Archive Latest Updates

NRAI launches India Food Services Report 2013

EH STAFFMumbai

National Restaurant Association of India (NRAI) released the ‘India Food Service Report 2013’ which provides comprehensive information on the size and growth of the food service industry along with its contribution to Government revenue and employment. The report also highlights trends, formats and cuisines in Mumbai. Amit Jatia, Vice-Chairman, Hardcastle Restaurants (McDonald’s India – West & South) and NRAI, chapter head, Mumbai said, ‘The Indian food services industry has witnessed strong growth over the past few years and is expected to continue growing at an exponential rate over the next five years. It is expected to touch US $28 billion on the back of changing consumption habits of consumers and emergence of new players in the sector.” He added further, “This healthy growth is however, marred by our concerns on multiple taxes (implementation of GST, service tax), high food and commodity costs, shortage of skilled manpower, infrastructure development to help manage and better supply chain and cold storage systems, and multiple licensing issues among others. We look to the government to work closely with us on resolving these issues. We are confident that going forward, we will be able to continue our contribution to the nation’s growth and development.”

Key findings of the report:

  • The current size of the Indian food service industry is INR 247,680 crore and is projected to grow to INR 408,040 crore by 2018 at 11 per cent
  • In terms of market segments, Quick Service Restaurants (QSR) and Casual Dine-in formats account for 74 per cent of the total chain market, while Cafe’s make up for 12% with Fine Dining and Pub Bars Club & Lounges (PBCL) comprising the rest
  • The chain and licensed standalone industry will contribute an estimated INR 11,500-11,900 crore in 2013, projected to contribute more than double to INR 24,600-25,000 crore by 2018
  • The government has the opportunity to generate an additional collection of INR 17,000 – 26,000 crore through closer monitoring of tax collection from the unorganized segment

Key growth drivers and emerging trends:

  • Increasing share of delivery and take-away formats, with a focus on convenience
  • Experimentation with new formats, themes and menus; interest through entrepreneurial ventures
  • Indian brands going international
  • Larger focus on value meals
  • Tech savvy consumers – increasing importance of online/ social media, food websites and mobile applications
  • Increasing interest from private equity and venture capital investors in the industry

Issues and challenges faced by the industry:

  • Economic and market factors such as high food cost inflation, fragmented market and increasing competition
  • Operational challenges including real estate, manpower, fragmented supply chain and liquor sourcing
  • Regulatory concerns such as existing high taxes, burden of new taxes and over licensing
Share

Related posts

Grover Zampa to open two restaurants in India this year

Barcelos to add up to 20 new restaurants in India by 2019-end

Mohit Rathod

Union Agriculture Minister, Radha Mohan Singh unveils Mother Dairy’s first milk processing plant Bihar

EF&H Staff-Mumbai

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More