KIT: Food kiosk market in India

Strategic tools for the practising manager

The organised food kiosk market in India at present is about Rs 800 crore and is expected to double to Rs 1,600 crore by 2015. This growth is already visible with more and more brands and entrepreneurs opting for this model in the face of rising rentals and land costs.

The advantages:
* It is a highly scalable and replicable format as it does not require too much space and capital to start with. It offers high portability and flexibility in terms of location and placement

* It involves low cost and investments. Investing in a lot of kitchen equipment and elaborate seating space is not required

* It has relatively lower operational cost with limited menu and staff. The consumption of fuel, water and electricity is consequentially less than in other formats

* Barriers to entry are low as one needs basic equipment and a small place to start off.

The challenges:
* Standardisation of offerings could be difficult if too much localisation is done

* Maintaining quality standards in all outlets is tough

* Menu choice is very limited and variations from it may not be possible for specific customer needs

* Stock out and spoilage due to improper storage is likely as there is not much bandwidth for a backup storage facility in the kiosks

While the unorganised
Kiosk market has been around for decades, the branded kiosks will find favour especially for consumers who look for small, quick snacks without worrying too much about the quality and hygiene.