The food industry is hot and spicy

Last week I happened to meet a budding entrepreneur. During casual conversation, I asked him about his proposed business. He said “We are in the QSR industry and want to establish Hub and Spoke model with a lean team at the Point of Sale”. Please count the number of jargons used by him in one sentence!!

So, today’s topic is about these jargons!

What is QSR Industry?

QSR refers to Quick Service Restaurants, which means fast food restaurants. In other words, it’s nothing but Darshini’s style restaurants which you are familiar with. These restaurants are known for self service, quick service, ready food, hot food, ready to take away, less expensive with less seating or no seating facilities.

The popular QSR in Bangalore are Vasudev Adigas, SLV Refreshments, McDonald’s etc. The modern QSR model works as a chain of outlets either owned by the promoter or through franchisee. Undoubtedly, it is the Americans who invented QSR model.

What is Hub and Spoke model?

This model is commonly used in logistics, telecom and network companies. The model is named after a bicycle wheel, which has a strong central hub with a series of connecting spokes.

When it comes to restaurants, I understood that the company will have a central kitchen and transfer semi-cooked or mostly cooked food to the smaller outlets. This way, the central location (hub) can maintain same quality of food being served at all smaller outlets.

What is Point of sale?

The point of sale is nothing but small outlets. This is the place where the food is served to the end consumer. Typically, the restaurants where you and I eat! When the food is prepared elsewhere, the Point of Sale will have lesser team members (what he referred to as ‘Lean’ team). From hotel context, it is appropriate to call it as ‘Point of Service’ (POS)

Modern technology is used for connecting the POS to the Hub and it makes this model more efficient and cost effective.

Thought for the day

Be as simple as you can be; you will be surprised to see how uncomplicated and happy your life can become 

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About B E Kumar Prasad

B E Kumar Prasad
He is a Practicing Chartered Accountant in Bengaluru, India. He has 28+ years of experience in income tax, business setup, and NRI matters. He is also an Insolvency Professional, Registered Valuer (F&SA) and Social Auditor.Prasad welcomes your comments and questions. Please email him at

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