The competition from the local food retailers was intense. The food retailers had been
doing business for years. Their familiarity with the market and the understanding of the
local taste gave them a competitive edge. There were numerous eating joints which offered
snacks and meals with affordable price tags.
Organized food retailing was dominated by the north Indian style and the south Indian style
restaurant chains. The metropolitan cities and some developed urban areas offered
superior dining experience through the existence of some fine, classic restaurants. But
the price was expensive and only a select group of customers could afford to make visits
there. On the other hand, the size of the unorganized food retailing was larger and
comprised of roadside food vendors, dhabas (the eateries on the highways) and on the
outskirts of the cities and a plethora of small eateries. Local food in a large assortment was
widely available within acceptable price ranges. It was observed that food choices made by
consumers were impulsive. Aroma, taste, habits and visibility worked on the subconscious
level and played a major role in affective decision making. The local food business exactly
understood the psychology of the customers and operated accordingly. The mass markets
in India had their own set of preferences.