Quick service restaurants' revenue, margin under severe stress; recovery seems distant: report
food delivery apps like Zomato and Swiggy, quick service restaurant operators are finding the going tough with both their revenue and margin coming under severe stress while road to recovery is longer than estimated, says a report. The report by French brokerage BNP Paribas stated that the rising popularity of food aggregators has hurt dine-in sales of quick service restaurants (QSR) and has also fragmented delivery sales.
Also, with more restaurants partnering with food delivery platforms, consumers now have more options, leading to fragmented sales which are likely playing a part in the weakness in average daily sales of the QSR industry besides the general weakness in demand due to elevated inflation, the report highlighted.
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«While inflation may also be hurting demand, there are other factors at play, and we think the road to recovery could be longer than what the market estimates,» the report said.
The report mentioned that Zomato and Swiggy have grown more than three times in terms of on-boarding restaurants from 2.78 lakh in FY2020-21 to over 7 lakh in
