…the fine and
casual dining sector – currently estimated to be around Rs 3,000 crore –
has customers eating out of its hands…. With all the big players gung-ho on expansion, fine and casual dining is expected to touch Rs 10,000 crore by 2015.
…Restaurants come in two broad formats – the fine or casual dining
chains, and the quick service ones. The fine and casual dining formats
are essentially the same, varying only in prices charged: thus
restaurants such as those which are part of the Taj Hotels would be
classified as ‘fine dining’ ones, while the likes of Mainland China and
Spaghetti Kitchen fall in the casual dining category.The
economics of the quick service restaurants (QSRS) are very different.
The success of the latter – such as McDonald’s, Domino’s or Pizza Hut –
is apparent; indeed, Jubilant FoodWorks, which holds the franchise for
Domino’s, also listed successfully on the stock market in 2010. QSRS
have a central kitchen and standardised fare, operate on lower margins
but make up on scale, since the cost of setting up outlets is
comparatively low. Fine and casual dining restaurants are the
ones which have elaborate menus and take pains over garnishing and
quality of service, usually serving liquor as well. They are much more
capital intensive, with each new restaurant costing between Rs 1 crore
and Rs 3 crore…”Typically operating profit margin in the fine dining space range
between 25 and 40 per cent, while in the quick service category it is
between 15 and 25 per cent,” says Lite Bite Foods’s Burman.
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