Evolving food habits make India complex to operate in: Sodexo

Indian consumers’ focus on authentic, regional and healthy cuisines and the delivery models of food aggregators have made the country one of Sodexo’s two most complex markets, a top executive at global food services and facilities management company said.

“Multiple factors are impacting the way we do business in food services. Consumers have never been so demanding and have a very clear idea of what they want — for example Keto diets, blood group diets, Friday menus, different ethnicities, and preferences for specific retail brands to mirror in their cafeterias,” Sodexo’s Asia Pacific MD, corporate services, Vineeta Tikekar told ET.

The $24.2 billion French company, with presence in over 80 countries, operates through two business models in India—on-site services or facility management and the consumer-facing coupons business. India contributes about 7-8% to Sodexo's global revenue. “This is a young, emerging market which is consuming food differently, is a lot more indulgent-led and with higher ticket sizes, which are being split into different day parts,” Tikekar said.

Sodexo is also working on smart vending, or offering fresh food out of vending machines, and is underway with pilot projects with online grocery delivery store Big Basket’s BB instant.

A Sodexo-Oliver Wyman report on food services and consumer trends has forecast a strong disruption in the food market by 2030, driven by evolving consumers and corporate expectations.

Food delivery by aggregators and hyper local delivery startups have had a massive impact on dine-in consumption. “There has been a noticeable disruption in consumption trends in the Indian food market. With 520 million people expected to live in Indian cities by 2025, and 17% of urban employees working in office-based services sectors, eating out-of-home is all set to get even more pronounced,” the report said.

Source:- https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/evolving-food-habits-make-india-complex-to-operate-in-sodexo/72988185