Redseer Strategic Consulting predicts that India’s food service market will reach Rs 12-12.6 trillion by the end of 2030 growing at a CAGR of 10-11%. The report suggests that multi-brand companies and e-commerce platforms are going to capitalize on this growth potential. The report titled “The Big Bite: Scaling Success in India’s Food Services pegs the market value of India’s food services at Rs 6.6 trillion.

The organized sector amounts to half of the overall food services and is growing at a faster pace than the unorganized sector. Moreover, cloud kitchens have emerged as leaders in achieving faster revenue milestones compared to traditional restaurant models.

If we categorize the drivers for this growth, we can attribute to several reasons, firstly increased spending on convenience, people allocating more money to leisure and non-discretionary spending, It results in more consumption of non-home-cooked food. Secondly, the growing adoption of food delivery, dining, and restaurant chains in metro and tier-1 cities has contributed to the growth. Finally, the, shift to an organized market led by a new bracket contributes 45-50% of the total market.

Substantial brand creation has also contributed to the race for scalability and profitability. Companies that serve multi-brand have emerged as the winning formula in comparison to single-brand companies. Multiband companies have emerged as the winning formula in the race for scalability and profitability. Larger single-brand companies experience stagnation in growth. A partner in Redseer Mr Rohan Agrawal noted that cloud kitchens enable rapid growth, with new brands potentially reaching Rs 100 crore in revenue within two to three years, compared to dine-in restaurants which take six to ten years to reach similar revenue growth.

Multi-brand companies operate multiple brands within a shared infrastructure, they unlock higher operational efficiencies, and resource utilization, and leverage more market penetration with diverse ideas for specific brands. Moreover, the cloud kitchen operates without a dine-in setup focusing solely on delivery. They diversify their portfolios, through acquisitions and collaborations secure steady revenue streams, mitigate risks and enhance consumer engagement with broader offerings.