Street FOOD ADDA

Eating out: Delhi spends at fast food joints, Mumbai prefers restaurants

By-Chittaranjan Tembhekar

Eating out is arguably the biggest social activity for Indians across metros today, but their choice of venue varies, depending on the city. Delhiites spend more at fast food chains and street food stalls while Mumbaikars show a preference for restaurants. both standalone and inside hotels.

The bulk of the food business in India is still in the unorganised sector, according to a survey done by the National Restaurants Association of India (NRAI), but the urge to experience novel cuisines is driving different formats in the organised sector at a brisk pace. Mumbai has the highest share in the organised market — which mainly accounts for standalone restaurants — followed by Delhi, Bengaluru and Pune.

For all other formats ranging from quick service restaurants (QSRs) such as McDonald’s and Subway, to casual dine restaurants (CDRs) like Pizza Hut and Barbeque Nation and fine dining chains, it is the national capital region that provides the maximum patronage. In the unorganised segment too, Delhi comes first, followed by Mumbai, Kolkata, Hyderabad and Chennai respectively.

In Bengaluru, notably, organized outlets such as chains and restaurants enjoy a bigger slice of the overall pie as compared to the unorganized sector. But in Kolkata, business from streetside stalls and households is more than twice as big as the organized segment. Clearly, eating out in the City of Joy is an experience far different from the one in the Silicon Valley of India.

These are the findings in the India Food Service Report 2016, considered the most comprehensive study done on the trade in recent years. Among tier-II cities, it says, Jaipur, Lucknow, Surat, Nagpur, Kanpur, Indore and Goa have the highest market shares.

Currently, the Indian food market is worth Rs 3,09,110 crore in all and is expected to reach Rs 4,98,130 crore by 2021. While share of restaurants (organized) and chains such as Domino’s, Cafe Coffee Day, McDonald’s and Barbeque Nation will go up over the next five years, the share of the unorganised sector will decline.

The one unappetizing fact that stands out though is that the per capita spend on food services by India’s urban population is still less than one-tenth of the US and less than one-seventh of that in China.

Speaking of the food industry’s concerns, Riyaaz Amlani, President, NRAI said the sector needed more incentives and deregulation to thrive. “We have to go to several departments for paperwork and get a plethora of licenses and NOCs issued.”

Source: Eating out: Delhi spends at fast food joints, Mumbai prefers restaurants – Times of India

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