Fast In Fast Out

Indians are not biting. Into juicy lamb burgers, wide, cheesy pizzas and sumptuous fried chicken legs offered by the multinational fast food giants which entered India with much fanfare over the past few years. It’s official now: the KFC’s (Kentucky Fried Chicken) and Domino’s of the world may not have failed what Sandeep Kohli calls the litmus test of the Indian palate, but the formula of recreating the Western magic in Indian homes is certainly not working.

Kohli, MD of Tricon Restaurants International which manages the Pizza Hut chain, should know. Tricon recently closed down its KFC restaurants in India. Kohli admits that the Rs 1,400-crore fast food industry has perceptibly slowed down to take a long, hard look at itself as it enters a second innings after a tumultuous first run.

The lunch-break relook has been precipitated by recent developments in the market. Consider the following:

But is it really a green-vs-chicken issue? Culinary experts point out that the Indian palate has always been fussy and price-conscious. Several studies have proved the Indian’s averseness to high-priced products, whether pizza or parantha? Even as the MNC chains have harped on the quality and global-standard factors, comparison has been restricted to a Rs 70-plus dish with two pieces of chicken from KFC and a full tandoori chicken offered by the average Indian restaurant at the same price. "Just explain how can a chicken tangri fail in this country, especially in north India? It all depends on the way it’s presented," quips one expert.

So how does one dress up the proverbial leg? How does one increase Western food awareness? And crowds, or home deliveries? Having tested the palate for more than three years, MNC chains have slowly begun to follow the game in a process that could be truly Indian-the subtle message of parantha with toppings (the thin crust pizza), aloo tikki and seekh kabab burger and more green items on the table. All aimed at telling the Indian consumer that this too is as desi as it comes.

"I agree it will take time for people over here to understand the concept of Western foods and flavours, the way they are marketed and the price associations. There’s no rope trick here.... The pizza wonder will take time to settle in the Indian mindset," remarks Gautam Advani, marketing chief, Domino’s Pizza India Limited, which runs 50 outlets across the country (in four years of operation) and is perhaps the only chain with a relatively high level of penetration. But at a cost. Insiders claim the Vam Bhartia Corporation has offloaded a significant portion of its stake to Chase Manhattan to raise additional capital. Besides, prices have dwindled and, amazingly, there are plans to open outlets in Jawaharlal Nehru University, Indian Institutes of Technology and even the railway stations in Delhi and Mumbai.

"All we are saying is that Indians-as they aspire to be increasingly global in their lifestyle-also need to mould their eating habits to include food which is in vogue worldwide," says Advani. Recent research done by the chain showed there was need to penetrate the Indian kitchen in a manner that would not displease the housewife. "I am in competition alright but I am not competing with mama’s thaali. I am confident that as Indian lifestyle and culture change, so will their eating habits," Advani adds.

His belief is shared by other MNC players in the Indian fast food market. Remarks Vikram Bakshi, MD, McDonald’s India, on items like McAloo and Tikki Burger, a major departure from the traditional Big Mac that is sold in 120 countries: "McDonald’s works very hard to be sensitive to the customs and preferences of its consumers in each of the countries where the restaurant chain has a presence. India is a unique market with very diverse consumer tastes and preferences. In keeping with its strategy to localise, McDonald’s developed products keeping in mind the preferences of the Indian consumer."

Company sources claim that the insider localisation has been done within the overall framework of McDonald’s philosophy of qsc&v (Quality, Service, Cleanliness and Value) and nearly Rs 50 crore has been spent by the promoters since 1995 to develop the subcontinental market where the chain has 20 restaurants (10 in Delhi and an equal number in Mumbai). Of late, the company has launched a tremendous marketing drive targeting children who make for nearly 40 per cent of the chain’s customers. And how true is McDonald’s claim to Indianisation? "McDonald’s food is as Indian as any other food option in the market. India is the first country in the world where the restaurant chain does not offer any beef or pork items. Almost 75 per cent of our menu has been specially developed for India," says Bakshi. "To serve 100 per cent vegetarian food, McDonald’s India has gone to extreme lengths, like developing eggless mayonnaise!" adds the McDonald’s MD.

All said and done, isn’t business finally a question of the bottomline? Market analysts say the problem of returns continues to bother the fast food chains and speciality restaurants. Especially because in the food and beverages market, a four-year period is considered fairly long for investments. Says one expert: "Why only fast foods, it’s happening in every sector. Look at the Pierre Cardin and Benckiser experience. The markets work two ways-either you are top-end driven (which later helps your bottomline). Or you are bottomline driven. And if none guarantee any satisfactory return, tensions start building up." Recent research done by two different agencies shows that Indians preferred a heterogeneous mix at any restaurant and not stand-alone outlets specialising in burgers or pizzas.

A concept which works very successfully at Nirula’s. "We work on that very concept, the concept of family and tradition. We do not just focus on children or their parents," remarks Taran Deep, marketing manager of the chain that started initially as caterers in Delhi before World War II and metamorphosed into a fast food chain with 37 outlets now. Her company recently hired Quadra to do detailed research on Indian spending habits on foods in restaurants, ostensibly to make sense of the changing perceptions of the Indian market.

"We have been reading the pulse of the Indian fast food market for more than two decades and have continuously evolved along with changing trends. We have added more to the Indian mughlai menu, developed the 21-variety ice cream brand and worked on a concept which, in short, reads we have something for everybody," says Taran Deep. "The fast food market is not what the MNCs had developed with their pizzas and burgers. We also had that, as well as the dosas and idlis. The idea is to develop (read change) the Indian taste bud so as to suit the burgers and fries. And that will take a very long time," she adds.

Agrees Gaurav Jain, director of the Ruby Tuesday restaurant dressed up by icons hung upside down and at an angle, jewel- coloured Tiffany lamps and sporty memorabilia: "We understand the Indian psyche and taste. So, even though we specialised in Tex-Mex food, we have kept a major chunk of our menu vegetarian." And it will only work this way. As Jain and his manager, Maninder Kapoor Puri, agree, the Indianisation process must extend to the menu and the price card if America’s top-brand concept restaurant, spread over 550 locations in 23 countries, need to settle down for a long innings here. "We hope Indians will come because good restaurants charge approximately Rs 250-300 per head for a dinner or lunch," adds Puri.

Will they? Especially since the price-conscious, discerning Indian is being wooed like never before. As a new consumerist class of Indians emerge out of decades’ neglect by the markets, they are beginning to lay down the law, in matters that concern taste and wallet. They will encourage only those who gives them not just what they want, but also guarantees value for money. If Indians can ask for desi, shudh vaishnavi food even on foreign tours and get it, how long before fast food giants chuck their western flavours for masala?