Indian Food Chains Adopting Social And Mobile For Cost-Effectiveness & Instant Reach

Indian offline and online food chains are going mobile with changing consumer behaviors. Food chains like Faasos, online food shops like JustEat, Food Panda, TastKhana all are going mobile.

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With the import of smartphones spiking up in the country, the activities of the urban youth in the country has also increased significantly. According to Nielsen Informate Mobile Insights of 2013, in terms of the total time spent on smartphones on a daily basis in 2013, India came in second last with its smartphone users spending 156 minutes (or 2.6 hours) on their devices.

Online user visits to mobile segment has gone up from 6.31 million in January 2013 to 20.70 million in January 2014, registering a Year on Year (YoY) growth of 228 percent, according to Internet and Mobile Association of India (IAMAI) and IMRB.

This consumer behaviour of gradually adopting mobile as the first screen of communication and entertainment has thrown up challenges for marketers and businesses. While most of the businesses are yet to set their wake up call, Indian food chains are gearing up for the challenge.

According to TNN, about 5,000 registered customers tweet to order desi style wraps and rolls from fast food chain Faaso’s. Domino’s Pizza has had a million downloads of its delivery mobile app launched 24 months ago.

Besides a report by retail consultancy firm Technopak, shared exclusively with TOI, said food services companies are using social media, mobile and the internet for its cost-effectiveness and instant reach.

Technopak data showed that 78% of the food services outlets in Mumbai have delivery options. It is 61% in the Delhi National Capital Region and 48% in Bangalore. Domino’s Pizza, the market leader in the organized pizza business, received 50% of the last quarter revenue, pegged at Rs. 385 crore, from deliveries, according to Technopak. And 14% of those home deliveries came via orders on internet and mobile apps.

Not just the national chains but other outlets that are riding on this home delivery model are also witnessing that youngsters are increasingly spending more time on their phones than on their desktops. Bangalore-based Ammi’s Biryani and Mani’s Dum Biryani are launching mobile apps next month.

Ammi’s Biryani believes that his mobile app and social media initiatives drive an additional 15% growth to the home-delivery business. Mani’s Dum Biryani expects both internet and mobile app to bring additional 10% each to out delivery vertical.

Recently in a conversation with Techcircle, Co-Founder and CEO Ritesh Dwivedy at Bangalore-based Achindra Online Marketing Pvt Ltd, stated that the company behind the online food delivery site JustEat.in, is looking to shift its focus to mobile going forward.

Online food ordering platform Food Panda and TastyKhana are observing similar shifts in trend. According to a survey done by TastyKhana across cities highlighted that customers were using mobiles more than desktops to place their orders. 17.5 percent of the orders came from desktops while orders received via mobile were almost double at 31.9 percent.

Food Panda gets 25% orders through its mobile app. Rohit Chadda, MD and India Co-founder of Food Panda shared that, “We are seeing a phenomenal 60-70% growth month-on-month in orders made through our app. Mobile is eating in to the share of internet as an ordering medium.”

Mobile is rapidly becoming a preferred choice for consumers in the country for its ease but startups should also provide better user experience and commerce via mobile apps. Encouraging mobile payments through mobile wallets could be one of the ways to look for. The recent alliance of redBus with Mobikwik that allows users to pay for ticket reservations directly from MobiKwik mobile wallet is an apt example. The firm is also offering 5 percent cash back on every transaction done using the wallet.