ABSTRACT

The Indian Quick Service Restaurant (QSR) industry is witnessing a compound annual growth rate (CAGR) of 18% between 2021 and 2025 due to factors like urbanization, increasing disposable incomes, and penetration of digital technologies. There are, however, high entry barriers and rival brands with strong presence that are posing challenging competition. Artificial Intelligence (AI) is the key driver of change, enabling cost savings, improving financial forecasting, increasing operational effectiveness, and enhancing consumer interaction. AI-based analytics enhance decision-making through optimized supply chains, revenue stream prediction, and optimized employee utilization. AI enables more customized consumer interactions, hence enhanced customer loyalty and retention. AI enables long-term scalability through identification of emerging industry opportunities and strategic development program management. This study examines the strategic application of AI in enabling QSR start-ups to overcome market constraints and leverage digital change for sustainable success.