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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, Hon’ble Minister of Commerce and Industry, the report gives detailed information on the industry size and highlights the industry’s 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 who’s 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, Berco’s) 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 nation’s economy through efficient collection of tax

and employment generation, we hope that we can work together with the Government’s 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 Cafés make up for 12% with

Fine Dining and Pub Bars Club & Lounges (PBCL) comprising the rest

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• The chain and licensed standalone industry will contribute an estimated INR 11,500-11,900 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.