From introducing special festive menus to ramping up delivery services, F&B brands are leaving no stone unturned to cater to the preferences of the festive shopper
Bengaluru: As India enters the festive season of 2024, quick service restaurants (QSRs), cafe chains, bakeries and snack brands across the country are preparing for a spike in demand, despite the economic downturn that visibly impacted the industry last quarter.
The festive period in India kicks off around mid-August with Raksha Bandhan and continues with celebrations like Ganesh Chaturthi, Onam, Dussehra, Diwali, and Christmas, culminating with New Year’s festivities. The season is traditionally marked by heightened consumer spending, presenting a golden opportunity for companies to boost sales and customer engagement. For many brands, the period contributes to almost 30% of their annual sales and claims almost 60% of the marketing spends as per media reports.
After months of muted demand, brands are pinning their hopes on the festive season for things to look up for their business. From introducing special festive menus to ramping up delivery services, food and beverage brands are leaving no stone unturned to cater to the preferences of the festive shopper.
Preparations
Ice cream chain Baskin Robbins, which recently reached the milestone of 1,000 stores across India and South Asian region, has already lined up a mix of new flavours in accordance with the season.
“The best sales strategy is introducing a product that customers love and cannot get enough of,” said Mohit Khattar, chief executive officer of Graviss Foods Pvt. Ltd., the exclusive licensee of Baskin Robbins in India and several other regions. “True to that principle we believe that our best strategy is to create differentiated products that customers cannot find elsewhere.”
This season will see a lot of action on quick commerce platforms, as customers prioritise convenience for last-minute gifting, evidenced by this year’s Raksha Bandhan when Blinkit sold approximately 700 rakhis every minute.
These platforms are intensifying the expansion of their 24×7 deliveries to meet consumer demand even in the wee hours, according to media reports.
Not wanting to be left out of the last-minute shopping frenzy, brands too are ensuring that they are available on such platforms. Homegrown coffee chain Barista Coffee has strengthened its presence on hyperlocal platforms such as Swiggy Dineout and MagicPin.
Barista has also teamed up with DreamFolks, offering complimentary food and beverage combos to partner credit and debit cardholders at select Barista cafés.
Personalised offerings are highly effective during the festive season, as they tap into both emotional and cultural significance. Brands have long taken advantage of this, and in recent years, the emergence of quick commerce has made these even more accessible. Now, customers can order customised products, packaging, or experiences tailored to individual preferences and have them delivered within minutes.
Bakingo, an online dessert brand known for selling cakes and pastries with a delivery time of under two hours, is offering curated recommendations and adopting a personalised approach for most of its merchandise in the hope of raking in big business.
Expectations
Food and beverage brands are bullish about the boom in sales this festive season.
“With a focus on enhanced customer engagement through promotions, and partnerships for faster delivery, we are confident of achieving significant traction during the festive season,” said Rajat Agrawal, chief executive officer of Barista Coffee. “We are aiming for a 20-25% increase in overall sales compared to the same period last year.”
Luxury chocolate brand Smoor anticipates a rise in gifting orders. The company is providing customisable gift hampers and chocolate boxes, available both online and in-store, along with special discounts on bulk corporate orders and early-bird deals for customers ordering via quick commerce platforms and smoor.in.
“We aim to increase our gifting orders and repeat customer base,” said Vimal Sharma, founder of Smoor. “We are aiming for strong sales growth of around 50-60% this season, driven by our expansion into tier-two cities. As a result, we anticipate a 10-20% increase in festive revenue compared to last year.”
Mumbai-based ice cream chain Naturals is aiming for double-digit growth during the season and is also anticipating a surge in bulk orders. “With the growing demand for bulk orders during this time, we expect a significant boost in sales volume and a notable increase in revenue compared to last year,” said Siddhant Kamath, director of Naturals.
Bakingo is targeting a significant 60% growth over last years. “With our expansion into new cities and a strong focus on scaling operations, we expect a significant boost in order volumes,” said Himanshu Chawla, co-founder of Bakingo.
