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12 Jul 2024

India Food Service Report 2024: What snacks Delhiites prefer; how rapidly online food delivery market is growing


Delhiites have a marked preference for local North Indian snacks such as samosas, kachoris, pakodas, chole bhature, and kebabs, favoring these over dumplings, tacos, and South Indian dishes. A recent survey indicates that 51% of Delhi's population prefers North Indian snacks in restaurants, while 53% of people in Gurugram lean towards Chinese cuisine.


These insights are from the India Food Service Report 2024 by the National Restaurant Association of India (NRAI). The report highlights a notable increase in dining out habits. 32% of Delhiites said they are eating out more compared to pre-COVID times.


Survey Conducted in 5,200 Restaurants Across 21 Cities


NRAI's survey covered 5,200 restaurants in 21 cities nationwide, gathering data from 120 CEOs of restaurant chains about their best-selling and most popular food items.


Delhiites and Dining Preferences


Delhi and Noida residents tend to prefer dining in restaurants, whereas Gurugram's population favors quick-service restaurants. According to the report, 30% of Delhi's population enjoys fine food, 20% prefer quick-service restaurants, 13% opt for casual dining, 11% favor food courts, and 9% indulge in sweets, ice cream, and baked goods.


Food Industry Growth Projections


The Indian food service industry is currently valued at Rs 5.7 lakh crore and is expected to reach Rs 7.76 lakh crore by FY 2028. This growth represents a Compounded Annual Growth Rate (CAGR) of 8.1%, with the organized sector projected to grow at a CAGR of 13.2%.


Employment and Economic Contribution


NRAI President and Co-Founder of Azure Hospitality, Kabir Suri, commented on the industry's resilience and growth despite the challenges posed by the COVID-19 pandemic. The food service sector employs 85.5 lakh people and contributes Rs 33,809 crore to the Indian exchequer, underscoring its significant economic impact.


Online food delivery market growing rapidly


Talking about the changing face of the sector, the report stated that the online food delivery market in India is growing rapidly, with an estimated 6.6 crore food delivery platform users among the urban population.


“Convenience is changing consumption patterns, which are changing because of food and beverages. Cooking at home is reducing, which is propelling both dine-in and delivery occasions,” said Nitin Saluja, chairman, report steering committee, NRAI, and founder, Chaayos.


Among its key suggestions and recommendations to the government, the sector is demanding a dedicated food services ministry along with industry status, which will give further fillip to the burgeoning sector and encourage entrepreneurship in the field.


The sector has also sought a dual GST regime, allowing for input tax credit and longer operating hours across the country and not limited to specific geographies.


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