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Rediff.com  » Business » Indian restaurants' cup of woes

Indian restaurants' cup of woes

Source: PTI
September 03, 2004 15:04 IST
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Indian taste buds are demanding more and restaurant industry -- one of the most people intensive industry is gearing up to cater to the rising expectations of food lovers.

But, 'yo-yoing' loyalty of customers from one eat-out to another coupled with recruitment challenges, changing customer relationship concepts, and compulsions for diversified services are giving people in the industry a run for their money.

"Customers are more discerning and demanding. And they always want to experiment with the money they spend. They look for new endeavours and experiences and it has become a challenge to keep them stuck to a particular eat-out," Samir Kuckreja, Manager-Business Development of Yum! Restaurants International says.

Earlier, those Indians who frequented eat-outs had a particular liking to some place, he adds.

And also there lies the challenge in other fronts, on the quality question and pricing.

As star hoteliers with their exquisite and diversified menu and low price attract clients and the roadside dhaabas improving their ambience and quality in service to woo the customers, restaurant industry is facing stiff competition.

"There is fierce competition within the industry and from outside and we perceive it as positive as it provides the customers quality and variety at a low price," industry insiders say.

People love to have cuisines from outside the country, but they prefer to get it cheaply, they add.

With rapidly shifting loyalties, Kuckreja says customers who are ready to experiment look for variety and do not have any specific likes or dislikes.

The post 1990 period saw many international food-chains entering the country as it developed into a potential market for restaurant industry.

Coffee chains came in, pizza outlets were opened in nooks and corners of the country, and with the success of coffee bars, some big names are planning to open tea bars in the country in the near future.

"The customer preferences have changed a lot. They know there are many things to try and they do not hesitate to demand what they want," Sunil Malhotra, President, National Restaurant Association of India, says.

Eating-out has become more of a convenience rather than a fashion and now-a-days it has become a routine in the weekend, Samir points to the new trend. Also, with no domestic help in the house, most people in the city prefer to eat out, he says.

And what made Indians who always loved to cook food at home prefer food from outside?

Samir points out to the 'time factor' saying with the 'fast life' people find less free time that prompts them to look for an eat-out.

"Socio-economic changes in the country changed the attitude of middle class. They expect a lot of choice and if we want to survive we have to cater to it," Pradeep says.

Samir supports Pradeep adding that with the double income families in the post 1990 period increased the purchasing power of the Indian middle class, allowing themselves to go for anything they 'dream.'

While 'Generation Next' prefers fast food, old people who also frequent these places but prefer traditional food, he says, adding one has to cater to distinctive tastes to stay on.

Malhotra says frequent travels of Indian professionals and visual media promoted the habit of eating out and now a days children who are lured by advertisements are pushing parents to go out for food.

Developing trends demanded diversified customer services and restaurants have began to do delivery services.

"If some one comes to the outlet, he may come there for only a change. But delivery services means some thing different. It is specifically need-based," Malhotra says.

It checks the efficiency of the service provider as people demand faster delivery, Malhotra says.

Many big names in the international arena are keen to tie up with Indian restaurants which show the tremendous confidence it gained, he adds.

It shows the inherent strength of Indian industry, Samir sums up.

Though with 'practically no encouragement from government' as NRAI office bearers put it, restaurant industry has come of age, diversifying their services and trying to cater to the Indian taste buds and staying in the competitive arena amongst international giants.

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