Takeaway pie now up to 30% of food cos’ sales – Times of India

NEW DELHI: The takeaway business, which accounted for a small fraction of sales before the pandemic, has emerged as one of the fastest growing sales channels for fast-food outlets, cafes and restaurants.
Takeaways are currently accounting for 10-30% of overall sales of several food brands, from McDonald’s and Chaayos to KFC and Taco Bell, just a few months after restaurants were allowed to open their doors to consumers. “Before Covid-19, we had two main sales channels — dine-in and deliveries. Takeaway almost didn’t exist. But now, it contributes more than 10% to our total sales, as people don’t want to sit inside restaurants,” said Nitin Saluja, founder, Chaayos.
For US fast-food chain McDonald’s, the takeaway business in India has doubled compared to pre-Covid months. Similarly, a KFC spokesperson told TOI that takeaways currently account for a third of its total business in the domestic market. “While delivery was already a growing part of our business, the pandemic has certainly accelerated the growth of the takeaway channel,” the spokesperson said. “We’ve also witnessed good response to variants of the channel, like KFC to your car and bike.”
With most consumers wary of sitting at restaurants, fast-food chains — including KFC and McDonald’s — were quick to launch contactless extensions of their takeaway service, which allow consumers to wait at convenient locations in their vehicles for the food to be delivered to them.
“Takeout across markets is growing substantially,” said Saurabh Kalra, COO at Hardcastle Restaurants, which operates McDonald’s outlets in the South and West. “Channels such as ‘onthe-go’ have grown 200% and is witnessing healthy double-digit weekly growth.”
Burman Hospitality, Taco Bell’s master franchise partner in India, is set to launch a new format of Taco Bell restaurants that will be more focused on delivery and takeaway, a first of its kind for the fast-food chain in India. “We have seen exponential growth for the service over last six months, with takeaway contribution now more than doubling,” said Saurabh Kumar, executive director, Burman Hospitality.
“We have opened all our restaurants in West Bengal and a few in Bengaluru, but footfalls are currently 25-30% of what it used to be. I don’t see this changing in the short-to mid-term,” said Anjan Chatterjee, founder of Specialty Restaurants.
(With inputs from Amin Ali)