India’s QSR market to touch Rs 25,000 crore by 2020: Assocham

The quick service restaurants
(QSR) sector in India is likely to grow
three-fold to Rs 25,000 crore within five
years, says industry body Assocham.
The country’s QSR market, estimated to
be at Rs 8,500 crore currently, is growing
at a compounded annual growth rate (
CAGR ) of 25 per cent, it said.
Entry of various national and international
players in the QSR space has significantly
widened the chain market due to fast
expanding middle class, urbanisation,
youth spending, nuclear families and
better logistics, the analysis showed.
“About 50 per cent of India’s population
eats out at least once in every three
months and eight times in every month in
bustling metros as compared to the US
(14 times), Brazil (11 times), Thailand (10
times) and China (9 times),” Assocham
Secretary General D S Rawat said.
“The QSR segment is expected to witness
increased activity,” he added.
At the city level, a large share of the QSR
market rests in metros and mini metros
due to higher consumption, heightened
consumer awareness, and exposure in key
cities such as Delhi, Mumbai, Bangalore
and Hyderabad.
The QSR format took off in India about 19
years ago with the arrival of McDonald’s
in 1996. Many global brands followed suit
since then, either through company-owned
stores or the franchisee model or a mix of
both.
The chain space is marked by the
presence of more than 120 brands with
more than 4,000 outlets spread across
various cities in India.
By 2020 it is expected that 35 per cent of
India’s population will be in urban areas
by 2020 totalling 52 crore compared to
the current urban population of 34 crore.