A recent controversy with McDonald's India demonstrated the importance of correct labelling and the authenticity of ingredients after a dip in consumer loyalty was caused.
The fast-food chain faced public backlash regarding using cheese substitutes instead of 100 percent dairy-sourced cheese in popular menu items. This issue highlighted how easily trust can be lost even with a renowned brand.
Jaya Dandey, consumer analyst at GlobalData, commented on the scrutiny food service providers will face if they don't comply with food standards.
"Global fast food companies are increasingly gaining traction in India, owing to its population and consumers' cost-effective choices. With the growth potential also comes significant responsibility and accountability for operators."
Francis Gabriel Godad, business development manager at Global Data India, discussed the increasing preference of young and upwardly mobile consumers for the convenience of fast food.
"According to a GlobalData survey, 51 percent of Indian consumers admitted spending at quick-service restaurants is very high or quite high. This validates the popularity of fast-food chains in India and the loyal customer base most of them have."
Incidents like this will lead to significant profitability losses, forcing fast-food chains to make consistent efforts to retain customer loyalty.
"When consumers spot a mislabeled or subpar ingredient at their chosen food service venues, they lose trust in the brand and switch to competitors, often for good," said Godad.
"With the power of social media, it does not take long for a single mishap to irreparably damage the label's image."
Health and wellness have become the focal point of many consumers' lives, pushing them to rethink their dietary choices. Of the survey respondents in India, 82 percent stated that they wanted to start cooking more meals from scratch in the next three months.
Foodservice providers' inconsistencies and failure to comply with regulations will minimise profits and permanently change consumer attitudes.
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