India’s food services retail market for 2009-10 is estimated at Rs 32,000 crore and expected to grow at 11-12 per cent year-on-year over the next five years to reach Rs 55,000 crore by 2014-15.
In spite of gaining prominence in recent years, the sector has a history of being fragmented. The unorganised market is estimated at Rs 27,000 crore, while the organised market is worth Rs 5,000 crore. However, the organised segment is expected to grow at a much faster rate of 24-25 per cent a year to reach Rs 15,000 crore in 2014-2015 and double its market share from 15 to 27 per cent.
Food service retail can be segmented across various formats based on the product and service offerings — roadside eateries, casual dinning, fine dining, quick service restaurants (QSRs) and cafes. QSRs and fine and casual dining are the fastest growing formats. These two formats would together contribute to about 80 per cent growth of t he organised sector in the next five years.
The key growth drivers for this market are: Changing consumer profiles, higher disposable income, and greater exposure to multiple cuisines.