The document provides an analysis of the consumer food service industry in India. It discusses the history and origins of restaurants and cafes. It then analyzes the current market landscape of the industry in India, including popular brands and the performance of key segments like full-service restaurants, street food, and fast food. Finally, it outlines the various licenses and permits required to operate a food business in India.

2. The Consumer Food Service Industry
Sector Analysis by
Likesh Bhambhwani
likeshb@gmail.com
Business Design, 2011-2013
Welingkar Institute of Management and Research
• Likesh Bhambhwani
• likeshb@gmail.com

3. • Public eateries existed in Ancient Rome and
Song Dynasty China
• The modern restaurant originated in 18th
century France
• The first cafe was established in
Constantinople in 1550
• The first modern-type cafe was “Cafe
Procope” which opened in 1696
www.foodtimeline.org

4. • 50% of chained restaurant networks concentrate
on the five most populous cities of India
• 98% of all value sales are from independent
operators
• Chained consumer foodservice value sales grew
by over 22% in 2010
• Independent players growth was less than 13%
• Consumer foodservice in India is expected to post
a constant value CAGR of 4%

5. • Owner’s
• Chef’s
• Waiter’s
• Property Owners
• AHAR – Association of Hotels and Restaurants
• NRAI – National Restaurant Association of India
• The Food Ministry of India
• Corporates
• End User’s

6. Market Capitalization ($ Revenue ($ Net Income ($
Sr. No. Name
Billion) Million) Million)
1 McDonald's Corporation 95.95 24,074.60 4,946.30
2 Yum! Brands, Inc. 24.89 11,343.00 1,178.00
3 Chipotle Mexican Grill 10.56 1,835.92 178.98
4 Tim Hortons Inc. 7.86 2,501.72 638.25
5 Darden Restaurants, Inc. 6.27 7,500.20 478.7
Arcos Dorados Holding
6 4.74 3,018.12 106.29
Inc
7 Dunkin' Brands Group Inc 3.14 577.14 26.86
8 Wendy's Company 2.15 3,416.41 -4.32
9 Brinker Intl. 1.89 2,761.39 141.06
10 Domino's Pizza, Inc. 1.84 1,570.89 87.92

8. CMIE Report
Sr. No. Name 2009-10 (Rs. Crore) 2009-10 (Percentage)
1 Indian Hotels Co. 1897.92 16.72
2 ITC 904.92 7.97
3 EIH 774.13 6.82
4 Indian Railway Catering & Tourism Corpn. 557.72 4.91
5 Mahindra Holidays & Resorts India 468.75 4.13
6 Hotlel Leelaventure 430.13 3.79
7 Bharat Hotels 367.08 3.23
8 Asian Hotels (North) 290.18 2.56
9 Hardcastle Restaurants Pvt. 275.65 2.43
10 Piem Hotels 244.59 2.16
11 Apeejay Srrendra Park Hotel 241.44 2.13
12 Taj G V K Hotels & Resorts 228.25 2.01
13 Chalet Hotels 212.95 1.88
14 Taj Stats Air Catering 192.95 1.7
15 Oriental Hotels 192.77 1.7

9. CMIE Report
Sr. No. Name 2009-10 (Rs. Crore) 2009-10 (Percentage)
16 India Tourism Devp. Corpn. 190.16 1.68
17 Juhu Beach Resorts 176.93 1.56
18 Jaiprakash Associates 151.99 1.34
19 E I H Associated Hotels 147.94 1.3
20 Hotel Excelsior 125.75 1.11
21 Adayar Gate Hotel 111.93 0.99
22 A B Hotels 108.84 0.96
23 Kamat Hotels (India) 98.61 0.87
24 Blue Coast Hotels 87.19 0.77
25 Barbeque-Nation Hospitality 83.22 0.73
26 Bhagwati Banquets & Hotels 82.98 0.73
27 Nehru Place Hotels 82.17 0.72
28 Sayaji Hotels 81.41 0.72
29 Asian Hotels (West) 80.28 0.71
30 Sahara Hospitality 76.8 0.68
Total 8965.63 79.01

10. Consumer Food Service
Pizza Home
Cafeteria’s Self Service Full-Service Street
Delivery and Fast Food
and Bar’s Caféteria’s Restaurants Stalls/Kiosks
Take Away
www.euromonitor.com
www.euromonitor.com

12. Full Service
Restaurants
Stand Alone Hotel Based
Domino’s Indian Hotels
Pizza Hut Barbeque ITC
Pizza Co. Ltd EIH
Nation
www.euromonitor.com

13. • Top 10 brands account for 66% of
chained FSR value sales
• Growth was lesser as compared to pre-
2009
• Increased variety of menu items led to a
healthy sales growth in 2010
• Increased significance of outlet growth
for traditional brands like Mainland
China and Rajdhani
• Increased significance of premium offers
like “double cheese burst” for brands like
Domino’s
www.euromonitor.com
www.euromonitor.com

15. • Year 2010 saw street stalls/kiosks
record the highest year-on-year
growth of any other year
• Due to inflationary pressures,
operators increased prices
• As a result, spend per transaction
went up by 16% thus raising value
growth to 27%
• Chained players account for less
than 1% of overall value sales
• No clear leader amongst existing
chains
www.euromonitor.com

16. • Regional brands in specific parts of
the country are responsible for
74% of value sales
• The Ministry of Food Processing
Industries has announced plans to
launch scheme to plan and
upgrade the quality of street food
• Huge scope for more chained
players who can leverage the low
investment requirements
www.euromonitor.com

18. • Major Players
– Amalgamated Bean Coffee Trading Company
Limited (ABCTCL) – Café Coffee Day and Coffee
Day Xpress
– Barista
– Java Green
– Costa Coffee
www.euromonitor.com

19. VALUE SALES
• ABCTCL accounted for
36% of chained ABCTCL OTHERS
Café’s/Bars value sales
ABCTCL
36%
• 18% increase in OTHERS
64%
number of chained
outlets
• Chained Café’s/Bars
account for 96% of
overall value sales
www.euromonitor.com

21. • Major Players:
– McDonald’s
– KFC
– Subway
– Baskin Robbins
www.euromonitor.com

22. Value Sales
McDonald's KFC Others
35%
48%
17%
www.euromonitor.com

23. • Fastest growing of all consumer
food service categories at 33%
• Baskin Robbins is a leader in
terms of number of outlets
with 23% of all chained fast
food outlets
• Growth of FF in India is hugely
dependent on the improved
network of cold storage and
logistics network
www.euromonitor.com

25. • No evident brands within this category in India
• Brands like Planet Yumm and Food Union
often comprised branded outlets for fast food
and full service restaurant chains but do not
have outlets belonging to the overall brand
• With chained format of street
stalls/kiosks, fast food, and full-service
restaurants this foodservice type is not
expected to see appreciable growth over the
forecast period
www.euromonitor.com

27. • Major Players
– Domino’s
– Pizza Hut
– Pizza Corner
– US Pizza
– Smokin Joe’s
www.euromonitor.com

28. • Competitive Landscape
Value Sales Distribution
Domino's and Pizza Hut Other's
24%
76%
www.euromonitor.com

29. • Café du Bagne established in 1885 by
Maxime Lisbonne celebrated the
revolutionary Paris Commune of 1871
• The earliest print reference we find for
Chinese food delivery is from the Kin-
Chu Café, Los Angeles, 1920s.
• First pizza delivery was by Casa
D'Amore, in the 1950s
www.foodtimeline.org

30. • While evidence suggests some
mixed dining happened as early as
the 18th century, this practice was
not fashionable until the late
19th/early 20th century.
• Long before it was fashionable for
men and women to be seen dining
in public together, they dined "out"
in private rooms. Fine restaurants
and hotels established separate
dining rooms for ladies. Tea
rooms, ice cream parlors and
department store restaurants
catered exclusively to female
clientele.
www.foodtimeline.org

31. • The world's first
revolving restaurant, La
Ronde, opened atop
Hawaii's Ala Moana
building in 1961
• The visionary architect
was John Graham.
www.foodtimeline.org

32. • Menu’s came into existence in the
1770’s
• From the early 1770s, at the
latest, the use in restaurants of a
printed menu, or carte, that allowed
each customer to choose his or her
own restoratives marked another
distinctive innovation in service.
Before the emergence of the
restaurant, a menu had always been
a list of all those foods to be served
during a particular meal (as at a
banquet today).
www.foodtimeline.org

33. • In-n-Out Burger built the
first drive-through
restaurant in 1948
• Although the concept of
the “drive-through” has
been around since the
1930’s, In-n-Out was the
first to apply this concept
to restaurants
www.foodtimeline.org

34. Ithaa – The First Underwater Restaurant
• Ithaa, which means mother of pearl in Dhivehi, is
a mostly acrylic undersea restaurant secured five
metres below sea level at the Conrad Maldives
Rangali Island in Rangalifinolhu, Maldives
• It started its business on November 19, 2004

35. Price Service
Cuisine Authentic
Ambience Location
Variety Crowd
Parking/Valet Quality
Quantity Waiting Period
Veg / Non Veg Reservations
Alcohol Size of Family
Happy Hours Timing
Taste

36. Group of
Friends
Health
Couples
Conscious
Party’s Individuals
End
User’s
Corporates Family
Multiple
Travellers
Families

37. • Theme’s
• Menu’s
• Hoardings Near Location
• PR Company
– SMS’s
– Social Media Marketing
– Launch Party
– Pamphlets
• Cable TV Ad’s

38. • Justdial
• Review Sites
• Online Booking Sites
• College Festivals
• Kitty Parties
• Newspaper Agencies
• Name Hoarding
• Festivals
• Brand Promotions

39. Item Order Frequency Credit Period Suppliers
Mayakka Vegetables
Manohar Vegetables
Vegetables Daily 10 Days LT Jeswal Vegetables
A P Mani & Sons Veg &
Fruits Pvt Ltd
Balaji Central Store
Groceries Once a Week 7 Days Agarwal Taders
Vijay Enterprises
TJ UK
Canned Food & Syrups Once a Month 1 Month
Shanti Sales
Milk and Paneer Daily 3-4 Days Gupta Milk Centre
Cheese and Butter Once a Week 0 Days Ganesh Agency
Spices Once a Week 7 Days Vishram Spices India
Pepsi Co.
Soft Beverages Daily 0 Days
Coca Cola Co.
Alcohol 10-15 Days 30-40 Days
Respective Companies

40. • Housekeeping Products
– 6 Months Stock
– On Spot Payment
• Takeaway Bags, Containers, Valet Tags, etc.
– 3-6 Months Stock
– On Spot Payment

41. • Hari Om Kitchen Equipment (Others)
• SK Engineering (Continental)
• Galaxy Gas Equipment (South Indian)

42. Particulars Amount (Rs.) Percentages
Raw Material 8,00,000 32
Human Resources 3,00,000 12
Rent 4,00,000 16
Utilities 1,00,000 4
Franchise Fees (10%) 2,50,000 10
Staff Food 1,00,000 4
Miscellaneous 1,50,000 6
Profit 4,00,000 16
Sales 25,00,000 100

43. • Shops & Establishment Certificate
• BMC Health License (to serve food)
• BMC Health License (to serve Liquor)
• Maharashtra Prevention of Food Adulteration Act
License under Food and Drug control Act, Govt. of
India
• Grading Certificate (I,II and III)
• Chapra or Board License of BMC under Health
Department
• Medical/Health Certificate of the Kitchen Staff on
yearly basis (specially of food handlers & waiters)
AHAR Suppliers Guide

44. • Permission from Electric Supply Companies to
operate heavy machine like Air-
Conditioners, Cooling Plant, M/C, Grinding
M/C etc.
• Police Registration Certificate
• Water Connection Certificate as per Grade.
• Neon-Sign Board Or Glow Sign Board License-
provided it carries any advertisement
• Maharashtra State’s Weights & Measurement
Department Certificate and its approval every
year AHAR Suppliers Guide

45. • BMC-Rationing Permission to obtain food
grains like Rava, Maida, Atta, Rice, Sugar etc.
• ESIC Certificate for the shop employing more
than ten staff members under Govt. of India
• Provident Fund Registration if number of
employees is more than twenty.
• Maintenance of Register of working staff on
daily basis and temporary basis for the
inspection.
AHAR Suppliers Guide

46. • Professional Tax Certificate of Employees
• Professional Tax Certificate for Employer.
Certificate of Registration under Sub Sec. 1 of Sec
5 MAH/L Tax on Profession, Trade and
Employment Act, 1975
• Drainage Inspection Certificate once in two years
• Pollution Clearance Certificate
• Grinding Stone Or Heavy Machine operating
permission from BMC
AHAR Suppliers Guide

47. • Permission to operate more than two cylinder
of gas at a time from BMC, Health Department
• Permission & Certificate from CFO from fire
department to operate more than two gas
cylinders in hotel premises
• Insurance of entire shop (Hotel) against
natural calamities, fire, theft, robbery or any
other damages (Not mandatory but advisable)
• Maintenance of Payment Register as per
Bonus Act A & B 1965
AHAR Suppliers Guide

48. • License to keep place of Public Entertainment-by
Bombay Police Act, 1951
• Sales Tax Registration Certificate under Bombay
Sales Tax under Sec. 22/22A-1059
• The performing Rights Society Ltd., Govt. of India
• PPL (Phonographic Performance License) for
sound recorded music, Royalty to the singer etc
• Nokarnama of each Employee’s Certificate with
photograph
AHAR Suppliers Guide

49. For Permit Rooms:
• Entertainment Tax Certificate and approval from
Collector’s Department, Mumbai on Dance / Permit
Room conducting dance
• State Excise and Prohibition License for Permit
Room Renewal every year
• Monthly Statement of Excise Log Book-Form FLR-4
• Excise Officer’s Visit Book to be endorsed on
monthly basis.
• Customer’s Drinking Permit-As per Rule (FLX-C) Rule
70-D AHAR Suppliers Guide

53. Segmentation
Matrix

56. • Insights, Need Gaps and Trends

57. • Private rooms and tables in restaurants
• Waiting in the lobby is one of the most sighted
pain points
• Cleanliness is another major issue sighted by
people
• Availability of medicines in restaurants in menu
cards. Huge number of BP and heart patients
need to take medicines after or before a meal

58. • Childcare and Playpens
• Drivers/Car Services to drop people home
• Pick up and drop services
• Drunk Bus – Canadian concept (Bar on Wheels)
• Car Wash/Car Repair – Dinner while your car is
being washed or repaired
• 24 hour coffee shop with car
wash
• Special Offerings for Specific
Diseases

59. • 24 hour restaurants
• Restaurants which allows pets
• Mobile apps to check waiting time, reserving
tables, ordering food in advance
• Interactive Menus on tablets which also lets you
see how your food is being cooked via cameras in
the kitchen
• Menus should show
pictures of every dish
• Live Kitchen and
Customization (Wok it Up)
• Dish Tasters

60. • Workshops on finer cooking skills (Vicky Ratnani
at Aurus)
• Flexible Portions (Single
Person, Couple, Groups, etc.)
• Special Dinner Packages – Couples
(Ambience, Aroma, Flowers, Champagne), Surpris
e Parties
• Games to help people pass time while waiting for
their orders (Bombay Blues)
• Time taken to bring food on the table should be
sighted and if not adhered to, free food

61. • Don’t give us feedback forms, listen to us!
• Fire Wood Pizza
• Happy Hours
• Regular themes and events
• Online table reservations
• Restaurant memberships

62. • Beyond bricks-and-mortar
• Newer Cuisines
• Slow it down
• Booze Boutique
• Alcohol – Food Pairings
• Portion Size Offerings
• Celebrity Chefs

63. • Smartphone apps for consumers (e.g.
ordering, menus)
• Tablet computers for menus and wine lists
• Social media for marketing/loyalty programs
• Mobile-wireless/at-the-table payment options
• Smartphone apps for chefs/restaurateurs (e.g.
recipes, measurement converters)
• QR codes on menus, marketing, etc.
• Wireless payements