FOOD SERVICE

INDUSTRY
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India: Emerging Trends

The Empowered Consumer

The Indian Middle Class is driving consumption, and causing new

innovations to rise in the food service industry.
Bra d loyalty is pass. Todays o su ers shift their palate depe di g
on whom they are eating with.
With wellness is on the mind, consumers are seeking out organic,
and locally sourced food.
Authentic Indian regional cuisine on the rise.

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India: Emerging Trends

The Changing Food Industry

Shift towards home style meals to substitute home cooking

Food vans on the rise catering to the growing expat community.

QSRs and Caf leading the growth in the food service industry.
Technology is disrupting traditional food service chain models.

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India: Emerging Trends

Digifood: Digital redefines food

Swiggy, FoodPanda, Zomato the new age digital dabawallahs

Food is e o i g ore o ial . Facebook and Pinterest are motivating
consumers to seek out new food experiences.

Digital is also contributing to a new breed of consumers with an

increasing demand for gourmet and specialized food.
Payment is increasingly Digital. Online payments, and Mobile wallets are
on the rise. Near Field Communication (NFC) will be a gamechanger.

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India: Market Size

US $ 50B
Indian Food Service Industry
[Source: CMR Analysis and Industry Estimates]
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India: Food Service Industry Forecast

[In US $/Billion]

92

82
72

57

2016

64

2017

2018

2019

2020

Note: The size of the Indian food service industry was US$50 billion (CY2015) and will grow at a CAGR of 13% to US$ 92
billion by 2020.

[Source: CMR Analysis and Industry Estimates]

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India: Organized FS Market

Organized Food
Service Market

30%

Note: 70% of the Food Service market in India is unorganized. The organized food service market accounts for US$ 15 billion
of the total food service market.

[Source: CMR Analysis and Industry Estimates]

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India: Organized FS Segmentation

Cafe

Frozen Desserts

14%

13%

Quick Service

Fine Dining

18%

13%
Indian Organized Food Service Industry

Casual Dining

US $ 15 Bn

18%

Pub and Bar

10%
[Source: CMR Analysis and Industry Estimates]

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India: Organized FS Market Forecast

33

[In US $/Billion]

28
24
21
18

2016

2017

2018

2019

2020

[Source: CMR Analysis and Industry Estimates]

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Demand Side View

464M youth by 2021

Increasing disposable incomes
>200M nuclear families by 2020
More women in the workforce than ever before
Broadening exposure to new cuisines
Rapid Urbanisation

Growth of consumers in smaller towns

Higher frequency of eating out

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Supply Side View

Disruption caused by new age F&B entrants

Efficiencies and quality standards in food supply chain

Arrival and growth of third-party logistics providers

Digital is redefining the food experience

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Advent of DigiFood
EMERGING BUSINESS MODELS

Restaurant Listing

Online Food Ordering

>2%
1m

~$16b
~ $500m

Market is on apps.
Daily Orders over phone.
Market Opportunity

Food from Cloud

Online ordering today

[Source: CMR Analysis and Industry Estimates]

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The Food Truck Frenzy

The food truck, with its low startup cost, flexibility and ease of operations, is a
good avenue for all aspiring foodpreneurs to grab a part of the growing food
industry pie. India is seeing a boom in food truck business.
NEW DELHI - NCR

MUMBAI

Big Bite Burrito

Mumbai Rolling Kitchen
Eat N Ru
Paninaro

BENGALURU

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The Lalit Food Truck Company

Flavour Hub
Oh Buoy
What The Truck
Dosa Inc.
Sushi House Mafia

The Spitfire Barbecue Truck

The SWAT Truck
The Great Indian Bhukkad
Fuel Up
Square Ruth
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Quick Service Restaurants (QSR)

One key and fastest growing segment of the
Indian Food Service Industry has been
Quick Service Restaurants.

37%

The QSR segment in India will have >90

brands, with over 3000 outlets.
Though foreign QSRs dominate the India
market, the market growth is driven by
domestic QSR brands as they expand
rapidly into Tier-II and Tier-III cities with
adaptable medium and small formats.

63%
Foreign QSR

Indian QSR

[Source: CMR Analysis and Industry Estimates]

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India: QSR Market Forecast

[In US $/Billion]

4.88

4.13

3.50
2.97

2.13

2016

2.51

2017

2018

2019

2020

2021

Note: The size of the QSR industry was US$1.81 billion (CY2015) and will grow at a CAGR of 16% to US$ 4.88 billion by 2021.

[Source: CMR Analysis and Industry Estimates]

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Established QSRs
FOREIGN QSRs
OPERATING STORES: 370
PLANNED STORES: 250 by 2020

OPERATING STORES: 432

PLANNED STORES: 100 by end-2016

OPERATING STORES: 1000

PLANNED STORES: 450 by 2019

OPERATING STORES: 372

PLANNED STORES: To reach 500 by 2016

OPERATING STORES: >500

PLANNED STORES: 2000 by 2020

DOMESTIC QSRs
OPERATING STORES: 55
PLANNED STORES: 10-12 per year

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OPERATING STORES: 21
PLANNED STORES: 150 by 2020

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Upcoming QSRs
NEW FOREIGN QSRs
OPERATING STORES: 4
PLANNED STORES: 20 by 2018

OPERATING STORES: 2
PLANNED STORES: 40 by 2019

OPERATING STORES: 2
PLANNED STORES: 8 by 2016

OPERATING STORES: 8
PLANNED STORES: 6 by 2017

OPERATING STORES: 4
PLANNED STORES: 20 by 2018

OPERATING STORES: 1
PLANNED STORES: 10 by 2017

NEW DOMESTIC QSRs

OPERATING STORES: 275
PLANNED STORES: 5000 by 2020

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OPERATING STORES: 4
PLANNED STORES: 77 by 2020

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Advantage Desi QSR

Localization of Flavors and Pricepoints
Foreign QSRs enter India without grasping the huge cultural diversity of India. Even Indian
franchisees partnering with Foreign QSRs enter India speculating on customer preferences.
Domestic QSRs are able to tailor and segment their menu to suit the cultural and taste
preferences of a cross-section of customers pan-India at affordable prices starting Rs 25.

Many diverse players both foreign and domestic, vying for same pie
There are many different companies competing with each other in every segment.

Emergence of Organized Domestic Players

Many VC-backed domestic companies are entering the India market. Some of the recent
domestic entrants include Goli Vada Pav, Burger Singh, A
is Biryani have all entered
recently.

Roadside Vendors rule the roost

In addition to the domestic QSRs, roadside vendors are cooking up a diverse range of menu
that is targeted at the right consumer segment.
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India: Future Outlook

Technology will influence all aspects of the food business- from

sourcing to advance reservations, from check-in to on-demand
delivery.
Social will gain traction, continue to influence and dramatically alter
the way food is consumed in India, and this will impact the food
business.

QSRs focused on authentic and unique regional cuisine will find more
flavor and acceptance from the demanding Indian consumer.

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India: Future Outlook

Online Food start-ups will continue to grow organically. However, the

pie will remain very niche.
While food trucks are now in fashion, this segment will see a churn
soon as FSSAI tightens the bolts.
The market for QSR will increase as new non-traditional market
avenues open up due to Government investments in road
infrastructure and air connectivity.

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CMR Cognitive 360

DEMOGRAPHICS
Before embarking on a food business on
gut feel, its vital to understand the
consumer, and their tastes and
preferences.
Research can be a great
b u s i n e s s e n a b l e r.

DELIVERY
Food Delivery business is ripe for
disruption. In the hyperlocal era, if food
service outlets can cut delivery times to
<30 minutes, it will be a huge
gamechanger!

DISCOVERY
The Google Now model can be emulated
by startups in food discovery, with no
stand alone app, and the functionality
residing within social networks, such as
Facebook.
Note: CMR Cognitive 360 provides a clear view and guidance on whats next for businesses focused on the target market.
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About CMR
CMR is a young boutique firm that enables its clients to find answers to its
most pressing business concerns and challenges, through market research,
market intelligence and go-to-market services.
This is us, at a glance:
Industry Consulting and Advisory Services
Industry Verticals / Business Domain Research
Information Technology * Telecommunications *
Semiconductor & Electronics *
* Life sciences * Government

User and Demand-side Research

Business Channel Partner Ecosystem Research
Go-To-Market Services
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Contact

C M R I N D U S T R Y C O N S U LT I N G P R A C T I C E

Prabhu Ram

Apalak Ghosh

E: pram@cmrindia.com

E: aghosh@cmrindia.com

M: +91-9899440380

M: +91-9971548392

P: +91 124 482 2222 Extn: 162

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