The restaurant business is one of the fastest growing sectors in India. According to a sector report on food service industry released by National Restaurant Association of India (NRAI), the Indian restaurant industry will be contributing a share of 2.1% to the GDP by 2021. This is possible because the Food Business has various lucrative restaurant formats and different types of restaurants that cater to the vast customer demography.
Each restaurant format has its own set of target audience and requires a different kind of investment, location, skills, and overall effort. This makes different types of restaurants unique in their own right. Because of this, it is crucial that you understand what the different types of restaurants that exist are, what differentiates two restaurant formats and most importantly, which restaurant format will work for you.
2. INTRODUCTION
The restaurant business is one of the fastest growing sectors in India.
According to a sector report on food service industry released by
National Restaurant Association of India (NRAI), the Indian restaurant
industry will be contributing a share of 2.1% to the GDP by 2021. This
is possible because the Food Business has various lucrative restaurant
formats and different types of restaurants that cater to the vast
customer demography.
Each restaurant format has its own set of target audience and
requires a different kind of investment, location, skills, and overall
effort. This makes different types of restaurants unique in their own
right. Because of this, it is crucial that you understand what the
different types of restaurants that exist are, what differentiates two
restaurant formats and most importantly, which restaurant format will
work for you.
3. TYPES OF RESTAURANTS
Before entering the restaurant or food business, one should be careful about choosing
from among the various restaurant formats, the investments required, the target
audience, cuisine and the experience one wishes to create in the cluttered food service
industry. The main types of restaurants:-
1. Fine Dining Restaurants
2. Casual Dining Restaurants
3. Pubs and Bar
4. Cafe or Bistro
5. Quick Service Restaurants (QSR)
6. Food Truck or Food Cart
7. Bakery
8. Sweet Shop
9. Ice-cream Parlor
5. This one particular format requires a high level of knowledge of
gourmet food and service levels. It usually has the most elaborate
menus with expensive tags on the items. Customers are expected to
make a reservation for dining and may have to come in a certain
dress code if required. Fine dining restaurant format provides a classy
atmosphere and precise detailing of each item. It may also offer
liquor to its customers.
7. Casual Dining restaurant format offers food which is similar to the
QSR but is more presentable, freshly cooked, and with table service.
The ambience of this format is a little modern and comfortable,
giving a family-friendly experience. These type of restaurants
typically serve 3-course meals and have an extensive menu with a
slightly higher price but are cheaper than fine dining.
9. The term Pub & Bar brings to mind the images of a comfortable
sitting area, pleasant ambiance, and lively music. Out of all types of
restaurants, this format has the most extensive menu of liquor and
mocktails. This one particular format can promise you high sales but
at the same time requires a lot of investments and overheads.
Traditionally the windows of the pub and bar were of frosted glass to
provide privacy, but they have moved to clear glass and bright
ambiance.
11. The cafe or bistro restaurant format does not usually provide table
service and has the self-service option. This type of restaurant does
have a comfortable sitting area though and creates a relaxed mood
for its customers. The menu of cafe or Bistro typically includes
beverages, and finger foods such as pastries, pizza, and sandwiches.
This type of format also gives an outdoor or casual sitting. However,
a Bistro can also offer entire meals other than the regular items that a
cafe serves.
13. One of the most popular types of restaurants, the QSR format is a hot
favourite among aspiring restaurateurs. A Quick Service Restaurant
typically serves fast food which takes less time for preparation and is
prepared in a few minutes. The food served here is quick and cheap
compared to other formats. The design and ambience are simple and
offer basic services like few tables and chair for fast dining, delivery
service or a pickup counter. The menu is also limited to the
maximum of 20 items to offer.
15. The Food Truck or Food Cart format is the most viable among all the
restaurant formats because it requires less investment and has fewer
overheads. Food Trucks are essentially movable Quick Service
Restaurants (QSRs) because the basic character remains the same,
that is, proving fast and cheap food. However, there are few food
trucks which serve speciality cuisines as well as such as Mexican,
Lebanese, etc. Since there is a space constraint, the menu of the food
truck should be very crisp offering not more than 10 items including
drinks.
17. Bakeries are a fascinating business format in the food segment
because of the high margins they offer to the owner. This restaurant
format is somewhat similar to the Sweets Shop format. Instead of
sweets, it offers cakes, pastries, snacks and various types of bread.
The menu has a wide variety and also gives an option of made to
order to the consumer. It provides basic service like delivery, self-
service and may have a sitting area.
19. India being a country of festivals, sweets shops are a very profitable
type of restaurant. Sweets shops usually serve different sweets,
snacks, beverages, and some bakery products. In this format, the
menu is extensive and does not provide table service or delivery
service. This format requires a shop to sell sweets and a base kitchen
where the sweets can be prepared.
21. The Ice-Cream parlor format usually serves the different types of ice-
creams, shakes, and ice-cream cakes. Ice-cream parlors have come
up to be the most innovative concepts in terms of process and service
levels, unlike the traditional way of serving the regular flavors. Today
concepts like cold stone ice cream, nitrogen-based ice-cream, and
live ice-cream making are catching up the trend. Ice-cream parlor
may offer a sitting and delivery service. The menu of the ice cream
parlor is usually limited to the maximum of 30 items.