The quick service restaurants (QSR) sector in India is currently growing at a CAGR of 25 per cent, and is likely to touch the Rs 25,000-crore mark by 2020 from the current level of Rs 8,500, said ASSOCHAM.
"Entry of various national and international players in the QSR space has significantly widened the chain market due to fast expanding middle class, urbanization, youth spending, nuclear families and better logistics," reported ASSOCHAM.
"About 50 per cent of India's population eats out at least once in every three months and eight times in every month in bustling metros as compared to the US (14 times), Brazil (11 times), Thailand (10 times) and China (9 times)," said D.S. Rawat, Secretary General, ASSOCHAM.
"The QSR segment is expected to witness increased activity via market expansion and entry by various players," added Rawat.
At the city level, a large share of the QSR market rests in metros and mini metros due to higher consumption, heightened consumer awareness, and exposure in key cities such as Delhi, Mumbai, Bengaluru, and Hyderabad.
At present the space owns more than 120 brands with more than 4,000 outlets spread across various cities in India.
In terms of menu, Indian QSRs like Haldiram's, Bikanervala etc. have a skew towards vegetarian food in contrast to which international players like McDonalds, Dominos, KFC, Subway etc. offer a mix of both vegetarian and non-vegetarian offerings. Even Mayonnaise in Indian McDonald outlets is free from eggs.
By 2020 it is expected that 35 per cent of India's population will be in urban areas by 2020 totalling to 52 crores compared to the current urban population of 34 crores.
With a young population, a high rate of urbanization, rising disposable incomes, increased participation of women in the workforce, increased exposure to international cuisine and needs for elevated protein consumption, industry sources envision growth within the QSR sector.
Indian consumers are increasingly spending large sums, eating out with family and friends on weekends and holidays, churning up a huge appetite for the QSR business.
Young and old Indians can be seen devouring billions of dollars worth of fast food at shopping malls, multiplex complexes, metro stations, and highway eateries and even in office blocks, as the eating out culture spreads across urban India.