It’s not just street food. It’s not just the start-ups that want to mimic the culture with their BurgerMan or PetaWrap stalls. Rising rental costs and an urban consumer pressed for time are forcing even the stalwarts of the quick service restaurant (QSR) industry to adapt to a simpler and profitable kiosk format. Termed also as ‘Grab and Go’ in industry jargon, the kiosk format is helping the QSR business expand.

Besides requiring less space, the format also does away with extra investment in manpower, interiors and seating arrangements. Delivery is designed to be quicker as well. The concept appears to be catching up fast in malls and multiplexes.

Of late, several large chains such as McDonald’s, Subway, Paninaro, Chicago Pizza, San Churro, Amore Gourmet, Fruitilicious, Gelato, Gelato Vinto and other ice cream sellers are moving towards an improvised version that offers clean, hygienic and healthy snacks compared to the roadside eateries.

Rahul Deans, CEO of yogurt chain Cocoberry, said, “Our decision to open a kiosk, as opposed to a larger store, is usually dictated by the availability of space in a mall. In several successful malls where we would like to be present, a kiosk may often be the only space available and we therefore opt for it.”

Kiosks work best in malls, where there is a common seating area or place where the ambience facilitates snacking and walking around, such as amusement parks or theme parks.

Rents and capital expenditure are lower for kiosks and hence the risk of being situated in a less than ideal location is mitigated, Deans said, adding that the sales per square foot in kiosks have been quite impressive. He, however, declined to divulge any statistics comparing the kiosks to the large-format stores.

According to a recent Indian Restaurant Report by Franchise India, the kiosk market is expected to double in size to Rs 1,882 crore by 2015. It is growing at 33 per cent annually, thus setting the pace at which the market is picking up.

McDonald’s has also started a kiosk format just for its desserts such as softies and crushes. That apart, it sells potato fingers too. It follows multiple models such as in-store (within the store), kiosk and remote kiosk (an independent entity dependent on a mother store in the vicinity). The independent kiosks are about 200 sq. ft, though the company is now scaling up the format across the country.

“This is a key platform within our new business channels that we launched in 2005. It helps us in expanding the business from our existing restaurants. It is cost-efficient and helps in decongesting our existing restaurants; and they also help us in increasing our accessibility to the customers,” said Rajesh Kumar Maini, General Manager, McDonald’s India (North & East).

Similarly, ice cream brand Fresh and Naturelle is also focusing on the kiosk format to drive more profitability and reach out to more consumers who do not want to wait in long queues for one product.

Its Managing Director Kunal Parbai said most of the kiosks are in malls or as shops-in-shop formats within the hypermarkets. However, the Kolkata-based chain is working on the feasibility of opening outdoor kiosks near high-street malls in select cities.

“We are developing a new model of an air-conditioned step-in kiosk of approximately 100 sq. ft. which is a radically new concept. This will allow customers to have ice creams while sitting inside an air-conditioned environment rather than sweat it out outdoors,” he added.

According to Franchise India, the organised restaurant market in India has emerged as one of the fastest growing industries in India with consumers spending 11 per cent of their disposable income in eating out. This has led to several international formats entering the market.

Brands prefer these formats to ensure more profits at less expense and maximum quality.

Usually, as kiosks are located in high footfall areas, it enables a brand to cater to both types of customers, as the visibility of the kiosk creates touch points in both impulse and planned visit categories. Many are situated near multiplexes or near high-traffic restaurants.

This ensures a fair number of prospective customers tend to go past the kiosks either while entering or leaving these eateries and multiplexes, said most of the players.

Another big benefit of kiosks is that they allow brands to interact with target customers in larger numbers more frequently, encouraging repeat business.

Gaurav Marya, Chairman, Franchise India, said that with the international food brands entering the Indian market, the country is set to witness more artistic and aesthetically pleasing kiosk designs.

Some innovative designs are giving a radically new-age look to the erstwhile block-kiosk model. There is an emerging demand from customers that are pushing brands to come up with more novel looks, particularly in the kiosk space.

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