Restaurant industry in India 2023

Welcome to this comprehensive blog on the restaurant industry in India! In this article, we will delve into various aspects of the restaurant industry, exploring its growth, challenges, trends, and opportunities.

Whether you are an aspiring restaurateur, a food enthusiast, or simply curious about the Indian restaurant scene, this blog is here to provide you with valuable insights and information.

So, let’s embark on this gastronomic journey together!

Indian Restaurant Industry Segmentation

The food service industry in India is a diverse and rapidly expanding sector that caters to the culinary needs of its vast population. With a multitude of dining options available, it is crucial to understand the segmentation of the industry to grasp its complexity and potential.

  • Quick-Service Restaurants (QSRs)
  • Casual Dining Restaurants
  • Fine Dining Restaurants
  • Ethnic and Regional Cuisine Restaurants
  • Speciality Restaurants
  • Fast Casual Restaurants
  • Food Trucks and Street Food Vendors

Restaurant Industry in India -Market Size and Revenue

  • India’s foodservice market is projected to reach USD 79.65 billion by 2028, with a CAGR of 11.19%.
  • Despite COVID-19 job losses, the industry is expected to employ 10 million people by 2025.
  • The unorganized sector dominates the market, while the organized sector has shown strong growth.
  • The quick service restaurants (QSR) market is estimated to be USD 690.21 million in 2022, projected to reach USD 1069.3 million by 2027.
  • QSR chain market is anticipated to be the highest-growing sub-segment at 23% CAGR.
  • Middle-class households in Tier II and III cities have increased fast food spending by 108% in two years.
  • Employment in the food services industry totalled over 7.3 million in 2021 and is expected to reach 10 million by 2025.
  • Inflation has led to reduced dining out frequency and the ordering of less expensive items for nearly 51% of consumers.

Key Trends in the Indian Restaurant Industry

The Indian restaurant industry is evolving rapidly, driven by changing consumer preferences and technological advancements. Some key trends observed in the industry include:

Healthy and Sustainable Dining: Increasing awareness about health and sustainability has led to the rise of restaurants offering organic, locally sourced, and plant-based options.

Fusion and Experimentation: Restaurants are embracing fusion cuisine, combining different culinary traditions to create innovative and unique dishes.

Technology Integration: Restaurants are leveraging technology to enhance the dining experience, with features like online reservations, digital menus, and contactless payments.

Food Delivery and Takeaway: The growth of food delivery apps and platforms has made ordering restaurant food more convenient and accessible.

These trends reflect the evolving demands and preferences of Indian consumers, who are seeking new experiences and convenience in their dining choices.

India Foodservice Industry Overview

The Indian restaurant market is a dynamic blend of international and Indian brands, offering a wide array of culinary experiences to consumers. International brands have successfully adapted to local tastes and preferences, while Indian brands celebrate the country’s rich culinary heritage. As the market continues to grow and evolve, collaborations and partnerships between international and Indian brands will play a crucial role in shaping the future of the Indian restaurant industry.


Which international restaurant brands are popular in India?

Popular international restaurant brands in India include McDonald’s, KFC, Burger King, Hard Rock Cafe, TGI Fridays, and The Cheesecake Factory.

What are some popular Indian restaurant brands?

Popular Indian restaurant brands include Punjab Grill, Oh! Calcutta, Rajdhani, Indigo Deli, Social, and Farzi Cafe.

How do international brands adapt to the Indian market?

International brands adapt to the Indian market by incorporating vegetarian options and introducing localized flavours to cater to local tastes and preferences.

What growth opportunities exist in the Indian restaurant market?

Yes, collaborations between international and Indian restaurant brands are becoming more common. These collaborations allow for the exchange of expertise, market knowledge, and the fusion of flavours and concepts.

Read More: Indian Cookware Brands in 2023

Source :

  1. News Indian Express
  2. New TOI
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