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Quick service restaurants' revenue, margin under severe stress; recovery seems distant: report

Economic Times · 1y

The rapid rise of food delivery apps like Zomato and Swiggy has put pressure on quick service restaurants (QSRs), causing their revenue and margins to suffer, according to a report by BNP Paribas. The popularity of food aggregators has negatively affected dine-in sales and fragmented delivery sales for QSRs. The increased competition has particularly impacted pizza restaurants, which face intense rivalry as more cuisines become available for delivery. The report suggests that the road to recovery for QSRs may be longer than anticipated due to various factors, including inflation and increased options for consumers.