Food & Beverage and Bakery

Changing the palate

The F&B curve is rising, making way for institutional consumerism. Sanjeev Bhar discusses the changes and challenges lined up for this sector

While the service sector witnesses enormous growth in all its subsidiary industries, can the F&B sector remain too far behind? When it comes to F&B service sector, the general tendency remains restricted to hotels and fine dining restaurants. But close scrutiny would reveal that the challenge and scopehas grown equally in many verticals. Food in every sense is on the move and riding on a simple theory - create and sustain demand.

The food market, both organised and unorganised, shows potential, where the participation of the former comes from food services companies that are making an entry into new circuits. Radha Krishna Hospitality Services (RKHS) ventured into railway on-board service through its brand, Rail Rasoi apart from the conventional IRCTC. The success of companies like RKHS can be attributed to the hygienic and hassle-free eating experience that they have been able to provide to travellers.

Similarly, the advent of low-cost carriers has brought in a new dimension to airport dining. Many quick-service restaurants find it easy to set up their outlets for those travelling on low-cost carriers. RKHS has also made its presence in this segment signifying that the scope of food service is expanding. It has opened a premium coffee chain Caffé Ritazza at the Mumbai international airport where coffee varieties are complemented by pastries, puffs, ciabata, panini, savouries and other beverages like tea and fruit juice. As per Jude D'Cruz, VP (strategy and new businesses) of RKHS, "Privatisation of airports and rapid growth in air traffic in the country will increase the demand for food offerings of international standard at airports." Apart from airports, there are scores of venues which provide an opportunity worth millions

Hygienic conscience

The most critical aspect that comes to mind when food is discussed, whether served inside or outside the airport or onboard, is that of hygiene and food safety. Surely hospitality companies have taken note of this issue and addressed it righteously. With the new ISO 22000 standard, it would be wise for all units to phase out the old Hazard Analysis and Critical Control Point (HACCP) method for food safety. The "not forgotten" episode of avian flu was reason enough to reconsider precautionary measures. The government too is keen to see food establishments keeping themselves abreast with the latest techniques and qualifications in relation to food safety, as India becomes a global destination for travel and various international events like the Commonwealth Games 2010. The upgradation is visible and hopefully, in a couple of years more awareness will serve the sector better. Food safety and hygiene are tipped as a benchmark for success and safety audits and relentless monitoring are sure shot trends in the making.

HACCP was the 'the most' efficient method for ensuring food safety. But it is time to upgrade it to ISO 22000:2005 - the new international food safety management system standard. Bhavna Mohindra, client manager at BSI India, says, "We need to focus on the way food is being handled by hotel staff. Mere upgrading the technology on food safety would not be a solution." She is of the view that many hotels in India are still following primitive methods for ensuring food safety. According to a quality consultant who audits hotels on food safety parameters, flight kitchens in India need special attention as the possibility of microbial germination in food is high as food travels from the kitchens to airports.

Most hotels are found to be using the HACCP system combined with an auditable management system. There is also a need to address peripheral matters like kitchen conditions, personal hygiene, clear drainage systems, proper vaccination against diseases/regular medical check-ups, etc. Training programmes at hotels are also constantly being upgraded but ground realities reveal otherwise. Even today, the totality of food as a product is counted over the hygiene parameters followed back-of-the-house, and that remains a concern.

Mix-n-match

Whether hygiene becomes key or not, food still goes through constant changes. Critiques would say that food habits and trends are very difficult to predict. Experimentation is keenly practiced and evaluated to identify the latent trend. Anjan Chatterjee of Speciality Restaurants which operates restaurant chains like Mainland China and Oh Calcutta! avers, "Trend is all about experimentation, particularly visible in vegetarian wedding menus. Some of the highly successful caterers have taken their innovative fare to international markets. Similarly, innovation is taking place in the restaurant segment too with constant competition." Foreign cuisines serve as the best examples as they are changed to suit regional palates, and will continue to attract attention.

In any country, native food is always preferred by the locals. Ranveer Brar, executive chef of The Claridges, says, "Unfortunately, the international client mix that we enjoy today was not present earlier. So we were cooking primarily for Indians and limiting our creativity in terms of experimenting with cuisines. However, it does not mean that Indians as F&B professionals are less creative and less passionate about their work. Since the market mix is much more cosmopolitan and international today than it ever was, the time is right for chefs to experiment and be appreciated."

Bakshish Dean, executive chef of The Park New Delhi, concurs, "With the new school of thought, a lot of importance is given to food experimentation and menu designing and its overall structure is going through a makeover. Cooking styles are also incorporating foreign methods to give regional cuisines a new look." In a nutshell, food is boldly presented.

Talking of bold presentations and popularising it through aggressive salesmanship, interactive kitchen has taken a lead. Kitchens are getting trendier with open kitchens that let guests decide their meal and how they want it to be cooked. Restaurants in Southeast Asian countries have aquariums where guests can pick their seafood. This trend is all set to touch the Indian soil as the need is to sell food as an art form and not as a physiological need. Feels Brar, "Show kitchens and kitchen theatres will get more refined with experience; stress will be laid on substance than chefs' performance."

Changing trends

The food sector goes through subtle changes that define trends. Dining has taken various forms - specialty restaurants, fine dining in hotel restaurants, coffee shops, quick-service restaurants, kiosks/take-away outlets and many more. In such a scenario each category has its own mill of trends operating under different conditions. Brar opines, "F&B in hotels will don a crisper look in future. Fortunately or unfortunately, time and efficiency will take the driver's seat rather than flamboyance. In short, guests will be lured by a stylised yet quick and an unobtrusive experience."

What actually sets changes in eating habits is difficult to predict. Either it is enticed through good salesmanship or word of mouth. Surinder Malhotra, executive chef with Metropolitan Hotel Nikko, New Delhi, is of the opinion that health food is the preferred genre of food today and will remain so for a long time to come. To assist promotion of health food through easy cooking, DuPont is promoting non-stick cookware targeting professionals. Rajat Tewari, business development manager (DuPont Fluoroproducts) informs that non-stick cookware, conventionally used domestically, has shown demand in the industrial segment too. "Since health food cooked in less oil has become popular, professional chefs prefer this cooking medium as a healthier option," he says.

Malhotra avers, "Food awareness leads to demand in health food, which is a combination of less calories, balanced in major nutrients, minimal additives and cooked methodically. The trend of introducing new cuisines, products, concepts, flavours across all categories of F&B outlets and restaurants, be it fine dine or café, will continue. Existing fast food outlets will also innovate and add value with indigenous products, regional cuisines and 'backyard' fusion."

Beverage fixation

A change in beverage consumption habits always attracts attention, especially at a time when Indian alcohol and spirit are being sketched over the food landscape all over again. Many states are keenly viewing state-wise liquor policy as an answer to organised and flourishing drinking culture, which was limited a decade ago. Dhananjay Kumar, F&B manager at The Claridges, believes that Indians are more inclined towards spirits. "However, in the past two years the trend has been moving towards wines. It has become a lifestyle statement for Indians and a few wine societies have even taken shape to spread knowledge about the beverage. The wine portfolio has increased manifold," he points out.

The advent of duty-free wines has made them cheaper and Indian winemakers are also making their presence felt in the global market. Most distributors in India are organising winemakers' dinner across the country to create a general awareness among guests. For some reason, vodka also appears to be the flavour of the future, say many in the spirits business. Helsinki-based vodka brand Finlandia Vodka recently touched Indian shores with flavours like cranberry, lime and mango. Siddharth Banerji, managing director of Kyndal India that promotes Absolut brand, says, "The potential of this beverage in the Indian market is phenomenal. We target the affluent strata of professionals who are educated, well-travelled and know a lot about brands. We have reached smaller places like Tejpur and Guwahati in Assam, Darjeeling and Shillong and have also gone south with Bangalore, Mangalore, Mysore and Pondicherry." According to him, the vodka market in India will be about a million-plus cases and the imported market's worth is less than 1,00,000 pieces. Yet he is confident of the market with Absolut introducing various flavoured vodkas. But to popularise drinks there has to be a reduction in liquor license fees and hotels should be allowed to serve liquor throughout the night rather than restricting the time limit.

Tea or coffee?

Alongside intoxicating drinks, tea and coffee are getting stronger in business stature as well. Tea, despite being unable to secure a strong position in the retail beverage segment like coffee, has become more proactive. The Tea Board of India is trying every possible bit to promote tea inland and overseas, and is also considering engaging in tie-ups with tea service outlets in the country. Rupali Datta, director (Tea Promotion) with Tea Board of India, informs that they are promoting consumption of tea in an aggressive manner. "Cha Bar and similar café-like concepts are a good way to promote the beverage. We are open to the idea of promoting tea consumption through outlets," she adds.

If promoters of the beverage industry are to be believed then there is a lot of potential for tea as a healthy lifestyle drink in urban India. Priti Paul, director of Apeejay Surrendra Group that promotes Cha Bar, is looking forward to tie-ups with the tea board. She says, "Such a tie up will not be like a revolution in the tea market but it will be an acknowledgement of our activities in promoting tea drinking and selling through institutional support." Gaurav Saria, director of Infinitea and Liquid Gold that started the first tea bar in the country with its Bangalore outlet, says, "The potential for tea bars is huge but has not yet been harnessed. People are slowly realising the importance of tea and it is the youngsters that will shape the business of tomorrow. Apart from the metros, it shows high demand in tier-II cities."

The latest entrant in the coffee/tea retailing business is from US - Barnie's Coffee & Tea. It has clear-cut plans of achieving 25 per cent market share in coffee retailing by having 300 stores in the next five years and raising its revenue pool to Rs 100 crore. It will launch its outlets and kiosks on three variants - mall stores, single unit franchises and non-mall locations, where outlets would cost between Rs 15-45 lakh. Gaurav Marya, managing director of Barnie's India and president of Franchise India Holdings (its marketing arm) says, "Barnie's will also give a 60:40 emphasis to beverage and bakery food (sourced from Nirula's) on its menu with an aim to set up commissaries of its own."

Another trend that rakes in stakes in the hospitality sector is service outsourcing. It started with peripheral necessities but the basic revenue generating areas now are also seemingly being outsourced, for instance, restaurants in hotels. Brar says that this concept is here to stay as it is a win-win situation for both the lessee and the leaser. "However, for the trend to be really prevalent it would take some time as the Indian hotelier buys the outsourcing idea with a pinch of salt. The decision, whenever it is taken, will be more out of management compulsion due to lack of skill availability," he adds.

Service outsourcing has already started with basic F&B products like cookies and breads. It would ultimately grow into sourcing pre-packaged ready-to-eat food stuff. Chatterjee says, "There are a number of NOCs and licenses required for establishing standalone restaurants and hotels act as fruitful venue to host such restaurants for easy operation. The trend of leasing out F&B spaces to standalone restaurant operators is very practical for a hotel operator in more than one way. Some of the five-star properties might even decide to have small luxury dining run by world-famous chefs on a franchise basis. This trend will only become stronger particularly in two- to three-star categories." Any which way, it is clear that the boom in this sector is giving rise to a new face of institutional consumerism.