Restaurant Industry in India

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Restaurant Industry in India

Compiled by

Swetha Ashok

Business Analyst, Blu Dacnis

Brand Consulting | Communication |Technology | Media www.bludacnis.com

BLU DACNIS

Indian Food Service Industry

• Fastest growing industry in India. Current food service industry size is estimated to be INR 2,47,680 Cr

• Projected to grow to INR 4,08,040 Cr (USD 78 billion) by 2018 at a CAGR of 11% approximately.

Classification of restaurants in India

• Quick service Restaurants• Fine dining Restaurants• Casual dining Restaurants• Café• pub, bar, club, and lounge• Frozen dessert (including Ice Cream and frozen yogurt)


Quick service restaurants

A fast-food or quick- service restaurant provides the quickest service and food at the cheapest prices.Eg- Dominos, McDonalds

The current QSR market is estimated to be INR 5,500 Cr and it is projected to grow to INR 16,785 Cr by the year 2018 at a CAGR of 25%

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Fine Dining Restaurant

Fine-dining restaurants usually come with the most elaborate menus and expensive prices. They present an atmosphere of elegance and grace. Eg- Taj Coromandel, Trident Hotel

The Fine Dining restaurant market is estimated to be INR 500 Cr and it is projected to grow to INR 1,010 Cr by the year 2018 at a CAGR of 15%


Casual Dining Restaurant

A casual dining restaurant is a restaurant that serves moderately-priced food in a casual atmosphere. Eg- China Bistro, Sagar Ratna

The Fine Dining restaurant market is estimated to be INR 3,950 Cr and it is projected to grow to INR 9,035 Cr by the year 2018 at a CAGR of 18%


Growth prediction

Segment Current market (INR)

Projection for 2018 (INR) CAGR (%)

QSR 5,500 Cr 16,785 Cr 25%

Fine Dining 500 Cr 1,010 Cr 15%

Casual Dining 3,950 Cr 9,035 Cr 18%

Source: QSR Market in India, October 2013, Study by Technopak


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QSR Fine Dining Casual Dining0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

5500

500

3950

16,785

1,010

9,035

Indian Restaurant Industry

Current market(INR in Crore)

Projection for 2018 (INR in Crore)

Segment

Proj

ectio

n


Conclusion

• The rapid growth in this industry is going to be propelled by the QSR segment which is expected to grow at a CAGR of 25% by 2018.

• New store additions will increase by 16-18 per cent annually, propelled by the rapid expansion of global players into tier II and tier III cities

• Several international brands have entered the sectors such as Starbucks, IKEA etc. Carl’s Jr and Debonaires Pizza are also expected to enter this segment.


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