The transformation of lifestyle of the average Indian household, increased spending capacity highly correlated with the growing national economy, rise in number of nuclear or small families, rise in number of working women and the change in distribution of population from rural to urban lands have a major role in increasing the traffic to restaurant in our country. The industry has grown approximately 16-17% over the past 3-5 years and makes up around 1.6% of the consumer wallet.35% of the restaurant market is controlled by organized players. In the present day, they focus more on upper segments such as Fine dines and pubs as they fetch average bill value per customer (more than Rs.300) which may be more profitable. Their business model initially was to focus on regional markets but later they changed their strategy by expanding across the country so that they could become National brands. Enhanced acceptance and interest for the western and international way of life is another reason for the same. French, Italian, Mediterranean, Mexican, Lebanese and Arabian cuisines have become quite popular in the country.
Fine dining restaurants are creating a bigger market in the country and is gathering pace as far as growth of the segment is concerned. Extra attention in this niche segment is always paid on the quality of the cuisine and the dining experience. The above factors have somehow overweighed the major challenge of Indian customers being price conscious and they are willing to spend more for the holistic dining experience. As per the 2013 NRAI report on food services in India the segment is currently growing at a 15% rate and depends on largely the consumers in the upper segment of the income bracket or the well-off class. The market has around 50 players currently with around 150 to 200 outlets spread across the country primarily in urban areas and is valued around Rs. 1000 crores.
Many renowned chefs have tapped this opportunity and have setup their own restaurant chains. Yellow Chilli by Sanjeev Kapoor serves Indian cuisine is one of the well performing chains. Jiggs Kalra setup Punjab Grill serving North Indian cuisine and along with his son Zorawar started Masala Library and Pa PaYa. Pa PaYa serves Asian cuisine specializing in the cooking technique of molecular gastronomy. Returning chiefs have also used the opportunity well. They have upped the ante’ with their international menus blending well to cater Indian needs and tastes. Vineet Bhatia from London has restaurants Azok and Ziya.Ian Kittichai from New York has set up Koh, a Thai Restaurant in Mumbai who imports all of the ingredients. This gives the customer the exotic feel of the cuisine.
India being an investment friendly country of late with the ease of doing business index improving, many international chains are already in the wait-list to set up their joints in the country. The typical Indian foodie has exciting timing to look forward to in the future.