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India has always been a very food-loving country with all the regions having its own distinct cuisine; Indians are certainly not a very big fan on dining out. But things are changing now. Restaurant industry in India has been growing at a very fast pace over the last decade and this growth story is expected to endure for the next foreseeable years.
 
India is among one of the biggest consumer markets worldwide, and one of the youngest to be specific having more than 45% of the country’s population is under 25 years of age. For young adults and teens, dining out is a popular form of hang out. More Indians are gradually warming up to the idea of eating outside in restaurants, and that is also not just for the special occasions. Thanks to the growing wages, rapid urbanization & technology’s influence.
 
Amongst the different segments within restaurant sector, Quick Service Restaurants (QSR) and the Casual Dining Restaurants constitute the major categories; collectively they add up more than 70% of the total market.
 

Food and Beverage Service Industry Composition

 

A number of Quick Service Restaurant chains have gathered into India over past few years having specific cuisines & product offerings stimulating the market growth. Ranging from metros & mini-metros, Quick Service Restaurant brands are now escalating into smaller cities with smaller format.

 
The total market for Quick Service Restaurant was estimated to be around INR 92,000 Crore in 2013 and it was projected to grow at CAGR of 16%.
 
Chain space in the Quick Service Restaurant segment has got around 90 to 100 brands having an approximate 3,000 outlets spread across various cities in India. Both Indian and international chains have got a say in this section. While the well-known Indian Quick Service Restaurants like Bikanerwala, Haldiram’s, etc. have a skew towards the vegetarian food, international brands like Dominos Pizza, McDonald's, Subway, KFC etc. offer a combination of both non-vegetarian  and vegetarian offerings.
 
Quick Service Restaurant brands of Indian origin, though playing second fiddle to the foreign brands, are growing much faster because of better acceptance by the Indian consumers and also due to better localization of tastes & preferences.
 

QSR Market Break-up

 

 

An approximate 530 Million people are expected to reside in the urban areas of India by the year 2025, which truly offers a lucrative opportunity towards global Quick Service Restaurant chains. Overall, country’s food market is anticipated to grow to US$ 240 Billion by the year 2020 from US$ 100 Billion in the year 2011. Continuously rising dining out culture and changing eating behaviors open up a huge prospect for the established Quick Service Restaurant chains across India.
 
Interested to know more? Here are our food market reports to explore:
 
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