The food service industry is at the cusp of a massive growth, wherein we can see a fantastic double digit growth over a decade, all thanks to the changing consumer behavior and eating out trend.
With an aim to reach Rs 5,52,000 by 2022, the food service industry is growing at a CAGR of 10 per cent. “There is a huge consumer market, changing consumer habits, increase in disposable income, making the industry bigger and better,” shared Unnat Varma, MD, Pizza Hut India Sub Continent and Chairman, FICCI Task Force on Food Service Retail at FICCI’s Foodzania 2018, adding that changing landscape of the food service retail industry is largely driven by the changing consumer behaviour which can lead the sector for a sustained double digit growth over a decade.
Over the last 15 years the sector has seen many changes. Initially, it was about international brands making inroad into the Indian market, more influx of home grown brands turning into organized restaurant business. Then, came the phase where there was too much supply, but the demand from consumers was stuck giving a tough time to the restaurant industry. But, today the sector has seen a right quantum of things and supplies. The consumer market has become huge, they are willing to pay more and are ready to experiment, there is a sudden rise in disposable income and new age start-ups are mushrooming everywhere.
“With the advent of newer technology, the industry has seen a paradigm shift with consumers opting for ‘dining out’ experiences, making it an important partner for the beverage alcohol sector,” added Jagbir Singh Sidhu, COO- (North), Diageo India.
Also, the new age technology disruption is giving a new twist to the business. There is no denying that with advent of online or web-based ordering, the whole business about home delivery is revolutionized. “Internet penetration and smartphone usage has increased the demand for specialised and gourmet food,” mentioned the FICCI-PwC Report, released on the sidelines of the event.
Commenting on the same, Rahul Singh of The Beer Café added, “Next 10 years are going to be the golden decade from the perspective of consumption,” pointing that the food aggregators in increasing the consumption of outside food. He said that they are the creators of behavioral change among consumers that is going to increase propensity of dining out.
Hence, we can see that the food service is going to see a massive change and disruption giving new wings to the home grown brand and paving way for international brands penetrating deeper into the Indian market.