No results found. Please try again.


India’s Restaurant Industry on the Rise

As a consumer service industry, restaurants were heavily impacted by the COVID-19 pandemic due to various social distancing measures. India was not an exception, and many mom-and-pop restaurants were forced to close during the period. However, COVID-19 has also created great opportunities for those that survived the shutdown, particularly large and well-capitalized Quick Service Restaurants (QSR). It has led to a rapid digital transformation of the industry and strengthened restaurants’ digital capabilities, particularly on the delivery side, to provide much-improved value and convenience to customers.

According to research by Kantar, the adoption of technology by Indian consumers accelerated during the pandemic. The number of monthly active internet users was estimated to have reached 622 million in 2020 and is forecast to exceed 900 million by 2025.1 Thus, we expect online ordering and delivery to sustain high growth even post-pandemic, which provides additional revenue growth opportunities to QSRs. In addition, similar to consumer packaged goods companies, digital marketing and communication have become much more important for QSRs to enhance their brand awareness. This is especially true for attracting younger consumers who tend to spend more on experiences and lifestyle purchases.

There have been several QSR chains, such as Restaurant Brands Asia (RBA IN), Devyani International (DEVYANI IN), and Sapphire Foods India (SAPPHIRE IN), that have been listed within the last 18 months to foster their growth. In addition, companies like Jubilant FoodWorks (JUBI IN) and Westlife Development (WLDL IN) have raised their new store opening targets in India.2 With a diverse field of players, it will be interesting to see how these leading companies drive India’s QSR industry growth in the upcoming years.

Food services is a USD$65 billion market in India, taking less than 10% of the total USD$670 billion food consumption market, while the 90% majority is largely food consumed at home.3 These figures contrast with the US and China, where the share of out-of-home consumption is 54% and 58%, respectively.4 According to Jefferies, India’s food services industry will grow at a compound annual growth rate (CAGR) of 9% and is forecast to reach USD$110 billion by 2025.5 We expect organized players to grow at an even faster rate, driven by aggressive store expansion and market share gains from unorganized or independent restaurants. According to Motilal Oswal, 30-40% of restaurants were closed during the pandemic. However, the market share of organized players has increased from 29% in FY15 to 38% in FY20 and is expected to reach 50% by FY25E.6

We have witnessed a growth in consumers’ preference for trusted brands across most consumer products, including food service providers, for better hygiene and safety. While eating is not discretionary, the decision of where to buy food is discretionary. Thus, consumers choosing to purchase food away from home at restaurants will benefit from rising standards driven by economic growth, income growth, and urbanization. In addition, India has a young demographic landscape, with 65% of its population below the age of 35.7 Younger generations tend to have a higher willingness to pay for value, convenience, as well as aspirational experiences provided by organized players.

Limited-service restaurants (including QSRs) have the most scalable business model in the restaurant industry. On the other hand, it’s not easy for restaurants that provide both product and service to scale up while maintaining consistent quality, particularly on the service component. Key service factors for QSRs are speed, accuracy, and hygiene standards. Thus, it is relatively easier for QSRs to control these factors compared to casual dining or full-service restaurants, where there are more complicated menus and higher levels of service by waiters and waitresses at the tables. Therefore, it is not surprising that we see a more consolidated market for limited-service restaurants in the US, which account for roughly half of the industry’s sales.8 In contrast, full-service restaurants, which make up the other half of the industry’s revenues, remain highly fragmented by independent operators.9 Applying this to India, we expect that the country’s food service industry will follow a similar path in the future.

Eating out is still very much a discretionary consumption in India, and Indian QSRs are still in the early stages of development. This means that QSRs in India benefited from the rise in off-premise consumption during COVID-19, as did most global QSR companies, with higher sales contributions from delivery and takeaway orders. Indian QSRs are also set to further benefit from reopening, especially as eating at McDonald’s is still an aspirational experience for many Indian consumers. Additionally, QSRs are still one of the favourite types of restaurants for many families with kids to celebrate their family events, similar to what we observed two decades ago in China. Thus, we believe Indian QSRs will enjoy dine-in restaurant sales growth for years to come. On top of that, they’ll be able to capture enlarged off-premise opportunities thanks to consumer behaviour change after the pandemic, with more demand for online ordering, delivery, and convenience here to stay. We believe this is why many QSR companies accelerated their nationwide expansion to ride on the S-curve of industry growth.

Like other industries, inflation remains one of the concerns of the restaurant industry in the near term. Yet, restaurant companies have been successful at passing on rising prices to consumers without much impact on volume. More importantly, many QSRs became more efficient operators during the pandemic by changing their cost structure through digitalization and making labour costs more variable than fixed. This is important because restaurants are a highly labour-intensive industry. Similarly, many changed their rental arrangements from fixed to variable by sharing revenue models. Thus, these companies are better equipped with an optimized cost structure to navigate the current inflationary environment.

Staying Ahead with Mirae Asset’s Latest Insights

Mirae Asset Global Investments adheres to a strictPrivacy Policygoverning the handling of your information and subscribers can opt-out per their preference.

1. Kantar, June 2021.

2. Motilal Oswal, February 2022.

3. Jefferies, May 2021.

4. Ibid.

5. Ibid.

6. MOFSL, Technopak, December 2021.

7. CIA World Factbook, May 2022.

8. Technomic, Goldman Sachs Investment Research, January 2021.

9. Ibid.

Disclaimer & Information for Investors

No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only.  It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.

The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements.  Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.

Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.

Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.

Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.

The Company’s Prospectus and the KIIDs can be obtained from . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.

A summary of investor rights is available in English from

The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.

Hong Kong: This document is intended for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Copyright 2021. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.


  • Unit 1101, 11/F, Lee Garden Three, 1 Sunning Road, Hong Kong


  • 2295 1500

This website is intended for Hong Kong investors only. Your use of this website means you agree to our Terms of use. This website is strictly for information purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. Further, this website should not be regarded by investors as a substitute for independent professional advice or the exercise of their own judgement. The contents of this website is prepared and maintained by Mirae Asset Global Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.