Service Industries And Technology

Service industries are growing rapidly for last two decades and it forms a backbone for social and economical development of India.In India, services sector, as a whole, contributed as much as 68.6 per cent of the overall average growth in gross domestic product (GDP) between the years 2002-03 and 2006-07.

India ranks fifteenth in the services output and it provides employment to around 23% of the total workforce in the country. The various sectors under the Services Sector in India are construction, trade, hotels, transport, restaurant, communication and storage, social and personal services, community, insurance, financing, business services, and real estate.
The most important services in the Indian economy has been health and education.They are one of the largest and most challenging sectors and hold a key to the country's overall progress.

The Indian information technology (IT) industry has played a key role in putting India on the global map and is now envisioned to become a US$ 225 billion industry by 2020.

Over the past decade, the Indian IT-BPO sector has become the country’s premier growth engine, crossing significant milestones in terms of revenue growth, employment generation and value creation, in addition to becoming the global brand ambassador for India.

According to a research report published by National Association of Software and Service Companies (NASSCOM), ‘IT-BPO Sector in India: Strategic Review 2011,’ the sector is estimated to aggregate revenues of US$ 88.1 billion in FY2011, with the IT software and services sector (excluding hardware) accounting for US$ 76.1 billion of revenues.

Now service industries are growing with growing technology. Technology completely changes the concept of service industries. Technology helps service industry in different ways to grow the industry. Technology reduces queues and waiting that was the biggest problem faced by public. Now services are available online that reduces industry cost as well as easily available to public.

Hotels and restaurants are valuable part of service industry that affects social and economical development of country. Rapid transformation in the lifestyle of Indians, particularly those living in urban India, has resulted in dramatic increase in the demand for processed food. The main reason why processed food is luring the urban Indians is the convenience.
The next time you go out for dinner to a fancy restaurant, take a look at the staff there. Well-groomed, polite and giving timely service, they may seem less in number, but every person has a distinctive job of his or her own.

There are lot of opportunities in restaurant and food industry in terms of technology. Food industry is relatively slow to adapt technology. But they will be technically rich within next 5 to 10 years due to increasing social and living standards of public.

There are few websites like tastykhana.com and justeat.in that offer online ordering, table booking and party management. Among those Tastykhana is a better service provider. Tastykhana is technically strong and they have strong delivery team. Other providers are deeply depend on restaurant delivery team while Tastykhana has it's own delivery team. Tastykhana has faster and well trained delivery team that delivers food up to 15 kilometer radius. Tastykhanaservices are now limited to pune only and will expand to all metro cities.

Tastykhana is unique due to its instant service. Once you order online you will receive a confirmation sms and food within given time frame.
Tastykhana has dedicated call centre for customers who placed order via phone/mobile @ 020 33006464. 

There are two ways to order food.
1. Log on to www.tastykhana.in and order online.
2. Call at 020 33006464 and place your order.

As technology grow, service industry will also grow.

Startups in restaurant industry

Service industry in India is growing very rapidly and have a great contribution to Indian economy. If you remember, 5 years back service industries like hotels and restaurants were technically very poor. There was a very little presence of hotels and restaurants in web world. There was minimal influence of technology in service industry.

       Now after 5 years service industry is very used to web world as well as technology. Technology have changed service industry in several ways. The way of working, customer service standard, promotions and facilities have changed rapidly. This enables a tough competition among them. In other word you can say the business is completely changed over the period.


       Now I would like to come to the point. In recent years I have seen several startups that directly do business with restaurants. Home delivery business is a thought of new generation entrepreneurs. They definitely find a gap between restaurants and customers. This gap gave birth to a new concept of homedelivery business. Major players in this field are Tastykhana, Zomato, justeat(hungrybangalore), food ka mood and a place to dine. All of them are startups not more than 4 years in business.


These companies work on different models of business. Among them two models are popular. One is 'Lead Model' and other is 'Delivery Model'.


Lead Model

This model is very favorable as company prospects. As this model requires very small team of 4 to 6 employees to run the operations smoothly. The basic function of this model is to take order from customer and give lead to restaurant. Restaurant prepares order and deliver it to customer. In lead model they charge 5-10% commission from restaurants per order. So revenue come from restaurants in form of order commission, set up fees(very nominal) and advertisements on portal. Zomato, justeat(hungrybangalore), food ka mood and a place to dine they all work on lead based model.


Pros:

1. Requires very small team to run the business.
2. Business process is very easy and cost saving.
3. Highly scalable business.       

Cons:

1. Business volume is very low.
2. Conversion rate is very low.
3. Not sure order will deliver to customer.       

Delivery Model

This model is very favorable for restaurants as well as customers. As they commit to delivery food to customer's door step. Basically they provide end to end solution to customers and restaurants. In this model company take order from customer, place order to restaurant and also deliver food to customers. This model requires lot of human resources like delivery boys, customer care executives, sales team, technical team and management team. In delivery model they charge 15 to 25% from restaurants per order and also a nominal delivery charges to customer. So revenue come from both hands in form of delivery charges, commission, setup fees and promotions. Tastykhana is the only major player who works on delivery model.


Pros:

1. Business volume is high.
2. Conversion rate is very high.
3. Reduces restaurant's headache as they deliver food.
4. Revenue come from restaurants as well as customers.
5. They are committed to deliver food at customer's door step.       

Cons:

1. Requires a big team to run the business.
2. Business process is little bit complicated.
3. It takes time to scale the business.

           

In coming days delivery model will be very popular as it provides end to end solution. This model will work as bridge between customers and restaurants.