Chain restaurants to become `51,000cr market
The market for chain restaurants including cafes and quick service restaurants (QSR) is expected to grow at 20 per cent a year to reach Rs 51,000 crore (USD 8bn) by 2021, a recent report said.
The QSR format followed by cafes dominate the market which is currently valued at Rs 20,400 in the country, the India Food Services Report by National Restaurant Association of India said.
The current decade is seeing a shift to a larger organised sector in the food services sector as a whole, and a rapid growth in the chain restaurants segment is because of an increase in consumers’ propensity to eat out, the report noted.
While Delhi and Mumbai contribute to a total of 22 per cent of the food services market, the 6 mini-metros constitute 20 per cent, according to the report.
“Due to increased economic activity, rising disposable incomes, a greater need for convenience and an increase in the women workforce, the chain food service brands have done well in these cities,” the report explained.In the QSR format, the top five players account for 70 per cent of the market with Domino’s dominating at 30 per cent of the outlets.
The Cafe segment is also growing with several domestic and international brands entering the market.Currently, there are approximately a 100 chain cafes and bakery brands, with an estimated 2,800-3,000 outlets spread across the country.
Over the years, several standalone restaurants have also become a chain, spotting good opportunity in the segment.Restaurants like The Egg Factory in Bengaluru, Theobroma in Mumbai, Cafe Delhi Heights, Yum Cha and Instant Pizza in Delhi have all gone this route, the report pointed out.