The quick service food sector in India is set to enjoy a compound annual growth rate (CAGR) of 30 per cent through to 2015, according to a new industry report from food and agribusiness specialist bank Rabobank.
The forecast growth rate is three times that of Rabobank's CAGR prediction for the overall Indian foodservice sector, which is put at 10 per cent.
Rabobank attributed the dramatic expansion for quick service (or fast food) restaurants to rapid changes in food consumption habits in India, with a notable shift from eating at home to out of home among a younger, urbanised population that enjoys larger disposable income.
Globalisation and increased exposure to western lifestyles are also having an impact, with the rising middle class of 300m consumers experimenting and adopting new dietary habits.
These shifts have led to domestic and international quick service food providers implementing aggressive expansion plans, which have been concentrated in and around metropolitan cities such as New Delhi, Mumbai and Bengaluru.
Rabobank says operators in the sector will have to accelerate to keep pace with demands. To ensure their product’s quality and business profits, the bank advises that providers should build collaborative and committed supply chains from a grassroots level, connecting local business partners, premium vendors, ideal commissaries and supply chain solution providers that operate state- or nation-wide.
The Indian foodservice industry size is currently estimated at Rs460bn (US$8.6bn), of which the quick service segment is worth Rs33bn (US$600m). The Indian National Restaurant Association states that 50 per cent of Indian consumers eat out at least once every three months.
