Gone are the days when the nearest Chinese restaurant was located at a distance of about 10 kilometres from your place. The growing awareness of Chinese cuisine in India has effectuated a revolution in catering services. Any number of people, belonging to any segment of society, prefer Chinese food, be it at the streets or in restaurants boasting their sophisticated ambience. What makes Chinese cuisine popular in India is the taste it offers, coupled with the variety.
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With the Indian market conducive to attract a large number of retail chains, these are becoming a threat to the kiosks and premium restaurants, in the process also creating a tussle between the organised and unorganised sectors. On the one hand, street hawkers are uncertain about their future (in light of the Supreme Court’s ban on street sellers cooking at the capital city’s pavements); and on the other, retail chains are looking forward to make huge investments in the Indian market.
The Indian catering services sector is estimated to be worth Rs 57,000 crore, out of which only Rs 3,940 crore – or 6.9 per cent – is accounted for by the organised sector. The vast unorganised segment mainly comprises streetside stalls/kiosks, constituting the majority of consumer food service units, and is characterised by intense fragmentation and a virtual absence of standardisation of operations.
In what is turning out to be an aggressive race to increase the number of outlets, it is observed that the organised sector is taking over the unorganised sector. There is a paradigm shift from the unorganised to the organised sector. Chinese restaurants are positioning themselves in such a way that their share is gradually rising. These restaurants provide an ambience that suits the requirements of the public. One can spend a nice time with family and friends, have business meetings, and so on. In contrast, kiosks are like takeaways with no arrangements for seating—and the summers are cruel enough.
Hygiene is one of the major drawbacks associated with the unorganised sector. Though they claim that they prepare the food in hygienic conditions and wash the utensils and vegetables properly, a fussy customer can see the things that are amiss. The various seasonings are not changed for months; the tomato ketchup bottle is dirty with usage; and the condition of the utensils is at its worst. On the other hand, there are quick service restaurants (QSRs) and premium restaurants like Yo! China that have a display kitchen allowing customers to see how the food is prepared.
There is increasing fear that the Supreme Court’s pending decision to shift all street hawkers and vendors to one common place will lead to many difficulties for the unorganised sector. “We are doing good business at Lajpat Nagar for the past seven years, but if the Supreme Court shifts us to a place like Dwarka, then it will be really difficult to run the business,” says Rajender Singh, owner of a Chinese kiosk named Chilli. The survival of the hawkers is very uncertain amid the increasing competition – and they are themselves not sure about their sustenance.
Providing a new place and creating new employment opportunities for the street hawkers and vendors in the organised sector is the only way to encourage the unorganised sector and create a booming economy where competition is persistent. “If the food quality and the value proposition are great, you give the existing Chinese food market harder competition, rather than taking it from them. Our strategy has always been to enter markets where competition is present,” says Ashish Kapur, MD of Yo! China.
A pioneering retail chain in the Chinese cuisine business in India, Yo! China is planning to open 50 more outlets across the country by the end of 2007.
With the increasing income of an average Indian household and the changing lifestyles, people are getting more quality-conscious. Whether it is dimsum or American chopsuey, people enjoy bingeing over Chinese food wherever they can afford. Although eating out on the streets has its own charm, “the unfavourable conditions take their toll,” says Pankaj, the owner of a kiosk called China on Wheels. Such conditions can be anything – from the lack of proper seating arrangements to the unpredictability of weather changes. Nevertheless, the street vendors attract innumerable customers by giving them low-priced food that scores high on taste. Strategically, they perhaps lack in hygiene and providing a good ambience.
The main objective of the organised sector is reaching out to the masses across various locations. Besides, people have more trust in, and are more loyal towards, the restaurants in the organised sector. Along with good hygiene, reasonable prices and fine ambience, location also plays a critical role. Placing themselves in high-footfall locations helps these restaurants to pull in more patrons. For this, they are launching new schemes to attract people from different strata of the society. Professionally trained staff fulfils the desire of delicious food, cooked hygienically. “People value hygiene and a good ambience,” says Silky, marketing and communications head, Taipan.
India is the ninth largest retail market in the world and is encouraging many foreign retailers to invest in her fortunes. The whole idea behind growing retail is to make India an organised global market that will be beneficial for the Indian economy as a whole. With the government seeming to be intent on ensuring for the people in Delhi hygienic and tasty street food, it is sure to give even bigger competition to the existing organised sector comprising premium restaurants as well as quick service restaurants. Although the difference between the organised and unorganised sectors is well marked, with the food streets hopefully getting consolidated, the unorganised sector is going to be clubbed with the organised.
