Quick Commerce In Quick Service Restaurants.

Quick Commerce (Q-commerce) is fairly new as a venture in India, but its effect on the Quick
Service Restaurants (QSR) sector is already there to note. This has brought about a huge change
in consumer behaviour, delivery expectations, and operational models. With the degree to
which consumers are now expecting faster and sometimes more convenient delivery services for
food and groceries, QSR brands must quickly position themselves to adapt to these
expectations. The big transition that now exists from the old 30-minute-runway to the new 10-
15 minute-like on-demand delivery service has shifted the whole war landscape for all sorts of
QSRs. Luckily for the evolution process, such a change is not merely about meeting the demands
of modern consumers: it also encompasses a lot of solicited technologies, thinking about
consumer engagement, and innovating delivery service models.

Growth of Quick Commerce in India - The quick commerce industry in India has grown
tremendously in recent times. A recent research report published by Chryseum indicates that
the sector GMV increased from $500 mn in FY 2021-22 to $3.34 billion in FY 2023-24, giving a
remarkable 73% annual growth rate to this sector. It is expected that this growth will enable the
Q-commerce sector to reach a GMV of $9.95 billion by the year 2029, signifying a compound
annual growth rate (CAGR) of over 4.5%. Fast-growing deliveries with the emergence of
consumer preference have almost initiated this boom, especially for essential items like
groceries, medicines, and food.

There is a cohort of startups and established players that are leading the Q-commerce space.
Among these, Zepto, Blinkit, Swiggy Instamart, Dunzo, and BigBasket are driving the growth of
Q-commerce in India with innovative business models to support unbelievably fast delivery for
their customers.

 Zepto - Founded in 2021, Zepto has rapidly emerged as a major player in India's quick
commerce industry, especially in groceries and essentials. Operating on a delivery
timeline of 8-10 minutes, Zepto distinguished itself with a network of 100+ micro-
warehouses that could generate 2,500 orders a day in cities like Mumbai, Delhi,
Bangalore, and Chennai. The platform has thus far been able to scale its business
efficiently and profitably, charging very minimal platform fees and higher prices during
peak hours.

 Blinkit - Blinkit (formerly Grofers) is seen as one of the early players in quick commerce
in India. It is by far the leading player in the industry, with a 46% market share in 14
cities and over 250 micro-warehouses. Blinkit fulfills deliveries in 10-20 minutes with the
help of 14,000 delivery agents, thereby maintaining its leadership position in the very
competitive world of fast delivery.

 Swiggy Instamart - Swiggy Instamart was launched in 2020 to leverage the jaw-
dropping infrastructure of Swiggy deep food deliveries and provide groceries within 45
minutes. Not surprisingly, it has, with a 27% market share, become one of the leading
players in Q-commerce. It has partnered with dark stores and further improved delivery
methods with eco-friendly e-bikes to quickly and efficiently deliver products to the
customer.

 Dunzo - This is the company under which all the magic happens. It's pretty famous for
making its whole delivery system AI enabled and providing groceries, medicines, and
other essentials within 35 to 40 minutes. The platform emergence is using AI to form
possible delivery routes and an efficient demand management system. Dunzo already
increased revenues by advertising sourced from direct-to-consumer (D2C) brands that
promote their products.
  BigBasket - A household name in online grocery delivery, BigBasket has also come into
quick commerce, launching BB Now, which serves in over 40 cities. The service
integrates existing infrastructure with dark stores and partnerships with local Kirana
stores for airing rapid grocery delivery. Thus, the same has helped BigBasket to
strengthen competition in ultra-fast delivery markets while keeping reputation intact
about quality.

High on the list of the paramount shifts taking place in the Quick Service Restaurant (QSR)
industry is the massively growing consumer demand for mega fast deliveries seen with Q-
commerce. QSRs have traditionally prided themselves on speed, but new world leaders in 10-15
minutes deliveries have set a new bar much higher than previously possible.

1. Heightened Competition - Heightened competition is a factor most QSRs have to deal

with now. They are not competing only with other fast-food chains; they have started
battling it out with Q-commerce platforms, excelling in grocery and essentials rapid
delivery. This has forced QSRs to be more inventive while getting the customers in.
Some examples are Zepto launching Zepto Café, having fast food within 10 minutes,
smaller food stalls joining hands with Kiko Live, and others to get 10 minutes delivery.

2. Operational Pressure on Delivery Times - Operational pressures on delivery times have

increased. The previous 30-minute standard is now considered slow. QSRs now invest
heavily in technology to optimize kitchen and delivery systems, including AI-powered
ovens, robotic cooking, and order optimization software to speed up food preparation
without sacrificing quality.

3. Evolving Consumer Expectations - The expectations among consumers have grown.

Now, they are expecting speed, convenience, personalization, and an overall seamless
experience. Therefore, QSRs need to personalize experiences, optimize their app and
website for easy navigation, and ensure food quality through the delivery process.
Companies like Samosa Singh are adapting and tying technology into their efforts, for
example, offering specials only through the app and adding personalized promotions.

4. Leveraging Technology - Speed and Efficiency- Those who manage technology for speed
and efficiency have to. AI, ML, and robotics have been adopted by QSRs to enhance the
delivery models and optimize kitchen operations. Whereas, real-time inventory
management systems can be set up to optimize their delivery schedules and monitor
the various supply chains. Brands such as 99 Pancakes are stressing maintaining food
quality during transit through specialized packaging to ensure that their products get to
customers in a fresh state. Smaller brands are integrating with the Q-commerce
platform to control the demand and make the rapid delivery happen.

To be relevant within the fast-changing Q-commerce ecosystem, QSRs have to come up with
innovations in all aspects of their delivery process, including customer engagement and kitchen
efficiency.

Faced with the disruptive force of quick commerce, QSRs are now strategically adapting through
loyalty programs, micro-fulfilment, and localized engagement to keeping themselves
competitive and their customers satisfied.

1. Above all, loyalty programs and direct consumer engagement are essential. QSRs are
utilizing apps to provide personalized promotions, discounts, and rewards for customer
retention, repeat orders, and stronger relations. The feedback gained from this direct
engagement is invaluable. For instance, 99 Pancakes uses the app to reward repeat
customers while improving their overall experience.

2. Micro-fulfilment centres and ghost kitchens (cloud kitchens) are being provided to
speed up delivery time and cut operating costs. These small service kitchens are located
strategically to fulfil online orders, allowing even some fast processing and quicker
 delivery. Big names like KFC, Chipotle, and McDonald’s have embraced this operational
model to make their delivery processes efficient and fast in areas of high demand.

3. Localized marketing strategies and community engagement are crucial in reaching

certain demographic segments. Hyper-local marketing strategies, social media
campaigns, and influencer collaborations are utilized to build brand awareness and
foster community connections; furthermore, personalized app promotions such as those
of Samosa Singh solidifying customer relationships through tailored offers and instant
feedback mechanisms.

In terms of prospects, QSRs are looking at both opportunity and challenges. Growth path for this
sector is huge with Q-commerce, whereas on the other hand lie the challenges like high
technology costs, huge delivery fees by platforms, and pressure to deliver food while
maintaining quality due to quick delivery. All of these challenges will be forcing QSRs to rethink
their strategies and operational models time and again to stay competitive in a fast-changing
market landscape.

https://snackfax.com/ecommerce/quick-commerce/from-30-to-10-minutes-the-q-commerce-
disruption-in-quick-service-restaurants/