The India Food Service Report 2013, prepared by the National Restaurant Association of India (NRAI), was released by Chhagan Chandrakant Bhujbal, minister of tourism, Government of Maharashtra.
Unveiled at Royal Oak Banquets, the report provides comprehensive information on the size and growth of the food service industry, along with its contribution to the revenue earned by the government and employment. It also highlights trends, formats and cuisines in Mumbai.
Through this report, the National Restaurant Association of India also drawareness to the opportunities and challenges which the restaurant industry has been facing, and recommends solutions to overcome these issues.
Elaborating on the report, Amit Jatia, vice-chairman, Hardcastle Restaurants (McDonald’s India – West and South) and chapter head, Mumbai, NRAI, said, “The Indian food service 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 $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 the implementation on multiple taxes (such as service tax, goods and 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.”
Supported by entire restaurant industry, the event witnessed eminent names from the fraternity including Impresario Hospitality and Entertainment's Riyaaz Amlani; Pan India Foods' K S Narayanan; Mirah Hospitality's Gaurav Goenka; JSM Corp's Jay Singh; Subway's Chetan Arora, and Baskin Robbins' Sanjay Coutinho.
Key findings of the report
• The current size of the Indian food service industry is Rs 2,47,680 crore, and is projected to grow to Rs 408,040 crore by 2018 at 11 per cent;
• In terms of market segments, the quick service restaurants (QSR) and casual dine-in formats account for 74 per cent of the total chain market, while cafés make up for twelve per cent, and fine dining and pubs, bars, clubs and lounges (PBCL) comprise the rest;
• The chain and licensed standalone industry will contribute an estimated Rs 11,500-11,900 crore in 2013, and is projected to contribute more than double to Rs 24,600-25,000 crore by 2018, and
• The government has the opportunity to generate an additional collection of Rs 17,000-26,000 crore through closer monitoring of tax collection from the unorganised 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, and 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, and
• 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, and
• Regulatory concerns such as existing high taxes, burden of new taxes and over-licensing
The event was sponsored by Coca-Cola. McCain Foods; Del Monte; Blue Star, and Jack Daniels were the associate sponsors, and Cremica and Book Your Table were the support sponsors. Technopak was the knowledge partner.
