5 Interesting Areas to Invest in the Restaurant Business

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So, the next time you go to your favourite restaurant, there is no harm in asking to speak to the owner and broaching your interest in investing in his business.
  • Reetika Bose
Restaurant India

Restaurants and food spaces have become one of the exciting spaces to be in. From an expert in the industry to a layman who is opening a restaurant out of passion and love for food is cashing in on growth. Here are the few segments that seem happening to own a restaurant:

The bistro and cafe moment

Restaurants have grown in numbers over the last five years. Cities like Baroda, Nagpur, Coimbatore and Patna amongst others which used to see maximum 5 restaurants opening in a year. Now these cities are witnessing 5 restaurants opening in 10 days. One of the most popular trends is the cafe as a lot of people are entering into cafe business. “Lots of change is happening in smaller cities as restaurants business is no more restricted to metro and tier I cities,” says Kaizad Modi, Senior Partner, Reise Hospitality which is running Goodies Cafe in Baroda.

Rebirth of regional cuisine restaurants

Home grown and traditional cooked foods have their own charm. With lots of knowledge about ingredients and spices people are going back to the roots and there is a demand for local and regional delicacies. Restaurateurs who were known for doing global and modern foods are introducing lots of regional spices and ingredients in their menu. “We are doing lots of micro green products which is already very popular in western world though it was all Indian products which people used to be conscious about. When I was doing this research for six months I was surprised to know that India has so much to do. People from outside know more about our ingredients than we Indians,” shares Vimal Verma, Director of Food & Beverage- Anna Maya which is serving aloe vera sandwich with western dressing of orange and micro greens along with aloe vera.

Casual dining is growing

its casual dining age says experts who have seen an upsurge in the growth of informal restaurant formats in last few years. Growing at 21% at a CAGR, casual dining is second largest food service market segment in India with almost 33% market share. Known for their quality food, varied menu, attractive presentation and uniqueness it has become the latest love for investors in the industry. “"With SodaBottle OpenerWala, we give you a concept that is unique to India; the dying legacy of the wonderful chaotic, crowded, bustling, colourful, quirky, cluttered, eccentric and so real world of an Irani café. Our way of reviving the love for the edu and the disappearing race behind the cafes,” shares AD Singh, MD & CEO- Olive Bar & Kitchen who is running some of the high end restaurants in the casual dining space.

Pubs and nightlife glam

 Gone are the days when people would go out to eat food. These days they look out for best drinking places and food is just an addition to set the tone. Places like Social, Tamasha, HighSpirits, Lord of the Drinks have taken the night life scene at par with global food destinations. This is not only encouraging domestic players like The Bar Stock Exchange to come up with an innovative concept but global fame like The Stables which has already hit the Dubai market enter India. Places like Hauz Khas in Delhi, Sector 29 in Gurgaon, Bandra and Khar in Mumbai, Indranagar in Bengaluru have become a nightlife hub thanks to cities growing NRI culture. “Today’s consumer, being global in nature, look out for a lot more than food and cocktail. They look out for places to socialise, communicate, meet new people, exchange ideas, and expand their friend circle. The Stables as a brand simply facilitates these requirements,” points Gautham Shetty of The Stables.

QSR is here to stay

Being one of the largest contributors in the food service game, Quick service restaurants sits tall at 45% which is expected to reach 48% market share by 2021. Driven by affordability and value for money pricing and easy to grab meals, this segment is one of the most competitive segments in the Indian market with highest rate of failures as innovation is the key for retaining growth in this ever demanding market. “With a focus on evoking memories and nostalgia by presenting local delicacies which people miss the most from the place they belong to, Masala Trail was born to savour the street food in its original form,” shares Osama Jalali owner at Masala Trail.

So, the next time you go to your favourite restaurant, there is no harm in asking to speak to the owner and broaching your interest in investing in his business.

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