Why Indian foodservice operators strictly comply with enhanced regulatory oversight

The McDonald’s fiasco in Maharashtra pushes for more transparency on fast food brands.

Foodservice operators in India have escalated their efforts to comply with enhanced regulatory oversight over the health and safety of their services, according to analytics firm GlobalData,

Adding pressure is the reinforcement of correct labelling and authenticity of ingredients, as more Indian consumers become more dependent on eating in restaurants.

Recent incidents like McDonald’s India using cheese substitutes instead of 100% dairy-sourced cheese for its products lead to reinforcement toward major foodservice providers for compliance and consistency with food standards.

Furthermore, it emphasises the need for timely investigations and quality control in the food industry to prevent any failure to comply with regulations, from ingredients to food preparation, reinforcing confidence for consumers.

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“When consumers spot mislabeled or subpar ingredients at their chosen foodservice venues, they lose trust in the brand and switch to competitors, often for good. Service inconsistencies of foodservice providers and failure to comply with regulations will only reinforce such consumer attitudes in the long run,” Francis Gabriel Godad, business development manager of GlobalData India, said.

Currently, 51% of Indian consumers have spent more on quick-service restaurants, especially as mobile-dependent consumers have preferred convenient fast food.

However, with health and wellness becoming vital to dietary choices for consumers, foodservice operators need to enforce tighter standards for quality products and services.

“Global fast food companies are increasingly gaining traction in India owing to its huge population and the cost-effective choices of consumers. With the growth potential also comes significant responsibility and accountability on the part of operators,” Jaya Dandey, consumer analyst at GlobalData, said.