Segments of Indian Food Services Market

Based on anecdotal evidence, the size of the Indian food services industry is estimated at US$250bn, and growing at 15%-20% CAGR over the past five years. The organized retail food industry occupies mere 15% of the overall food market and this is how various sections of the industry are stacked against each other in Tier-I & II Cities. As you go towards Tier-III cities, start discounting the average spend by X% depending on the location as it varies. However, Branded QSRs are likely to maintain the same price points across Indian Geography.

  • Fine Dining – Full service restaurants with high quality decor and a price point / person varying between Rs 750-3000
  • Casual Dining – Moderately priced restaurants price / person between Rs 250-750
  • Bars and Lounges – Mainly alcohol and related beverages; e.g. F-Bar, Xtreme Sports Bar where an average bill per person is 500-3000
  • Quick Service Restaurants – Fast food outlets; e.g. McDonald’s, Nirula’s, Domino’s, Haldiram’s, Pizza Hut with average individual billing between 100-400
  • Food Courts – Shared spaces at airports, malls, hospital and offices have a price point of Rs 100-300
  • Cafes – Coffee bars and parlors; e.g. Barista Lavazza, Cafe Coffee Day Rs 100-200 is average spend / footfall.