Restaurant India Hyderabad 2024: Reimagining Restaurants

Indian Food Services sector to grow by 8.1% CAGR during 2024-2028, and organized to grow at 13.2%, shared NRAI on its long-awaited India Food Services Report 2024 (NRAI IFSR 2024). 

According to the report, Restaurant is the second largest employer with 85.5 lakh in 2024. The number is also estimated to increase by over 20% by 2028, it added.

“Despite the setbacks during the COVID-19 pandemic, the Food Service Industry in India is experiencing rapid growth. The sector directly employs 85.5 lakh people and contributes Rs 33,809 crore to the Indian Exchequer. The post-COVID recovery highlights the resilience of the industry, highlighting the need for the Government to recognize its socio-economic impact and take immediate steps to unlock the sector’s full potential,” shared Kabir Suri, President, NRAI, Co-Founder & Director, Azure Hospitality.

The 5th edition of the NRAI India Food Services Report provides an in-depth analysis shared by the industry stakeholders and consumer voices. The report delivers valuable insights into operational models and practices, investment strategies, dining trends, and sustainability efforts. 

According to the NRAI IFSR 2024, the Indian Food Services Industry is estimated to be valued at Rs 5,69,487 crores as of FY24. It is projected to grow to Rs 7,76,511 crores by FY28, achieving a CAGR of 8.1% overall, with the organized segment expected to grow at a CAGR of 13.2%.

Speaking on the report, Nitin Saluja, Chairman, Report Steering Committee, NRAI and Founder, Chaayos said, “Over the past five years, the Food Services Industry has undergone significant change, with food delivery increasingly replacing home-cooked meals. This sector is crucial, providing livelihoods for many Indians and supporting those who have migrated to major cities in search of better opportunities, often lacking the time to prepare daily meals. Our report aims to offer unique and valuable insights to our members, establishing itself as the most credible source of information regarding industry size, segments, and growth opportunities.”

The National Restaurant Association of India (NRAI), has also demanded a dedicated ministry at the centre to enable advocacy for faster growth of the sector in the country. Currently, the food services industry has to deal with multiple ministries and departments of the government which delays policy interventions required to enable potential growth of the sector.

“The Food Services Industry in India is evolving rapidly, driven by one of the world's largest young populations, rapid urbanization, greater exposure, and high disposable incomes. Dining out and ordering in has become a popular choice for customers to spend quality time with loved ones, especially during late evenings and dinner times,” added Sagar Daryani, Vice President, NRAI, CEO & Co-Founder, Wow! Momo Foods.

The food services industry has demonstrated remarkable resilience and recovery following the pandemic's impact, now experiencing several key trends. Consumers are increasingly investing in higher-quality and fine dining experiences, significantly influencing the industry. Moreover, social media platforms have profoundly shaped consumer demand. This report aims to be a credible source of information for all stakeholders, detailing the industry's size, segments, and growth opportunities. It will guide restaurant owners and operators in understanding the key drivers of business growth, helping them to increase their revenues profitably.

Godrej Vikhroli Cucina is a curated media platform not tied to any specific brand, hosted a glamorous launch event for the highly anticipated Godrej Food Trends Report 2024 at the luxurious Godrej L'Affaire 2024. With the theme 'Provenance,' the report delves into India's rich food culture, exploring the diverse origins of ingredients and culinary practices.

Tanya Dubash, the Executive Director & Chief Brand Officer of Godrej Industries Limited, unveiled the seventh edition of the report, piquing the interest of food enthusiasts like Malaika Arora, who attended to discover the intriguing trends shaping the future of food.

The report brought together over 190 thought leaders, including celebrity chefs, bloggers, and nutritionists, who shared insights on the trends outlined. Against the backdrop of an evolving culinary landscape, the theme of Provenance celebrates the depth and diversity of Indian cuisine. It emphasizes the importance of sustainable practices to preserve culinary heritage while catering to conscientious consumers seeking transparency and authenticity in their food choices.

Tanya Dubash expressed confidence in the report's ability to spark conversations and identify trends in the food industry. She highlighted the growing consumer focus on nutrition and the celebration of India's culinary diversity, positioning India as a global leader in gastronomy.

Rushina Munshaw Ghildiyal, Managing Director of Perfect Bite Consulting and Curating Editor of the report, noted India's emergence as a global culinary powerhouse, driven by a renewed interest in provenance. She emphasized the role of provenance in shaping conversations around food and driving growth in the F&B industry.

Key insights from the report include:

• Authentic cuisine driving travel experiences
• Bespoke cocktails elevating the bar scene
• Chocolate evolving into a sophisticated affair
• Korean cuisine gaining mainstream popularity
• Ghee experiencing a resurgence in popularity
• Women in food industry gaining recognition for their contributions
• Celebrity Chef Ajay Chopra highlighted the authenticity and diversity of Indian cuisine, emphasizing the importance of valuing regional nuances and culinary traditions.

Since its inception in 2018, the Godrej Food Trends Report has become a credible platform for insights into the food industry, drawing from a diverse pool of experts. Through a celebration of Provenance, the 2024 report sets the stage for a renaissance in Indian cuisine, blending tradition with innovation to create a captivating tapestry of flavors.

TeamLease Services is a staffing conglomerate listed on the NSE as TEAMLEASE, is transforming employment practices and improving business operations in India.

Their recent report on the Fast-Moving Consumer Goods (FMCG) sector reveals crucial insights set to reshape the industry.

Notably, the report highlights a significant gender gap in the FMCG workforce, with males representing over 90% of outsourced employees.

Drawing from their Associates Database and additional research, the report provides strategic advice on hiring and attrition trends.

It emphasizes the optimization of the people supply chain through hiring, attrition, and productivity (HAP) strategies.

Recommendations include fresher recruitment, utilizing psychometric assessments for better matching, and investing in co-pay models for Learning and Development (L&D) to accelerate career advancement for trainees.

Mumbai, Bangalore, Chennai, Delhi, and Hyderabad emerge as the top five Indian cities displaying a robust inclination towards hiring within the FMCG sector.

The report underscores substantial growth in new recruitments across various fields including sales, marketing, IT, office services, human resources, and blue-collar positions.

"The report unveils critical insights into the evolving landscape of India's FMCG sector, offering stakeholders invaluable strategic guidance in navigating opportunities and challenges. From harnessing technology and innovation to addressing workforce dynamics, organizations must embrace agility and foresight to thrive in this dynamic market environment.”  said Kartik Narayan, CEO of Staffing, TeamLease Services Limited.

As per the report, metropolitan areas exhibit the highest attrition rates at 27%, trailed closely by Tier 1 and Tier 2 cities at 26%.

Conversely, Tier 3 and Tier 4 cities demonstrate lower attrition rates compared to metros, reflecting the comparatively lower demand in rural markets.

The report highlights that the average age of active associates surpasses 36 years, while for attrited ones; it's nearly 34 years, indicating a tendency for younger employees to leave their positions.

Additionally, the report reveals that active associates typically hold their positions for 1.7 years, whereas attrited associates hold theirs for 1.1 years.

The report classifies attrition into two distinct categories: 'regrettable' and 'non-regrettable'. Regrettable attrition, constituting 21% of departures, involves employees who earned incentives exceeding the company's average, owing to exceptional performance.

Conversely, non-regrettable attrition, accounting for 39% of the attrition rate, occurs when employees do not earn any incentives.

Teamlease Services further notes that the average Cost to Company (CTC) for both current and attrited associates is highest in southern India.

Notably, while the salary gap between active and attrited associates is marginal, there is a significant disparity in earned incentives.

This suggests that incentives play a more substantial role in predicting attrition than salaries, as salary levels appear relatively unaffected.

Government initiatives such as FDI allowances and the PLI scheme are driving industry growth and export potential.

The expansion of e-commerce and direct-to-consumer models is facilitating market penetration, particularly in rural regions. Adapting to evolving consumer preferences through ongoing innovation and product diversification is imperative, given India's burgeoning middle-class and youthful demographic, ensuring sustained market expansion.

In this context, harnessing technology for operational efficiency, data-driven decision-making, and optimizing supply chains is essential.

The report underscores the importance of collaborating with traditional Kirana stores through enhanced digital connectivity for mutual growth and market expansion.

While Kirana stores remain the backbone of the country's retail sales and are expected to retain their relevance, Modern Trade and E-commerce, particularly Quick-commerce, are poised for rapid advancement.

There's a noticeable shift in consumer behavior, with these platforms no longer limited to impulse purchases but increasingly utilized for regular bulk purchases as well.

The report emphasizes the critical role of effective data management within the FMCG sector. Companies possess extensive consumer data, which, when analyzed effectively, can provide valuable insights to drive innovation and improve customer engagement.

Additionally, maintaining a positive brand reputation is vital for global success, requiring careful navigation of diverse regulatory standards across various markets. Identifying challenges, the report highlights the industry's struggle with heightened competition in online retail, leading to price conflicts and increased research and development expenses for major players.

Furthermore, the sector faces the task of catering to a broad demographic range, including Gen X, millennials, and Gen Z, each with distinct preferences and priorities.

Come Eid, the weekend or just another day, India’s enduring love for Biryani continues to deepen with each passing year. On International Biryani Day celebrated on July 02 every year, Swiggy reveals 76 million Biryani orders were placed in the last 12 months alone.

From the aromatic Lucknowi Biryani to the spicy Hyderabadi Dum Biryani, and from the flavorful Kolkata Biryani to the fragrant Malabar Biryani, people across the country placed 219 orders per minute for their favourite dish.

Swiggy’s order analysis also revealed some interesting biryani ordering trends from the first half of 2023:

In the last five and a half months, there has been a growth of 8.26% in Biryani orders compared to the same period in 2022. While over 2.6 lakh restaurants across the country offer Biryani through Swiggy, more than 28000 thousand restaurants specialise solely in dishing out the Biryani

Regarding cities that truly savour the Biryani experience, Bangalore takes the crown with close to 24000 biryani-serving restaurants, closely followed by Mumbai with over 22,000 and Delhi with over 20,000.

Unsurprisingly, Hyderabad takes the lead in Biryani consumption with a whopping 7.2 million orders till June this year. Bangalore follows almost 5 million orders and Chennai secured the third place with close to 3 million orders.

Dum Biryani has emerged as the undisputed champion with close to 85 variants and over 6.2 million orders. This is followed by Biryani Rice with 3.5 million orders, while Hyderabadi Biryani received over 2.8 million orders. 

A passionate Biryani aficionado from Chennai indulged in a remarkable feast, spending an amount of Rs. 31,532 on a single order of this rice dish.

Chai Point, one of the world’s largest Chai-led beverage platform presented some interesting insight into the beverage consumption behavior of Indians at home as well as at their workplaces with its first ever consumption report 2022.

Indians, true to their taste palate, opted for Ginger tea the most in all seasons, be it in office or dine-in or online delivery followed by Elaichi and Masala tea. 

“The Chai lovers of India ordered their favorite cup majorly during the 10am to 12pm breakfast hour followed by early evening Chai time of 3pm to 5pm,” shared the report.

No guesses, for the most loved Chai pairing- samosa and chai were the classic favourite ordered by consumers at home.

However, the Corporate India showed a streak of healthy consumption with most consumers opting for alternate sweeteners like Jaggery and honey to go with their Chai at work.

As per the data collected by Chai Point’s brewing machines across 3500+ workplaces, corporate consumers were not just hooked to Chai but also filter coffee which was the most consumed coffee variant at offices.

For every cup of English Coffee consumed in workplaces, 1.5 cups of Filter Coffee was consumed showing the popularity of the beverage across the country.

Also, Assam Black, followed by Classic Green and Ginger Black were most preferred tea bag flavoured as per the report.

The data is collected from over 100 Chai Point stores in nine cities and from Chai Point’s brewing systems present at over 3000 workplace hubs in 21 cities.

Chai Point is present in India through its retail network of 180+ stores across 9 major cities and in over 3500+ workplace community hubs covering 21+ cities through its specialised brewing systems. Chai Point products are now available in international markets on Amazon in the United States & Canada.

Chai Point is backed by marquee investors like Eight Roads Ventures (part of Fidelity Investments Inc.), Saama Capital, DSG and Paragon Partners. The Company has raised over $50 million in funds till date. 

With more and more people choosing to stay out of home and working, there is a continuous rise of ready to eat and pre-cooked meals.  

According to a latest research by Velocity MR, a leading market research and analysis company, RTE consumption was highest among the employed consumers and in the age group of 26-45. The study also observed that the RTE consumption is higher among the female respondents in these metros, as compared to the male respondents.

Most respondents confirmed that they preferred consuming RTEs in the form of snacks and the preference for vegetarian RTE foods was higher that the non-vegetarian RTE’s. While most respondents claimed that they like to consume RTE as and when required, the average consumption rate of RTE’s was observed to be fortnightly. Brands like Maggi, Knorr, Amul, Chings and MTR topped the list of most preferred RTE brands.

“It is no surprise that the Ready-to-Eat market has been witnessing a steady growth in recent years. While consumers generally tend to prioritize healthy, home cooked meals over the convenience, counter food products; a large section of Indian consumers prefer Ready-to-Eat products, owing to their busy schedules and hectic lifestyle,” shared Jasal Shah, Managing Director & CEO of Velocity MR.

The top three contributing factors to the growth of the RTE segment are time-saving (72%), good taste (62%) and convenient cooking (60%). These factors and the growing working women population, also justify the higher number of women respondents preferring RTE, when compared to their male counterparts. This can also be seen as one of the driving forces behind most of the “health-food” category players venturing into the Ready-to-eat segment.”

The study was conducted among a sample size of 2000 respondents and covered prominent Indian metros including Delhi, Kolkata, Mumbai, Hyderabad, Bangalore, Chennai, Ahmedabad and Pune.

Highlights of the Study: 

• 1 in every 3 consumers have consumed some form of Heat & Eat / RTE product in the past week
• Females consume RTE more than males in metros
• Snacks and Soups form the key consumed Heat & Eat / RTE products in both Veg and Non-Veg segments
• French fries, the most consumed snack is had by less than 70% of the consumers
• Chicken Nuggets, the most preferred non-veg snack is consumed by about 50% of the consumers
• Time saving and convenience of cooking are the two most sought-after benefits from RTE segment. Over 50% consumers also prefer it for the variety of items offered
• Maggi, Knorr, Amul, MTR and Chings are the most preferred brands in both Veg and Non-veg segments at an overall level, even though their penetration varies in different cities
• Some local flavors are also popular like:
  • Delight Foods & MOM- Meal of the moment in Mumbai
  • AL Fez in Kolkata
  • Delight foods, Batchelors, Betty Corner in Pune
  • Mother’s Recipe and Real Thai in Bangalore

In last few years India has seen a rise in the market for Organic food products. Lots of cold pressed juice, organic tea and herb based product companies have made a way into the Indian market. Organic packaged food and beverages is an emerging niche market in India and its primary consumers are high-income urbanites. As demand for organic food in the metro cities increase, the companies in this sector are witnessing notable growth with the entry of several new players in the organic food market.

“The market size for Indian organic packaged food is expected to cross INR 871 million by 2021 from INR 533 million in 2016, growing at a rate of 17 per cent,” says ASSOCHAM-EY report released yesterday.  

The substantial growth of this sector is attributed to an expanding urban population base, rising health concerns, growing consumer spending on food products and deterioration of food quality. These four primary factors are also driving the global organic food market, the joint study mentioned.

“In addition to the growing domestic market, India is the second largest exporter of organic products in Asia after China. The increasing export market coupled with the Government’s support has made organic cultivation in India highly successful,” shares  Amit Vatsyayan, Partner, EY. Indian organic food exports were estimated at US$299 million during 2015-16 with total volume of 263,688 MT.

India-based Sresta Natural Bioproducts Pvt. Ltd. has emerged as the market leader, with 37% value share of the packaged organic food market and 7.8% share of the packaged organic beverage market. It has increased its share in the organic food market in recent years, while smaller niche players have taken significant share away from it in the organic beverage market, adds the study.

The major export destinations were the US, European Union, Canada and New Zealand. It is assumed that most of the remaining quantity is sold in local markets. Oilseeds comprised half of India’s overall organic food export, followed by processed food products at 25%.

According to ASSOCHAM-EY study, India currently holds the ninth position among 178 countries that actively practice organic agriculture. At present, the country is home to more than 835,000 organic producers, 699 processors, 669 exporters and 1.49 million ha area under organic cultivation. However, with only a meagre 0.4% of the total agricultural land area designated for organic cultivation, the industry presents extensive scope for expansion.

Pinakiranjan Mishra, Partner and National Leader, Consumer Products and Retail, EY, says, “With Indian consumers’ increased inclination and awareness towards health and nutrition, the outlook for organic products in India has been very positive. Consumers are today acceptingorganic food and beverages as part of their daily diet, thereby, creating significant growth opportunities for existing as well as new industry players in this segment. With the participation of numerous Indian and multinational companies and their expansion in the market, India is rapidly becoming a production hub for organic foods.”

India has a remarkable potential to produce all varieties of organic products, owing to the existence of various agro climatic zones within its borders. The total area under organic certification was 5.71 million ha in 2015-16. This included 26% cultivable area with 1.49 million ha and 74% (4.22 million ha) forest and wild area for collection of minor forest produce.

Among the states, Madhya Pradesh has the largest area under organic certification (4.62 lakh ha) followed by, Maharashtra (1.98 lakh ha) Rajasthan (1.55 lakh ha), Telangana (1.04 lakh ha), Odisha (0.96 lakh ha), Karnataka (0.94 lakh ha), Gujarat (0.77 lakh ha) and Sikkim (0.76 lakh ha). These states had a combined share of 90% of the area under organic certification in 2015-16, highlighted the study.

In terms of organic crops, the combined share of the top 10 categories of organic food crops is around 99%. The top four categories (with a share of around 85%) include sugar, oilseed, fiber and cereals and millets.

“According to our findings, metropolitan cities have witnessed a 95% increase in demand in the last five years,” adds Vatsyayan. “Many organic food companies are adopting the online route to expand their consumer base. The brick and mortar organic stores are usually located in metro and mini metro cities. These companies are reaching out to the rest of the consumers through online channels,” he further mentioned.

With increasing incidence of health problems such as diabetes, anxiety and stress plaguing urban India, many entrepreneurs are venturing into the area of organic café and marketplace.