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Topic: consumer attitude towards street food and restaurant food

Chapter 1: introduction of consumer attitude towards street food and restaurant food
Consumer attitude consist of a combination of cognitive of information and belief, emotions, and behavioral
intention regarding a consumer product or service. It is what you believe about a product or service, how you
feel about it, and what your intentions are towards it.
I. Street food : it consists of ready made food items that are sold by a vendor in markets or open places.
They may include the solid food items, various drinks or juices. Street food has become a very
important business nowadays. And people have always admired and loved street food and street food
markets.
II. You walk across the street and you will see many vendors selling the food items. These are the
delicious, traditional food items. They have a unique aroma and flavor attached with them that makes
every passer-by to stand, and taste it. Moreover, they are readily made within a short duration of few
minutes. This adds to its specialty of giving a try to these food items. According to a report of FAO
(Food and Agriculture organization) there are around 2.5 million people who tend to eat street food
daily. That is to say, the number of consumers of ‘street food’ is increasing day by day.
III. Restaurant food: Over the years I have met an amazing number of people from diverse backgrounds
who, regardless of their personal wealth or success, say they’d like to set-up a restaurant one day.
Home-makers with culinary skills, celebrities looking for an investment, corporate executives who are
well connected, landlords with space, restaurant mangers or chefs with industry experience,
industrialists who would simply like a place to host their associates & friends, and all sorts of other
people dream of having their own restaurant.

IV. After all, how hard can it be? All you need to do is arrange for a good space, good food & good
ambience, market yourself well and there... you could make some good money and even a name for
yourself, right? Sure! But try getting down to doing it and you will find it isn’t that easy, not even for
the most experienced restaurateurs.

V. We’ve all heard of instances when even experienced restaurateurs have failed and people with no
experience in the industry have succeeded in their venture. So we know somewhere deep within, that it
doesn’t necessarily matter whether the restaurateur has industry experience or not. What really matters
in a restaurant’s outcome is the restaurateur’s willingness and ability to prioritize certain tasks and
attitudes over others. We will take a look at these tasks and attitudes throughout this book and in
particular within the Chapter titled “A Formula for Success.”

VI. Of the many questions I am often asked by people hoping to convert their restaurant dream to reality, it
is the food related ones that come up most often – “I’m quite a foodie you know” or “I enjoy eating in
various parts of the world” or “I have some terrific tried-n-tested family recipes. Doesn’t this qualify me
to succeed as a restaurateur?” My answer? “While these will help to an extent, true success really needs
a well-rounded business approach.”
1.1 industry scenario :
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The food market of India has 6th rank with 70% of sales and 5th rank in production, consumption, and
export in the world. India export 13% of the total manufacturing and 6% of the industrial investment. India
contributes to Gross value added 8.80% and 8.39% through manufacturing and agriculture sector.
I. Street food franchise in India: this sector is booming and one of finest alternative to start business to
start business venture. Indian street food is spreading globally and people in all over the world are
appreciating-logical taste as well. Competition in food service industry is burgeoning with entry of
various brands that offer wide range of street snacks at reasonable rates. Indians are always looking for
cheap and high quality foods, however consumer lost interest in unhealthy snacks as they shifted to
organic. People these days are demanding for regional cuisines, moreover thirst for street foods are
increasing because local vendors always offer low cost foods. In order to standardize food service
industry several brands have come up with significant concepts.
II. Restaurant food franchise in India: however the organized food service industry is projected to grow
rapidly at a CAGR of 16 percent and its market value expected to reach  Rs. 145,770 crore ($28 billion)
compared to the current Rs. 67,995 crore by 2018. The restaurant industry is a major contributor the
country's economy.
III. Consumer attitude : The Food and Beverage industry continues to struggle with stagnant overall
growth. From 2012 to 2014, US food and beverage retail spending annual growth of 2.6 percent has
roughly mirrored the annual inflation plus population growth of 2.3 percent. Though the overall spend
has been flat, there has been a shift in where consumers are spending. The challenge becomes finding
ways to grow by connecting with shifts in consumer purchase decisions and evolving shopping
behavior.
Consumer-led disruptions are compounding the challenges of stagnant growth. According to interviews with
retail and manufacturing executives, consumers have an unprecedented ability to access information about
products and share this information via social media, making it more challenging than ever for companies to
manage messaging. In addition, many consumers have signaled a distrust of the established food industry in
spite of retailers’ and manufacturers’ traditional efforts to keep consumers positively engaged with their
brands. To help retailers and manufacturers better understand the drivers and implications of these shifts,
Deloitte Consulting LLP conducted a study in collaboration with the Food Marketing Institute (FMI) and the
Grocery Manufacturers Association (GMA) and authored the report, “Capitalizing on the shifting consumer
food value equation.”

1.2 Contemporary issue :

Designed to examine issues facing the food supply chain, including food supply and security, Contemporary
Issues in Food Supply Chain Management considers supply security in terms of food availability,
traceability, the delivery of a sustainable diet, technological changes and the impact of current governance
structures. The supply chain – problems and dilemmas Food security and sustainability; Case studies and
new areas of research It examines issues within these areas and highlights to the reader the level of inter
connectivity and tensions in the delivery of food security and economic, social and environmental
sustainability and the provision of safe and nutritious diets.
I. Contemporary issue of street food India: Food-borne bacterial pathogens commonly detected in street
vended foods are Bacillus cereus, Clostridium perfringens, Staphylococcus aureus and Salmonella
spp. ... People who patronize street food, have been reported to suffer from food borne diseases like
diarrhea, cholera, typhoid fever and food poisoning.
II. Contemporary issue of restaurant food in India:
There are two factor issue of restaurant food
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 Economic / Market Factor

 Rising Food Costs: Food price inflation is a key factor affecting the food services market in India, and is
impacted by delayed monsoons, the economic slowdown, and unfavorable demand- supply conditions.
It keeps fluctuating and reached a peak of 18% in 2010 (Exhibit 100). While It affects consumer
indulgence across all formats, it also hits the margins realized by players.
 Fragmented market, increasing competition: There are a number of players who offer products that are
more or less similar, at competitive prices. No single player leads the market; and also low consumer
loyalty exists. This makes it challenging for players to engage and retain consumers, and heightens their
performance-related uncertainty. Since a one-size-fits-all approach will not pander to the variegated
consumer palate, it is imperative that food services players tailor their offerings from time to time be it
the menu, the format, or the concept, in order to establish a unique business proposition and attract
diverse consumer segments.
 Operational Factors
 Manpower Issues: Shortage of Quality Staff and High Attrition
The Indian hospitality industry is highly labor-intensive, but the availability of trained chefs, managerial
staff and other support staff is low. According to a study by the Ministry of Tourism, the current supply of
skilled/ professionally trained manpower is estimated to be ~9% of the total manpower requirement. Given
this shortfall of quality manpower and the industry’s high attrition rate of 20-25%, the cost of labor is high.
To bridge the demand and supply gap, currently players are hiring in huge numbers and increasingly
investing in in-house training programs.
 High real estate and labor costs impacting store profitability: For over a decade, India has been
experiencing an escalation in real estate prices amplified by increasing demand and the availability of
easy credit. For food services outlets, real estate (rentals) is the second major cost component after raw
materials and accounts for ~12-15% and sometimes even 20% of total revenues. Further, labor costs are
also high in India. People get low salaries, productivity is low, and thus there is a requirement for more
employees. The high labor and real estate costs, couples with the high services tax on property, are
exerting pressure on store profitability and consequently deterring the growth of food services outlets.
 Land reforms impacting business operations: To add to the woes of exorbitant costs, the food services
market is constantly buffeted by reforms relating to land availability, land ceilings, and floor space
index (FSI), and also suffers delays in approvals. The permissible FSI in India varies across cities and,
on average, is in the range of 1 to 4. In comparison, the global FSI average is 10. This is because of the
constant discouragement of a high population density in urban areas, which results in a higher density in
slum area and also unauthorized constructions. For example, in Mumbai, where space shortage is an
issue, the FSI (including transfer of development rights) is 2.
 Fragmented Supply Chain: The industry’s supply chain is fragmented in nature and marked by the
presence of multiple intermediaries. The lack of appropriate infrastructure, inadequate technologies and
non-integration of the food value chain are the key factors leading to the nearly 30-40% food wastage
across to supply chain.
 Warehousing: There exists a shortage of quality warehousing space in India. Warehouse lack the
optimal size, design, and storage system. Further, the presently available warehousing space is
inadequate with respect to the growing demand. According to industry sources, the total warehousing
space in India is estimated at 80-100 million metric tons (MT), whereas the demand is for a much larger
space.

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 Logistics: The logistics market in India is highly unorganized- ~95%, with few national level players.
The infrastructure is grossly inadequate, with lack of proper roads, rail network and ports. Insufficient
distribution channels, over-burdened ports, and poor quality of services are just a few of the bottlenecks
that impact players. This leads to high logistics costs, which amount to over 13% of Indian’s GDP as
against ~5% in developed countries.
 Cold Chain: Currently, cold chain facilities in India are inadequate to meet the prevailing demand. The
cold chain infrastructure is highly fragmented in India. An estimated 85% of the market by value is
dedicated for storage and the other 15% for transportation. According to industry sources, there are
~5,300-5,400 cold storage in India with a total installed capacity of ~23 million MT. Around 25% of
these cold storage are multi-purpose, with the rest for storage of potatoes (~55%), other fruits and
vegetables, dairy products and meat and fish. In terms of capacity, ~80% are utilized for potatoes alone
and the rest 20%for other commodities. Across the entire supply chain, the need for cold infrastructure
and advanced solutions is critical to minimize wastage of fresh produce, extend life of perishables, and
enhance quality of food. The need of the hour is to establish an end-to-end supply chain, making use of
modern structures such as logistics parks, integrated cold chain solutions, and last mile connectivity, and
also adopting such technology as bar coding and RFID’s and assuring government support through the
incentive's of private enterprises.
 Huge and recurring Licensing fees: An estimated INR 0.5-0.6 crore (USD 0.10-0.12 million) is required
to fulfill all licensing requirements, which is a huge impediment for growth when considering a
restaurant’s finances. In addition, the annual license fee to sell imported alcoholic beverage is as high as
INR 10 lacs (USD 19,230) per year in New Delhi. Processing charges are additional expenses.
 Government/regulatory factor:
 Over- Licensing: In India, obtaining the requisite licenses, e.g. health license, food safety license, police
license, No Objection Certificate (NOC), from the fire department and the state pollution control board,
etc. is a major obstacle hindering the smooth operations of a restaurant. The process is not centralized as
yet and requires filing applications with individual stakeholders, which involves a lot of paperwork and
is a time-consuming activity. The licenses required to start a restaurant are the same throughout India,
expect in some states like Maharashtra. A player needs approximately 12-15 licenses just to open a
restaurant each from a government department.
 High Tax Rates: The Indian restaurant industry is burdened with multiple taxes like Vat, excise, and
services tax, besides different state taxes, which add up to 17.5-25% of the bill value (Exhibit 103). This
tax is much higher in comparison to other sectors like apparel and footwear, where it ranges from 10-
15%.
1.3 Consumers and food safety: A food industry perspective
Consumers have a right to expect that the foods they purchase and consume will be safe and of high
quality. They have a right to voice their opinions about the food control procedures, standards and
activities that governments and industry use to ascertain that the food supply has these
characteristics. While consumers, governments and others play an important part in ensuring food
safety and quality, in free-market societies the ultimate responsibility for investing the physical and
managerial resources that are necessary for implementing appropriate controls lies with the food
industry - the industry that continuously oversees the manufacture and processing of foods, from
raw ingredients to finished product, day in and day out. Although in the broadest sense the food
industry encompasses all those who are involved in growing, processing, manufacturing or
distributing food, from the farm to retail shops and restaurants, this article focuses on
manufacturers of packaged food products who have clearly identified products and a long history of
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outreach to consumers. While this is true, private enterprise recognizes that its success - measured
in terms of profitability - is completely dependent on consumer satisfaction. A reflection of
consumers' satisfaction is their continuing purchase of the same products. Food manufacturers and
marketers thus have an investment in their product identities (brand names) that they naturally wish
to protect. It is in their interest, therefore, to establish and administer the controls that ensure that
their products do indeed meet consumer expectations of safety and quality.
1.4
I. TOP 10 FOOD BEVERAGES IN INDIA IN WISE
rank Company Food sales ( in million) Year ending

1 nestle 72245 December 14

2 Pepsi co.inc 66683 December 14

3 JBS 52580 December 14

4 Anheuser- bush inbev 47063 December 14

5 Coca cola company 45998 December 14

6 Archer Daniels midlands 43232 June 14

company

7 Tyson 37580 September 14

8 Mondelez international 34244 December 14

9 cargill 33700 May 14

10 mars 33000 December 14

1.4 History of street food

Every culture and region has a history that shows the love of people for street food. It dates back to
the ancient Greece time period. They used to serve fried fish as their most common street dish. For
people of ancient Rome street food was their main source of food. The ‘chickpea soup’ was a
commonly sold item. China has a similar history.
During colonial time of America, the vendors used to sell ‘roasted oysters and corn’. Oysters
remained as a popular street dish due to its cheap price and delicious taste till 1910. After that there
came a little set back to it. New York had a bit different history. The government put many
restrictions on vendors and then actually completely banned this business by 1707. In Africa, many
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women and children get their earnings from selling street meals. Another example, during 19th
century in Transylvania, vendors used to sell ‘ginger bread’ and ‘corn mixed with cream’ on the
streets. ‘French fries’ emerged in Paris as the most selling street meal by 1840. In Thailand, initially
this business couldn’t gain much popularity. In Japan, street food business started 100 years back
where it was provided to students and laborers.
The roots of street food can take us way back into history. It is believed that as the first distribution
point of street food, small fried fish were sold on the streets in ancient Greece. Street food was
widely consumed by poor urban residents of ancient Rome whose tenement homes did not have
ovens or hearths. In ancient China, where street foods generally catered to the poor, wealthy
residents would send servants to buy street foods and bring meals back for their masters to eat in
their homes. Urbanization and street food go hand in hand. Historically, in places such as ancient
Rome, street food was purchased because urban poor did not have kitchens in their homes. Across
the globe, street food, sometimes also synonymous with fast food, has become an important part of
daily life as local population increasingly struggle to keep pace with their hectic lifestyles. The
street vendors offer hot fresh, lip smacking snacks which are very filling and absolute value for
money. Take-out food, junk food, snacks, and fast food are synonymous with street food and all of
these can be purchased on the foot path without entering any building. These foods are popular
mainly because they are easily available, and that too at half the price or less of any restaurant food.
It is of particular cultural importance to India, where this forms the means of livelihood for many
pushcart vendors, dhaba owners and their families. This street food culture also ensures that the
connection with India’s rich cultural heritage is retained, with influences ranging from the Mughal
dynasty to the British Empire. According to an estimate of the Food and Agriculture Organization,
which was released in 2012, over 2.5 billion people eat street food in India every day. The National
Street Food Festival, which is an annual event organized in Delhi by the National Association of
Street Food Vendors of India is a platform where street food from all the states of the country is
showcased. This is a platform which showcases the cultural diversity of the country in the culinary
space – specially catering to street food.

Today, while some street foods are regional, many are not, having spread beyond their region
of origin. A lot of people, who have not been exposed to the street food culture, shy away from it
thinking it is unhealthy and unhygienic. However, one would be surprised to note, that despite
concerns about contamination at street food vendors, the incidence of such is low with multiple
studies showing rates comparable to restaurants.

A well-known Australian Culinary Historian and author of the recently released ;The Penguin
Food Guide to India Charmaine ; Brien, who was on a culinary tour to India, observed that the
small regional food vendors or hawkers across India mostly sold freshly cooked meals using fresh
ingredients. While elaborating on Indian food cuisine and culture, O'Brien said Indian regional food
was most complex and offered a diverse cuisine unlike known to outside world. “Indian food is
laden with history, culture, religion, economic conditions as well as weather,” she said. Even trade
affected the development of Indian cuisines, she said adding 'In Madurai, the Chettinad cuisine has
expensive spices like fennel, coriander, clove, cinnamon which reflected that people were wealthy
and trade happened.

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1.5 HISTORY OF RESTURANT FOOD

The term ‘restaurant’ first appeared in the 18th century in France. It referred to a reinvigorating meat broth
which people ate to refortify the body. It was not until the French Revolution and subsequent
industrialisation that culinary establishments such as we know them today began to appear and develop.
However, the modern restaurant is not an entirely new creation. The activity of eating outside the home has
existed for thousands of years.

During Classical Antiquity, thermopolia served food and drink to customers of all social classes.
Archaeological digs uncovered more than 150 such places in the city of Pompeii, highlighting the
importance of this type of establishment. The rather basic thermopolium served food in bowls carved into an
L-shaped counter.

The Middle Ages and Renaissance period saw the emergence of the tavern and inn in Europe, precursors to
the modern restaurant. Often located on the side of a road, they offered food and shelter to travellers. The
meal cooked was at the discretion of the chef and traveller s had to settle for the single dish of the day.
Meanwhile, under the Song dynasty (960-1279) in China, the Empire’s capital city was filled with
establishments serving their customers a range of à la carte dishes.
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In the 17th century, going out specifically to eat a full meal was not yet commonplace. From the latter half
of the 18th century, Paris became the capital of the modern restaurant. According to legend, in 1765 a man
by the name of Monsieur Boulanger was the first to open an establishment offering a choice of restorative
broths and even used the term ‘restaurant’ on the sign over his door: “Boulanger provides divine
sustenance.” Then, in 1782, Antoine Beauvilliers opened his eponymous restaurant, which made his
reputation. The famous French gastronome Brillat-Savarin praised him highly. It was one of the first luxury
restaurants aimed at a wealthy clientele. With the outbreak of the French Revolution, chefs working for the
aristocracy found themselves out of work. Those who escaped the guillotine opened their own restaurants to
satisfy the refined tastes of their new clientele, the rising bourgeoisie.

In Switzerland, the first restaurants appeared only in 1880. In the 20th century, lifestyles changed and eating
in restaurants at lunchtime became commonplace for many workers. Restaurants started to specialise and
target their clientele. Eating in a restaurant in the evening began to be associated with a leisure activity
combining discovery, pleasure and conviviality, an outing with family or friends away from the household
dining room.

ARON, Jean-Paul, 1974. Le Mangeur du 19e siècle. Lausanne : Ex Libris.

FLANDRIN, Jean-Louis et MONTANARI, Massimo, 1996. Histoire de l’Alimentation. Paris : Éditions

Fayard.

RAMBOURG, Patrick, 2005. De la cuisine à la gastronomie, Histoire de la table française. Paris : Éditions
Louis Audibert.

GIRVEAU, Bruno, (dir.), 2001. À table au 19e siècle. Catalogue d’exposition du Musée d’Orsay. 4
décembre 2001- 3 mars 2002. Paris : Flammarion.

GERNET, Jacques. 1962. Daily Life in China : On the Eve of the Mongol Invasion, 1250-1276. Stanford :
Stanford University Press.

SPANG, Rebecca, 2000. The Invention of Restaurant: Paris and Modern Gastronomic Culture. Cambridge :
Harvard University Press.

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1.6 HISTORY OF CONSYMER ATTITUDE TOWARDS FOOD

The history of food and beverage is, of course, as old as humans themselves. However, there were no major
developments until the 19th century, when Nicholas Appert invented canning and Louis Pasteur developed
pasteurization. These processes made food a product that could be preserved and packaged for later use.

World War II prepared a fertile ground for innovations in the food industry. As food was rationed and prices
were regulated, better preservatives and flavouring agents were developed. This paved the way for instant
foods.

Improvements in distribution are a major part of the development of the food industry. Before the Industrial
Revolution, people consumed food and drinks mainly from local markets. Today, thanks to transportation
and cold storage facilities, food can be taken to stores anywhere.

1.7 name of all street food in India

Booth Spices

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Cart Appetite
Cart Bazaar
Food Dude
Food Feast
Food Grub
Food Lord
Foodie Chief
Foodie Havana
Hideaway Hut
Market Appetite
Market Flavor
Premium Booth
Snack All-Out
Snack King
Stall Captain
Stall City
Street Feast
Streetnetic
Street Rush

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1.8 name of restaurant in India

The Spice Delight

Indian Masala House
Tandoori Palace
Home of Biryanis
The Spice Factory
Ahmedabadi
Curry Kingdom
The Taste of Hyderabad
Namastey UK/US/…any country or city name
Oh! Bambai
The Kebab Island
Parantha Platform
Dilli ki Rasoi
The South Indian Delight

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Darjeeling Calling
Desilicious
Masala Chowk
Masala Maarke
The Spice Club
Village Food Factory
Garam Masala
The Indian Spice Club
Roti Mahal
Spirit of India
Sizzling Spices
Antaratma
Khana Khazana
The Big Fat Indian
Lounge Tamil
Dad ki Rasoi
The Naan House
Parantha Factory
Dal Tadka
Masala Magic
Pulao
Gol Roti
The Allahabadi’s

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