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Bengaluru organised food service market 3rd highest in Indian metros at Rs 20,014 cr: NRAI Report


NRAI released India Food Services Report 2019 along with a Bengaluru specific report in Bengaluru. Released once every 3 years, NRAI IFSR 2019 is the 4th edition of National Restaurant Association of India’s study to map trends, opportunities and challenges of India’s food services sector.

Bengaluru organised food service market 3rd highest in Indian metros at Rs 20,014 cr: NRAI Report

Nandan Nilekani, Co-Founder and Chairman, Infosys, while releasing the report and congratulating NRAI, said, “Formalization of this industry is inevitable. Multiple forces play a major part here – GST being a major one followed by digital payments and food quality.”

Speaking about the aggregators, Nilekani said, “They are frenemies. Although brick-and-mortar will always thrive, the restaurants need to make sure they have a good supply chain to support the tight timelines the delivery boys have.”

Giving tips for future growth, he said, “I urge you to bring out a certification system to raise the skills of millions of people. This will help you build employment for the industry and go beyond 10 mn in the near future.”

Rahul Singh, President, NRAI while noting contributions of the restaurant sector mentioned, “The Indian Restaurant Industry employed 7.3 million people in 2018-19. The organized food service sector, which is only 35 percent of the total market, contributed a whopping Rs 18,000 crore as way of taxes in 2018-19. The number is expected to more than double if the unorganised sector becomes organised.”

Chef Manu Chandra, Bengaluru chapter head of NRAI, sharing the highlights of the Bengaluru supplement said, “The average spend per household per month on eating out has been estimated at Rs 3,586 in Bengaluru, higher than the national average of Rs 2,500. This growth of Bengaluru’s food service industry has been accredited to the cosmopolitan culture and IT and ITES sector jointly sparking a revolution in the eating and cooking habits of the residents.”

“High graft in renewal of licenses, lack of new liquor licenses, ban on live musical entertainment in restaurants, archaic fire safety rules immobilising restaurants to procure PEL etc are posing peculiar challenges curbing the growth of the promising food services sector in Bengaluru. Resolving them with necessary amendments in the law will help in improving ‘ease of doing business’, creating more jobs and increased revenues for the Government,” he added.

Introducing the trade report to the audience, Samir Kuckreja, ex-President and Trustee, NRAI said, “NRAI IFSR 2019 is an in-depth research study which maps out the scale and impact of India’s food services sector. This report is crucial for the industry to garner the necessary support and recognition from the Government and its agencies for providing a fillip for consistent and sustained growth. I would like to thank all the NRAI members for their contribution to the research study.”

The report is a comprehensive compilation of data gathered from in-depth interactions with over 130 restaurant CEOs and 3,500 consumers across 24 cities in India. The exclusive Bengaluru specific pull out provides extensive data on a variety of parameters like average monthly spend per person, popular hangouts, employment and consumer eating out behaviour trends.

The mega launch of the trade report in Bengaluru had the Indian Food Industry’s Crème Brûlée in attendance such as Narayanan Rao, CEO Corner House, Narendra Malhotra, Oriental Cuisines, Rahul Aggarwal, Barbeque Nation, Sandeep Mina, Swiggy from Indian Bistro amongst others.