Updated: Feb 26, 2022
Quick Service Restaurant (QSR) Market in India 2021
A quick service restaurant (QSR) is a fast-food outlet where people pay for food at the counter before consumption. QSRs have both fast food cuisines and small table services to cater to youngsters' and working professionals' requirements. QSR market has been experiencing steady growth over the past few years. During the FY 2016 – FY 2020 period, the QSR market increased at 17.27% and is expected to reach INR ~827.63 Bn by FY 2025. QSR has gained popularity due to growing eating-out habits, rising disposable income, changing lifestyle, and the online food delivery system's growth leading to growth of chains like Roll Express. Both chain QSR and standalone QSR segments are expected to contribute equally to the market's development during the forecast period. Major players operating in the Indian QSR market include Burger King India Pvt. Ltd., Jubilant FoodWorks Limited, Burman Hospitality Private Limited, Roll Xpress and many mores.
Impact of Covid-19
The pandemic and the prolonged global lockdown severely impacted the foodservice market in India. In the middle of March 2020, the Government of India temporarily closed all hotels, restaurants, and food courts across the country as a precautionary measure to contain the spread of COVID-19. In response to the COVID situation, QSRs have increasingly turned to the food delivery sector. Many foodservice companies have adopted take-away services to deliver safe, hygienic, and customized orders to their customers.
Market segment insights
In FY 2020, chain QSRs held the highest market share (~54.2%) in India’s overall QSR market. An increase in consumers’ propensity to eat out and a growing number of innovative fast-food chains are the driving factors for chain QSRs segment. Besides, innovative payment systems and point of sales systems are the primary factors for the growth of the chain QSRs segment in the QSR market. Based on the model, the take-away and home delivery segments of Roll Express Franchise are expected to expand at a higher growth rate of around ~18.0% and ~17.4%, respectively, between the FY2021 and FY2025 period as compared to dine-in segment
Key growth drivers of the market
The increasing trend of eating out in urban cities in India, across all the economic classes, without the need for any special occasion, has boosted the demand for QSRs and franchisee. People increasingly prefer eating outside as a part of their leisure outings or shopping experience. This trend is mainly visible among the millennial age group of 25 to 40 years which are loyal customers of Brands like Roll Xpress and Roll Xpress Franchise play a key role to its success. Moreover, with the growing exposure to international lifestyles and culture, people have started developing their tastes and are eating out at restaurants more often to have different cuisines
Rapid urbanization due to the increase in population and economic growth and the rise in disposable income of people have led to the penetration of eating out culture in the country. Per-capita monthly income in India is estimated to have increased by 6.8% to INR 11,254 in FY 2020 from INR 10,534 in FY 2019. Besides, an increasing number of fast-food franchises like Roll Xpress in untapped areas and expansion of tier II and tier III cities have led to the rise in the number of quick service restaurants