For the complete report, get in touch with us at: info@netscribes.com
Restaurants and traditional food joints has been an age old concept with the dominance of a large number of unorganized players operating as street vendors, roadside eateries and stand-alone restaurants. However, with growing urbanization and changing lifestyles, the organized players have occupied a firm foot hold in this market which is worth INR 580 bn and shows huge potential for
growth in future. The increasing trend of eating out coupled with the increasing share of young population has driven the market.
The report begins with the market overview section providing the size of the restaurant or the food service market in India with a brief description of the various segments that exist in the market and the penetration of the organized players in the various segments.
An analysis of the drivers explain the factors for growth of the industry including growing disposable income, favourable demographics, changing lifestyles and preferences, increasing proportion of take away food and increasing number of working women. The key challenges identified encompass cumbersome licensing, food price fluctuations, high cost of real estate and lack of skilled manpower. Key trends have also been analyzed including foreign players foraying into the Indian market, brand expansion into smaller cities, Indian brands exploring the foreign market, growth in food franchising and emergence of theme-based cafes and restaurants.
The competition section provides an overview of the competitive landscape in the industry illustrating the share of organized and unorganized players and the entry route for the foreign players into the Indian market. It also includes brief profiles of major domestic companies in each segment of the organized restaurant market.
2. Executive Summary
Restaurant/Food service market in India was valued at INR X mn in 20--; Growing at the rate of
Y% annually
Food Service market includes - Fine Dining Restaurants; QSRs or Fast Food Chains; Cafes and
Market Coffee Joints
LE
Changing consumer lifestyles, increasing urbanization and higher frequency of eating out has
fueled growth in the market
Drivers:
MP
Growing disposable income
Challenges:
Cumbersome licensing
Drivers &
Challenges
A
Favourable demographics
S
Changing lifestyles and preferences
Increasing proportion of take away food
Increasing number of working women
Food price fluctuations
High cost of real estate
Lack of skilled manpower
Foreign players foraying into Indian market Growth of food franchising
Trends Brand expansion into smaller cities Emergence of Theme-based cafes and
Indian brands exploring the foreign market restaurants
The market is dominated by the unorganized food service providers
Major players include a large base of foreign brands who have a huge consumer base in the Tier 1
Competition and Tier 2 cities
Organized players are eyeing the major retail chains and high footfall locations as the next
emerging target for setting up outlets
RESTAURANT MARKET IN INDIA 2010 .PPT 2
4. Restaurant market in India is growing fast due to the
increasing number of people eating out
Overview Market Size
•Restaurant/Food service market in India has
witnessed tremendous growth in recent years INR bn
X%
LE
•With increasing number of people eating out 600 b
the industry offers major opportunities to the a
P
500
players to capture a larger consumer base
400
market growth
SAM
•Changing demographic, rising income levels
and increasing urbanization has also fueled
•The growing segment comprises of formats
300
200
100
like fast food chains, cafes and fine dining
restaurants 0
2007 2008
•There is an increasing trend of Indian players
exploring the foreign market
•Target consumer group lies in Tier I & II cities
•Constant innovations with the product
varieties has proved to be a strong growing
aspect for the players
Source:
RESTAURANT MARKET IN INDIA 2010 .PPT 4
5. Drivers & Challenges
Challenges
Drivers Cumbersome licensing
Growing disposable income Food price fluctuations
Favourable demographics High cost of real estate
Changing lifestyles and preferences Lack of skilled manpower
Increasing proportion of take away
food
Increasing number of working women
RESTAURANT MARKET IN INDIA 2010 .PPT 5
6. Key Trends
Foreign players foraying into
Indian market
Emergence of Theme-based Brand expansion into smaller
cafes and restaurants cities
Trends
Indian brands exploring the
Growth of food franchising
foreign market
RESTAURANT MARKET IN INDIA 2010 .PPT 6
7. Food service market provides huge opportunities for the
organized service providers to increase their footholds
Overview Market Entry Route – Foreign Players
• Traditionally, the Indian consumers have been eating at
roadside eateries and dhabas and stalls which still
Entry Route
occupy a major share of the unorganized sector
LE
• The market is highly competitive with a large number of
P
Indian and foreign players
• Indian food service market is dominated by global Company Owned Stores Franchised Stores
SAM
players, specially in the organized fast food segment
• Growing trend of consumption of multi cuisines and
increasing brand consciousness has led to the increase
of global player footprints
Market Segmentation
Organized Segment
• Organized modern formats like malls and supermarkets
have also become a favourite destination for the outlets X%
• Master companies are readily tying up with small
franchisors and mall owners to promote their brand
Y%
Un-Organized Segment
Source:
RESTAURANT MARKET IN INDIA 2010 .PPT 7
8. Major Fast Food Players (2/6)
Company No. of Outlets Business Description
• It started ‘X' restaurant and introduced A for the first time in India in the 19--s
Company A • In June 20--, Company P, MR. X acquired the Company A
E
X • It has a network of fast food chains like Brand 1, Brand 2, Brand 3 and Brand 4
L
and owns restaurant brands like ‘Brand 5’, ‘Brand 6’ and ‘Brand 7’
P
• It operates its restaurants in cities like Panipat, Dehradun, Chandigarh, Jaipur,
Meerut, Pathankot
AM • It also operates outlets at fuel stations with association with X Corporation at
Dwarka, Punjabi Bagh, Janakpuri, Gurgaon and Chandigarh
S
• It also has a national tie-up with Y and has opened projects in Delhi, Jaipur
Expansion Plans:
• It plans to open ~X new units in the next A years
Company B • It was started by X entrepreneurs and the first outlet was opened in Mumbai in
Y July 19--
• It has outlets in Mumbai, Pune, Surat, Ahmedabad, Rajkot, Nasik, Aurangabad,
Kolhapur, Chandigarh, Jammu, Chennai, Bhubhaneswar, Goa and Bangalore
• It serves product 1, product 2, product 3, product 4 and product 5
Source: Note: This list is not exhaustive; No. of Outlets is indicative
RESTAURANT MARKET IN INDIA 2010 .PPT 8
9. Thank you for the attention
The Restaurant Market - India report is a part of Research on India’s Food & Beverage Industry
Series.
For more detailed information or customized research requirements please contact:
Gagan Uppal Gaurav Kumar
Phone: +91 22 4098 7530 Phone: +91 33 4064 6214
E-Mail: gagan.uppal@netscribes.com E-Mail: gaurav.kumar@netscribes.com
Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick
insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on
About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &
business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true
value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth
objectives.
Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,
Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the
sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
RESTAURANT MARKET IN INDIA 2010 .PPT 9