is currently the flavour of the season. This new tax overhaul drive will impact each and every business of the nation. The objective of GST is to get rid of corruption in the country and have transparency in the market and in its operations. The government claims that GST will achieve that and create a simple, more effective tax structure. However, it will be interesting to see how palatable GST is for the restaurant business! One thing is certain, that after its implementation on the 1st of July ’17, GST will replace at least 17 federal and state indirect taxes.

Restaurant bills before & after GST

The restaurant and hospitality sector was loaded with multiple taxes, cesses and charges due to the indirect tax regime. Restaurants have been charging service tax on 40% of its F&B bill or an effective rate of 6% along with an additional service charge apart from VAT @ 12.5% – 14.5%, as per the State VAT laws that vary from state to state.
This is how post-GST bill should look like:

With GST in the system, there will be uniformity – a market free from unnecessary additional taxes. Talking about the restaurant industry, its implications seem to have a mixed reaction.  

AC or Non-AC?

Now, a diner will have to pay a tax of 18% on the F&B bill in an air conditioned restaurant as against 10.6% charged (including VAT and service tax) in the indirect tax regime. Whereas, non air conditioned restaurants will charge 12% GST on its F&B bill.  

But one thing to be noted here is that if someone is visiting a restaurant with both AC & Non-AC setup and decides to sit in the Non-AC section, he will have to pay 18% GST. So it’s not all good news for the diner!

Online Delivery Hassles

Another trend that has been noticed is that small restaurants and vendors are pulling away from online delivery start-ups. The reason? E-commerce firms will have to deduct tax collected at source (TCS) when they make payments to restaurants and vendors using their platform. Also, these vendors will receive their payment after a TCS of 2%. Although Foodpanda has said that it has been talking to restaurants listed with it on how to manage this 2% deduction.

Bakers Get Lucky!

Bakers, on the other hand, are going to have it good under GST as the applicable GST will be lower than the present combined tax on processed food products which include bakery products.

Few on Cloud 9!

The obvious beneficiaries of the new tax structure are small restaurants and QSRs. Restaurants that have a turnover of 50 lakh INR or less can heave a sigh of relief as now they will go at the rate of 5% GST composition.

Another reason to cheer for Restaurant Owners!

Previously, restaurant owners had no choice but to adjust the output service tax liability with the credit of input VAT on goods consumed. Now, these have been replaced by GST. Irrespective of goods and services consumed, the credit input can be adjusted against the out liability easily.

Dining at 5-stars Has Become Costlier

However, with GST, 5-star, 7-star restaurants and hotels will be charged a luxury tax as high as 28%. This will lead to customers abstaining from dining out at high-end restaurant properties, hampering their sales.

Liquor prices remain untouched

The GST regime doesn’t include service of liquor. Hence, two separate set of transactions will have to be maintained, increasing the cost of compliance for pubs and eating joints that serve liquor as well.

Barring the initial glitches, we can safely say that GST, the new value adding tax regime will be a boon for both restaurant owners and customers. It will create a new and healthy business environment which the customers should find satisfactory. This will hopefully give impetus to the idea of eating out to foodies.