Over the past few years, urban Indians have been spending more on eating out, leading to the growth and expansion of the foodservice industry in India and the creation of more opportunities for food and beverages operators. Over 65 per cent of India’s population is below 35 years of age and the age group between 21 and 40 years constitutes the majority of those who eat out regularly
To cash in on the growing dining out trend in India, many International food chains such as McDonald’s, Pizza Hut, Domino’s, TGIF, KFC, and Subway are looking to expand their footprint further while newer players are looking to set up their base. With prospects for the sector looking bright, F&B operators – international and domestic – are consistently reviewing and reinventing their menu offerings to better cater to the evolving tastes of the Indian market. Food companies are increasingly offering more than one cuisine in a single outlet to appeal to a wider population segment. Also, industry players have been exploring regional cuisines – Peshawari, Gujarati and Bengali – fusion cuisines such as Chinese-style pizzas and International cuisines, including Italian, Lebanese and Mexican.
Currently, Indians spend six per cent of their income on eating out whereas American consumers by comparison spend 46 per cent of their food expenditure on away-fromhome meals. With the eating out culture in India becoming more pervasive and widespread, the average dining out spend is set to increase conspicuously in the future, which offers a mouthwatering potential for the foodservice industry in India. Entrepreneurs looking to dive in can look at exploring the different formats – QSR, fi ne dining, casual dining, food court, kiosks and food trucks – all of which can yield healthy rate of returns if the operations are managed effi ciently.