QSRs vs Food Delivery: The Battle for Market Margins
Quick Service Restaurants (QSRs) face pressure on margins due to inflation and increased competition from food delivery firms like Swiggy and Zomato. While QSRs are slowing store expansion and focusing on customer value propositions, food delivery services have seen margin growth by launching dark kitchen brands, intensifying market competition.
- Country:
- India
The Quick Service Restaurants (QSRs) sector is experiencing margin pressure amid inflationary trends, with increased competition from burgeoning food delivery services, a report reveals.
Leading food aggregators Swiggy and Zomato have expanded reach dramatically, creating increased market competition for QSRs that are concurrently slowing store expansion, BNP Paribas indicates.
In the evolving landscape, while food delivery firms launch their own brands, prompting QSRs to focus on innovation to maintain market presence, operational costs have curtailed EBITDA margin enhancements despite positive elements like tax reductions and interest cuts.
(With inputs from agencies.)
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