NRAI releases the India Food Services Report 2013

New Delhi, April 23, 2013: The National Restaurant Association of India (NRAI) today released
the India Food Services Report 2013, a comprehensive report on the Indian restaurant industry.
Launched by Shri Anand Sharma, Honble Minister of Commerce and Industry, the report gives
detailed information on the industry size and highlights the industrys trends, growth and
contributions to the economy. Through this report, the NRAI also draws attention to the
opportunities and challenges which is facing this fast growing industry and suggests solutions to
overcome these issues.
The launch event saw the presence of the whos who of the restaurant fraternity who came
together to witness the significant milestone of the NRAI. Some of the restaurateurs present were
Vikram Bakshi (MD & JV Partner, McDonalds India), Niren Chaudhary (CEO, Yum Restaurants
India), Ajay Kaul (CEO, Dominos India), Rohan Jetley (Promoter, TGIF India), Monish Gujral
(CMD, Moti Mahal), Kabir Advani (MD, Bercos) and Riyaaz Amlani (CEO & MD, Impresario
Entertainment & Hospitality Pvt. Ltd).
Commenting on the launch, Mr. Samir Kuckreja, President, NRAI, said, Analyzing and
documenting industry trends and contributions has been one of the key endeavors of the NRAI.
Through this report, we intend to draw the attention of the public and Government towards the
opportunities the industry is offering as well as the issues which are dampening its growth. As we
have been a significant contributor to the nations economy through efficient collection of tax
and employment generation, we hope that we can work together with the Governments support
to help grow the industry. We are proud to announce that the industry currently employs 4.6
million people directly which is projected to grow to 8 million by 2018 .
Making a strong pitch for unshackling it from the license and tax regimes, the Association
expects to receive the support of the stakeholders and the Government so that the sector can
grow which in turn would lead to a spurt in development across other industries and be a much
larger source of direct and indirect tax revenue to the Government. The size of total food service
market (organized and unorganized) is currently Rs 247,680 crore (USD 48 billion) and is
projected to grow to Rs 408,040 crore (USD 78 billion) by 2018.
Some key findings of the report:

The current size of the Indian food service industry is INR 247,680 crore and is projected
to grow to INR 408,040 crore by 2018 at 11%
In terms of market segments, Quick Service Restaurants (QSR) and Casual Dine- in
formats account for 74% of the total chain market, while Cafs make up for 12% with
Fine Dining and Pub Bars Club & Lounges (PBCL) comprising the rest

Page 1 of 2

The chain and licensed standalone industry will contribute an estimated INR 11,50011,900 crore in 2013, projected to contribute more than double to INR 24,600-25,000
crore by 2018
The government has the opportunity to generate an additional collection of INR 17,000
26,000 crore through closer monitoring of tax collection from the unorganized segment
Key growth drivers and emerging trends that the industry is witnessing:
Increasing share of delivery and take-away formats, with a focus on convenience
Experimentation with new formats, themes and menus; interest through
entrepreneurial ventures
Indian brands going international
Larger focus on value meals
Tech savvy consumers increasing importance of online/ social media, food
websites and mobile applications
Increasing interest from private equity and venture capital investors in the
industry
Issues and challenges the industry is facing include:
Economic and market factors such as high food cost inflation, fragmented market
and increasing competition
Operational challenges including real estate, manpower, fragmented supply chain
and liquor sourcing
Regulatory concerns such as existing high taxes, burden of new taxes and over
licensing

The report / event has been supported by- Lead Sponsors Coca Cola; Associate Sponsors McCain, Del
Monte, Blue Star and Jack Daniels; and Support Sponsors Cremica and Book Your Table.

Page 2 of 2