Judging by the Luckin Coffee case study and other developments post pandemic in India, building a QSR is a game of patience. Thankfully, in one of its reports, ICICI Securities said, “Outlook on growth and margins remains attractive for the QSR sector, unlike the rest of the consumption space, where uncertainty reigns.” Sapphire Foods RHP, owner of KFC and Pizza Hut has reported that each person in India spent only USD122 on food services in CY19. This is much less than the USD2,239 spent per person in the US, and the USD684 spent per person in China. An analyst at Edelweiss wrote in particular about Westlife, but applicable to all, “ we think a more efficient supply chain and a better mix of products would help it improve its margin profile and return ratios even more.”
Tarun Anand, the Chairman of Universal Business School who published the Luckin Coffee report says, “The case study comes at an important time when QSRs are re-assessing themselves in India. It is a significant piece of documentation that can serve as a guiding light to QSR companies in the future.”