India's Booming Cake Shops
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www.imagesfood.com V O L U M E TWO • I s s u e FOUR Trade Journal for the Hotel, Restaurant and Catering Industry JULY-AUGUST 2012 • `100 India Edition Sweet Spot India’s booming cake shops Page 20 Pan European Survey Part 2 of Foodservice at train stations in Europe Page 16, 32 Innovative Restaurant Concepts Faasos and Haati Kaapi Page 60 Research 8 Emerging Trends in Food and Beverage Retailing CONTENTS www.imagesfood.com foodServiceV O L U M E TWO • I s s u e FOUR J ULY- A U G U S T 2 0 1 2 National Updates ….............................................................8 New Restaurant Openings..................................................12 In Conversation:….........................................................16 Persistence and innovation are the adjectives that best define the 37-year-old Jaydeep Barman, Founder of Faaso’s, the popular chain of wraps in Pune and Mumbai. Inspired by the success of the burger chains, this engineer-cum-MBA launched his version of low-priced, fast food served in hygienic conditions in real quick time. Nivedita Jayaram Pawar talks to the man. FoodService at Train Stations:…........................................................... 20 Once the preserve of the limp sandwich and the cold cup of tea, today’s train stations have become the latest battlefields in the fight for consumer spend and dwell time. From the major stations in the big cities to regional stops, more and more branded and independent companies are focussing on these outposts to meet expansion targets, raise brand awareness, reach new audiences and trial new concepts. Part 2 of the FoodService Europe & Middle East European survey. Profile: …..................................................................................32 COVER STORY The Bangalore-based filter coffee chain Hatti Kaapi has reached a store count 34 of 25 in less than 3 years since its launch in November 2009, growing 200 The cake and pastry industry in percent year-on-year. Roshna Chandran finds out the company’s aggressive India is expanding fast even as growth plans and discusses its success formula. new players enter the segment every month. Though the category In Conversation: ..............................................................40 Louis Le Duff, Founder and Owner of France’s Groupe Le Duff, has grown is still small by global standards, his global foodservice and bakery empire – annual sales nearly €1.2 bn – many local players have created with the help of two key strategies: he maintains an intense, expert focus on success stories of their own, the traditions and technology of dough, and he applies vertical integration driven by the growing demand in “from fork to fork” (pitchfork to table fork) with his café and restaurant the market. They are optimistic chains operating in tandem with bread and pastry manufacturing. Ever-wider about the future, but for the cake international distribution is aided by franchising, the subject of a best-selling book by Mr. Le Duff. industry to grow to its full potential, there are certain challenges that need to be overcome, such as the 20 32 low margins, high rentals, lack of trained manpower, and the short shelf-life of products. Varun Jain reports. 40 16 Cover Photo: L’OPÉRA, Khan Market, New Delhi 4 JULY-AUGUST 2011 FOODSERVICE INDIA EDITION CONTENTS Cuisine Watch:................................................................................................ 43 Brazilian cuisine is a peculiar mix of cultures and cooking habits which are a result of the unique history of the country as a melting pot of people with diverse origins. Indian and Brazilian cuisines share certain similarities, yet each has its own character. Find out more about it with Chef Edmilson G de Azevedo. Entrepreneur: …..................50 Trends:...........….................................. 52 Design:.............................................. 58 Dolly’s is Kolkata’s most famous When East meets West on a plate, fusion Gourmet cuisine chain Café Pico tea shop. Set up in 1987 of food happens. While fusion is not recently opened its latest outlet by Dolly Roy – the first-ever a new phenomenon, it has picked up at the Market City Mall in Kurla, woman tea taster of India – the momentum in the last decade as travel, Mumbai. With Gordon Ramsey outlet, with a relaxed, laid-back trade, and ingredient availability have hit protégé Nicole Gonsalves at the atmosphere, serves affordable a new high. Fusion food definitely suits helm in the kitchen, Café Pico tea that customers swear by. Indian tastes, but when is fusion food has witnessed a very enthusiastic Shuhra Saini speaks to the truly fusion and not just a strange-tasting response. Nivedita Jayaram reviews entrepreneur. gimmick?, asks Manu Mohindra. the design. NRAI: …............................................................. 69 Research:...................... 60 Inspite of the tremendous importance of the restaurant What are the emerging and sector in the Indian economy, it still has not reached current trends in the F&B its true potential. The stumbling blocks responsible for services industry of India? this under-performance are intrinsic and hence can be How will people eat, behave addressed, but the others need government support. and be served in the coming years? This report, prepared by Pratichee Kapoor of Technopak, takes a look at some of the foreseeable trends that are soon going to become a part of the everyday life of restaurant-goers. COVER STORY akes and pastries have always held a sweet appeal for foodies across The cakes and pastries industry in India is expanding the world and the Indian market for fast even as new players enter the segment every month. this segment has turned out to be an Though the category is still small by global standards, extremely dynamic one – evolving fast many local players have created success stories of their and expanding faster. From traditional Clocal cake shops on street corners to large, free- own, driven by the growing demand in the market. They standing gourmet outlets and hotel bakery shops, are optimistic about the future, but for the cake industry the patisserie business is booming, especially in the to grow to its full potential, there are certain challenges metros and business-oriented cities dominated by the expat community and corporate customers. that need to be overcome, such as the low margins, high According to Qusai Khorakiwala, the Director rentals, lack of trained manpower, and the short shelf-life of Monginis Foods which runs over 600 cake of products shops across India, the cake and pastry industry is currently flourishing, driven by the huge market By Varun Jain size, though exact figures are hard to come by. “The segment is growing at a rapid pace in terms of turnover and the number of players,” he says. “In fact, it has shown a consistent growth of more than 20 percent over the last five years. Initially, there was not much competition in this space, but many new players have now arrived on the scene. It is therefore expected that the industry will maintain the same momentum in future.” Animesh Barat, F&B Director with the Marriott at Jaipur, agrees that the cake and pastry retailing Sweet business offers a lucrative proposition. He reckons the industry to be growing at 15–18 percent y-o-y in Spot terms of revenue and even more in certain metros. The cake and pastry segment has shown a consistent growth of more than 20 percent over the last five years 34 JULY-AUGUST 2012 FOODSERVICE INDIA EDITION The margins are small in this industry considering the high cost of the ingredients “The business is bound to grow manifold over Ten Famous Cake Shops in India the years, its annual growth increasing to 25–30 Brand Name No. of Outlets Cities Present in percent in the near future. Emerging cities have gained more traction for investors,” he says. Monginis 650+ Pan India Compared to the mature Western markets, the Nirula’s 85+ North and West India Indian cake and pastry market is still miniscule Birdy’s 60+ Mumbai and Delhi but growing rapidly. Back in 2008, the size of the Indian bakery industry was worth around ` 900 The French Loaf 35+ Bangalore, Chennai and crore. It is currently valued at ` 4,303 crore – Kolkata nearly a five-fold jump. “With the industry growing Hot Breads 27 Chennai so rapidly, it is only a question of time that it Breads and More 17 Delhi/NCR, Mumbai and catches up with the rest of the world. I would give Goa it under a decade to be on par with or ahead of international markets and standards,” says Captain Slice of Italy 16 Delhi/NCR Daljeet Chopra, a supplier of cakes and pastries to Flurys 13 Kolkata and Durgapur Bunty Mahajan, Owner, Deliciae Patisserie many mainstream bakeries who has recently turned Chokola 10 Delhi/NCR and Mumbai retailer by founding the Feast India Company in L’Opera 6 Delhi/NCR Delhi. The market however still remains largely DELICIAE unorganised. Chopra estimates that there are Patisserie around 85,000 bakery units in India currently, out occasions than most other nations, each of which First outlet opened in: of which about 75,000 operate in the unorganised calls for something sweet to be distributed among August 2004 sector, occupying a 65 percent market share. the guests. This demand from the households sustains the industry throughout the year since Total number of outlets: Rising Demand there is no fixed season for birthdays and wedding 3 The demand for cakes and pastries is growing anniversaries. but it does not make sense for most food outlets, Barat of Marriott says the quality of cakes Name of cities present in: restaurants and hotels to set up a separate bakery and pastries essentially decides the standard of Mumbai and Pune for themselves as it would not be economically F&B offerings at a large-size hotel like his. “The viable. Most of them therefore depend on market has definitely matured from what it was Hottest selling item: professional setups for sourcing products.