The NRAI India Food Services Report 2019 estimates Indian foodservice industry’s market size at INR 4,23,865 crore in 2018-19 which is expected to grow at a CAGR of 9% to reach INR 5,99,782 crore by 2022-23.
Amitabh Kant, CEO, NITI Aayog (National Institution for Transforming India), Government of India, launched NRAI India Food Services Report 2019 (NRAI IFSR 2019) in Delhi. CEO, NITI Aayog, GOI, while releasing the report, said, “The Food Service industry is evolving rapidly with India being the youngest country with internet and tech-savvy consumer base, having a high disposable income with little time to cook indoors. This is reflected in the number of eating out frequency – an average of 6.6. per month in the country, providing food service players with an exciting opportunity to expand.” He further added, “India is the seventh largest travel and tourism economy in the world according to the World Travel and Tourism Council. Globally, food businesses are being promoted to boost tourism. A similar effort can be implemented in India capitalizing on the diversity that the country has to offer. Food hubs, envisaged as experience centres can serve as places for experiencing local and regional cuisines as part of a larger culture.”
Kabir Suri, Delhi Chapter Head, NRAI, said, “Delhi has limited pockets available to open restaurants and that is why delivery has picked up the pace.” As per the report, “Delhi NCR is the ‘Restaurant Capital of India' with the highest number of restaurants in the country,” said Kabir Suri.
The NRAI IFSR 2019 is the 4th edition of National Restaurant Association of India’s research study mapping trends, opportunities and challenges of the restaurant sector in India- is a comprehensive compilation of data on India’s food service sector gathered from in-depth interactions with over 130 restaurant CEOs and 3500 consumers across 24 cities in India.
Rahul Singh, President, NRAI said, “It is the largest industry in the service sector in the country after retail and insurance and is 20x of the film industry, 4.7x of hotels and 1.5x of the pharmaceutical sector.”
Rahul Singh, while noting contributions of the Restaurant sector mentioned, “The Indian Restaurant Industry employed 7.3 million people in 2018-19. The organized food service sector, which is only 35% of the total market, contributed a whopping INR 18,000 crore as a way of taxes in 2018-19. The number is expected to more than double if the unorganised sector becomes organised.” Rahul Singh also shared his thoughts on GST in the food sector. He said, “Govt’s tax collection will improve and increase if Input Tax Credit is given to the restaurant industry.”
Introducing the trade report to the audience, Samir Kuckreja, Past President and Trustee, NRAI said, “NRAI IFSR 2019 is an in-depth research study which maps out the scale and impact of India’s food services sector. This report is crucial for the industry to garner the necessary support and recognition from the government and its agencies for providing a fillip for consistent and sustained growth. I would like to thank all the NRAI members for their contribution to the research study.”
While the food services industry has seen steady growth over last three years, the report reveals that the industry has its fair share of roadblocks and challenges like high real estate and manpower costs, inadequate supply chain infrastructure, financing issues and majorly policy formulation. The main aim of the report is to aid entrepreneurs and investors to take informed decisions and unite the industry under one banner.