"Scaling Success in India’s Food Services" Report
Day 1 of covering Food Service Industry
Hello friends,
The market size of the Indian Food Service Industry was $ 80 billion in 2024. The same is projected to grow to $144-$152 billion by 2030, at a CAGR of 10% -11%. The growth is driven by the expansion of the organized segment due to a rising influence of brand image and online food delivery.
The key takeaways are as follows:-
Decline in Dine-in: Post-COVID, the Dine-in segment across the industry has been negatively impacted due to severe growth in online ordering.
Increased Organized Segment: The organized sector currently occupies more than half of the sector; expected to outpace the unorganized sector.
Significance of Cloud Kitchen: The key growth driver of the industry is the increase in cloud kitchens since it provides faster scalability and flexibility. The model allows the brand to operate without dine-in space and achieve revenue of 100 Cr within 2-3 years; utilizing shared kitchen spaces that significantly reduce capex and overhead costs.
A cloud kitchen is a commercial kitchen that prepares food for delivery or takeout, without a physical dining room.
Outside meals viewed as a social activity: Social media, pop culture, and the demand for variety has fuelled the increasing frequency of eating out.
Notably, only 1-2 % of companies in India have scaled beyond Rs 500 crore, with most of this success driven by the multi-brand approach.
I hope you enjoyed reading. See you soon.