Food Industry

FOOD INDUSTRY

In recent years the popularity of eating out has grown enormously. As a result there are now thousands of eating places in Ahmedabad offering a wide range of different types of cuisine at prices to suit all pockets. People have become much more adventurous and cuisine from many different countries is widely available.

A trend towards healthy eating has led many restaurants to add healthy options, such as low fat and low salt dishes, to their menus.

The industry is very competitive as barriers to entry are relatively low. When demand is strong, many new cafes and restaurants open up. Recent years have seen the huge expansion of restaurant chains (such as pizza and pasta outlets) and these have intensified competition for the independent restaurant. Competition has also increased as a result of the enormous range of 'ready meals' now offered by the major supermarkets.

Although the popularity of eating out is forecast to continue to rise in the long term, diners increasingly want high quality food that is good value for money. This is likely to put prices under pressure. Many cafes and restaurants found it very hard to increase their menu prices, but needed to do something to safeguard their profit margins. Some were forced to cut their portion sizes, while others sought out less expensive ingredients. Every caterer has a business concept that's reflected in his menus, his pricing, and the way he does business. Some caterers have more interesting concepts than others. Many caterers stick to the basics and serve customers with typical offerings like North Indian, Chinese and Sweets. Other caterers offer their clients a unique take on ethnic food, outdoor picnics.