Can ethnic fast-food chains challenge McDonald's & KFC's

Everything that is considered old becomes a new fad sooner or later! We are fed up of watching same ol' faces at Macs, Pizzas Huts, with all those fat people trying to fit into oh-so-small clothes. Our dietary habits are very different than what western marketing managers would like us to believe. Infact, during our road-shows to popularize Sorghum or Jowar, the response we received was so overwhelming (ah, not being modest here!) that we ran out of stock. There are people who still want to get back to their old eating habits and adopt new recipe for Jowar. The only problem is do we have people to "market" it like MNC does. We are all suckers of ethnic food; the only problem that its not accessible, clean or well-maintained. For Reference: www.jingojowar.com

Well, we have just started having restaurant chains. Most of these are just a few years old and the others are, in the real sense, about 10 to 12 years old.

Food Chains in South :

Consider old chains like “Saravana Bhavan” or “Sangeetha’s” or “Hot Chips” in Chennai and “Adigas”, etc., in Bangalore. These are doing great business. You would never find such crowd in any of the MNC joints.

Consistency of Food Taste & Technology :

As far as Consistency Food Taste and Technology is concerned again take the case of Saravana Bhavan. Its Coffee or Sambar or Vada or any of the other 100s of dishes in its menu taste the same in any of its multiple branches. This is because of the modern equipments and the food and quality standards that they have set up.

Of course many of these chains have to incorporate modern technology and the others have to constantly upgrade the technology in order to run the race.

Management :

Almost all these food chains need to do more as far as going professional. They have to come out of the family mould.

Many are surprised at the continued success of Saravana Bhavan despite of its owner right now cooling his heel in the prison serving life term for murder. One thought that the chain might disintegrate, but is being managed well by his sons. One of the secret for this is its excellent people management. All its staff right from the top to the bottom are taken good care of and treated well. Good HR practices.

Once these chains start putting through professionals in all areas of its operations, then the expansion can be handled well and these can even go to western countries and give the MNC Food Chains a run for its money.

Food Taste :

We do have the capacity to adapt to the different taste pattern across the country. A south Indian would say “Yuk” the sambar served in Delhi and a Punjabi would say the same at the Chole served in Chennai. This is because the Sambar served in Delhi is made to suit the taste buds (with garam masala in it) of the Delhiwala and the Chole to suit the Chennaites. A Bengali Babu would want to jump of the train if he tastes “Masala Moody” in Chennai. When we can do this within our country then we can do it abroad too. If a south Indian chain sets up shop in far east the chances are that there we may have “Noodle” sambar (tasting like a Chinese dish with ajinomoto) and vada cooked in Pork fat. Idlis may taste like pasta in Italy and so on.

These companies need to have a good food research and development set up who would do market research and then develop new dishes.

The Global Indian :

Move aside Chinese joints, the Indian restaurants are here. If the last century was for the Chinese Restaurants this is for the Indian food chains. Yes, we have a population of around 1.2 or 1.3 billion. Now most are youngsters and in another 40 to 50 years about 1/3^rd of the world population would be Indians, and that too spread across the world. Hence isn’t it logical that many of our Indian food chains expand across the globe to cater to these guys.

Of course, there is another point to consider…. i.e. Currently these (Indian) chains are doing business in India where as none (read almost none in numbers) are present in US or any other country. But is the future we may have more of these joints around the world compared to the MNC’s.

Chandan your correct the Indian tongue is used to spices and no other taste will satisfy them. Thank you, have stated a good example. I agree with you. 

Cheers !!!!!

Today the trend is to go for the traditional. This is in fact replacing the craze for the western. To help the traditional get  its due, the government should formulate necessary policies, proving right incentives and directions.

Hi, Namrata,

I completely agree with you that today home grown food chains started by entrepreneurs are really giving the international food chains a run for their money.

I would attribute it to the taste preferences of Indians which only an Indian can understand and cater to.

The western food is bland whereas we Indians prefer spicy foods.

Our country is diverse not only culturally but also in preparing and having food, we are the united states of India in which each state can be perceived as a country by itself - and in these states there are linguistic differences and taste preferences - like a gujarati language spoken in Rajkot is different, gujarati spoken in Kutch is different - same way each of these regions in Gujarat have their own way of preparing cuisines.

A bhaji pav in Mumbai is different, in Ahmedabad its different and in Surat its different. These cuisines have been adapted based on the taste preferences of that particular city or region.

When kellogs wanted to change the breakfast habit of Indians it could not succeed - it will have to wait for the currrent young generation to grow to get into a kellogs habit.

Lastly I would like to end by saying an Indian where ever he is in this world will always crave and cherish ethnic Indian food - strange we are adapting to western food - where as people in the west cherish Indian food.

If you juxtapose the gross revenues of MNC Junk Food Majors, against those of the local variety of 'Swagruha', 'hot-chips', 'Haldirams' 'Bambino' 'Vikyano'  and a hundred other local brands - which are available at every nook & cranny of every town, in India - you will find the former's combined incomes are far less than those of the latter.

Ethnic fast food chains will have their say as far as India is concerned.

Dear Namrata,

Surely it can and is actually happening, the only difference being it is not under one brand or umbrella. Myopic vision to growth and development, lack of process improvement and stunted use of technology are some of the factors responsible for it to, not happen. Even today most quality tools and equipment are being imported is a pointer. Lack of quality management factors missing from raw material and other resources is as well an indication. Another stumbling block is total lack of support & respect for our own practices and even innovators. Professional progress completely misses research and development  for want of industry support, cooperation and guidance and so on.  It is surely possible yet if, when and how it will happen is the big question. 

McD, KFC and other are a huge exercise in Logistics, our dabbawallas have been able to create their own with a very low rate of failure. It is a matter of time that some local  fast food company figures it out.

Unless these MNC recruit Indian cooks and the management to be done in Indian culture/taste rather then forcing their pallette!!! they do not stand any chance.

Ex ;If you look at the pasta introduced by ITC is a big hit rather then any other MNC brands .

(It is very simple that Indian tongue is been used to Spices, hence ITC has been able to cater ranges like Masala which is for typical Indian taste.

I suppose the bland taste (which sells in UK/US) which these MNC offer in Indian turf need to be relooked ).

Unless these MNC recruit Indian cooks and the management to be done in Indian culture/taste rather then forcing their pallette!!! they do not stand any chance.

Ex ;If you look at the pasta introduced by ITC is a big hit rather then any other MNC brands .

(It is very simple that Indian tongue is been used to Spices, hence ITC has been able to cater ranges like Masala which is for typical Indian taste.

I suppose the bland taste (which sells in UK/US) which these MNC offer in Indian turf need to be relooked ).

It is a question I have thought about for many years now with my friends and others.

Yes it may take a long time from now, maybe 50 years or more.

I have to add 3 of my personal views which you are likely to disagree with me.

Very little or small budget for Advertisements for Asian Companies such as Media, Newspapers, leaflets and etc as compared to the big boys. The Big Boys are prepared to spend on advertisement knowing that for every penny spent they will get 10 or more times the amount back in terms of profit. Asians generally fail to see that and generally avoid as much as possible budget for advertisement. Asians generally lack the marketing skills as they are constrained by little or practically no budget for advertisement.

Asians generally fail to see the long term prospects and success of the company. They want immediate results in a matter of days/months not decades.

Disputes among board of directors within the company or JV partners  or mergers and etc. Most of them want to voice their views and insist on their opinion is the best and only path to take. They have not learnt to adapt and get use to working as a small team and a bigger team for ultimate result that will benefit all not only now for future generation to come. Time may change but it is going to take a very long time.

Unfortunately, I may not get to see this when the time comes.

Regards

Mr Koh

Singapore

kohhuhong @ yahoo.com.sg

Agree with you

No dear, though our consumption GDP and per cap exp. has increased extensively, we Indians dont pay for organized structure in food.

we merely pay for taste and taste ...................