India Quick Service Restaurant Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

India Quick Service Restaurant Market Analysis

The India Quick Service Restaurant Market size is estimated at 25.46 billion USD in 2024, and is expected to reach 38.71 billion USD by 2029, growing at a CAGR of 8.74% during the forecast period (2024-2029).

The Indian quick service restaurant industry is experiencing significant transformation driven by evolving consumer preferences and dining habits. The sector has witnessed a notable shift in consumption patterns, with recent studies indicating that 94% of men and 96% of women prefer to consume fast food at least once per week. This changing behavior is reflected in the average order value, which reached USD 3.29 in 2022, demonstrating consumers' increasing willingness to spend on quick-service dining options. The industry has responded by diversifying menu offerings, incorporating both international and localized flavors to cater to varied taste preferences.

The expansion of retail infrastructure has played a crucial role in the market's development, with India recording over 271 malls in 2022, marking a 22% increase from 2019. This retail growth has created numerous opportunities for QSR establishments to expand their presence in high-footfall locations. Quick service restaurants in India are increasingly establishing themselves in these retail spaces, offering convenient dining solutions to shoppers and creating dedicated food courts that serve as dining destinations. The strategic positioning within retail environments has helped QSR brands capture a broader customer base while maintaining operational efficiency.

The market is witnessing a significant shift in food consumption patterns, particularly in meat-based offerings. Recent data shows that 83.4% of males and 70.6% of women aged 15-49 years regularly consume non-vegetarian meals, with per capita meat consumption reaching 6.82 kg in 2022. This trend has prompted QSR chains to expand their meat-based menu offerings while simultaneously developing vegetarian alternatives to cater to all consumer segments. The average QSR outlet now processes approximately 177 orders daily, indicating strong consumer demand and operational efficiency. Fast food consumption statistics in India highlight the growing preference for quick-service dining.

Technological integration and delivery innovations are reshaping the QSR landscape, with chains implementing advanced ordering systems and efficient delivery mechanisms. The sector has seen substantial investment in digital infrastructure, with major players introducing mobile applications, digital payment solutions, and loyalty programs to enhance customer engagement. Entertainment venues are also becoming significant growth drivers, with recent data showing that 42% of people from tier 1 cities and 36% from tier 2 cities visited cinema halls in 2023, creating additional opportunities for QSR outlets in leisure locations. This integration of technology and strategic location planning has helped QSR chains optimize their operations and improve customer service delivery. The QSR growth in India is further supported by these technological advancements.

India Quick Service Restaurant Market Trends

Global fast-food brands gain traction in India, led by KFC, McDonald's, and Domino's

• The number of QSR restaurants increased by 51,761 from 2020 to 2021. This growth is due to the increase in the number of global fast food with their company-operated stores and franchised chained stores, which helps to grow their footprint in the nation. Global fast-food brands such as KFC and Domino's Pizza operate in the nation, with a majority of the franchised stores. For instance, as of 2022, KFC had 335 restaurants with several franchisee owners, whereas Jubilant FoodWorks Limited is the franchisee of Domino's Pizza in India, with 1,300 stores.
• The quick service segment is majorly driven by meat-based cuisines, followed by bakeries and burgers. The increase in the number of QSR outlets in India indicated a positive Y-o-Y growth rate of 8.41% from 2021 to 2022. This has been attributed to the nation's increased consumption of meat. The per capita meat consumption grew from 6.15 kg in 2019 to 6.82 kg in 2022. Most fast-food restaurants typically offer a standardized menu with meat-based dishes, including chicken nuggets, chicken lollypops, chicken burgers, and chicken spring rolls.
• Owing to the increasing consumer spending on fast food, the number of outlets is increasing due to a large number of orders per outlet, which reached an average of 177 a day in 2022. Popular fast-food items are chicken rolls, cheese balls, burgers, pizzas, French fries, desserts, pav bhaji, and peri-peri chicken wings. The increased popularity of quick service restaurants is due to young people's propensity to eat fast food frequently. Popular fast-food chains include Haldiram's, Nirula's, and Pizza Hut. With the increased number of orders, it is predicted that the number of outlets will grow by 0.29% during the forecast period.

Indians spend a significant portion of their food budget on fast food, with french fries, pizzas, sandwiches, burgers, wraps/rolls, and garlic bread being the most popular dishes

• Indians spend 35.3% of their total expenditure on food. The average spending on fast food has reached USD 2.98 to USD 3.65 during review period. However, in 2021, it was noted that 94% of men and 96% of women in India prefer to consume fast food once a week. Popular QSR dishes preferred by the Indians are French fries (USD 1.63 per serving), pizzas (USD 4.47 per serving), sandwiches (USD 1.33 per serving), and burgers (around USD 1.75 per serving). The popularity of wraps/rolls and garlic bread is growing and is widely accepted by young adults. The average price of garlic bread is USD 2.11 per serving, and wraps/rolls cost 2.17 per serving.
• There is an increased preference for bakery products in India. However, popular bakery products are cakes, pastries, and cookies. The average price for black forest cake/pastry is around USD 5.203 per 500-g, choco lava cake costs around USD 1.21 per piece, and red velvet cake/pastry costs USD 5.8 per 500 g. Among all, choco lava cake is highly preferable, and the majority of global QSR chains, such as McDonald's and KFC, have added this to their dessert menu. The average order value increased by 23.65% from 2017 to 2022. The rising inflation rate increased by an average of 5.13-7.54% from 2017 to 2022, and the number of orders per year increased to more than 64,647 in 2022. The growth has been attributed to chained fast-food brands that have started expanding by opening new outlets in metro and non-metro cities. For instance, in the first half of 2023, KFC and Subway opened new stores in Delhi and Punjab with all its foods and beverages on the menu and planned to expand in the nation by 2024 with more new outlets.

Segment Analysis: Cuisine

Bakeries Segment in India Quick Service Restaurant Market

The bakeries segment has emerged as the dominant force in India's quick service restaurant market, commanding approximately 18% market share in 2024. This substantial market position is driven by the increasing demand for value-added bakery products and evolving consumer preferences. The segment's growth is particularly notable in standalone bakeries, which account for the largest market share, followed by retail establishments. The introduction of premium ingredients, innovative product offerings, and the strong presence of both organized and unorganized bakeries contribute to this segment's leadership. With over a million unorganized small-scale bakeries and more than 2,000 organized or semi-organized bakeries, it represents the largest segment of India's food processing industry, catering to the growing demand for local, high-quality baked goods.

Pizza Segment in India Quick Service Restaurant Market

The pizza market share in India is demonstrating remarkable growth potential in India's QSR market, with a projected growth rate of approximately 11% during 2024-2029. This exceptional growth trajectory is driven by several factors, including the increasing penetration of international pizza chains, evolving consumer preferences, and the rising popularity of pizza among young consumers. The segment's expansion is further supported by the robust delivery infrastructure, with major chains focusing on digital ordering platforms and efficient delivery systems. Pizza chains are actively innovating their menus with both vegetarian and localized versions to cater to diverse Indian tastes, while also expanding their presence in tier 2 and tier 3 cities to capture the growing demand in these markets.

Remaining Segments in Cuisine Segmentation

The other significant segments in India's QSR market include burgers, ice cream, meat-based cuisines, and other QSR cuisines, each playing a vital role in shaping the market dynamics. The burger market size in India continues to attract consumers with its affordable pricing and quick service model, while the ice cream segment benefits from increasing per capita consumption and expanding retail presence. The meat-based cuisine segment maintains its strong position by catering to the growing non-vegetarian population, particularly in urban areas. Other QSR cuisines, including various snacks, wraps, and regional fast-food options, contribute to the market's diversity by offering consumers a wide range of choices and flavoring options.

Segment Analysis: Outlet

Chained Outlets Segment in India Quick Service Restaurant Market

Chained outlets continue to dominate the Indian quick service restaurant market, holding approximately 52% market share in 2024. The segment's strong performance is primarily driven by the increasing popularity of fast-food consumption among India's young population, with over 85% of young Indians consuming fast food frequently. Major international chains like McDonald's, Burger King, Pizza Hut, and Subway have established a significant presence in the country's major cities, with their standardized menus and consistent quality attracting consumers. The growth in urbanization and the increasing demand for quick and convenient food options, along with the trend of eating out, have contributed to the segment's dominance. These chains are actively expanding their presence in tier 1 and tier 2 cities, with many offering innovative menu items that cater to local tastes and preferences while maintaining their global standards.

Independent Outlets Segment in India Quick Service Restaurant Market

The independent outlets segment is projected to witness robust growth with an expected CAGR of approximately 9% during 2024-2029. This growth trajectory is supported by various factors, including low start-up costs, ease of operations, and the ability to offer localized menus that cater to regional tastes. Independent operators are increasingly focusing on offering healthier versions of popular fast-food items, responding to the growing health consciousness among consumers. The rise of online food ordering platforms has significantly benefited these outlets, providing them with wider reach and visibility. These establishments are also gaining popularity due to their ability to innovate their products and match the quality of chained outlets while maintaining competitive pricing, often 30-40% lower than established chains. The segment's growth is further supported by the increasing number of street food vendors and local shops that are modernizing their operations and adapting to changing consumer preferences.

Segment Analysis: Location

Standalone Segment in India Quick Service Restaurant Market

The standalone segment continues to dominate the India Quick Service Restaurant market, accounting for approximately 87% market share in 2024. This significant market position is primarily driven by the increased consumer traffic in standalone restaurants across tier 1 and tier 2 cities. The majority of international QSR brands operate in the standalone segment, with more than half of their total branches strategically located in these key urban areas. These standalone locations are particularly attractive to consumers due to their accessibility, convenience, and ability to offer a comprehensive dining experience. The segment's success is further bolstered by the rising number of young professionals seeking convenient dining options, with standalone restaurants typically offering a broader menu selection and more customized dining experiences compared to other location formats.

Travel Segment in India Quick Service Restaurant Market

The travel segment is projected to exhibit the strongest growth trajectory in the India Quick Service Restaurant market during 2024-2029. This segment's expansion is primarily driven by the increasing presence of QSR outlets at airports, railway stations, highways, and other transportation hubs. The growth is particularly notable in airports, where global restaurant brands like Wendy's, California Burrito Mexican Grill, Subway, and KFC are establishing a strong presence to cater to the growing passenger traffic. The segment's development is further supported by the government's ambitious infrastructure plans, including the expansion of roadways and the development of new airports and railway stations. Additionally, the increasing trend of road trips and domestic tourism is creating new opportunities for QSR establishments along highways and major travel routes.

Remaining Segments in Location Segmentation

The other significant segments in the location-based segmentation include retail, leisure, and lodging, each playing a unique role in shaping the market dynamics. The retail segment encompasses QSR outlets in shopping malls, hypermarkets, and retail complexes, benefiting from high consumer footfall and integrated shopping experiences. The leisure segment includes restaurants in entertainment venues such as multiplexes, amusement parks, and sports facilities, catering to recreational dining needs. The lodging segment, comprising restaurants in hotels and resorts, serves both domestic and international tourists, offering a mix of local and global cuisine options. These segments collectively contribute to the market's diversity and cater to different consumer preferences and occasions.

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