National Restaurant Association of India (NRAI) has released its fourth India Food Services Report (IFSR) recently. The NRAI IFSR 2019 estimates Indian food services industry’s market size at INR 4.23 lakh crore in 2018-19 and expected to grow at a CAGR of 9% to reach INR 6 lakh crore in the next five years. Prepared after interactions with 130 CEOs of the industry and 3,500 consumers in 24 cities in India, IFSR 2019 puts the share of the organised industry in the overall Food Services industry stake at 35%. The share of the organised industry is expected to reach 43% in the next five years. The industry employs 7.3 million people as of today and expected to increase to 9.2 million in 2022-23. In the overall food services business, ‘affordable casual dining’ continues to dominate the market and is the fastest growing vertical within the industry. Despite increasing technology and digital play in the industry, the NRAI report says that the home/online delivery of food market is only 25%. The industry report expects factors like changing demographics, increase In disposable income, growing urbanisation, internet penetration and proliferation of online services to accelerate the growth of the industry. However, the dearth of skilled workforce and high attrition, high real estate cost and removal of ITC to hamper the growth. Hospitality Biz offers key highlights of the NRAI report.
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