The Impact of Sensory Marketing on Consumer Perception in Indian Restaurants

The Impact of Sensory Marketing on Consumer Perception in Indian Restaurants

Shahnawaz Ali

Under the supervision of Ms. Shruti Agrawal

MBA (DUAL)

School of Business, Galgotias University

Greater Noida, Uttar Pradesh 203201.

CHAPTER 1.

INTRODUCTION
This report will deal with marketing strategies in the out-of-home food market in India, with a focus on New Delhi. As this sector is vast and diversified, it is necessary to introduce and define its main components. Consumers’ eating habits in New Delhi are continuously evolving, moving away from the conventional pattern of three meals consumed at fixed times. Increased work hours, long commuting distances, and more active urban lifestyles have led to a rise in out-of-home food consumption. According to reports by the National Restaurant Association of India (NRAI, 2022), the share of household expenditure on eating out is growing annually. In urban cities like New Delhi, this figure is significantly higher due to the fast-paced lifestyle.

The Indian food service market was valued at over ₹4.2 lakh crore in 2022, and continues to expand rapidly. Out-of-home food consumption in New Delhi can be categorized into two main segments: commercial and institutional (or collective) catering.

Institutional catering focuses on offering affordable meals to large numbers of people and includes services in schools, hospitals, government offices, and large corporations. This sector in India is dominated by a few major players like Sodexo and Compass Group India, who benefit from economies of scale and account for a substantial portion of the total market.

Commercial catering, on the other hand, includes all types of food establishments such as:

•               Traditional full-service restaurants, including standalone eateries and those within hotels.

•               Theme-based or specialty restaurants offering regional cuisines (like South Indian, Mughlai), health-focused meals (e.g., organic or vegan), or international fare (e.g., sushi bars, Italian trattorias).

•               Fast food providers: Quick-service restaurants (QSRs) such as McDonald’s, Haldiram’s, Subway, and local snack vendors like chaat stalls, sandwich kiosks, or food trucks. The fast-food market refers to the sale of food and beverages meant for immediate consumption.

In contrast to institutional catering, the commercial food industry in New Delhi faces intense competition, especially among small and mid-sized players with limited marketing budgets. However, the QSR segment remains highly profitable and continues to grow rapidly; for example, brands like Domino’s India have reported a consistent rise in same-store sales over the years.

In New Delhi, the food service market is vibrant and diverse. Fast food outlets and street kiosks are growing rapidly, while an increased awareness of health and hygiene is positively influencing consumer preferences toward sit-down and casual dining restaurants. Delhiites increasingly associate these traditional establishments with quality, authenticity, and ambiance.

As a result, restaurants and food service providers in New Delhi face the constant challenge of attracting new customers, building loyalty, and maintaining a consistent brand image. A broad range of marketing tools fall under the Marketing Mix framework. However, since traditional and fast food outlets often differ in budget and audience, they must find new, more innovative methods to market themselves beyond basic strategies such as low prices or speed of service. For example, fast-food chains often use value pricing to attract working professionals and students—at McDonald’s India, a meal can start from just ₹99. In contrast, premium restaurants may charge higher prices in exchange for top-tier service, gourmet meals, and a refined atmosphere. These strategies are vital for both segments to remain competitive and stand out.

Time-saving is another essential element. In QSRs and takeaway counters, fast service is a key expectation for consumers. In contrast, traditional diners may willingly wait longer for a richer experience, better quality meals, and relaxed ambiance. Other widely used marketing tools in

India’s food industry include digital advertising, discount campaigns, and influencer-led promotions.

Nevertheless, innovation in marketing tools is becoming crucial as consumer expectations evolve. Indian restaurants now increasingly adopt digital platforms—offering online ordering, reservation systems, social media engagement, and more. Having a well-designed website or an active Instagram page has become standard practice for urban eateries in Delhi.

One of the more subtle yet powerful tools now gaining ground is sensory marketing.

Have you ever been drawn into a sweet shop by the aroma of freshly made jalebis? Or felt relaxed in a café with soothing music and ambient lighting? These sensory cues are not accidental—they’re part of a strategic marketing approach used by many food businesses.

According to leading branding agencies and sensory research firms in India, sensory marketing helps businesses tap into consumers’ emotions and create deeper, memorable experiences. It explores how sights, sounds, smells, and tactile cues influence choices— allowing restaurants to strengthen customer engagement and long-term loyalty.