Fast Food Industry (India And China)
Consumer foodservice witnesses another year of robust growth
Consumer foodservice value sales grew at a strong 14% in India during 2006, second only to that of Vietnam and Indonesia. A robust economy which put more money in the hands of consumers and leading to growing disposable income, increases in the number of working women, and the convenience offered by these outlets all contributed to growth in 2006. Most consumer foodservice outlets have introduced delivery services as well and this has also helped value sales to grow. Catering to the bottom end of the income pyramid, street stalls/kiosks is the most common type of consumer foodservice outlet in India, followed by the ubiquitous full-service restaurants.
Indians lap up fast food as the rest of the world shuns it
Witnessing value growth of over 20% in 2006, India saw the most dynamic growth within fast food in Asia Pacific during 2006, with most other countries witnessing single-digit growth. Increased availability, novelty in terms of products and offerings, and convenience were all factors driving fast food growth in India during 2006. Brands such as McDonald’s and KFC are seen as family venues in India and most Indians attach aspiration value to them. With such outlets in their infancy and given the absence of any significant campaigns connecting ill-health and fast food, growth remains strong for this sector in India.
McDonald’s expands operations and holds the lead
McDonald’s remained the leading consumer foodservice player in 2006 with a 13% share of total chained consumer foodservice value sales. The company has built its growth over the review period on a host of measures including a strong supply chain, tailoring the menu and products to the local taste and pricing its products appropriately. In 2006, McDonald’s also expanded into South India by opening outlets in Bangalore and Hyderabad, for a total of 21 new outlets added nationwide during that year. Amalgamated...
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