Business Categories
Jul, 11 2013


When baking, follow directions; when cooking, go by your own taste and when planning to invest in food business, take a franchise! An investor will find opportunities galore, starting from Rs 50, 000, in this special issue dedicated to the F&B sector. Bec

The current market of the Indian restaurant industry has scaled up to Rs 75,000 crore and is forecasted to reach the mark of Rs 1,37,000 crore in the year 2015, reporting a CAGR of 17 per cent. The current market is dominated by unorganised players which consist of 70 per cent of the total market. However, the organised market is, in fact, expected to grow faster (20 to 25 per cent per annum). What's making this market a lucrative one? According to a survey conducted by Franchise India,  the raison d'être for a booming F&B industry is  increasing number of international food service brands in the country and conversion of unorganised players into organised ones. Further, the growth of the industry is driven by Indian youth who are very much inclined to fast food and casual dine.

According to Smita Jatia, MD, West and South India Operations, Mc Donalds: “The overall scenario of the F&B market has evolved over the few years. There was a time when a handful of brands were available in the market to eat out. But today, the customers have options to choose from. We have witnessed immense activities in the F&B services industry in the last five years, including exciting new concepts, food and beverage offerings and new and innovative service elements.”

Gone are the days when weekends were considered to be the eating out days. With changing times, increase in disposable incomes, changing eating out trends and to top it all, availability of thousands of organised F&B players on a platter have also made all weekdays as eating out days and  F&B business as an apt business opportunity to invest in. The organised restaurant industry is close to 30 per cent of the total market size, and the rest 70 per cent is unorganised. This showcases an opportunity galore in the organised sector.

The increase in appetite for outside food and a swift jump in the number of double-income families are helping QSRs, casual dining and fine dining to augment their numbers not just in metros but tier II and III cities too.

As per a recent survey report by Franchise India, QSRs top the chart as people in India spend maximum at QSRs. These QSRs offer an international taste with moderate prices which matches the Indian budget of eating out; therefore, 24 per cent of the people prefer to eat out at QSRs. After that, casual dining is preferred by 17 per cent people. A decent ambiance and lower prices are the major reasons for eating out at casual dining formats. Further, family-oriented restaurants and eating joints are the major type casual dines which are preferred by Indians.  Fine dining is the third most preferred format for Indians. About 17 per cent of Indians prefer to have a meal in a fine dine format, especially dinner. This format provides not only good food and ambiance but also high quality service.

F&B ecosystem

27 year old Rishi Aggarwal hesitated to invest in a restaurant franchise and preferred taking some other franchise because of being part of strenuous business formalities of the F&B ecosystem. Unlike other sectors, F&B business needs more involvement and is strenuous because the  success of the restaurant industry is dependent on the smooth functioning of a number of supporters like food processing industry, supply chain organisations, human resource, technology and marketing. The significance of all these backend supporters varies as per the segments of the restaurant industry. Absence of any one of them can lead to losses. Therefore, a restaurateur has to be cautious all the time and must be ready to give 100 per cent to his work to make his venture successful.  All these sectors are dependent on each other and the restaurant industry becomes handicapped even if there is a one missing link. So if you are a potential franchisee, make sure you are in the cycle of the above mentioned sectors, else you will be like a bird without wings.  But if you do your home work well and are all set to be part of this arduous industry, the platter of profits is yours as the returns in this industry are comparatively quite high. The supporting sectors of F&B industry are Food processing industry, Supply chain organisations, Human resource, Technology and  Marketing. So, think before you invest in a F&B franchise.

The franchise business platter of food & beverage sector is buzzing with unique and lucrative concepts. As India is a diverse country so are the opportunities across the F&B sector. A potential franchisee seeking franchise in this industry can pick and choose a category as per his taste. The organised F&B industry encompasses categories  like Café Chains, Pizza Outlets, Sports Bar and Lounges, Ice Cream Parlours, Fine Dine and Casual Dine Restaurants, Restaurants offering special cuisines like  Muglai, Chinese Italian Etc, Bakeries, Carts, Kiosks, Chocolate Stores, Juice Lounges, Indo-Fusion Cuisine Outlets, Vending Machine Operators and many more to choose from.

Key trends of different formats in restaurant industry

Fine Dine Industry

  • Better restaurant experience in the form of entertainment
  • International brands entering Indian market
  • Enhanced ambiance and  infrastructure facility
  • Quality of food considered as the significant factor
  • Menu diversification with changing consumer preference

QSRs / casual dines

  • Brands are moving towards Tier II and Tier III cities.
  • A major trend in formats is in the form of kiosk and express outlets
  • Menu assortment with a touch of Indian flavours is very much on the go
  • Street foods have started getting into the organised market with Ice gola and vada pav
  • Integrated concepts are being incorporated  like coffee shops serving sandwiches and fast food joints serving coffee.
  • Technology has not been applied that well to the industry, but few additions are the online ordering system and IVR system for orders and payments


  • Recognized as on the go concepts, Kiosks can mostly be found at a shopping mall or a community centre
  • Local as well as international players are entering this format.
  • Kiosk format is ticking due to the small capital and low overhead, compelling first entrepreneurs
  • Requisite is the right location, good quality and fine taste
  • Varied Indian cuisines are present in this format, such as chats, wraps, rolls, momos, candies, ice-cream, yoghurt, juices and lots more on the platter.
  • Infrastructure requirement is low; no investment is required for seating, real estate cost is low, operational cost is less, in addition, there is an advantage of portability and flexibility.
More Stories

Free Advice - Ask Our Experts

ads ads ads ads