Fine dining restaurants: A study of Indian consumer preferences

Abstract

Indian food service industry can be divided into six formats, viz. Frozen dessert (including Ice Cream and frozen yogurt), Café (including Bakery), QSR (quick service restaurants), CDR (casual dine restaurants), fine dine restaurants and PBCL (pub, bar, club, and lounge). Of this size of fine dining restaurant is estimated to be Rs. 1,640Cr and is expected to grow at a rate of 15%1. Chain fine dining restaurant market size is estimated to be Rs. 500Cr. QSRs and CDRs have brands that constitute majority of the market share, however, bulk of fine dining restaurants are operated by independent owners and their share of market is relatively small (Ha and Jang, 2012). Fine dining restaurants are critical and contribute to the food service industry by introducing new concepts. New service trends and dining traditions usually emerge from fine dining restaurants. A Fine dining restaurant is either a specialty or multi-cuisine restaurant that offers quality food, expert service and premium decor and furnishings. That is, the attributes provided by fine dining restaurants are more professional and high-end, as opposed to fine dining restaurants and CDRs which focus more on volumes and fast service. Studies have defined a luxury restaurant as “a restaurant that is providing full table service, high quality environments, and a menu that features entrees most of which are more than $20” (Morrison, 1997; Mintel, 2010; Ryu, K., Jang, 2007).Affluent consumers increasingly indulge in exotic food experiences promised by fine dining restaurants. Metros and mini-metros dominate this market as consumers having high disposable incomes with high spending power increasingly spend on dining out. The chain fine dining market currently has ~50 players with ~150-200 outlets spread across these cities. Customers perceive dining as a source of recreation and are willing to pay a premium for the experience. To cater to rising level of consumer expectations, fine dining restaurants are experimenting with menu, cuisines, consumer-chef interactions, etc. New concepts such as teppanyaki tables, sushi, barbeques, grill tables, etc. have been introduced. Techniques such as sous-vide and molecular gastronomy are latest additions to the kitchens of these high-end restaurants. Fine dining experience is matched with “small plating” and “degustation menus”. Unlike other service formats, fine dining restaurants focus on customer experience, immaculate service, outlet ambience and presentation.