The Indian food services industry is expected to grow very quickly over the next few years and that is largely due to increased frequency of eating out by consumers, especially at quick service restaurants and allied options. And, according to a recent report by the National Restaurant Association of India (NRAI), the industry is expected to grow from Rs 247,680 crore currently to Rs 408,040 crore by 2018, a compounded growth of 11 per cent.
Samir Kuckreja, President, NRAI, said, “As the industry has been a significant contributor to the nation’s economy via taxes and employment generation, we hope that we can work together with the government to help us grow. We are proud to announce that the industry currently employs 4.6 million people directly and it is projected to grow to 8 million by 2018”.
Moreover, the industry also made a strong pitch for ‘unshackling’ it from the license and tax regimes. The NRAI is optimistic of support from various stakeholders in this regard.
Key growth drivers and emerging trends :
- Increasing share of delivery and take-away formats, with a focus on convenience
- Experimentation with new formats, themes and menus
- Indian brands going international
- Popularity of value meals
- Growing importance of online/ social media, food websites and mobile applications
- Increasing interest from private equity and venture capital investors
Issues and challenges facing the industry :
- High food inflation
- High real estate and operational costs
- Burden of high taxes