Food delivery platforms and quick commerce are increasingly eating into the sales of quick service restaurants (QSRs), according to brokerage reports.
Key Points:
Changing Consumer Behavior: Younger consumers (18-25) are increasingly opting for quick commerce platforms and food delivery apps over traditional QSRs.
Impact on Sales: QSRs have seen a decline in revenue growth, same-store sales growth, and average daily sales due to this shift in consumer behavior.
Competition: Food delivery platforms like Zomato and Swiggy have rapidly expanded their restaurant partners, offering consumers more options beyond traditional QSRs.
Adapting to Change: QSRs need to adapt to this changing landscape by enhancing their digital presence, improving delivery options, and exploring partnerships with quick commerce platforms.
Implications:
QSR Industry: QSRs will need to innovate and evolve their strategies to remain competitive in the face of growing competition from food delivery and quick commerce platforms.
Food Delivery Platforms: Food delivery platforms will continue to grow and expand their influence on the food industry.
Quick Commerce: Quick commerce is emerging as a significant disruptor in the retail and QSR space, particularly among younger consumers.
Consumers: Consumers will have more choices and convenience when ordering food, but this could also lead to fragmentation and potential quality concerns.
Overall, the rise of food delivery and quick commerce is reshaping the food industry and forcing QSRs to adapt to new consumer preferences and competitive landscapes.
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