The Indian food service industry continues to expand rapidly. The current size of the Indian food service industry is nearly Rs2.5tr/ US$48bn (India Food Services Report 2013, NRAI). This is expected to grow albeit at a slower rate to Rs4.1tr/US$78bn by 2018 at 11% CAGR.
Currently, Quick Service Restaurants (QSR) accounting for c.43% share is expected to grow at ~25% CAGR in next five years. Some of the key issues that have led to growth slowdown in last couple of year include economic and market factors like declining consumer spends, high food cost inflation, fragmented market, increasing competition as well as regulatory, manpower, tax and levies
related issues. We expect this situation to ease over the medium-term as macro recovery takes place
