Analysing Competition in the Quick Service Restaurant Industry

Abstract

The food and beverage industry is a thriving sector in the Indian market. Quick Service Resteraunts constitute a important part of this sector. Fast food restaurants feature a common menu above the counter; they provide no wait staff; and customers typically pay before eating and choose and clear their own tables. These restaurants are also known as quick serve restaurants (QSRs). They emphasize on speed of service, low cost and convenience. Also they can have a take away and/or home delivery format.

Since the Quick-Service Industry is a cutthroat business where profits are slim and competition is high, ‘staying on top’ is a daily struggle. The Quick-Service Restaurant industry is a multi-billion dollar global industry that consists of multiple and diverse players in a market that shows no signs of tapering off. Success in this type of business comes from the simple model of offering remarkable customer service bundled with a great tasting product. Industry leaders use strategic methods and tactics like differentiation, separating their products from the competition, to cost-leadership, becoming the lowest cost producer, to a focused target, where a firm tailors there product to specific customers, to a combination off all three. Yet, standing out or even staying relevant in this industry is an extremely difficult task. Companies must maintain their strong standardized organizational design in order to make a profit through high volume while realizing and accepting the fact that the QSR Industry is one of the fastest evolving industries in the world.

Keywords: Competition Law, food service, Quick Service Restaurant