The high-end catering business in India has transformed into a flourishing industry that marries culinary artistry with luxury service. It caters to a clientele that values premium experiences, customized menus, and impeccable attention to detail. While traditionally concentrated in metropolitan cities, this segment is now making significant inroads into tier 2 and tier 3 cities, fuelled by rising disposable incomes, growing urbanization, and evolving consumer preferences.
High-end catering is far more than delivering food; it is about creating bespoke experiences that include personalized menus, thematic presentations, and a seamless integration of food and event management. Leading names in the industry, such as Nikk Gourmet, Foodlink Catering, and The Kitchen Art Co., exemplify the shift towards a more luxurious dining approach. These companies are known for sourcing premium ingredients, offering fusion dishes that blend local and global flavors, and delivering meticulously curated services that resonate with modern sensibilities.
“Food is no longer just a part of an event; it has evolved into an experience in itself. This transformation encompasses all aspects of the catering experience, from decor and presentation to service. Luxury caterers in India are now focused on addressing even the minutest concerns of event attendees,” Sanjay Vazirani, CEO, Foodlink F&B Holdings India Pvt. Ltd said.
Growth Potential in Tier 2 and Tier 3 Cities
The expansion of high-end catering businesses into tier 2 and tier 3 cities marks a paradigm shift in India’s luxury service market. These smaller cities, including hubs like Jaipur, Chandigarh, Indore, and Coimbatore, have seen an impressive increase in demand for upscale catering services. This is driven by several factors:
India’s tier 2 and tier 3 cities have reported a consistent rise in disposable incomes. For instance, household disposable income in smaller cities is projected to grow at a compound annual growth rate (CAGR) of over 8% in the coming years. This growing affluence is encouraging residents to spend on premium services.
“Individuals are increasingly opting for luxury catering services for smaller functions and get-togethers…these could be small office meets for clients like Deloitte or launches like Media meet for Royal Enfield Bullet 350 launch or parties such as Gadar 2 success party or Ritesh Sidhwani’s 50th Birthday celebrations,” Vazirani further added.
Improved infrastructure and connectivity have made these cities more accessible. According to recent data, urbanization in India has grown to 34.93%, with smaller cities contributing significantly to this growth. These developments make it easier for catering businesses to operate in these regions.
The younger demographic in tier 2 and tier 3 cities, exposed to global trends through digital platforms, is increasingly opting for unique culinary experiences. Destination weddings, corporate events, and theme parties have become common in these regions, fuelling the demand for high-end catering.
The Luxury Catering Experience
Companies venturing into these markets have adapted their offerings to meet local tastes while maintaining the premium essence of their services. For instance, Foodlink Catering has tailored its services to include Indian-inspired gourmet dishes alongside global cuisines, ensuring a balance between tradition and modernity. The Kitchen Art Co. has introduced sustainable and locally sourced ingredients into their offerings to appeal to eco-conscious consumers in these areas. “We are increasingly experimenting with cuisines to cater to evolving tastes and preferences, it includes fusion menus, dietary diversity, interactive food stations and themed menus,” Bhawishya Rituparn, Director of Sales and Marketing, Radisson Blu Pune, Hinjawadi said.
High-end catering businesses also emphasize presentation and experience. Services include live counters, thematic food stations, and elaborate decor that align with the event’s overall theme. Furthermore, many companies offer integrated event management services, including entertainment and hospitality, ensuring a seamless experience. “During the lockdown people experimented with cooking and eating more which made them crave new regional flavours,” said Sarita Bazaz, founder of The Food Affairs.
Challenges and Opportunities
Despite the immense opportunities, expanding into tier 2 and tier 3 cities comes with its challenge. Logistic remains a critical issue. High-end catering often relies on premium, perishable ingredients such as imported cheeses, exotic seafood, and rare spices. Ensuring a reliable supply chain and maintaining cold chain infrastructure in smaller cities can be daunting. Additionally, the availability of skilled personnel trained in gourmet cooking and luxury service standards is limited in these regions. High-end catering companies often need to invest in extensive training programs to upskill local talent. Building brand awareness and educating potential clients about the value proposition of premium catering services is another challenge, particularly in cities where such services are still emerging.
Nevertheless, the prospects for growth in these cities are promising. Experts project the high-end catering market to grow at an impressive CAGR of 25%-30% over the next five years. This growth is supported by government initiatives aimed at improving infrastructure and promoting tourism in smaller cities. Digital penetration has also played a transformative role in creating demand. Social media platforms like Instagram and Pinterest have amplified consumer aspirations by showcasing lavish weddings, themed parties, and high-profile events, encouraging residents in smaller cities to seek similar experiences. Luxury caterers are leveraging these trends through strategic marketing campaigns, trial events, and collaborations with local event planners and venues to expand their reach.
The high-end catering business in India is on the cusp of a major transformation. While the metros remain strongholds, the burgeoning demand in tier 2 and tier 3 cities represents a new frontier for growth. Companies that can navigate the challenges and adapt to the unique needs of these markets are poised to benefit immensely. With the Indian middle and upper-middle classes increasingly embracing luxury experiences, the future of high-end catering is as vibrant as the country’s diverse culinary landscape.
The growth of cloud kitchens in India is being fuelled by the increasing demand for affordable, convenient, and quality food delivered to homes. Additionally, cloud kitchens benefit from lower operational costs since they do not require expensive retail locations or large front-of-house investments.
India's cloud kitchen market is on a remarkable trajectory - projected to hit approximately USD 2.84 billion by 2030, growing at a CAGR of 16.66%. This surge reflects how urbanization, evolving lifestyles, and the demand for convenient food delivery are rewriting the rules of dining.
Prominent companies have established prosperous multi-brand cloud kitchen empires, including Biryani by Kilo, Eat Sure, BOX8, Rebel Foods (Faasos, Behrouz Biryani), and Fresh Menu. In an effort to reach hyperlocal markets, a lot of restaurants are also introducing delivery-only sub-brands, marking 40-50% profits in the space.
The Ongoing Trends
Key trends shaping the cloud kitchen industry includes the adoption of multi-brand models within a single kitchen infrastructure to enhance operational efficiency. There is a notable rise in regional and comfort food delivery brands catering to diverse local tastes. Cloud kitchens are increasingly offering value-oriented options such as combo meals, meal boxes, and affordable single-serve meals.
“Businesses are also engaging in hyper local targeting to meet neighborhood-specific demand. To build stronger brand connections, they are leveraging influencer collaborations and social media engagement. Additionally, some cloud kitchen brands are beginning to explore physical formats like kiosks and food court outlets to provide an omni-channel experience,” added Aayush Madhusudan Agrawal, Founder & Director, Lenexis Foodworks.
Without décor or ambience to soften perception, hygiene becomes your frontline. Mohammed Bhol, Co-Founder and CEO at House of Biryan said, “I’ve found that daily protocols, rigorous training, and real-time audits aren’t just safety nets - they’re confidence builders. When people can’t see your kitchen, they need to feel your standards.”
He mentioned that he has learned the hard way, if it doesn’t arrive right, it doesn’t matter how good it tasted in the kitchen. “We’ve tested every layer: insulation, ventilation, seal integrity. Packaging isn’t a side gig, it's part of the recipe,” added Bhol.
Technology as the Backbone
Cloud kitchens function without a dine-in model, making technology vital at every operational level. From online ordering systems and kitchen display systems (KDS) to inventory and supply chain management, data analytics, smart POS integration, and automated marketing tools—each element plays a crucial role in ensuring seamless and efficient business operations.
Since cloud kitchens operate without a physical storefront, food aggregators serve as their primary digital marketplace. Platforms like Swiggy, Zomato, Zepto Café, Blinkit and Uber Eats offer immediate access to a wide customer base, making them essential for brand reach. They enhance brand discovery and visibility, while also handling delivery logistics—crucial for smooth operations.
Aggregators also provide performance dashboards with valuable insights into customer behavior, order patterns, and conversion rates, helping brands fine-tune their strategies. Additionally, aggregator-led promotional campaigns and paid placements can significantly boost order volumes and visibility.
The Challenges
Cloud kitchens face several challenges, including high customer acquisition costs driven by intense competition and platform commissions. This can be addressed by building direct digital connections with consumers through channels such as WhatsApp, loyalty programs, and emailers.
Another challenge is the dependence on delivery platforms for visibility which can be mitigated by investing in off-platform brand-building campaigns, digital content creation, and influencer partnerships. Agrawal added, “Maintaining consistent quality, hygiene, and delivery standards across various locations is also crucial and this requires strict adherence to standard operating procedures (SOPs) and regular kitchen audits. Lastly, in a cluttered market, it is essential to craft a sharp brand positioning and compelling product proposition to stand out.”
"Finding the right location was one of our key challenges," Aksha Kambhoj, Executive Chairperson of Aspect Hospitality explained by adding that they sought areas with high foot traffic to maximize visibility.
It’s a Profitable Biz
A well-run cloud kitchen isn’t just powered by good food - it runs on strong systems. Industry data shows that a lean, efficient model can hit EBITDA margins of 20–25%, with high-performing outlets pulling in ₹1.5–2 crore annually per location - depending on how well you read the market and build recall.
“High-performing brands have demonstrated the potential to scale even further, reaching ₹70–100 crore in ARR within three to four years, as seen in the case of Big Bowl,” added Agarwal.
While, the future will be focused on AI-powered kitchen operations, and tighter connectivity with fast commerce systems. Cloud kitchens are expected to become a major player in India's F&B industry with major focus on tier-2 and tier-3 cities.
Restaurant pop-ups are rapidly gaining momentum in India, not just as a culinary trend but as a strategic business and marketing tool. From experimental kitchens and chef collaborations to best bar takeovers and themed dining concepts, pop-ups are allowing restaurants and hospitality brands to stay agile, relevant, and culturally engaged.
This format offers a unique opportunity to test new ideas, like menus, concepts, or even partnerships without the long-term investment of a full-scale outlet. The trend is fuelled by social media buzz, influencer collaborations, and community platforms. With exclusivity, visual appeal, and time-bound availability, these events tap into FOMO while leveraging digital storytelling to generate viral traction and broader brand visibility. Around 80% of the restaurants in India are doing pop-ups to attract more customers.
What’s pushing the Growth?
Pop-up restaurants bring a fresh experience to a new market for a short span of time. In this type of formats, guests sample the cuisines, setting, service, etc. Pop-up restaurants are also a new way for restaurateurs to test out a product on a new market with a very low investment.
Pop-ups offer immense strategic value to restaurateurs. Ranbir Nagpal, CEO of Yazu Hospitality Pvt. Limited shared, “At KICO, we've seen how a well-executed popup can drive buzz, test new markets, and expand our brand footprint. They allow us to experiment with limited-time menus or collaborative formats without long-term overheads.”
More than just revenue generators, they’re excellent tools for community building and storytelling — particularly when done around cultural moments or niche interests like sneakers and cocktails, which are integral to our brand.
Saket Agarwal, Co-Founder, Manifest Hospitality said, “At Latoyá, we see them as cultural and culinary exchanges, an opportunity to showcase fresh ideas, collaborate with like-minded talent, and bring in footfall that extends beyond regular diners. From a brand perspective, pop-ups help build relevance and community, especially when there’s a strong concept, storytelling, and synergy behind the collaboration.
The Right Clientele
The target audience is typically urban millennials and Gen Z diners, those who are experimental, digitally active, and place a premium on novelty and curated experiences.
Angadh Singh, Co-Founder of Call Me Ten said, “While some events are priced at a premium due to their exclusivity or the involvement of celebrity chefs, others are more accessible to attract volume and footfall. The strategy often depends on the intent, brand building or revenue generation.”
Overcoming Challenges
Challenges typically lie in operational compatibility, from aligning kitchen setups to managing workflows with guest chefs or bar teams. The key is tight pre-planning: understanding their prep and service needs, doing dry runs, and keeping communication crystal clear.
Highlighting his views, Nagpal added, “We’ve learned that keeping the menu tight, using portable equipment, and pre-planning tech and design elements is key. Clear communication, a strong visual identity, and local influencer engagement go a long way in creating impact fast.
“Technology, especially tools that streamline ordering, inventory, and kitchen coordination can really help minimize chaos and maximize output,” pointed Agarwal.
The Business Scenario
A well-executed pop-up with the right audience fit can lead to a significant boost in sales during the event window and a strong halo effect afterward. More importantly, it adds to brand value and recall, which is harder to measure but incredibly important in the long run.
“In terms of business value, popups can lead to 20–30% increase in revenue during activation windows and offer huge intangible value — new customer acquisition, social media traction, and potential partnerships,” highlighted Nagpal.
While Singh added that the long-term value often lies in audience engagement, brand recall, and creating a deeper emotional connect with diners.
The future is quite certain that the trend will increase as pop-ups are no longer a novelty, they are becoming a powerful tool in a restaurant's culinary and cultural playbook.
Health and fitnessSoaking mangoes before you dive into their juicy sweetness might seem like a small thing, but it's a tradition that truly pays off.
CookingGrilling is surprisingly straightforward once you grasp the fundamentals. Equipped with the right tools, proper technique, and a little patience, you…-
Growth StrategiesIndia's cloud kitchen market is on a remarkable trajectory - projected to hit approximately USD 2.84 billion by 2030, growing at a CAGR of 16.66…
Expansion\From Dalkomi's decadent Korean delicacies to Gochujang's real street cuisine and GOPIZZA's inventive Korean pizza, foodies can now…
Copyright © 2009 - 2025 Restaurant India.