At the Opportunity Summit, 2018, session moderator Karan Tanna, Founder & CEO, Yellow Tie Hospitality throws open the session by mentioning these 3 trends that can be noticed in the F&B sector--- Delivery, Rise of Regional food, and the niche market of Health food.
Delivery market:
Speaking from the point of view of restaurant experience, the speakers in the House unanimously agreed that the delivery business fails to deliver the restaurant experience at the customers’ doorstep. Joel Silverstein, CEO, East West Hospitality, comments, “Because of digitalization of info, delivery business is booming. The only problem with delivery is that nobody makes any money. The delivery concept itself makes no money.”
Rasesh Seth, Partner- The Archadin Group and Country Head- Surf N Fries, India explains the point further mentioning, “India in the next few years will be a delivery market of 60-70%. But, packaging plays a huge role in the delivery business. By the time it reaches homes it’s hopeless.” Thereby, failing miserably to deliver the food experience of the restaurant bringing it a bad name.
Tweaking your business model:
India is a diverse country, not only in terms of geography but also palette-wise. Rasesh Seth explains, “No international brand can come into India with their original cuisine. They will have to tweak it accordingly. India is diverse. Flexibility and innovation are the keys and this requires upgradation every 3 to 6 months. Given the population, there is a huge market ahead.”
Why are global brands ahead of regional ones?
There are many reasons for the global brands being ahead, technological advancement and a crisp menu to be named a few. Silverstein says, “It is difficult to compete in international markets and to make a name, you have to be viral in the social media.”
Anand Thakkar, Chairman & Managing Director, Legends of Punjab, puts forward, “I would love to take up their culture once I establish a restaurant there. People love change and keeping a crisp menu is the key which India cannot have.”
Key takeaways:
Rasesh Seth's advice, “Make sure that your brand is scalable and affordable. The people you work with matters and it is easier to work with like-minded people.” Joel Silverstein adds that innovation is a constant, for “The bigger the chain the lesser the innovation.” He also adds, "Do the due diligence on the partner. Make sure the partner is well capitalized and ethical, paying bills on time.”
Anand Thakkar opines, “People open restaurants without making it thematic. Customers nowadays want experience instead of keeping them engaged in their phones. We keep a crisp menu and work hard towards our presentation and plating.”
