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Restaurant sector expected to grow at CAGR of 10% by FY21: NRAI report

21 Jul 2016 Evaluate

The Indian restaurant industry is likely to contribute Rs 22,400 crore by way of taxes and create 5.8 million direct jobs in 2016. Indian Food Services Report (IFSR) 2016, prepared by the Indian restaurant industry body, National Restaurant Association of India (NRAI) has stated that the size of the market, organised as well as unorganised, which presently stands at Rs 3.09 lakh crore and has grown at 7.7 per cent since NRAI’s last report in 2013. It is projected to grow to Rs 4.98 lakh crore at a CAGR of 10 per cent by 2021.

The NRAI’s 3rd research on the Food Services Industry, a comprehensive Report that covered 2000 people across 20 cities of India and trade research at restaurants has stated that the unorganised sector holds a 67 per cent share, with an estimated size of Rs 2.07 lakh crore in FY16, however this is expected to fall and reach Rs 2.93 lakh crore by FY21, while the organised sector which presently holds a 33 per cent share and includes chain outlets, standalone outlets and restaurants in hotels, estimated at Rs 1.01 lakh crore in FY16, is projected to grow at a CAGR of 15 per cent to reach Rs 2.04 lakh crore by FY21.

NRAI Secretary Rahul Singh stated that, the report estimates that the restaurant industry will contribute close to 2.1 per cent to India's Gross domestic product (GDP) by 2021 and added that the report findings reveal that the food services market in India has triggered growth across a wide range of ancillary industries, thus providing a boost to the entire ecosystem. Key allied industries which support food services and have benefited from its growth are agriculture and food processing, supply chain and logistics, real estate, kitchen equipment, and commissary.

The NRAI report addresses international market perspective for nine countries including USA, China, South Africa, Turkey and UAE.  The report also covers PE/VC funding in the industry and Digital/Social Media Marketing.

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