~Data insights from the IFSRR are resulting from in-depth interaction with restaurants, meetings with over 140 plus CEOs and consumer research covering 5300+ people across 40+ cities in India~
National Data:
- Food Services sector to grow by 8.1% CAGR during 2024-2028. Organized to Grow at 13.2%
- Third Largest Industry in India valued at 5.69 Lakh crores contributing 1.9% to India’s GDP; Estimated to grow to 7.76 Lakh crores by 2028
- Tax contribution of ₹33,809 Crore in 2024, reaching ₹55,594 Crore by 2028.
- Size of food services sector is 33.5x of Indian Film Industry, 2.18x of the Hotel Industry and 1.26x of Pharmaceuticals Industry of India
- Second largest employer with 85.5 Lakhs in 2024; estimated to increase to 103.2 Lakhs by 2028
- Organised sector to grow to 52.9% in 2028 from 43.8%; CDRs segment is the largest with 48% share
- India to be the 3rd Largest Food Services Market by 2028 overtaking Japan. 2nd Fastest growing Food Services Industry Globally after Brazil.
- Contributes 1.4% to GST collection.
Bengaluru, July 11th, 2024: The National Restaurant Association of India, the voice of the Indian restaurant industry has recently released its long-awaited India Food Services Report 2024 (NRAI IFSR 2024).
In Bengaluru, gracing the occasion with their presence were the Office Bearers of Bengaluru Chapter of NRAI, Mr. Chethan Hegde, NRAI Bengaluru Chapter Head, Ms. Meghna Vakada, NRAI Bengaluru Co-Chapter Head, Mr. Shakir Haq, Director & CEO of NKP Empire Ventures, Mr. Nikhil Gupta, Co-Founder of The Pizza Bakery and Paris Panini, Mr. Avinash Bajaj, Managing Director Truffles Hospitality, and Mr. Mukesh Tolani, Co-Founder & Director, PH4 Food and Beverages Pvt Ltd.
The 5th edition of the NRAI India Food Services Report along with a brief report on the Food Services sector in Bengaluru provides an in-depth analysis shared by the industry stakeholders and consumer voices. The report delivers valuable insights into operational models and practices, investment strategies, dining trends, and sustainability efforts.
Chethan Hegde, NRAI Bengaluru Chapter Head, MD Whitehorse said, “Bengaluru holds India’s third-largest share of the organized Food Services Market, as highlighted by the NRAI IFSR Report 2024. Known as “The Pub City” of India, Bengaluru attracts a large population eager to explore its exciting food scene. However, the city’s food service industry faces several challenges, including high real estate and manpower costs, restrictive operation timings, and a cumbersome liquor licensing regime. We hope our government addresses these issues and takes appropriate measures to ensure sustainable growth that benefits key stakeholders and the sector’s workforce.”
According to the NRAI IFSR 2024, the market size of Organised sector of the Bengaluru Food Services Industry is estimated to be valued at ₹ 26,475 crores and comes in at #3 after Mumbai and Delhi NCR, amongst the top 21 cities, in the organised food service sector. There are a total of 110,140 restaurants in the (Organised + Unorganised) Food Services sector in Bengaluru with most people opting to visit Fine Dining restaurants as the preferred choice when going out to eat.
The food services industry has demonstrated remarkable resilience and recovery following the pandemic’s impact, now experiencing several key trends. Consumers are increasingly investing in higher-quality and fine dining experiences, significantly influencing the industry. Moreover, social media platforms have profoundly shaped consumer demand. This report aims to be a credible source of information for all stakeholders, detailing the industry’s size, segments, and growth opportunities. It will guide restaurant owners and operators in understanding the key drivers of business growth, helping them to increase their revenues profitably.
