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Trade Area analysis of Besant Nagar for Oh

My Shawarma based in Chennai


Submitted
by

Abhirami V
Feba George
Prachi Gehlot
RajKumar Bharti
Sharanya Dey

IN PARTIAL FULFILLMENT OF THE POST GRADUATE DEGREE "MASTER


OF FASHION MANAGEMENT (MFM)”

Submitted
to

Department of Fashion Management Studies (FMS)


National Institute of Fashion Technology (NIFT)
Rajiv Gandhi Salai, Taramani
Chennai, PIN – 600 113
Ph. 044-22542771, Fax: 044-22542763
Web: www.nift.ac.in
November, 201
Trade Area analysis of Besant Nagar for Oh
My Shawarma based in Chennai
Submitted
by

Abhirami V
Feba George
Prachi Gehlot
RajKumar Bharti
Sharanya Dey

IN PARTIAL FULFILLMENT OF THE POST GRADUATE DEGREE "MASTER


OF FASHION MANAGEMENT (MFM)”

Under the Supervision of


Dr. A. Sasirekha
Assistant Professor

Submitted
to

Department of Fashion Management Studies (FMS)


National Institute of Fashion Technology (NIFT)
Rajiv Gandhi Salai, Taramani
Chennai, PIN – 600 113
Ph. 044-22542771, Fax: 044-22542763
Web: www.nift.ac.in
November, 2019
DECLARATION

We Abhirami, Feba, Prachi, Raj and Sharanya, hereby declare that the Project work
entitled “Trade Area Analysis of Besant Nagar for Oh My Shawarma based in
Chennai” is the result of our own research work carried out by us during the period
from 14th September 2019 to 13th November 2019 except as cited in the references.
This report has not been submitted to any other University or Institution for award of
any degree/diploma etc.

Signature
Name of the Students: Abhirami V, Feba George, Prachi Gehlot, Rajkumar Bharti,
Sharanya Dey
Date: 18th November 2019
CERTIFICATE

This is to certify that Abhirami V, Feba George, Prachi Gehlot, Rajkumar Bharti.
Sharanya Dey of National Institute of Fashion Technology (NIFT), Chennai have
successfully completed his/her project work titled “Trade Area Analysis of Besant
Nagat for Oh My Shawarma based in Chennai” in partial fulfillment of
requirement for the completion of 2 Years Post Graduate Programme "Master of
Fashion Management (MFM)" as prescribed by the Department of Fashion
Management Studies (FMS), National Institute of Fashion Technology.

This ‘Project work’ report is the record of authentic work carried out by him/her
during the period from 14th September 2019 to 13th November 2019 under my
mentorship.

Signature

Name of the Faculty Mentor

Dr. A. SASIREKHA
Asst. Prof
FMS department
NIFT Chennai
ACKNOWLEDGEMENT

We would like to express our deepest appreciation to all those who provided us the
possibility to complete this report. A special gratitude we give to our Business
Research subject faculty, Dr. A. Sasirekha, Asst. Prof.- FMS department, whose
contribution in stimulating suggestions and encouragement, helped us in completing
our project.

Furthermore, we would also like to acknowledge with much appreciation the crucial
role of Mr. Gopinath Rangan, founder of Oh My Shawarma, the brand we are
researching. He gave a direction to our research project along with his valuable
inputs and time.

We appreciate the guidance given by all other faculty members of FMS department-
NIFT Chennai.

Signature

ABHIRAMI V
FEBA GEORGE
PRACHI GEHLOT
RAJKUMAR BHARTI
SHARANYA DEY
ANNEXURE V

TABLE OF CONTENTS

CHAPTER NO. TITLE


ABSTRACT
LIST OF TABLES
LIST OF FIGURES
1 INTRODUCTION
1.1 The Indian QSR Sector
1.2 Oh My Shawarma

2 LITERATURE REVIEW
2.1 Factors influencing Preference of Fast Food Restaurants
2.2 Franchising a Business Opportunity for Quick Service
Restaurants
2.3 An Empirical Study of Consumer Buying Behaviour
Towards Fast Food In South Mumbai
2.4 Study of Trends in Quick Service Restaurants
2.5 QSRs find indoor kiosks improve customer experience,
deployments accelerate
2.6 Quick Service Restaurant Report 2017 by White Unicorn
Ventures
2.7 Indian Restaurant & Food Service Industry – Structure &
Prospects
2.8 The changing landscape of the retail food service industry
2.9 The changing landscape of the retail food service industry

3 RESEARCH METHODOLOGY
4 DATA ANALYSIS
4.1 Demographic Data
4.2 Food Consumption Behavior
4.3 Quick Service Restaurants
4.4 Social Media
4.5 Price Range
4.6 Cuisine Preference
4.7 Quick Service Food: Shawarma
4.8 Use of Sustainable Products
5 MAJOR FINDINGS
6 SUGGESTIONS
7 CONCLUSIONS
8 REFERENCE
ANNEXURES
Questionnaire
LIST OF TABLES

Table Tittle Page No.


No.
4.1 Demographic data
4.1.1 Age of Respondents
4.1.2 Occupation of Respondents
4.2 Food Consumption Behaviour
4.2.1 Lifestyle-Vegetarian or Non-Vegetarian
respondents
4.2.2 Preferred mode of buying food:
Offline/online/both
4.2.3 Cross tabulation of Occupation and
preferred mode of buying food
4.3 Quick Service Restaurants
4.3.1 Selection basis of new QSR - Offline
4.3.2 Selection basis of new QSR - Online
4.3.3 Comfortability with take away model of
QSR
4.3.4 Cross tabulation of comfortability towards
take-away model and the respondent’s
occupation
4.4 Social Media
4.4.1 Influence on respondents of social media
ads – Offline
4.4.2 Influence of social media ads on ordering
food online
4.5 Price Range
4.5.1 Ideal price range of QSR
4.5.2 Ideal price range of Shawarma
4.5.3 Cross tabulation of occupation and
Perceived ideal price range
4.6 Cuisine Preference
4.6.1 Preferred cuisines of the respondents
4.7 Quick Service Food - Shawarma
4.7.1 If the respondents have consumed a
shawarma before or not
4.7.2 Respondents’ openness to try new
shawarma places
4.7.3 Cross tabulation between shawarma
consumers and their openness on trying
new shawarma selling places
4.7.4 Rating of Competitors- Respondents’
perspective
4.8 Meal Plans
4.8.1 Cross tabulation between combo/single
dish preference and the choice of extras
with food
4.9 Rating of competitors
4.9.1. Rating of competitors of Oh My Shawarma
by respondents
4.10 Use of Sustainable Products
4.10.1 Influence of sustainable products and
packing on buying behavior of customers
LIST OF FIGURES

Figure Tittle Page No.


No.
4.6 Cuisine Preference
4.6.1 Pie distribution of preferred cuisines of
respondents
ABSTRACT

Globalization has significantly influenced various aspects of Indian society,


including the change in the food habits of Indian Consumers over the last two
decades which is aided by several economic developments, increasing spending
power and openness to new diets & lifestyle habit, increasing tourism, increasing
number of Indians shifting to a non-vegetarian diet.

The food and beverage sector in India is extremely evolving in nature with even
more evolving restaurant trends. This sector is already the largest retail consumption
category in India, accounting for approximately 31% of the country’s consumption
basket, compared to 9% in the US, 17% in Brazil and 25% in China. Thanks to the
entry of multinational companies and their expansion in the market, India is also
rapidly becoming a production hub for processed foods, which are increasingly
consumed in India as well as exported to countries in South Asia, the Middle East
and Africa. India offers the largest diversified production base in the food sector.
For example, it is the largest producer of milk in the world, the second largest
producer of fruits, vegetables and wheat, and the third largest of eggs.

Though At present, India’s Food and Beverage Industry might be a vibrant and
thriving scene, but it is also famously fickle and highly competitive. Unless there is
something new to offer there is a high chance that one will have trouble standing out
in the crowd. While the restaurant segment in India is booming, it is always a
question of longevity and survival. Restaurateurs are facing a changing landscape
that will result in a new competitive order, with some major traditional players likely
losing to smaller entities and QSR models. To survive, one must raise the standards
of their business in such a way that it attracts the crowd.

The location of the business plays a key role in the competition. Finding an area
with few competitors that serve similar food. Or if the local area is already
inundated with similar cafes or pizza places, the food must be uniquely
differentiated from the competitors.
This report has been formulated with the objective to find out the client’s
opportunities of expansion in the specified location and the study of its target
customers and competitor to help the business stand out and build its place.

The study has been conducted in the form of a survey taking 100 participants from
the specified location. After analysis of the qualitative and quantitative data, a
conclusion is reached at the end of the report.
CHAPTER 1

INTRODUCTION

1.1 The Indian QSR Sector


Today, with our accelerated lifestyle, we are not ready to wait. Actually, we don’t
have time to wait. People today want things as early as possible in their hands. That
could be the reason why QSR are famous amongst people. Quick service
restaurant or QSR is a restaurant which offers certain food items that require
minimal preparation time and are delivered through quick services. Typically, quick
service restaurants cater to fast food items over a limited menu as they can be
cooked in lesser time with minimum possible variation.

Quick Service Restaurants are trending today, with fast and evolving life
everyone wants to order, grab and go at the click of a button. And, that could
be an exciting reason for more than 100 brands which boasts of over 3000
outlets spread across the country. Some real-life examples of quick service
restaurants are Mc Donald’s, Subway, Burger King, KFC etc.

The food industry in India has been booming in the recent times, owing to the rising
disposable income of the middle class. The Indian restaurant market was valued at
INR 20,400 crore in 2016 and is expected to grow to INR 51,000 crore by 2021,
according to industry body National Restaurant Association of India (NRAI).
According to a study by PricewaterhouseCooper (PwC) and FICCI, India’s
foodservice market is bound to grow at more than 10% by 2023 as both foreign and
Indian restaurant chains are expected to expand rapidly. With the rising population
and increasing disposable income, investors are also seeing India as an attractive
market with its robust economic growth, rise on urbanisation, expenditure on food
and dining out, and high presence of young customers who are more likely to spend
more and try out different food options. Quick service restaurants or QSR like Pizza
Hut, Burger King, Goli Vada Pav, Burger Singh, etc have been growing
exponentially in the recent times.
The Indian QSR sector in divided between the international brands and the Indian
brands. Where there is still a monopoly of the international QSR brands like
Domino’s pizza, KFC, Subway, etc. the Indian QSR brands are pacing up in the
race. Brands like Café Coffee Day, WOW! Momo, Chaayos, Haldiram’s, etc. have
become a popular name amongst the crowd.

Avendus Capital, which provides financial services carried out a study which
showed that out of the entire total chained restaurants, 47% of them are Quick
Service Restaurants. It is true that the Indian QSR sector has been hit by a tsunami
of foreign brands with larger capital and operational expertise, but they also face
their domain specific challenges. Each of these brands has to go through an India
customization or an India orientation – whether it is creation of a vegetarian
platform, or adapting to our sensitivities to our meats. Also, their high rates of
franchise fee add to the problem.

In such a market scenario why not create your own brand keeping in mind the values
that the customer wants. Indian QSRs have an edge in their home market. There is a
strong preference for Indian flavours and cooking styles. The interest in international
dishes are on rise but most Indian consumer continue to prefer Indian- style cooking.
An apt example is Haldiram’s, which started its journey way back in 1937 with a
small shop in Rajasthan’s Bikaner district. Today, Haldiram’s, which started the
trend of snacks and street food in an organised segment has a revenue of Rs. 3,500
crores, much more than the combined revenue of Domino’s (Rs. 1,733 crore) and
McDonald’s (Rs. 1,390 crore). (Excerpt from Quick Service Restaurants Report
2017 by White Unicorn Ventures)

Initially the presence of QSR was prominent only in the tier 1 cities, but now they
mark their presence both in tier 2 and tier 3 cities. Such penetration has increased
their operational market share leading to expansion in both business and profits.
Thus, it is justifiable to say that the Indian QSR industry is booming is it will
continue to grow in the coming years. And the opportunities for a home grown QSR
brand to mark itself in the market is shooting up.

Over the last few the QSRs have begun to dominate the market via food deliver
apps. Biryani has emerged as an unlikely champion of India’s fast food scene,
unseating pizzas and burgers, which used to dominate standardised fast food
kitchens. According to food delivery apps, it is among the most popular dish ordered
and its demand far surpasses that of Western imports. This upcoming trend in
India’s foodservice scene to focus on ethnic cuisine can add to the competitive
advantage of Indian QSRs. Food delivery apps have cited that Indian cuisine is
becoming the most ordered food surpassing Western ones.

Some upcoming trends in the QSR market are as following:

 Increase in acceptance of Indian cuisine in QSR model.


 Healthy food options are gaining awareness in urban areas and metropolitan
and cosmopolitans.
 With technological advancement, social media marketing has become the
most important tool in advertising
 More innovation and launch of new products every year, keeping in mind
changing customer preferences, giving them more options to choose from.
 Increase in customers preference towards sustainable products with more
eco-ware launches and eco-friendly packaging.  
1.2 Oh My Shawarma
Oh My Shawarma – the company this research is based on, is a chain of QSR. It
started in 2017 by three friends with its first outlet in Aminjikarai, Chennai. As of
today, it has 5+ outlets and 3+ brands under its portfolio.

The Team

Gopinath Mohan Ram Praveen Kumar  


Rangan   Founder Founder
 
Founder  
Post his MBA from IIM
  He completed his MS
Udaipur, he was part of
Post his MBA from in supply chain
leading startups like
NIFT, he was part of management from
Zomato, Paytm, Zoomcar.
the growth team University of
But his passion lied in
for leading startups Glamorgan. He was
starting his own business in
like Paytm, Chaipoint, associated with
the F&B space. He co-
Nearbuy. Following various restaurant
founded Eclectic Foods
his passion of starting brands in UK before
with the vision to
his own business, he returning to India. He
revolutionize the quick
co-founded Eclectic was spearheading the
snack industry.
Foods with the aim to sales team for leading
 
grow the business startups like Nearbuy,
within a short span of Little, Paypal before
time. starting Eclectic
Foods.

They are specialised in shawarma. Shawarma is a meat dish from the middle eastern
cuisine, originally made with lamb or mutton. Shawarma is one of the world's most
popular street foods, especially in Egypt and the countries of the Levant, the Arabian
Peninsula, and beyond. In India the dish has gained popularity recently in the last
half decade and the traditional lamb or mutton is replaced by chicken adapting to the
Indian taste.

Oh My Shawarma has spent 6 months in their central kitchen before their launch and
has been able to come up with a variety of recipes which are a blend of Arabian,
Indian, Mexican cuisines to suit the Indian taste buds. They focus only on one core
product i.e. shawarma and their menu consist of more than 20 varieties of shawarma.
All their outlets are rated 4 and above across various online platforms like Zomato,
Swiggy, Uber Eats and they have a 60% customer retention rate. To hit the mass
market and establish itself in the QRS industry Oh My Shawarma has started to
franchise their brand and they aim at becoming the leader in shawarma QSR.

To capture a greater market share in the shawarma industry, Oh My Shawarma is


planning to increase the number of its stores/ franchises and operate in a bigger
market. Their products are enjoyed by a wide range of audience from school kids to
retired Army personal. But their primary target audience is between 15 to 35 years
of age. For coming up with more outlets, the company plans on panning out to
locations which are easily accessible and often visited by this group of people. For
that matter they have areas near colleges and IT parks and corporate hubs and
densely populated localities in mind. Few places they believe are hotspots for their
business are – Adyar, Besant Nagar, Thiruvanmiyur and ECR.

The aim of this research study is to make a thorough trade area analysis in respect
of:

 Target audience
 Potentiality of the location to become a hotspot for the growth of the
business
 Competitors present in the location

And find out if opening a kiosk or outlet in any of these areas will be profitable for
the business.
CHAPTER 2

LITERATURE REVIEW

2.1. Factors influencing Preference of Fast Food Restaurants

[ CITATION DrP16 \l 16393 ]

With the help of the study that has been made by conducting a survey in
Madurai district, the researcher has aimed to analyse the factors that influence
the preference of fast food outlets. The main objectives of the study were to
study the purchase intention of customers and to find out the supportive factors
that influence purchase behaviour of consumers. A questionnaire assessing
attitudes of customers towards fast food product was formulated and projected at
respondents which were chosen by the non-probability methods of purposive
sampling.

Both a descriptive and analytical study, it concluded that customer purchase and
its continuity depend on satisfaction level of customer towards fast food
products.

2.2. Franchising a Business Opportunity for Quick Service


Restaurants

[ CITATION Sus15 \l 16393 ]

Quick Service Restaurants (QSRs) is a special type of restaurants characterised


by its fast food cuisine and by minimal table service.

The aim of the study is to understand the scope of QSRs in India. The study was
based on the factors which influence the profitability of FASOOS and TIBBS
Frankie.

Research work carried out for this paper was collected from the primary source
and secondary source using snow ball sampling method.
The study concluded that there is a growth potential for QSRs under franchising
system in India. Major factors responsible for the success of Indian QSRs
include good quality, delivery on time, availability on social media and mobile
apps. The FAASOS and TIBBS Frankie proved that with Indian cuisine
franchise system worked well.

2.3. An Empirical Study of Consumer Buying Behaviour


Towards Fast Food in South Mumbai

[CITATION DRS16 \l 16393 ]

Fast food industry in India is growing rapidly as well as it has wider scope for
the development. Younger generation, urbanization, high protein consumption,
working women, change in life style, larger disposable income, search for new
tasty food and many other factors boosting demand for fast food in India. The
research has made an effort to study consumer buying behaviour towards fast
food in South Mumbai. It helps in knowing the factors responsible for
consumption of fast food in South Mumbai.

In order to achieve objectives of the study, the researcher have focused on


primary and secondary data as a source of information. The primary data is
collected from fast food consumers of South Mumbai with the help of well-
designed and structured questionnaire. A sample of 50 consumers was selected
by quota convenience method.

The study concluded that Fast Food outlets has vast scope to grow as the
requirement of Fast Food items is increasing day by day and it is more preferred
by younger generation. Dominating factors for eating Fast Food are food taste,
variety and quality which can be exploited by fast food outlets for creating
demand of Fast Food items. Younger generation is more health and hygiene
conscious that also can be considered by Fast Food outlets.

2.4. Study of Trends in Quick Service Restaurants

[ CITATION Sam16 \l 16393 ]


The present study is an attempt to understand the dynamics of QSR industry and
summarize its growth through extensive review of available literature and facts.
A descriptive research with cross functional analysis is presented. A brief survey
with well-structured questionnaire is conducted to understand the significant
factors that influence customer perception about QSR and most important factors
that attract a customer to a specific brand.

The data analysis with appropriate statistical test have suggested that irrespective
of demographics of the market, there is a growing preference for eating out and
majority of it are desire to eat out in a QSR. The most significant factors that
provide a competitive edge to a particular brand over competition are accurate
billing and use of modern technology. It shows that people prefer modern
technology in the service industry and they find it more reliable in terms of
transactions with the restaurants.

2.5. QSRs find indoor kiosks improve customer experience,


deployments accelerate

[CITATION ebs \l 16393 ]

According to the facts, while QSRs played a big role in popularizing ordering at
outdoor drive-thru kiosks, the big change taking place today in this sector is the
growth in indoor self-serve kiosks. More than half of today's QSR consumers, 55
percent, have used a tablet at the table or a smartphone app over the past 90
days, marking a 39 percent jump from 2015, according to a consumer study
conducted by Market Force Information, a research firm. More than 11,000
consumers were polled for the study, which revealed consumers' QSR dining
habits, brand preferences and in-restaurant technology use.

The adoption of consumer technology in the QSR industry is increasing


dramatically.
2.6. Quick Service Restaurant Report 2017 by White Unicorn
Ventures

[ CITATION Abh17 \l 1033 ]

The QSR format took off in India about 19 years ago with the arrival of
McDonald's in 1996. Many global brands followed suit since then, either
through company-owned stores or the franchisee model or a mix of both. The
chain space is marked by the presence of more than 120 brands with more than
4,000 outlets spread across various cities in India. By 2020 it is expected that 35
per cent of India's population will be in urban areas by 2020 totalling 52 crore
compared to the current urban population of 34 crore.

There have been a rise in number of Indian QSR due to many factors like
Environment – the access to capital to innovative and enterprising companies
has become easier than it was a few years ago; Demand – changing
demographics, increase in income, urbanisation, growth in organised retail and
demand for hygienic food and lastly Supply – the Government has improved
infrastructure and private investment in cold chain networks across the country
has made access to quality raw material a reality. However, a foreign brand has
an easy first quarter of operations because of the hype around them being
‘international’ – so high volumes, along with high marketing spend make it a
virtuous circle rather than the local QSR who has to deploy various marketing
strategies to pull in the volumes in the same quarter.

2.7. Indian Restaurant & Food Service Industry – Structure &


Prospects

[ CITATION Dar19 \l 1033 ]

Quick services restaurants (QSRs) and casual and fine dining restaurants account
for about 75-80% of the organised segment, followed by cafes & bakery and
pubs, clubs, bars, and lounge (PBCL) accounting for about 8-10% and
institutional catering and kiosks with 13-15% share in the organised market.
Going forward, CARE Ratings expects the restaurant and food service industry
to register a growth of about 10.4% CAGR for the next 5 years between 2018
and 2022 to reach Rs 5.5 trillion by 2022. The growth will be supported by long
term healthy demand outlook backed by higher disposable income, favorable
demographics and rising aspirations of the burgeoning middle class, increasing
internet penetration, increasing number of women joining the workforce,
increasing focus on health and wellness, technological advancements and
growing urbanization.

2.8. The changing landscape of the retail food service industry

[ CITATION MrD18 \l 1033 ]

In 2017, the Casual dining segment was the industry’s most lucrative, with total
revenues of INR 581,000 crores, equivalent to 55% of the industry’s overall
value. The quick service restaurant and fast food segment contributed revenues
of INR 215,000 crore in 2017, accounting for 20% of the industry’s aggregate
value.

These consumer trends can be attributed to the need for a space for socialising,
which pubs and bars offer at a cheap price. Similarly, quick service and fast food
businesses are attractive for young, time-constrained consumers.

Today, almost one-third of the population is below 25 years and half of the
population is below the age of 35 years. While this means that consumer demand
will keep growing in the future, thereby propelling India’s GDP via internal
consumption, it also means that the types of products, services and experiences
will undergo a big change to keep pace with the outlook of this young
population.

With rising incomes, the propensity to spend is now expanding beyond metros to
Tier II and Tier III cities, which are turning into new demand centres. However,
the products, price points and consumption experience expectations of these
consumers are very different from those of consumers in metros. The model of
serving consumer demand that works in metros may not work in Tier II and Tier
III cities.

2.9. Fast Food Rapid Growth: a report by Annamma Oommen

[ CITATION Ann \l 1033 ]

Indian QSR players are also planning ambitious expansion plans. Café Coffee
Day, a leading domestic player, plans to raise its store count from 600 to 950 in a
few years. Its rivals in the business – including newcomers – such as Barista,
Java Green, Starbucks and Quicky’s also plan to scale up operations in India.
Mumbai-based Jumbo King – which specialises in the local Maharashtrian
delicacy, ‘vada pav,’ also plans a major expansion. Dheeraj Gupta, managing
director, Jumbo King, says it expects a 15 to 20 per cent growth in the current
fiscal. It also plans to double the number of outlets to 100 in the current fiscal
and aims to have 300 stores in the next three years.

With rising disposable incomes and a young workforce earning relatively high
incomes, India offers excellent growth opportunities for the QSR and CDR
business. And both international and domestic fast food majors are realising this
and are rolling out major expansion plans.
CHAPTER 3

RESEARCH METHODOLOGY

3.1. Objective:

The main objective of this project is to find out if it will profitable for Oh my
Shawarma to open a kiosk in Besant Nagar area in Chennai.

The other objectives are:

 To understand the acceptability of the outlet among their target audience


pertaining to the specified location
 To conduct a thorough study of their QSR competitors in the specified
location
 To analyse the food purchasing behaviour of consumers in online and offline
mode
 To identify the preferred price range consumers are ready to pay for quick
service food

3.2. Population:

The population of this study are the pedestrians and visitors from Besant Nagar
beach and customers purchasing from major food outlets in the vicinity between the
age group 15 to 55 which consists the target market of Oh My Shawarma.

3.3. Sample

The sample size of this report is 100 individuals. The sample techniques used is a
combination of judgemental sampling and convenience sampling.

3.4. Research Design:


We have come up with a conclusive research design. Through this research we aim
to derive a conclusion whether the specified location is profitable for expansion of
Oh My Shawarma and if the company will gain acceptance among their target
audience.

3.5. Data Collection Tools:

For this report we have used questionnaire and survey as our data collecting tools.

A questionnaire was formed based on the objectives of the client Oh my


Shawarma. The questionnaire consisted of both quantifiable and qualifiable data.

The questionnaire was circulated manually in Besant Nagar area and a personalised
survey with the individuals was conducted by our group members.

The questionnaire is attached in the annexure.

3.6. Statistical Tool:

This report uses Statistical Package for Social Sciences 23 (SPSS) by IBM for
handling all the quantitative data. It helps in organizing the data and finding the
output by different statistical methods. It saves a lot of time and gives very accurate
output.
CHAPTER 4

DATA ANALYSIS
4.1. Demographic Data

Table 4.1.1 Age of respondents

N Frequency Percent
15-25 81 81.0
25-35 15 15.0
35-45 3 3.0
45-55 1 1.0
Total 100 100.0
Source: Primary data
Inference: A large number (81%) of respondents is aged between 15-25, i.e. the
youth
Table 4.1.2 Occupation of respondents

Occupation Frequency Percen


t
Student 56 55.4
Service 14 13.9
Business 8 7.9
Currently 22 21.8
unemployed
Total 100 100.0
Source: Primary data
Inference: Amongst the sample population in Besant Nagar, more than half of
respondents are students, 22%(approx.) have an earning source and others are
unemployed.
4.2. Food Consumption Behaviour
Table 4.2.1 Lifestyle- Vegetarian or Non-Vegetarian consuming

Veg/Non-Veg Frequenc Percent


y
Veg 10 10.0
Non veg 90 90.0
Total 100 100.0
Source: Primary Data
Inference: Only 9% of the respondents are pure vegetarians

Table 4.2.2 Preferred mode of buying food: Offline/Online/Both


Preferred mode Frequen Percen
of buying food cy t
Offline 28 28.0
Online 19 19.0
Both 53 53.0
Total 100 100.0
Source: Primary Data

Inference: There exists a major part of population (28%) that prefers buying food
offline, while people who prefer both online and offline are more than half of the
sample population.
Table 4.2.3 Cross tabulation of Occupation and Preferred mode of buying food
Occupation Preferred mode of buying Total Pearson df Asymp.
food Chi Sig. (2-
Offline Online Both Square Sided)
Student 15 7 34 56 11.311 8 .185
Service 3 5 6 14
Business 2 4 2 8
Currently 8 3 11 22
unemployed
Total 28 19 53 100
Source: Primary Data

H˳= Occupation and Preferred mode of buying food are independent of each other
H1: Occupation and preferred mode of buying food are not independent of each
other.

Inference: The value of test statistic is 11.311 and P-value is greater than our
chosen significance level(0.05), we do not reject the null hypothesis. It can be
concluded that there exists a dependent relationship between the mentioned
attributes.

4.3 Quick Service Restaurant

Table 4.3.1 Selection basis of new QSR(Offline)


Basis of Frequency Percent
selection
Time 9 9.0
Price 23 23.0
Quality 56 56.0
Quantity 7 7.0
Others 3 3.0
Total 98 98.0
Missing 2 2.0
Total 100 100.0
Source: Primary Data

Inference: It can be inferred that the test population keeps in mind two major
factors while selecting a new QSR(offline)- Price and quality.
Table 4.3.2 Selection of new QSR - Online
Basis of selection Frequency Percent
Rating of restaurant 51 50.5
Offers 20 19.8
Pictures of food 13 12.9
Restaurant loyalty 6 5.9
Convenience 7 7.9
Total 98 97.0
Missing 2 2.0
Total 100 100.0
Source: Primary data

Inference: The major selection drivers of a new QSR in online mode are the ratings
of the restaurant, offers, and pictures of food.

Table 4.3.3 Comfortability with take-away model of QSRs


Comfortability Frequency Percent
with take-away
model
Yes 52 52.0
No 14 14.0
Not sure 32 32.0
Total 98 98.0
Missing 2 2.0
Total 100 100.0
Source: Primary data

Inference: More than half of the test population is comfortable with take-away
restaurants, while 32% is not sure about the model.

Table 4.3.4 Comfortability with take-away model of QSRs and the respondents
occupation
Comfortability with Total Pearson df Asymp.
Occupation takeaway model of Chi Sig.(2-
QSRs Square sided)
Yes No Not
sure
Student 35 6 15 56 3.539 8 .896
Service 5 1 6 12
Business 3 2 3 8
Currently 9 5 8 22
unemploye
d
Total 52 14 32 98
Source: Primary Data

H0: Occupation and Comfortability with take-away model of QSR are independent
of each other
H1: Occupation and Comfortability with take-away model of QSR are not
independent of each other

Inference: The value of test statistic is 3.539 and P-value is greater than our chosen
significance level(0.05), we do not reject the null hypothesis. Hence, it can be
concluded that there exist a dependent relationship between the mentioned
attributes.

4.4 Social Media

Table 4.4.1 Influence on respondents of social media ads- Offline


Influence of social Frequency Percent
media ads-offline
Yes 54 54.0
No 26 26.0
Not sure 14 14.0
Missing 6 6.0
Total 100 100.0
Source: Primary Data
Inference: 54% Of the sample population agrees that their offline food-buying
habits are influenced by social media ads

Table 4.4.2 Influence of social media ads on ordering food online


Influence of social Frequency Percent
media ads-online
Yes 53 53.0
No 29 29.0
Not sure 16 16.0
Missing 2 2.0
Total 100 100.0
Source: Primary Data
Inference: Same as in offline food buying, more than half of the respondents are
influenced by social media ads in online food buying too.

4.5 Price Range

Table 4.5.1 Ideal price range of QSR(INR)


Price range Frequency Percent
20-50 6 6.0
50-100 26 26.0
100-150 44 44.0
More than 150 24 24.0
Total 100 100.0
Source: Primary Data
Inference: A little less than half the population(44%) believe the ideal cost of QSR
should lie between Rs.100-150. The next major section of test population is split
between Rs 50-100 (26%) and more than Rs.150 (24%). A minor sample population
expects QSRs to price food below Rs.50. Hence, it can be inferred that people are
ready to pay if they receive quality food.

Table 4.5.2 Ideal price range of Shawarma


Price Range Frequency Percent
75-100 33 33.0
100-125 28 28.0
125-150 7 7.0
More than 150 3 3.0
Total 71 71.0
Missing 29 29.0
Total 100 100.0
Source: Primary Data
Inference: More than 60% of the population regards the ideal price of a shawarma
should lie between Rs.75-125.
Table 4.5.3 Ideal price range of QSR and their occupation
Occupation Ideal price range - QSR (INR) Total Pearson df Asymp.
20-50 50- 100- MORE Chi Sig.(2-
100 150 THAN Square sided)
150
Student 2 13 27 14 56 20.945 12 0.51
Service 0 4 3 7 14
Business 1 2 5 0 8
Currently 3 7 9 3 22
unemployed
Total 6 26 44 24 100
Source: Primary Data

H0: Ideal price range is independent of Occupation of respondents


H1: Ideal price range is not independent of Occupation of respondents
Inference: The computed Chi-Square value is 20.945 and the P-value is greater than
our chosen significance level (0.05), hence we do not reject null hypothesis. It is
concluded that there exist an association between the occupation and perceived ideal
price range for respondents.

4.6 Cuisine Preference


Table 4.6.1. Cuisines that are preferred the most by the sample population
Cuisine Responses
N Percent
Indian 93 34.8%
Lebanese 4 1.5%
Mexican 20 7.5%
Greek 3 1.1%
Chinese 54 20.2%
Italian 39 14.6%
American 20 7.5%
Middle eastern 9 3.4%
Arabian 25 9.4%
Total 267 100.0%
Source: Primary data
Inference: The most popular cuisines amongst our respondents are Indian, Chinese,
Italian and Arabain.

Fig. 4.6.1- Pie distribution of preferred cuisines of respondents

4.7 Quick Service Food- Shawarma

Table 4.7.1 If the respondents have consumed a shawarma before or not


Consumed a Frequency Percent
shawarma or not
YES 67 66.3
NO 30 29.7
Total 97 96.0
Missing 3 2.0
Total 100 100.0
Source: Primary data
Inference: Almost 70% of the respondents have consumed a shawarma
before.

Table 4.7.2 Respondents’ openness to try new shawarma places


Open to try a Frequency Percent
new shawarma
place
Yes 36 36.0
No 12 12.0
Maybe 23 23.0
Missing 29 29.0
Total 100 100.0
Source: Primary Data
Inference: 36% of the test sample population are open to try new shawarma places
than their usual ones, 12% are sure that they won’t, and the rest are not sure.

Table 4.7.3 Cross tabulation between shawarma consumers and their openness on
trying new shawarma selling places
Consumed a Open to trying new Total Pearson df Asymp.Sig.
shawarma shawarma places Chi (2-sided)
before Square
Yes No Maybe
Yes 34 9 21 64 3.553 2 0.169
No 2 3 1 6
Total 36 12 22 70
Source: Primary data

H0: Openness to trying from a new Shawarma shop is independent of the


respondents prior Shawarma consumption
H1: Openness to trying from a new Shawarma shop is not independent of the
respondents prior Shawarma consumption
Inference: The computed Chi-Square value is 3.553 and the P-value is greater than
our chosen significance level (0.05), hence we do not reject null hypothesis. It is
concluded that there exist an association between a respondent who has consumed a
shawarma before or not and their trying out a new shawarma joint.

4.8 Meal Plans

Table 4.8.1 Cross tabulation between combo/single dish preference and the choice
of extras with food
Combo Preference in variety of extras Total Pearso d Asym
meal or with food n Chi f p.Sig.
single Icecrea Beve Bake Ot Square (2-
dish m r- d h- sided)
prefere ages items ers
n-ce
Meal 17 21 7 3 48 3.950 6 0.683
Single 9 9 5 6 29
dishes
Both 8 9 2 4 23
Total 34 39 14 13 100
Source: Primary Data
Inference: It can be safely inferred that almost 50% of the sample population
prefers meals over single dishes and a large number amongst them would prefer ice-
cream and beverages as extras with their meals.

4.9. Rating of competitors

Table 4.9.1 Rating of competitors of Oh My Shawarma by respondents


Restaurants N Mean
Source: Primary Al kebabish 22 3.55 data
Palmshore 32 4.22
Inference: Savory sea shell 28 4.36
Arabian kebab centre 23 4.57
S.No Restaurant Rating
Alreef 25 3.92
.
1 Al Kebabish 3.5
2 Palmshore 4.2
3 Savoury Sea Shell 4.3
4 Arabian Kebab Centre 4.5
5 Alreef 3.9

4.10. Use of sustainable products

Table 4.10.1. Influence of sustainable products and packing on buying behaviour of


customers
Influenced by Frequency Percent
restaurants using
sustainable
products
Yes 58 58.0
No 25 25.0
Not sure 14 14.0
Missing 3 3.0
Total 100 100.0
Source: Primary Data
Inference: a rising awareness towards sustainability can be seen as almost 60% of
the sample population will incline towards restaurants using sustainable packing and
other products
5. MAJOR FINDINGS
Besant Nagar is an area adjacent to Elliot’s Beach. The nearby areas are residential,
IT offices & colleges. The area in in vicinity of the beach has a lot of food kiosks,
stalls, cafes and restaurants. The youth pays maximum visit in the area. There was
no popular shawarma brand present in the area where questionnaires were
distributed. The area holds a great potential to set up a franchise of Oh My
Shawarma.

 Almost 50% of respondents who purchase food online make their


purchase decision based on the ratings that the restaurant holds on food
delivery apps like Zomato and Swiggy

 In the digitally connected era, it is safe to assume that the young


respondents heavily depend on images of food along with the ratings on
food delivery apps before purchasing food online

 Consumers these days prefer knowing the product and brand before
becoming loyal to them. They prefer absolute transparency

 Indian consumers prefer Indian, Chinese and Arabian cuisines majorly


while consuming food. Indianizing the current menu to adapt to the taste
buds of the consumers could be one way of approaching it

 Food delivery apps recently launched the ‘Meal for One’ option which
allows the user to browse through various food options for one

 In an offline set up, it has been observed that consumers prefer an add on
along with their food

 Sustainability is the need of the hour and it would be wise if OMS picked
up this existing trend and implemented it in their products and packaging
7. SUGGESTIONS

 Currently, OMS does not indulge in paid promotions on food delivery


apps such as Zomato and Swiggy, which would help in increasing their
rating inorganically, hence it is recommended to do so

 OMS should initiate creatively put together images of their food products
on food delivery apps as well as advertisements

 OMS can improvise their social media presence on apps like Instagram
and Twitter to narrate their brand story, which would help them maintain
a brand presence

 OMS can redesign their existing menu and include variety in all 3
cuisines for the consumers to choose from

 OMS could register for ‘Meal for one’ service and hence increase their
sale on daily basis

 OMS should include add on extras like beverages, baked food and other
accompaniments in the form of a combo meal
8. CONCLUSION
Based on the research we can observe that though increase in the popularity of
ordering food online, there is still a considerable crowd (28%) that still prefer to buy
food only offline. Also, more than half of the respondents prefer both online and
offline mode for buying food.

While choosing their preferred restaurants (online and offline), the three key
determinants are:

 Price
 Quality
 Rating of the restaurants

Also, a significant percent of the population (52%) is okay with take-away


restaurants and this population consists mostly of students.

We also observe that in both online and offline mode social media advertisements
play a crucial role in deciding the consumers choice of restaurants.

In terms of price range of QSR, the most accepted price range among the
respondents is INR 100-150 (accepted by 44%). While for Shawarma, the accepted
price range is INR 75-100 (accepted by 32%) and INR 100-125 (accepted 28%). If
the target audience is students then the most accepted price range is INR 100-150 for
QSRs. The four most preferred cousins by the respondents are Indian, Chinese,
Italian, Arabic respectively.

When it comes to shawarma, 70% of the respondents have tried shawarma before
and more than half of that population is open to trying new shawarma places.

Coming to the Oh My Shawarma’s competitor, out of the five competitors


Palmshore, Savoury Sea Shell, Arabian Kebab Centre have been rated above 4 by
the respondents and stands as the biggest competitor of Oh My shawarma.

Lastly, when asked the question if sustainable products used by the restaurants affect
their choice of restaurants, more than half of the respondents (58%) showed an
inclination towards restaurants using sustainable products.
Thus, we can reach the conclusion that QSR models are gaining popularity among
students and younger generation and they are ready to pay a nominal amount for
quality food at economical price and with increasing pace of lifestyle it is only fair
to say that QSR will continue being popular among the crowd. If QSR models can
adapt to its consumers preferences there is a scope to capture the market and do well
for itself, especially is a popular youth friendly location like Besant Nagar.
9. REFERENCES

References
Abhishek Deochake, Parth Bhuta. (2017). Quick Service Restaurant Report . Mumbai: White
Unicorn Ventures.

Annamma Oommen. (n.d.). fast food rapid growth.

Darshini Kansara , Mradul Mishra . (2019). Indian Restaurant & Food Service Industry –
Structure & Prospects . Care Ratings Limited.

Dr.P.Deivanai. (2016). Factors influencing to Preference of Fast Food Restaurants. IOSR


Journal of Business and Management (IOSR-JBM), 20-25.

Gaikwad, D. S. (2016). An Empirical Study of Consumer Buying Behaviour towards fast food
in South Mumbai. International Journal of Research in Finance and Marketing
(IJRFM), 64-72.

Mr Dilip Chenoy, Anurag Mathur , Shounak Gadre. (2018). The changing landscape of the
retail food service industry . PWC, FICCI.

Parth Bhuta, Abhishek Deochake. (2017). Quick Service Restaurant Report . Mumbai: White
Unicorn Ventures.

qsrweb.com. (n.d.). Retrieved from qsrweb.com: https://www.qsrweb.com/blogs/qsrs-


find-indoor-kiosks-improve-customer-experience-deployments-accelerate/

Sameer Koranne, S. B. (2016). Study of Trends in Quick Service Restaurants . Atithya: A


Journal of Hospitality , 25-32.

Susan Chacko, D. S. (2015). Franchising a Business Opportunity for Quick Service


Restaurants. 11th International Conference on Science Engineering & Technology,
101-104.
ANNEXURES

QUESTIONNAIRE

We, the students of MFM department, NIFT Chennai are conducting a survey to
understand the food consumption pattern and popularity of shawarmas in Besant
Nagar. It would be of tremendous help if you would kindly give 5 minutes to fill in
the questionnaire below and help us with the research.

Q1. Age
15-25 years 25-35 years 35-45 years 45-55 years

Q2. Gender
Female Male Others

Q3. Occupation
Student Service Business Currently
Unemployed

Q4. What is your most preferred mode of buying food?


Offline Online Both

While buying Offline,

(i)Choose the factor you consider before selecting an existing QSR (Quick Service
Restaurant) to eat at. (Rank according to your preference)
Time Price Quality Quantity
Others

(ii) What brings you to try out a new food outlet in the offline mode?
Ambience Advertisements Crowd Word of mouth
All of the above

(iii) Are you comfortable with takeaway model of restaurants?


Yes No Not Sure
(iv) Does a social media advertisement influence your restaurant choices?
Yes No Not Sure
(v) Does a quick service restaurant using sustainable product influence your
restaurant choice?
Yes No Not Sure

While buying Online,

(i)Which factor influences your decision the most?


Rating of restaurant Offers Pictures of food Restaurant
Loyalty
Convenience

(ii) Which website/mobile app do you use the most to order food?
Swiggy UberEats Zomato Others
If Others, please specify _______________________

(iii) Do social media advertisements influence you to order food online?


Yes No Not Sure

Q5. Where do you see most of the food related advertisements?


Internet Television Hoardings Others

Q6. Tick mark your eating preference.

Most likely Frequently Occasionally Rarely Never


Fine Dine
Casual Dining
Home-made
Street food

Q7. What is your ideal price range for Quick Service Food?
20-50 50-100 100-150 More than 150

Q8. In a QSR do you prefer combined meal offers or single dishes?


Meal offers Single Dishes Both

Q9. What variety of extras do you prefer with your quick service food?
Ice-Cream Beverages Baked Items Others

Q10. Which cuisine do you prefer while eating at a QSR? (More than one can be
selected)

Indian Chinese Arabian


Lebanese Italian American
Mexican Middle East Greek

Q11. Have you consumed a shawarma before?


Yes No

If Yes,
(i) How would you rate shawarma on a scale of 0-10:

0 5 10

(ii) Is there a specific outlet from where you buy shawarmas in Chennai?
Yes No
If Yes, please specify ________________________

Q12. Rate the following shawarma outlets on a scale of 1 to 5(If you have not
bought Shawarma from the following outlets, please skip the question)

Shawarma outlet Rating


Al Kebabish
Palmshore
Savory Sea Shell
Arabian Kebab Centre
Alreef

Q13. According to you, what should the ideal cost of a shawarma be? (INR)
75-100 100-125 125-150 More than 150

Q14. Are you open to trying new places that sell shawarmas?
Yes No Maybe

Q15. Have you heard of the food joint- Oh My Shawarma?


Yes No

If Yes,

Q16.From where have you heard it?


Word of mouth Online food delivery apps Others

Reviews/Suggestions/Feedback (if any)


____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________

Thank You for your time to fill up this questionnaire and being of valuable help in
our project.

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