The Economics of Quick Service Restaurants

How fast-food chains achieve consistency, speed and low costs through standardised processes, central kitchens and scale, and how they adapt to Indian tastes.

Quick service restaurants (QSRs) like Domino’s, McDonald’s, KFC, Subway and Indian chains focus on speed and consistency.

How they work

Standardised recipes and processes.
Limited menus to reduce complexity.
Central kitchens and commissaries preparing ingredients.
Cold chains for consistent supplies.
Technology for orders and delivery.

Economies of scale

Big chains get lower prices from suppliers and spread marketing costs across many outlets.

Localisation

McAloo Tikki and Paneer pizzas.
No beef at McDonald’s India.
Vegetarian kitchens in some outlets.

Indian QSR chains

Haldiram’s, Wow! Momo, Jumbo King (vada pav), Burger Singh and Rolls Mania built chains around Indian foods.

Delivery

QSRs rely heavily on delivery, with some chains earning over half their sales from it.

Value pricing

Affordable meal combos attract price-sensitive Indian customers.

The vada pav chain

A Mumbai chain standardises vada pav with central kitchens and uniform recipes, opening outlets across cities with the same taste everywhere.

Thinking fast food chains serve the same menu worldwide

Chains localise heavily for Indian tastes.

Key takeaways

QSRs focus on speed and consistency.
Standardisation and central kitchens cut costs.
Chains localise menus for India.
Indian foods like momos and vada pav have QSR chains.