The Hindu Business Line : Grabbing a quick bite

Office gossip, friendly banter, social networking or even a thinker's abode. Where would you find all these? . And all this over a nice quick meal or a drink? "Of course at the emerging quick service restaurant," says Preeti Khetrapal, an HR professional with a leading MNC. Her trip back home from work is never complete without a stop at the local Barista coffee shop or the Subway restaurant.

The quick service restaurant (QSR) has not only wooed Preeti but has captured the imagination of millions of consumers. The sector seems to be booming with more and more players wanting to make a quick entry into the market to cash in on the growing demand. In India, about Rs 35,000 crore is spent annually on eating out. About Rs 2,500 crore is spent at quick service restaurants. The organised fast-food business in the country is estimated at over Rs 2,000 crore, and is growing at 40 per cent. Also, there are about 100 million potential fast food customers. A retail survey shows that 85 per cent of the consumers in the top 12 cities of the country eat out at least once a month, of which 36 per cent spend between Rs 200 and Rs 500 on one occasion.

So it comes as no surprise that many players - both domestic as well as international - want to grab a slice of the rapidly growing QSR pie. Poddar Heritage Group (promoters of Gillette India) forayed into the hospitality industry with its greenfield venture, Indigo Hospitality Pvt Ltd, under which it is operating its quick service food outlets serving North Indian cuisine. Branded Pulse Foods, the company is already on expansion mode. Pulse Foods is looking to open around 80 restaurants, with an investment of Rs 25 crore.

Says Neeraj Jain, CEO of Pulse Foods, "Last month, we opened our outlets in the kiosks and food cart formats and now we plan to expand this concept." He adds that modular formats (such as kiosks and carts) are a cost-effective mode for expansion and that the company is planning to open around 70 points of sale this fiscal. The company will also expand into smaller towns and markets, which Jain says hold "a huge potential."

Similarly, the Kwality Group is stepping out of its traditional mould and is stepping up focus on its QSR business. The group is consolidating Bread & More - its bakery and confectionery chain and quick service restaurant; Chopsticks Express, its Chinese food chain; and Kwality Express, the Indian joint, to give each a distinct brand identity. Says Dhruv Lamba, Executive Director of Kwality Group, "The company has firmed up investment of Rs 15-20 crore over the next two to three years. It's a good business opportunity." Kwality Group will set up eight Bread & More outlets by the end of next year and seven new outlets of Chopsticks Express and Kwality Express by the end of 2006 in Delhi and the highways. Lamba says that the Rs 70-crore group's target is to reach a turnover of Rs 100 crore by 2008. The group is contemplating a franchise model. Currently, it has 36 outlets across Delhi, NCR, Mumbai, Goa, Chandigarh and London. The company also plans to move into malls, hospitals and highways with its QSR chains this year and then roll out into other cities next year through the franchisee route. The Hind Group too is leaving no stone unturned. The agri-business company says that having set up a cold chain distribution system for its exports, it was simply a matter of backward integration to kick-start its QSRs. It launched a restaurant chain `Fast Trax' across the country. It is planning to open outlets in different retail formats. The chain offers Indian snacks and deserts in the price range of Rs 29-90. "The group has invested Rs 5 crore so far and would invest around Rs 20 crore in opening its other outlets," says Samar Qureshi, Director, Fast Trax Food Pvt Ltd, Hind Group. To begin with, the group will focus on Delhi and the NCR. With one outlet functional in Delhi, plans are on to add 12 restaurants by the year-end. Though the company targets 16-40-year-olds, it aims to cater to the "entire family".

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