India’s appetite for dining out is reshaping the country’s spending habits, with restaurant payments recording a sharp surge this year. Unified Payments Interface (UPI) transactions for eating places jumped 34% to 14 billion in the six months to September, compared with 10.4 billion in the same period last year. The value of these payments rose to ₹1.9 lakh crore from ₹1.5 lakh crore, signalling strong consumer momentum despite inflationary pressures.
Data indicates that Indians spent an average of ₹1,056 crore daily on dining out during the first half of FY26, up from ₹810 crore a year ago. Restaurant payments now account for nearly one-fifth of total UPI transactions. The shift aligns with a broader trend in household expenditure — the share of restaurants and hotels in total consumption spending touched a decade-high of 2.3% in FY24.
Industry executives say the recent GST rate cuts have further lifted sentiment. “The October–December quarter will be the strongest of the year, with industry growth expected at 18–20%,” said Sagar Daryani, president of the National Restaurant Association of India and cofounder of Wow! Momo. His brand has seen 21% annual growth, ahead of the industry average of 12–19%.
The momentum extends beyond metros, with tier-2 and tier-3 cities contributing significantly to growth. Brands like Daryaganj Hospitality and Speciality Restaurants are witnessing record sales during the festive season. “Eating out has become the biggest form of entertainment in India,” said Amit Bagga, CEO of Daryaganj Hospitality.
Experts note that dining is evolving from a functional activity to an experiential one. “Guests now choose experiences that make them feel special,” said Divya Aggarwal of Impresario Entertainment. With inflation in cooked snacks up to 4.1% this fiscal and UPI usage rising 10%, India’s food service industry appears set for a historic year.
