India's Eating-Out Economy: Checkpoint 1

Quick checkpoint - five questions on the food service market, menu engineering, food costs, restaurant closures and QSRs.

Question 1 of 5 Which part of India's food service market is still large?

Unorganised street stalls and small eateries Only fine dining Only hotel restaurants Only airports

Organised chains are growing faster, though.

Question 2 of 5 What is a "star" in menu engineering?

A popular and profitable dish An unpopular dish A free dish A dish removed from the menu

Restaurants promote stars.

Question 3 of 5 If a 300-rupee dish uses 90 rupees of ingredients, what is its food cost?

10 percent 30 percent 50 percent 90 percent

90 divided by 300 is 30 percent.

Question 4 of 5 Why do many restaurants close?

Low entry barriers and high fixed costs Too little competition No rent to pay Very high margins

Competition and fixed costs squeeze profits.

Question 5 of 5 How do QSR chains keep food consistent?

Standardised recipes and central kitchens Changing recipes daily No suppliers Only fresh local cooks

Standardisation also cuts costs.

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