The Indian Foodservice Market, which includes Cafes and Bars, Cloud Kitchens, Full Service Restaurants, and Quick Service Restaurants, is estimated to be worth $77.54 billion in 2024 and is expected to reach $125.06 billion by 2029, growing at a CAGR of 10.03%, according to the latest Mordor Intelligence report. As the Indian restaurant industry forms a major chunk of the foodservice market, it is safe to say that it is in an exciting phase, experiencing great highs along the way. At the core of this growth lies the power of innovation and experimentation. “Increased willingness of people to experiment with new cuisines and dining experiences is propelling market sales,” the Mordor Intelligence report further states.
The receptivity of the new-age customer opens doors for many innovations and technological advancements to support it. Restaurants are continually upgrading and adapting to new technologies to provide innovative dining experiences and smoother customer services.
"The restaurant industry is not just about food anymore. It’s a lot to do with technology, and this is an aspect that all owners and chefs must take care of. They must keep an eye on what’s new and what’s coming next in technology. That’s how one can stay in business for long and sustain oneself," notes celebrity Chef Kunal Kapoor, who also owns the ‘Pincode’ chain of restaurants. He further emphasizes the importance of technology for business scaling. He adds, “Every restaurant chain wants to scale, not just in India but even abroad. Technology is one of the important tools that can help you get the funding you are looking for because investors too want to see how future-driven your thoughts are and how you are thinking of giving wings to your business.”
Vaibhav Kaushish, COO of Stellar Concepts (Master franchisee for Chili's Grill & Bar, Cinnabon, Auntie Anne's, It's Just Wings, and PAUL), couldn’t agree more. “Integrating technology into our brand's growth and expansion has been fundamental to our success in the dynamic F&B industry. In addition to front-end technologies, we also invested in backend systems to streamline operations and improve efficiency. From digital billing systems to virtual menus, our restaurants are equipped with state-of-the-art software solutions that facilitate smooth transactions and optimize inventory management. Furthermore, automation plays a pivotal role in our expansion strategy. By automating repetitive tasks and implementing smart kitchen solutions, we've minimized manual errors and maximized productivity. Whether it's automating order processing or optimizing food preparation processes, we've embraced automation to streamline operations and ensure consistent quality across all our outlets,” says Vaibhav.
Technology plays a vital role in monitoring and collecting feedback, two very important aspects of running a successful restaurant business. “Technology has given me eyes and ears for every restaurant of mine. Physically, I can’t be present in all our restaurants, but we’ve invested in technology whereby there are smart cameras and other setups, so I know exactly what’s going on in each restaurant of mine. Also, the system has been designed in such a way that if there is negative feedback from a customer, it sends an alert to my phone. That’s how I can go into the depth of the problem, connect with the concerned manager, and ensure the issue is handled amicably,” says Inderjeet Singh Banga, Curator & Promoter of Pirates of Grill.
But the picture isn’t all rosy. Embracing technology comes with its own set of hurdles, and businesses need to find a way around these teething issues. “If you already have a big business setup, then transition is slow because you are not alone. You have a chain of people associated with you who need to understand and embrace the technology just as passionately as you have done, which brings in a strong need for proper training for handling technology. So back-end solutions need proper training, and all customer-facing technology needs to be simplified down to the basic, so it can be easily used by the customer. For example, we recently changed from physical feedback forms to digital ones, like iPads, but discovered that people aren’t comfortable writing with the joystick. So, the number of comments we got started dropping. Many others aren’t comfortable with digital menus. People are lazy to scan or don’t like to do so because they want to physically feel the menu in their hands. The elderly find it difficult to read digitally; they prefer physical menus. So, there are hurdles, it takes time, but then slowly it becomes a norm. A few years back, AI intervention in the kitchen, like a robot cooking, looked fancy and just a stunt to gain eyeballs, but today it is a reality. And it is the way forward. So, any technological innovation may take time to be accepted, but if it is working for you, one must stick to it,” adds Kunal Kapoor.
Adapting to the fast-changing technological revolution is a key element for being successful, a fact that restaurateurs agree with. “Recognizing the transformative potential of technology, we've strategically employed various digital tools and platforms across our restaurants to enhance every aspect of our operations. We embraced online ordering and delivery platforms, recognizing the growing trend of customers preferring the convenience of ordering from the comfort of their homes and partnered with leading delivery services and optimized our online ordering systems. We've utilized data analytics to understand customer preferences and behavior, enabling us to offer tailored suggestions and enhance customer experiences. Through sophisticated algorithms, we analyze customer data to identify trends and optimize our menu offerings accordingly,” says Vaibhav.
But just embracing technology isn’t enough. In a highly competitive industry like the restaurant industry, one needs to continually evolve to stay ahead of the competition. “As we continue on our growth trajectory, technology remains at the forefront of our strategy. We regularly evaluate emerging technologies and trends to stay ahead of the curve and deliver unparalleled experiences to our customers. By integrating technology seamlessly into our operations, we are not only driving growth but also setting new standards of excellence in the F&B industry,” concludes Vaibhav.
