7 reasons why you should invest in Quick Service Restaurant?

It is Sunday afternoon. You are relaxing on your sofa while watching the television. Suddenly a weird but familiar sound comes out from your tummy. You then realised that you are hungry but at the same time, you are too lazy to cook. The toppings to your hunger are added on by your television. "Happy meal combo just at ₹79", an advertisement said. You can wait no longer. You are craving for food. You then pick your phone up and dial a number. Within 10 minutes of your call, the delivery boy knocks at your door. By the time delivery boy reaches back to the restaurant you have already finished eating your " Happy meal combo". 

This whole process right from when you start feeling hungry till you satisfy your tummy takes merely 20 minutes. And within this limit,
you are almost filled up to your neck. This is the magic of Quick Service Restaurant. Yes, you heard it right. The term may seem new to your ears but not in the business world. Let us see what actually Quick Service Restaurants are?

What is a Quick Service Restaurant?

Quick service restaurants are also known as fast-food restaurants. This industry, as the name suggests provide us with the bulk of readymade food. This type of restaurants have limited seating and are more inclined towards the takeaway or delivery service. Although, they provide us with instant food but with a limited variety. The fast-food restaurants can either be a self-created restaurant or can be a franchise. Typically the franchise fashion is followed for many years, as it reduces the risk failure in the business.

Credits: Cambridge Market Research

India is a foodie country.  India is the home to the people of diverse cultures. India's diverse culture is incomplete without food. In India, culture and food go hand in hand. Interestingly, here we find a wide variety of fast foods. Indian fast-food has no match. Despite the food being sold on the streets or footpaths, the taste is finger-licking good.

If you wish to invest in the business then the quick-service restaurant serves to be a good pick. But there should be something convincing about why should someone invest in such a deal with no prior experience? The following points will make it clear.

Why Should You Invest In A Quick Service Restaurant (QSR)?

1. Affordable

Fast food restaurants come with an added benefit. Apart from the food being tasty, it is easy on people's pocket. This attracts people and drives them to come over again. It serves as a great marketing policy.

2. Low Investment

Unlike other business startups, the quick-service restaurant is easy on the investor's pocket as well. It does not require all the fancy decorations, sitting arrangements and parking area. All this reduces the cost of the investor to a great extent. The quick-service restaurant purely deals with the quality of food they make and customer satisfaction. So, if you wish to start up a business with a decent investment, the quick-service restaurant is the best.

3. Inevitable Need For Food 

India's population is rapidly increasing. Soon, India will be the most populated country in the world. As the population is rising each day, the demand for the basic necessities of life is also increasing. And the food is one of those necessities of life that will never get out of fashion. So one could run his business without having any doubt about this business in the long run.

4. High Margin For Profit

The demand for food will always exist on Earth. Since quick service restaurant comes up with low investment rates the margin for profit is considerably higher. 

This business is almost recession-free. Today when the economy is sloping down at a higher rate, the liquidity in the market has no significant impact on this business. Even Goods and Services Tax (GST), that shook the foundation of many businesses could not affect this business much. Profit is one of those things that any investor looks for. With a business that has a high-profit rate, quick service restaurant seems to be an amazing choice.

5. The Name Behind Your Business

One of the reasons for the lower risk involved in this business is the brand name behind you. Since it is the readymade market, your business is exposed to different types of established brands,  such as McDonald's, KFC, Burger King, etc. This means that you will have the brand power working for your business. The high number of franchise provides us with many options to choose from. This works best for your business.

6. Spectrum Of Innovation

The fast-food restaurant is all about making fast foods at a much lower cost. And in a country where a lot of fast food is already present in the market the scope for innovation is high. The company's brand value is determined by the kind of innovation it makes. People love to experience something new and if it is food then definitely nobody would miss such a chance. So, the higher the innovation rate, the higher the brand value.  In turn, higher customer rate.

7. Increasing Stock Rates

According to a report Associated Chambers of Commerce and Industry of India (ASSOCHAM), the quick service restaurants (QSR) sector in India is currently growing at a compounded annual growth rate (CAGR) of 25% and is likely to touch the Rs 25,000-crore mark by 2020 from the current level of Rs 8,500. The business whose shares are increasing at such a rapid rate is worth investing.