India Quick Service Restaurants Market:  Opportunity Analysis and Industry Forecast, 2024-2034

India Quick Service Restaurants Market Overview

The India Quick Service Restaurant market size is calculated at USD 25.96 billion for 2024 and is projected to reach a size of USD 37.77 billion by the end of 2029. The market is growing at a CAGR of 7.94% during the forecast period from 2025 to 2029.

India Quick Service Restaurants Market is expected to grow in near future because of changing customer preferences, fast pace of urbanization and enhanced per capital income. This market includes a number of fast food chains both global and domestic players who are popular among the mass customers and majorly operational in both urban and semi urban areas. The growth in the uptake of online food delivery platforms, complemented by increase in use of online payment systems to order food delivery services, has equally acted as a driver to this market.

Besides, the increasing trend towards convenience food, and more importantly the diverse cuisine types offered has led to an increased propensity towards quick service restaurants . Fast food chains leaders are striving for innovation, to encase plant base foods, foods good for health to attract many people. Furthermore, the changing nature of franchising systems, and some other modern trends contributing to an escalation of investment in better technology to deliver meals in a shorter time period are reshaping this sector.

Hence the market has great prospects and potential for further growth such as the growth of the internet penetration, changing of consumers’ habits, and opening drives and takeaway offering services. This report seeks to provide insight into the various trends that have influenced the outcome of the India Quick Service Restaurants Market as well as the opportunities and challenges that exist in the market.

Market Report Coverage:

The “India Quick Service Restaurants Market Report—Future (2024-2029)” by Digiroads Research & Consulting covers an in-depth analysis of the following segments in the provided data:

This segmentation allows for targeted insights into consumer behavior, preferences, and market trends across the quick service restaurant industry in India.

Study Assumptions and Definitions

This paper on the India Quick Service Restaurants (QSR) Market focuses on the literature review of both primary and secondary information collection methods to determine the current trends, opportunities, and threats. The following assumptions and definitions outline the scope of the research:

Market Assumptions:

The study uses data from the year 2023 as the base and give forecasts to the years ending in 2032.

Forecasts consider constant macroeconomic environment, consumer behavior patterns and few or no interferences arising from possible occurrences such as diseases, wars or lock-downs.

The data covers both organized/Chained QSR operation and unorganized/independently operated QSR outlet.

Definitions:

Quick Service Restaurants (QSRs): Businesses that serve customers prepared meals in limited time and in quick cycles, with consumption in their premises, to go or through delivery, where the products usually have little variety and the processes are streamlined.

Cuisine Types: Typically, QSRs provide large groups of food products: The American group – burgers, pizzas, The Asian group– noodles, rice The Italian group– pasta, thin-crust pizza, and Others.

Service Channels: Such organizational structures as counters, which are on-premises, delivery applications, and drive-through services.

Diet Preferences: Covers conventional products containing animal meat and new products made of plant meat and vegan products.

The report also considers the customers’ demographic distribution and covers both the urban and semi-urban clients, which may encompass Tier 1 and Tier 2 cities to ensure competitive market analysis without compromise. These assumptions enhance proper positioning in identifying the growth and opportunities within the market.

Market Scope

India Quick Service Restaurants or QSR is a market that consists of the restaurants that sell and serve fast foods that can be prepared quickly, have a fixed menu along with very efficient working systems. In assessing the market, this study looks at the service delivery methods of the restaurants; dining in, takeaway, and delivery services and; different cuisine specializations encompassing American food, Asia food, Italian food, and others. It covers freestanding and multiple operations by identifying their roles within the market.

The major operating segments are Tier 1 and Tier 2 cities since most demand comes from urbanized zones, consumers’ growing disposable income and changing consumption patterns for convenient and cheap products. It also looks into other trends that are on the rise in the industry like digital food delivery service, vegan foods, and globalized menus.

The frameworks used in the analysis include growth trends of consumers like their demographics, technologies as well as economic factors. The fact that this market is wide-ranging offers a holistic view of the changes happening across the Indian QSR market for the years 2023-2029.

MARKET OUTLOOK

Executive Summary

The expansion of the fast food industry is attributed to higher need for fast and cheap food, as well as the growth of urbanization, and increased disposables income.

The main cause of this market is the growth in demand for quick service eating out, the growth in online food delivery, and fast food outlets. End-users’ most common services include dine-in eating, takeaway, and delivery; however, the delivery services are greatly benefited from the emerging third-party online food delivery services. Also, the shifting of people’s palate, with increasing popularity of vegan and plant-based products, continue to impact the menus and help the growth of the market.

Second, QSRs are also chained restaurants with familiar names such as McDonald, Domino’s and KFC presently ruling the market. Nonetheless, independent outlets are still relevant, especially in the sheller cities, to meet consumers’ demand and preference.

This is backed up by a strong tourism sector, rising household income and population growth, the trends for which mean that more people are eating out due to the demands of their jobs. Yet there are problems like increasing popularity of the cloud kitchens that are unlikely to reduce the popularity of QSRs since consumers still appreciate such format of the restaurants in terms of the speed, convenience and reasonable prices.

This report gives a comprehensive insight of QSR industry in
India including growth forces, trends, issues and regions to forecast future opportunities of the industry till 2029.

COMPETITIVE LANDSCAPE

The India Quick Service Restaurants Market is moderately fragmented, with regional and multinational players competing fiercely for market share.

Key Market Players

• McDonald’s India
• Domino’s Pizza India
• KFC India (Yum! Brands)
• Burger King India
• Subway India
• Starbucks India
• Pizza Hut India (Yum! Brands)
• Dunkin’ Donuts India (Inspire Brands)
• Chick-fil-A India
• Café Coffee Day
• Zomato (Food Delivery Service)
• Rebel Foods (Faasos, Behrouz Biryani)
• Wow! Momo
• Bikanervala
• Barista Coffee

Market Share Analysis

Competition in the specific context of India and in QSR segment is highly intense on one hand in terms of players originating from internationally and on the other in terms of domestic players. These are mainly represented by several international chains, although the domestic players and delivery-based startups are increasingly thriving.

Currently, McDonald’s India is a market leader; This is due to the company’s many locations and the popularity of its brand. PZ has a competitive edge because it begins by aligning its products with the local markets; offers more vegetarian and non-vegetarian products.

Currently Dominos Pizza India is one of the major pizza players with more than 1,400 outlets all over India. The brand is preferred much because of its delivery option and localized menu.

Other big competitors include KFC India and Burger King India, where KFC targets on chicken products and Burger King stands on its flame-grilled burgers.

Some of the local chains are CC D, Ag, Barista, and Wow! Momo, are achieving their aim of improving their market share through introducing berecca that serve different region meals and ensure their meals are cheap but quality.

Delivery and Cloud Kitchens are two relatively recent market models that are posing very important threats. Specifically, current brand-players including Rebel Foods (operating under Faasos, Behrouz Biryani, etc.) and Zomato are reshaping the consumer’s relationship with the QSR industry, especially within the urban market.

Currently the India QSR is still very fragmented by which the competition is highly stiff and factors such as innovation and expansion taking place mostly in tier II and III cities.

MARKET DYNAMICS

Market Drivers and Key Innovations
Changing Consumer Lifestyles: Being an emergent middle class citizenry with more and more people rushing to the urban centers and leading very hectic lives are creating appeal for convenience and easy to eat products. This has greatly increase demand for QSR’s where people are able to get their fast foods without much time consumption. Another factor in the increase in eating out is the fact that many households are now two income households.

Growing Middle-Class Population: The growth of middle income group people and rising incidences of discretionary spending have also made food service more affordable. This growth in the consumer expenditure in the food sector is good news for QSRs which are now getting customers earlier left untapped especially the youthful population.

Technological Advancements: Smartphones in particular and the outbreak of internet food ordering services in general have disrupted the QSR business model. Consumers are now able to get their food straight from their preferred Quick Service Restaurants by using delivery apps such as Zomato, Swiggy and Uber Eats, thus attesting to market growth.

Health-Conscious Consumers: Since the younger population embraces healthy ways of living, QSRs are forced to expand their menu with healthier and vegetarian products to meet this population’s prole.

Expansion of Delivery and Cloud Kitchens: There are three major dynamics that make it easier to enter the market today than it was before; this include; This model leads to low overhead cost and the major concern of QSRs can just be delivery and customers satisfaction.

Key Innovations:

Menu Diversification: This way, brands’ menus are as diverse as regional palates and/or food sensitivities – new options include vegan/gluten-free/plant-based products.

Technology Integration: Hence, more QSRs are integrating the use of artificial intelligence and automation in their affairs. For instance, self-order kiosks, contactless payment, and artificial intelligence-based recommendation systems are enhancing customer satisfaction.

Sustainability Initiatives: At the same time, orientating on the key customer value of sustainability, many QSRs are investing in sustainable packaging and sourcing locally produced ingredients. platforms.

Market Challenges

• Intense Competition: The Indian QSR market is highly competitive, with both global brands like McDonald’s, Domino’s, and KFC, and numerous local players vying for market share. This intense competition puts pressure on pricing, customer acquisition, and brand differentiation. 

• Rising Operational Costs: Increasing prices of raw materials, labor costs, and logistics expenses have created pressure on profit margins for QSR operators. Maintaining quality while keeping costs under control remains a significant challenge. 

• Changing Consumer Preferences: The demand for healthier, more sustainable food options is rising, pushing QSRs to innovate. However, keeping up with these shifting preferences, while retaining core customers, can be challenging for many operators. 

• Supply Chain Disruptions: The QSR industry heavily relies on the timely and consistent supply of fresh ingredients. Disruptions in the supply chain due to factors like seasonal variations, pandemics, or geopolitical instability can affect operations and food quality. 

• Health and Safety Concerns: In a post-COVID world, health and hygiene standards have become more important than ever. Any lapse in food safety or hygiene can severely damage a brand’s reputation and consumer trust. 

• Regulatory Compliance: The QSR sector must comply with numerous government regulations concerning food safety, labeling, and labor laws. Adhering to these regulations while ensuring efficient operations adds complexity to the business.

• Dependency on Delivery Platforms: With the growing reliance on third-party delivery platforms, QSRs face challenges such as commission fees, service quality control, and maintaining customer loyalty outside of delivery services.

Market Opportunities

1. Growing Demand for Plant-Based Options: As the vegan and plant-based food trend grows, there is an opportunity for QSRs to diversify their menu offerings to cater to health-conscious and environmentally aware consumers. 
2. Expansion in Tier 2 and Tier 3 Cities: The rapid urbanization of smaller cities and towns presents significant growth potential for QSR chains. Expanding beyond metro cities to Tier 2 and Tier 3 markets can help brands tap into an underserved customer base. 
3. Technological Advancements: The adoption of AI, digital ordering, and delivery solutions provides QSRs with the chance to improve customer service, streamline operations, and enhance overall efficiency, leading to higher customer satisfaction and cost savings. 
4. Cloud Kitchens and Delivery-Only Models: The rise of cloud kitchens, which operate with minimal overhead, offers an opportunity for QSRs to expand rapidly without the need for large physical spaces. This model is cost-effective and well-suited for meeting the growing demand for food delivery. 
5. Franchise Model Growth: With the franchise business model continuing to dominate the industry, QSRs have an opportunity to expand their brand footprint rapidly across different regions with lower capital investment. 
6. Menu Diversification for Regional Tastes: Adapting the menu to cater to local tastes and regional preferences can help QSR brands build deeper connections with consumers and attract a wider customer base. 
7. Increasing Focus on Health-Conscious Offerings: As consumers become more health-conscious, QSRs have the opportunity to offer healthier alternatives such as low-calorie, gluten-free, or organic menu items, tapping into a growing niche market. 
8. Strategic Partnerships and Collaborations: Partnering with food delivery platforms, local suppliers, and tech companies can create new revenue streams and improve operational efficiency, enhancing overall business growth.

RECENT STRATEGIES & DEVELOPMENTS IN THE MARKET

• Strategic Mergers and Expansions

Expansion of Delivery and Cloud Kitchens:

• Example: Rebel Foods, one of India’s largest internet restaurant companies, opened its second smart food court, “EatSure,” in Pune, which features 15 brands under one roof, focusing on enhancing digital customer experiencesoud kitchens are gaining traction due to their low overhead costs and growing demand for food delivery services, enabling QSRs to expand more rapidly in urban and suburban regions.

Franchise and Market Penetration:

• Example: McDonald’s plans to open 10,000 more stores worldwide by 2027, with a particular focus on expanding into emerging markets like India .
• Qare increasingly adopting franchise models to expand in Tier 2 and Tier 3 cities, allowing them to capitalize on the growing middle-class population in smaller urban centers.

Introduction of Innovative Menu Options:

• Example: Domino’s Pizza introduced “Paratha Pizza” in India in May 2022, combining local flavors with the brand’s global offerings to appeal to Indian tastes .
• QSRs are aeir menus to cater to regional preferences, including plant-based options and healthier alternatives, to attract health-conscious consumers and capitalize on the vegan food trend.

Technological Advancements and Digital Ordering:

• Example: Zomato, a leading food delivery platform, launched a 10-minute delivery service in select high-demand neighborhoods in March 2022 .
• QSRs are leveragingrdering systems and AI-based solutions to streamline operations and improve the speed of service, further enhancing customer satisfaction and operational efficiency.

Sustainability and Eco-Friendly Practices:

• Many QSR chains are focusing on sustainability by reducing packaging waste and sourcing ingredients from sustainable sources. This aligns with the growing consumer demand for environmentally conscious food options.

Health-Conscious Offerings and Customization:

• QSRs are focusing on launching health-conscious items such as gluten-free, low-calorie, and plant-based meals to appeal to the increasing number of health-conscious customers.
• Customization options are becoming more popular, with consumers seeking tailored meal choices, especially in younger demographics.

Increased Investments in Technology and Automation:

• QSRs are investing in automation to reduce operational costs and improve efficiency. This includes adopting kiosks for ordering and automated cooking equipment to reduce wait times and human error.

KEY BENEFITS FOR STAKEHOLDERS

1. For Investors:
   1. High Growth Potential: With the increasing urbanization, rising disposable income, and shifting consumer preferences, the Indian QSR market is poised for sustained growth, offering investors lucrative opportunities.
   2. Franchise Opportunities: The growing adoption of the franchise model enables investors to tap into established brands, reducing operational risks and leveraging brand equity for faster returns.
2. For QSR Operators:
   1. Expanding Market Reach: The expanding demand for quick, affordable, and varied food options in Tier 2 and Tier 3 cities opens new avenues for operators to scale their businesses.
   2. Innovation and Diversification: Operators can diversify their offerings by introducing regional menus, health-conscious items, and experimenting with digital technologies like cloud kitchens, AI-based ordering systems, and contactless service.
   3. Cost Efficiency: Adopting automation and digital ordering systems can help streamline operations, reduce labor costs, and enhance efficiency.
3. For Consumers:
   1. Convenience and Speed: QSRs offer quick service with a wide variety of menu choices, catering to the fast-paced lifestyle of urban consumers. Online ordering and home delivery services enhance the convenience further.
   2. Healthier and Customizable Options: With the rise of health-conscious dining, consumers benefit from a growing range of menu options, including gluten-free, vegan, and low-calorie meals tailored to personal preferences.
   3. Affordable Dining: The value-for-money offerings in QSRs make dining out more affordable for consumers, especially in a post-pandemic era where eating out has become more common.
4. For Suppliers:
   1. Increased Demand for Raw Materials: With the growth of the QSR sector, suppliers of ingredients, packaging, and other raw materials stand to benefit from increased demand for quality supplies to meet the needs of expanding restaurants.
   2. Long-Term Contracts: Partnerships with major QSR chains, especially with established brands, provide suppliers with long-term business opportunities and consistent orders.
5. For Technology Providers:
   1. Growth in Digital Transformation: Technology providers, especially those offering solutions for digital ordering, delivery management, AI, and automation, can benefit from the growing demand in the QSR industry.
   2. Opportunities for Customization and Innovation: As QSR chains look to improve customer experiences through digital menus, loyalty programs, and contactless payments, technology providers can offer tailored solutions to meet the evolving needs of the market.

At DigiRoads Research, we emphasize reliability by employing robust market estimation and data validation methodologies. Our insights are further enhanced by our proprietary data forecasting model, which projects market growth trends up to 2029. This forward-thinking approach ensures our analysis not only captures the current market landscape but also anticipates future developments, equipping stakeholders with actionable foresight.

We go a step further by offering an exhaustive set of regional and country-level data points, supplemented by over 60 detailed charts at no additional cost. This commitment to transparency and accessibility allows stakeholders to gain a deep understanding of the industry’s structural and operational dynamics. By providing exclusive and hard-to-access data, DigiRoads Research empowers businesses to make informed strategic decisions with confidence.

In essence, our methodology and data delivery foster a collaborative and data-driven decision-making environment, enabling businesses to navigate industry challenges and capitalize on opportunities effectively.

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Table of Contents

• INTRODUCTION

  • Market Overview
  • Years Considered for Study
  • Market Segmentation
  • Study Assumptions and Definitions
  • Market Scope

• RESEARCH METHODOLOGY

• MARKET OUTLOOK

  • Executive Summary
  • Market Snapshot)

• Market Segments 

• Service Type :
  1. – Dine-In
  2. – Takeaway
  3. – Delivery
• Cuisine Type:
  1. – American (Burgers, Pizzas, Sandwiches)
  2. – Italian (Pastas, Thin-crust Pizzas)
  3. – Asian (Noodles, Rice Dishes, Rolls)
  4. – Others (Indian Snacks, Desserts)
• Restaurant Type:
  1. – Chained Quick Service Restaurants
  2. – Independent Quick Service Restaurants 

• COMPETITIVE LANDSCAPE

  • Recent Strategies (Key Strategic Moves)
  • Market Share Analysis
  • Company Profiles
    • McDonald’s India
    • Domino’s Pizza India
    • KFC India (Yum! Brands)
    • Burger King India
    • Subway India
    • Starbucks India
    • Pizza Hut India (Yum! Brands)
    • Dunkin’ Donuts India (Inspire Brands)
    • Chick-fil-A India
    • Café Coffee Day
    • Zomato (Food Delivery Service)
    • Rebel Foods (Faasos, Behrouz Biryani)
    • Wow! Momo
    • Bikanervala
    • Barista Coffee

• MARKET DYNAMICS

  • Market Drivers
  • Market Challenges
  • Market opportunities
  • Porter’s Five Forces’ Analysis
    • Bargaining Power of Suppliers
    • Bargaining Power of Buyers
    • Threat of New Entrant
    • Threat of Substitutes
    • Competitive Rivalry

• GLOSSARY OF PROMINENT SECODNARY SOURCES

• DISCLAIMER

• ABOUT US