The National Restaurant Association of India (NRAI)
today released
the “India Food Services Report 2013”, a comprehens
ive report on the Indian restaurant industry.
key findings of the report:
• The current size of the Indian food service industr y is INR 247,680 crore and is projected to grow to INR 408,040 crore by 2018 at 11%
• In terms of market segments, Quick Service Restaura nts (QSR) and Casual Dine-in formats account for 74% of the total chain market, while Cafés make up for 12% with Fine Dining and Pub Bars Club & Lounges (PBCL) comp rising the rest The chain and licensed standalone industry will con tribute an estimated INR 11,500- 11,900 crore in 2013, projected to contribute more than double to INR 24,600-25,000 crore by 2018
• The government has the opportunity to generate an a dditional collection of INR 17,000 – 26,000 crore through closer monitoring of tax colle ction from the unorganized segment
• Key growth drivers and emerging trends that the ind ustry is witnessing: Increasing share of delivery and take-away formats, with a focus on convenience Experimentation with new formats, themes and menus; interest through entrepreneurial ventures Indian brands going international Larger focus on value meals Tech savvy consumers – increasing importance of onl ine/ social media, food websites and mobile applications Increasing interest from private equity and venture capital investors in the industry
• Issues and challenges the industry is facing includ e: Economic and market factors such as high food cost inflation, fragmented market and increasing competition Operational challenges including real estate, manpower, fragmented supply chain and liquor sourcing Regulatory concerns such as existing high taxes, burden of new taxes and over licensing
key findings of the report:
• The current size of the Indian food service industr y is INR 247,680 crore and is projected to grow to INR 408,040 crore by 2018 at 11%
• In terms of market segments, Quick Service Restaura nts (QSR) and Casual Dine-in formats account for 74% of the total chain market, while Cafés make up for 12% with Fine Dining and Pub Bars Club & Lounges (PBCL) comp rising the rest The chain and licensed standalone industry will con tribute an estimated INR 11,500- 11,900 crore in 2013, projected to contribute more than double to INR 24,600-25,000 crore by 2018
• The government has the opportunity to generate an a dditional collection of INR 17,000 – 26,000 crore through closer monitoring of tax colle ction from the unorganized segment
• Key growth drivers and emerging trends that the ind ustry is witnessing: Increasing share of delivery and take-away formats, with a focus on convenience Experimentation with new formats, themes and menus; interest through entrepreneurial ventures Indian brands going international Larger focus on value meals Tech savvy consumers – increasing importance of onl ine/ social media, food websites and mobile applications Increasing interest from private equity and venture capital investors in the industry
• Issues and challenges the industry is facing includ e: Economic and market factors such as high food cost inflation, fragmented market and increasing competition Operational challenges including real estate, manpower, fragmented supply chain and liquor sourcing Regulatory concerns such as existing high taxes, burden of new taxes and over licensing