Quick-service restaurants (QSRs) are playing an important role in society. QSR provides low-cost and quick meals for people in a hurry. It is perfect for those who need a quick bite during limited lunchtimes and journeys. The QSRs provide standard meals for a limited time so that customers can have their meals without spending much time or money.
Restaurants provide customers with different kinds of foods and make sure that everyone has a choice to pick depending on preference. In this article, we can understand the future of Quick Service Restaurants in India And which are the top companies in their QSR industry.
India Quick Service Restaurants Industry Overview
The Quick Service Restaurant (QSR) industry is experiencing rapid growth due to rising purchasing power and a growing preference for branded products. India’s quick-service restaurant market has grown at a compound annual growth rate of 7.46% during 2017–2023. It is expected to increase from $25.46 billion in FY24 to reach $38.71 billion in FY29 and grow at a CAGR of 8.74% during the period.
In the QSR industry, meat-based cuisines have 19.76% of the largest segment by cuisine type, and pizza will be the fastest-growing segment by cuisine type by 11.01% in FY2024–29. However, the pizza market is dominated by Domino’s and Pizza Hut, which share more than 70%. Independent outlets will be the fastest-growing segment by outlet type by 8.94% in FY2024–29.
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Emerging Trends in the Growth of the Indian QSR Industry
The future growth of India’s quick-service restaurant (QSR)or fast food restaurant industry looks promising due to several key factors. With a significant portion of the population under 25 and a majority under 35, there exists a substantial base of young consumers, boosting demand. Rapid economic growth will increase disposable incomes and boost consumer spending, leading Indians to dine out more frequently.
Improved internet accessibility, particularly in urban areas, is expanding sales of online ordering capabilities. The QSR industry looks promising with rising demand for convenience and faster service driven by busy lifestyles.
The growth of the QSR industry is driven by global market expansion, evolving consumer tastes, and regulatory changes. Growth will be driven by international expansion as QSR brands adjust their offerings to suit regional tastes. Increasing demand for healthier menu options and sustainable practices will drive innovation and diversification.
Operational strategies and consumer trust will be shaped by changing sustainability standards and food safety regulations. The shift towards sustainability will push QSRs to adopt eco-friendly packaging, sourcing, and waste management solutions. These trends indicate a positive direction for the QSR industry.
Differences between QSR and Fast Casual Restaurants:
The Quick Service Restaurants and Fast-Casual Restaurants are two types of restaurants with several similarities. Some of the differences between QSRs and fast-casual restaurants are that QSRs cook food ahead for quick service and prioritize speed over quality. Fast-casual restaurants prepare food fresh to order and ensure higher quality but slower service.
QSR and fast-casual restaurants are similar in dine-in and takeout, but fast-casual restaurants invest more in ambiance, encouraging longer stays. QSRs focus on fast turnover to serve more customers quickly. QSR drive-throughs are convenient and efficient. Fast-casual restaurants rarely have drive-throughs, as their freshly made food takes longer to prepare.
Top Quick Service Restaurants Companies in India
Jubilant Foodworks
Jubilant Foodworks is an Indian food service company based in Noida, Uttar Pradesh, that holds the master franchise for Domino’s Pizza in India, Nepal, Sri Lanka, and Bangladesh. It was established on March 16, 1995. The company operates 6 networks and 5 brands. It has an overall network of 2991 stores to serve almost 22% of the world’s population.
Jubilant FoodWorks Limited has 2096 stores across India Including Domino’s (1995), Popeyes (42), Dunkin (31), and Hong’s Kitchen (28). The company is planning to expand its network by opening new stores in India, such as Domino’s (180), Popeyes (50), and Hong Kitchen (25).
Jubilant Foodworks Limited’s revenue has increased from 5158 Cr. in FY23 to 5654 Cr. in FY24, which grew by 9.62%. The net profit of the company has surged by 13.31%, which is a 400 Cr net profit in FY24. Jubilant Foodworks Limited has revenue and net profit growth at a compounded annual growth rate of 9.54% and 9.42%, respectively, over the last four years.
Some of the key financial metrics of Jubilant FoodWorks Limited are given below.
Devyani International
Devyani International was established in 1991. It is one of India’s largest operators of chain quick-service restaurants (QSRs). Devyani International Limited has a strong presence across airports in India and serves a variety of food & beverages. The company is the largest franchisee for Yum Brands (KFC & Pizza Hut) in India, as well as the sole franchisee for Costa Coffee brands and cafes in India.
Devyani International Limited operates 4 networks, such as India, Nigeria, Nepal, and Thailand. India has the most stores across more than 250 cities, with 1429 out of the total of 1782 stores as of March 2024. In FY24, the company opened 539 stores, including in India (245) and Thailand (288).
Devyani International Limited’s revenue has increased from 2998 Cr. in FY23 to 3556 Cr. in FY24, which grew by 18.61%. The company incurred a net loss in FY24 of 10 Cr. Devyani International Limited has revenue with a compounded annual growth rate of 23.76%
Some of the key financial metrics of Devyani International Limited are given below.
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Westlife Foodworld
Westlife Foodworld was established on October 30, 1982. It is one of the fastest-growing players in India’s quick service restaurant (QSR) sector. company’s primary objective is to open and run McDonald’s restaurants in West and South India via Hardcastle Restaurants Private Limited, a wholly-owned subsidiary (HRPL).
McDonald’s uses a variety of business models, including as drive-thrus, dessert kiosks, Standalone restaurants, McDelivery, and food courts in malls. It also has three thriving brand extensions – McDelivery, McCafe, and McBreakfast.
Westlife Foodworld Limited has an operating presence in 397 restaurants across 64 cities in India as of March 2024. The company targeting 45-50 stores in FY25, with a focus on South India and smaller towns. It is aiming to reach 580-630 restaurants by 2027. The company has more than 32 million app downloads and almost 12% YOY growth in monthly active users.
Westlife Foodworld Limited’s revenue has increased from 2278 Cr. in FY23 to 2352 Cr. in FY24, which grew by 5.01%. The net profit of the company has decreased by 38.39%, which is a 69 Cr net profit in FY24. Westlife Foodworld Limited’s revenue and net profit growth at a compound annual growth rate of 11.28% and 26.86%, respectively, over the last five years.
Some of the key financial metrics of Westlife Foodworld Limited are given below.
Sapphire Foods India
Sapphire Foods India was established in 2015. The company is a leading Yum franchise operator in the Indian subcontinent with a presence in India, Sri Lanka, and the Maldives. It is in the Indian franchise business for KFC and Pizza Hut restaurants.
The company has a total of 872 restaurants across India, Sri Lanka, and the Maldives, including 431 KFC, 432 Pizza Hut, and 9 Taco Bell restaurants. Its operating mix is dine-in (39%), delivery (40%), and takeaway (21%). In India, KFC restaurant average daily sales per restaurant are 1.25 lakhs. It has a total of 429 KFC restaurants in India. Pizza Hut restaurant average daily sales per restaurant are INR 46,000. It has a total of 319 Pizza Hut restaurants in India.
Sapphire Foods India Limited’s revenue has increased from 2266 Cr. in FY23 to 2594 Cr. in FY24, which grew by 14.47%. The net profit of the company has decreased by 77.52%, which is a 52 Cr net profit in FY24. Sapphire Foods India Limited’s revenue has grown at a compound annual growth rate of 17.95% over the last five years.
Some of the key financial metrics of Sapphire Foods India Limited are given below.
Restaurant Brands Asia
Restaurant Brands Asia was established in 2014. Restaurant Brands Asia Limited is the exclusive national master franchisee of the Burger King brand in India and Indonesia. The company operates a network of over 500 Burger King and BK Cafe restaurants across the two countries, offering a wide range of burgers, beverages, and other food items that suit local tastes.
In India, Restaurant Brands Asia Limited has 455 operational restaurants as of Mar 31, 2024, with 351 BK cafes. It opened 64 new restaurants in FY24 in 16 restaurants were opened in the last quarter of FY24. The company is planning to expand its network of 700 restaurants by fiscal year 2027.
Restaurant Brands Asia Limited’s revenue has increased from 2054 Cr. in FY23 to 2437 Cr. in FY24, which grew by 18.65%. The company has incurred a net loss of 237 crore in FY24. Restaurant Brands Asia Limited’s revenue has grown at a compound annual growth rate of 34.39% over the last three years.
Some of the key financial metrics of Restaurant Brands Asia Limited are given below.
List of Other Companies in Quick Service Restaurants
Conclusion
We are at the end of the article on the future look of quick-service restaurants in India. QSRs in India are balanced for substantial growth driven by urbanization, growing disposable incomes, and changing consumer preferences for convenience. Online ordering helps the restaurant work better and makes customers happier.
Overall, quick-service restaurants play a big role in people’s eating habits in India by offering affordable and convenient food choices for everyone. What do you think about the future of Quick Service Restaurants Industry in India? Let us know in the comments below.
Written by Nikhil Naik
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