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Fancy street food & quick service restaurants among new HoReCA trends
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Saturday, 25 May, 2019, 15 : 00 PM [IST]
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Adarsh Jain
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India is a giant patchwork of cuisines and culture. India’s food service industry is a conundrum of disorganised cafes, peppered with new hotel chains and established giants entering the scene. A big change is on the horizon for the country’s hotel/restaurant/café (HoReCa) segment of the food service industry. Standardised operations are finding roots into this space, primarily driven by the growing urbanisation. The emergence of new styles of how food is being served is contributing to the industry’s revenue in India.
The food service industry is largely segmented into quick service restaurants, fine dining, casual and so on. These classifications are a direct result of the changes in consumer behaviour and demand. Each of these classifications have a different set of operational processes, pace, and service design. A chain of hotels is not limited to the fine dining or five-star segments, but are quickly working their way in cafes, boutique hotels, and quick service restaurants. The HoReCa segment forms a key part of the food service industry, and India is witnessing transformational growth in this sector.
Here are seven quick nibbles that are adding some flavour to the HoReCa segment:
Fancy Street Food
Picture this. A central kitchen, bright colours, bold menus, multiple kiosks and branding! Such places are reinventing the concept of street food like nothing else. The entry of new age entrepreneurs is sprucing up street food, creating a fresh trend. While serving Western and Eastern world cuisine is still big, fancied up versions of Indian dishes are on the menu too. Twist in the traditional dishes to tantalise customer’s taste buds is the new norm in India’s HoReCa segment.
Quick Service Restaurants
The concept of quick service restaurants (QSRs), while not new to India, is currently undergoing transformation. The segment is stepping into the digital era using electronic menu cards, kiosks, point of sales, and signage systems. QSRs will play a big role in the HoReCa industry in India in the coming years. A TMR report on the global QSR IT market ascribes India and China to be key market players, making Asia-Pacific the fastest growing region.
Small Plates
Restaurants and cafes are adopting the concept of small plates extensively. Not only do small plates offer variety, but are also a great way for budding chefs to showcase their skills. Traditional dining experiences are declining with the entry of concepts such as small plates/large plates, that consumers are welcoming this move with open arms.
Asian Flavours
Asia is home to a number of cuisines, and India is swiftly opening up to these flavours along with the world. The popularity of Asian food is growing in America, and as Indian HoReCa’s tend to ape the West, Asian flavours are finding their way into our menus. Eastern dishes such as the Sushi, Thai cuisine, Burmese, Vietnamese and Korean are making it big in the Indian HoReCa industry. Pan-Asian is the keyword here, with Chinese and Indian Chinese slowly exiting the hype. A lot of influence of unorthodox Oriental cuisine is being seen in the Indian HoReCa sector, and is widely gaining acceptance in the country.
Delivery-Only Kitchens
With the Food Safety and Standards Authority of India (FSSAI) issuing mandates for delivery startups, it is evident that the food delivery market is turning tides in India. The mandate includes provisions for food safety, quality checks, hygiene grading and more. Delivery only kitchens are present in large numbers, especially in urban areas, due to growing popularity of food delivery applications. These setups have no in-house dining options, and simply serve to deliver food through food delivery platforms. This saves investments and minimises business risk, leaving more room for profits. The Indian HoReCa industry stands to benefit from these vendors that are competing hard to win the consumer’s attention by offering attractive sales, free deliveries, and wide discounts.
Organic Food
While the concept of organic food is not new, this segment will be boosted by the government’s initiatives to promote organic farming.
The Paramparagat Krishi Vikas Yojana (PKVY) enables 5 lakh farmers and 2 lakh hectare land suitable for organic farming. The progress in the country’s supply chain management resources will further act as an impetus to this segment. Moreover, a report from the Indian Brand Equity Foundation earmarks 2020 to witness three times growth in the organic food sector. It is thus safe to say that combined with country’s increasingly health- conscious population, organic food is here to stay in the HoReCa segment.
Unique Food Packaging
Food packaging is being revolutionised across the globe. Among the leading trends in food packaging across the globe, personalisation is gaining traction in India. Big brands such as Coca-Cola are making bold use of graphics, language, and colours. This creates a lasting impression in the minds of consumers. Playful patterns, bright hues, bold typography are big in the food packaging business. Hotels and restaurant chains are not far behind in catching up with this trend. A good example of personalisation or customisation for the Indian market, McDonald’s meal boxes are those that can be carried easily on bikes. The firm, recognising how a large population in India uses motorcycles as mode of transportation, creates a unique selling point by these easy to carry packaging options.
The booming population in India comprises a large millennial population and will be dominated by the generation Z in coming years. Consumers from both these pools are driven by their disposable incomes, high standards of living, health-consciousness, and demand for a luxurious lifestyle. High spending on food, beverages, alcohol, and convenience is the norm. With these trends on the horizon, the Indian HoReCa segment stands to face a number of changes. One can guess that the food service industry in India is a point at which it is ready to absorb big trends and changes.
(The author is from Transparency Market Research. He can be reached at adarsh@tmr.com.)
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