The Indian food services industry is undergoing a rapid transformation, with its market size projected to nearly double from $80 billion in 2024 to $144-152 billion by 2030, growing at a CAGR of 10-11%, according to a report by Redseer Strategy Consultants.
Organized Players Are Winning the Race
Half of the industry is now dominated by organized food service brands, which are outpacing unorganized businesses. The rise of online food delivery, brand expansion, and changing consumer habits is driving this shift, particularly in metro and tier-1 cities. More people are choosing to dine out or order in—not just for convenience but as a social experience fueled by pop culture, social media, and a growing appetite for niche cuisines.
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Multi-Brand Strategies & Cloud Kitchens Are Reshaping the Industry
The report highlights a major trend: multi-brand strategies are becoming the key to success. By operating multiple brands under one umbrella, companies can target different customer segments, optimize resources, and scale faster while reducing risk. This approach has already proven successful in global markets, with major players expanding their portfolios through acquisitions and strategic partnerships.
Cloud kitchens are a major disruptor, challenging traditional dine-in restaurants by cutting operational costs, improving efficiency, and generating higher revenue per kitchen. Brands operating under this model can scale 2-3 times faster than conventional restaurants, leveraging shared infrastructure.
“The plug-and-play nature of cloud kitchens allows new brands to hit ₹100 crore revenue in just 2-3 years—compared to the 6-10 years it takes for dine-in brands,” says Rohan Agarwal, Partner at Redseer Strategy Consultants. He further emphasizes that agility, operational excellence, and innovation are essential for brands looking to thrive in the competitive F&B space.
Traditional Single-Brand Chains Are Struggling to Keep Up
The report warns that single-brand restaurant models are facing stagnation as customers demand more variety and unique experiences. Multi-brand businesses, especially those leveraging cloud kitchens, collaborations, and acquisitions, are in a better position to dominate the market.
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Interestingly, only 1-2% of food service companies in India have scaled beyond ₹500 crore, with most of them relying on a multi-brand approach to get there. However, Redseer cautions that rapid store expansion alone is no longer a guaranteed formula for success. With the industry diversifying into new cuisines and service formats, companies must adapt quickly to stay ahead.