India's foodservice market is expected to reach $79.65 billion by 2028, growing at a CAGR of 11.19 percent from $41.1 billion in 2022, according to a report.

Despite over 20 lakh jobs lost during the peak of the COVID-19 pandemic, the industry is expected to reach employment figures of 1 crore by 2025, as per the Food Service and Restaurant Business Report 2022-23, by Francorp and restaurantindia.In.

Key Findings of the Report are as follows:

1. The food service market of India was valued at $41.1 billion in 2022 and is anticipated to grow at a CAGR of 11.9 percent and reach $79.65 billion by 2028.

2. The global food service industry is forecasted to reach $4.43 trillion in sales in 2022

3. 96 percent of operators experienced supply delays or shortages of key food or beverage items in 2021

4. Due to inflation, nearly 51 percent of consumers are either dining out less or ordering less frequently. 

5. Nearly 40 percent of consumers are ordering fewer items or ordering less expensive items in their order

6. Employment figures in the food services industry in India amounted to over 7.3 million in 2021, despite the pandemic the industry is expected to reach 10 million by 2025

7. India’s QSR market is estimated to be $690.21 million in 2022 and is expected to reach $1069.3 million by 2027, growing at a CAGR of 9.15 percent.

8. Over FY20-25 the QSR chain market is estimated to be the highest growing sub-segment- 23 percent CAGR-of not just the chain market, but also the entire foodservice market

9. Online partnerships have enabled restaurants to increase overall topline by 30 percent with incremental sales coming in from online channel.

10. More than 20 Indian Origin brands have expanded to 75-100 stores and more in India in the last half-decade where even the pandemic could not stop their growth.

In conclusion, the report states the restaurant industry has a broadened definition before the pandemic and includes all meals and snacks, and liquor prepared away from home including all takeout meals and beverages.

This can be attributed to the growth of the average Indian household budget on food, the same is said to reach 35.3 percent by 2025. 

The annual spending of middle-class households on Fast Food Restaurants in India’s Tier II and III cities has grown by 108 percent in the last two years from Rs 2,500 to Rs. 4,500.

Moreover, the QSR industry is growing at a rapid pace leading to a $134.3 million industry in Tier II and Tier III towns alone. 

With growing consumer acceptance as newer generations view restaurants as a partner in their at-home meal prep. As per the survey, Gen Z adults are more likely to incorporate restaurant-prepared items into meals made at home than they were before the pandemic.