New Delhi: 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
