Trends and shifts in the F&B industry

India’s food and beverage industry remains a vibrant and thriving opportunity, thanks to the country’s growing middle class that is spending and increasing frequency of eating out or ordering in. Despite the challenges faced during the pandemic, the industry has managed to pivot and adapt to an unprecedented environment, catering to the changing needs of customers and remaining well positioned to capitalise on the opportunities and shifts that a post pandemic world would see.  

Experiential and City-Side Dining: As city centres and neighbourhoods continue to develop and rentals come down to normal, there will continue to be a rise in concept restaurants focused on a 360-degree experience taking into consideration all touchpoints, right from the décor, food, drinks and service to the overall vibe or sense of place. Combined with experiential and collaborative marketing tactics, high street restaurants will continue to outperform hotel restaurants due to a higher degree of innovation and focus on brand experience, based on what customers are looking for nowadays.  

Catering Innovation: The catering industry has taken a step ahead by spearheading food and menu innovation. We have seen restaurants as well as specialist catering brands partner with hotels in order to create unique dining experiences and boost F&B revenues for the hotel. There is also a move away from standard food menus that feature time-tested dishes. The focus today is on hyper-local culinary experiences that focus on bringing forward regional flavours in a modern avatar.  

Power of Brand India: Over the past decade, there has been an increased focus on going back to our roots and revisiting ingredients that featured in traditional Indian kitchens. India’s culinary map is rich in diversity. This shift in preferences will ensure that the demand for local and regional foods and ingredients will soar in the years to come and will pave the way for collaborations with local small businesses strengthening the power of brand India.  

Delivery in 20 is the new 30: A decade ago, pizza and Chinese food restaurants were the only ones who promised quick delivery. However, with the advent of food aggregator apps and fierce competition, rapid food delivery within a 20-minute window will become the new norm. The 20-minute window fits the bill when it comes to delivering good quality cooked meals, therefore, we feel that in the years to come, 20 minutes will replace the 30-minute benchmark for delivering food to customers' homes. Brands that adapt to this trend will be successful in building high market share while keeping in mind the safety of delivery riders.  

Democratisation of technology: One of the important factors reshaping the food outlet business is the democratisation of technological access to a small or medium-sized restaurant operator. Earlier, order direct tech, CRM software, integrated POS and MMS software were considered to be out of reach for a single restaurant. However, now, thanks to the cost of technology going down through SaaS models, restaurants can afford a variety of digital tools that can help restaurant managers run their outlets. Right from top quality tech stacks for delivery, marketing, ordering and billing to QR code-based menus and online payments, technology will revolutionise the F&B industry.  

The coming years will be the best yet for the industry, and the players who remain focused on understanding the shifts, while delivering a high-quality consistent product will become the leaders of tomorrow in this thriving industry. 

Karan Kapur

Guest Author The author is Executive Director, K Hospitality Corp.