Founder at Bogmalo Foods & Hospitality LLP | Uncle Peter's Pancakes | Seen on Shark Tank India S3
📢 India's Tier-II cities are fueling a massive ₹1000K cr growth in food industry (with QSRs leading)📢 Annual spends on QSRs in Tier-II & Tier-III cities are skyrocketing by 150%, because people have good money but no good options to spend there. 3 steps to grow in Tier-II as a QSR chain 👇 1️⃣ Leverage Both Delivery And Dining Tier-II population is looking for both world-class dining and excellent delivery. Focus on delivering world-class dine-in and expand delivery through apps like Zomato & Swiggy. 2️⃣ Embrace Technology QSR chains can optimize their operations in Tier II cities by utilizing technology like data analytics, automated order management, routing algorithms and having a solid digital presence to collect feedback. 3️⃣ Localizing Menu Offerings To appeal to the evolving tastes of Tier II consumers, QSRs should focus on localizing menus while maintaining brand essence. This approach caters to the growing appetite for diverse and quality food options. Moreover, there are multiple benefits of growing into Tier II Cities 👇 ➡️Opportunity To Ride The Wave The Indian QSR market is expected to grow at a rate of 20-25% in coming years, and Tier-II fuels most of this growth. ➡️ Evolving Consumer Base A younger population in these cities, influenced by the work-from-home trend, is increasingly seeking global food options. ➡️ Rising Affluence Increased disposable income and changing lifestyles have created a strong market for QSRs in Tier II cities. ➡️ Lower Operational Costs Expanding into Tier II cities offers significant cost advantages, particularly in terms of lower rent and operational expenses compared to metro cities. ➡️ First-Mover Advantage As infrastructure improves in Tier II cities, QSR chains who establish presence early can benefit from being the first to offer high-quality food to these consumers. But there are also a few challenges expanding to Tier II Cities a) Infrastructure Limitations Tier II cities often lack robust infrastructure, leading to issues such as: - Poor road conditions - Unreliable power grids - Limited access to cold storage facilities b) Logistics Hurdles: Delivery delays, spoilage of perishable goods, and higher transportation costs are common challenges. Established logistics companies may have limited reach or higher costs in these areas. c) Skilled Personnel Shortage: Ensuring quality and food safety protocols can be difficult due to limited access to skilled professionals at all levels. By carefully capitalizing on the benefits and addressing the challenges, homegrown Indian QSR chains can successfully expand to Tier II cities and grow their revenues. — P.S. If you are interested in franchise opportunities for Uncle Peter's Pancakes shoot us an email at franchise@bogmalofoods.com. We’ve grown to 50+ outlets PAN India.