NCR has the food market size of Rs 42,000 cr, states NRAI report
NEW DELHI: The National Restaurants Association of India (NRAI) released the India Food Services Report (IFSR) 2024 in which Delhi is the second highest in the organised food service industry in India.
Delhi NCR has the market size of Rs 42 thousand crore, as per the report released by NRAI.
Of the total 1,20,419 restaurants in Delhi, 66,230 belong to the organised segment.
Cloud kitchens have surged to the forefront in Delhi, holding 36 per cent share in the organised food sector, followed by the quick service restaurants (QSRs) which captures 31 per cent of the market share. This trend in reflected in the consumers eating out behaviour; the average frequency of ordering in per month is 4.86 times per person, marginally higher than the average frequency of dining out at 4.1 times per month per person in the capital city. The national average of dine-out and ordering-in per person per month is 3.7 and 4.2 times respectively.
However, President-NRAI, Kabir Suri also flagged a few challenges facing the restaurant industry, including, “multiple licensing requirements” and “restricted operational hours.” According to the report, more than 11 licences are required to open a restaurant with a police license being mandatory only in Delhi. They also called for clarification on the permitted usage of wood charcoal and permission for food services in open areas in the NDMC zone.
Moreover, Delhi based consumers spend an average of Rs 1,165 per month on eating out,with Indian snacks and Mughlai cuisine being the most popular choices Commenting on this trend, Founder of Chaayos and Chairman of Report Steering Committee-NRAI, Nitin Saluja, added, “Over the past five years, the food delivery has increasingly replaced the home-cooked meals without impacting the dine-outs.
“With rapid urbanisation and busier lifestyles, the number of times consumers are cooking at home is coming down.”
While the average rent for a food outlet in the key high-streets of the city ranges between lowest in Kamla Nagar Rs 400 to highest in Khan Market at Rs 1600/sq.ft./month, the mall rentals have remained stable between an average range of Rs 177 to Rs 1,300.
