Rise of Quick Service: Gen Z's Dining Habits Reshaping Restaurant Business
The Indian food services market, currently worth around Rs 4-5 lakh crore, is set to skyrocket. With a projected growth rate of 10–12% annually, it’s expected to hit Rs 9–10 lakh crore by 2030.
Quick service restaurants are expected to grow 40% faster than the whole market by 2030 as Indian consumers led by Gen Z prefers to eat out more, transforming the country's culinary landscape.
Gen Z and millennials making a whopping 40% of the country's food service consumption is no longer satisfied with just one type of cuisine, according to a report by Bain & Company. They regularly sample over three different cuisines from more than six restaurants, proving that variety really is the spice of life.
Eating out is becoming a regular habit with Indians now dining out five times a month, a number that's expected to jump to seven or eight times by 2030.
Restaurants are buzzing like never before! The fast food frenzy is dominating the Quick Service Restaurants, or QSR, space as demand for quick, tasty meals rises.
Online food delivery is booming, with an estimated annual growth rate of 18%. By 2030, this segment is expected to reach Rs 2.12 lakh crore as more people opt for the convenience of having their favourite meals delivered right to their doorsteps.
The Indian food services market, currently worth around Rs 4-5 lakh crore, is set to skyrocket. With a projected growth rate of 10–12% annually, it’s expected to hit Rs 9–10 lakh crore by 2030, Bain & Company said in the report.
Overall, projections indicate that the addressable customer base of Indian food services market will grow from its current value of 32–34 crore to approximately 43–45 crore by 2030, the report said. This impressive growth underscores the dynamic and rapidly changing nature of India's food scene.
QSR, Food Delivery Stocks Stand To Gain
The projected growth in India’s food service market is not only a boon for the industry but also for QSR chains such as Devyani International, Westlife Foodworld, Sapphire Foods, and Jubilant FoodWorks.
Jubilant FoodWorks is on an accelerated growth path, raising its store target to 4,000 from the earlier 3,000, with plans to open 12 new Popeyes stores per quarter. Devyani International is witnessing substantial growth, fueled primarily by the popularity of KFC over Pizza Hut. Sapphire Foods is setting its sights on achieving mid-teen margin levels in its Sri Lanka operations before considering aggressive expansion in the region. Meanwhile, Zomato’s recent profitability milestone has bolstered confidence, with the company optimistic about reaching 1,000 stores in the near future. These strategic moves and growth targets highlight the dynamic expansion and positive outlook for these leading companies in the rapidly evolving Indian food service market.
Additionally, the booming online food delivery segment, set to grow at an 18% compound annual growth rate, signals a bright future for food delivery stocks like Zomato Ltd. and, potentially, Swiggy once it goes public.
