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The Future of Quick Service Restaurants in India

  • Published on : 05/12/2016

QSRs (or Quick Service Restaurants) are the future of the restaurant industry. The food sector has a huge steady growth of around 3.7 trillion in 2018. Further, consistent sales have seen a ten per cent annual growth in the last few years. Quick Service Restaurants coupled with casual dining accounted for 75-per cent of market share and its growth has been consistent and exponential. 

These statistics predict an extremely favourable picture of the overall industry. Though we have come across the term QSR, most people only have a very vague idea of what it is! In the next segment, we’ll define the concept and how it works. Additionally, we’ll also cast some light on why the future of the sector is bright.

What Exactly are Quick Service Restaurants?

QSR is the industry name for fast-food chains in India. These chains offer good quality food items and also keep the costs to a minimum amount. At these restaurant types, a platter can be presented to you instantly. 

Further, there are many quick-service restaurants that focus and specialize in making a single dish only. In these joints, the deployed workers are often very skilled in preparing and serving their particular dish. Sometimes, the chains also offer drinks and beverages to complement the food items, but this option isn’t mandatory. 

For example, though the biggie Fassos specializes in making rice bowls and wraps as their main dish, they do not shy away from offering a few more options too. McDonald’s, another famous fast-food restaurant, specializes in burgers but also offers other food and beverage options. Recently, they launched McCafe that offers beverages and increases the variety of food they provide. 

How Quick Service Restaurants Operate?

QSR generally operates as a chain model. They establish their outlets where customer footfalls remain maximum. That is why we find them in and around shopping malls or theatres. 

To reduce cooking time, the food items are prepared in a centrally located kitchen. Then, the final step of heating and assembling food or other assortments like dips and sauces is done on location. This way the restaurant serves food faster and caters more customers. 

This restaurant model offers multiple benefits: 

  • The salary bracket for staff members remains lower than traditional restaurants. 
  • These restaurants have nominal table charges as the tables here aren’t even extremely decorated. 

So, overall, setting up of any quick service restaurant is inexpensive when compared to fine dine restaurant options. 

Why is the Future of QSRs Bright?

We’re sure until now you understand that the concept of QSR has come a long way. In fact, CARE ratings of the concept are very good. This food-service system is to record an 11 percent growth between 2020 and 2023. The sales will surpass the 5-trillion mark by the end of 2022. 

They’re so ubiquitous that we all tend to stop by QSRs knowingly or unknowingly. Now, let’s discuss the factors that make QSR an astounding success. 


People in the age bracket of 15-35 years love to dine-out and eat delicious food. So, naturally, they spend a huge fraction of their earnings on fast foods. If you’re a QSR chain, they’re your ideal customer base and you should focus on them. Luckily, current age demographic statistics say that the median age of India is 27 years. This figure is lower than the global average and a huge advantage for Indian QSRs. 

Giant food chains have come up with some novel ideas to cater to the health-conscious millennials too. In western and southern Indian, entrepreneurs are investing around 1000 crore in the next 3 years to incorporate healthier food varieties. These foods will include low-fat & low-calorie options too. So, health-conscious millennials will not have to worry about the calorie-count. Further, the stores would be completely digitized and offer flexible cashless payment options to attract this sector as well. 

Increase in Per Capita Income

India is a fast-growing economy with an annual growth rating standing at around 10-per cent. This growth has fueled the consumption boom of the nation. Modern-day Indians prefer to dine out at least once every week. This habit cements the position of QSRs in the economy. 

With the sales growing exponentially, entrepreneurs are enjoying a huge amount of profits. That’s why QSRs are grabbing eyeballs with their high-profit margins and rising customer demand.  The task has been almost effortless and names like Wow Momos have become household names. Another demographic keenly interested in QSR food is the office goers who don’t mind spending money and saving their cooking time.

Internet Service in Cosmopolitan Cities

Internet services have become more accessible than ever. The online ordering window has enhanced with the passage of time. 

Now, customers in 2-tier and 3-tier cities want the same privileges & comfort available to the metropolitan cities. Quick service restaurants and third-party delivery services are expanding their outlets in small cities as well. India has the highest worldwide data usage, and this situation is even more conducive for these chains. So, many third-party vendors have spread their base across 2-tier and 3-tier cities in India as well. 

Why are QSRs Street-smart?

Fine dining option is very pricey, and its preparation also takes a lot of time. They also don’t cater to the people who want to grab a bite while returning from the office. This makes the situation more favourable for quick-service restaurants. The food-items are easier on the time constraints and one does not have to worry about budget-breaking bills too. 

Further, for the restaurant owner, the capital investment involved is low. It is relatively easier to establish a QSR. QSRs often have a positive word of mouth and most people recommend these joints to friends and relatives. This is another reason why these chains are being able to stand the cut-throat competition. 

In the End

QSRs are adapting to the changes people want extremely well. Their increased popularity makes their presence felt not only in metropolitans but also in suburban areas. Overall, their future looks bright and CARE’s predictions are also positive. Their services are seeing a massive increase in demand. 

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