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| ( From L - R ) Madhulika Tiwari of Technopak, Mr Samir Kuckreja, Past President and Trustee, NRAI , Mr Ashish Kothare, Chapter Head, NRAI Bengaluru and Mr. Riyaaz Amlani, President, NRAI, unveiling the India Food Services Report 2016 in Bengaluru |
Bangalore, November 09,
2016: After the successful launch in New Delhi
and Mumbai, the NRAI India Food Services Report 2016 (NRAI IFSR
2016) was unveiled by Mr. Riyaaz Amlani, President,
NRAI, Mr Ashish Kothare, Chapter Head, NRAI Bangalore
and Mr.Samir Kuckreja, Past President and Trustee, NRAI in
the state capital today with a special pull-out 'Bangalore Market
Outlook’ highlighting data on Bangalore’s food services
industry. Commissioned by the NRAI and compiled by Technopak, the NRAI
IFSR 2016 is the only and most comprehensive trade report on the Indian
food services sector.
Bangalore, which is also referred to as the
‘Silicon Valley of India’ is the second fastest growing major metropolis in the
country. Discussing the report with the restaurant fraternity, Mr. Riyaaz
Amlani, President, NRAI, remarked, "Bangalore
is the fourth largest food services market after Delhi, Mumbai and
Kolkata. The employment generated by food services in the city is around
2,15,000 people in both organized and unorganized segments. Organized segment
itself employs around 1,60,000 (74%) people of the total workforce. This
highlights the burgeoning of Bangalore as a key city for the food services
sector.”
Mr Riyaaz
Amlani also pointed out that, “Bangalore is the
perfect blend of new vs. old when it comes to the food services sector; which
is also the reason why the sector has seen an exponential growth over the last
few years. That said, there are still several issues dampening the spirit of
the sector. Until recently, the closing hourfor pubs/ bars and
restaurants followed an archaic time of 11:30 pm. However, the
NRAI Bangalore Chapter was able to champion a change and as of July
2016, the excise officer extended the deadline to 1 am giving
the sector a welcome reprieve. The Bangalore food services sector
still has its fair share of challenges like the recent ban on plastic,
ambiguity in rules & regulations of local Municipal Corporation for the
restaurant industry. This coupled with the existing COTPA and Noise Pollution
Act tends to indirectly affect the industry. We are striving to
work along with the government to ensure ease of doing business along with a
simpler license renewal process.”
Noting that this is an exciting time for
investors to be in the F&B Sector, Mr Samir
Kuckreja, Past President and Trustee, NRAI mentioned, “Bangalore
is one of the most prosperous modern business centers in India with a young and
demographically diverse population that comprises of students, single
working professionals and nuclear families. It has one of the
highest eating-out and ordering-in frequencies in the country and averages
around seven to eight occasions with an average monthly spend of INR
5,500-5,750 per household per month. The strong cosmopolitan culture of Bangalore
is also represented by the cuisine mix of the city. I believe this is a
great time for new start-up ventures to cash in on the trend." Given that
stature, the report seeks to highlight major trends and figures of the sector
in this hub.
While presenting details from the report, Mr Kuckreja
also highlighted the following key points with respect
to Bangalore’s food services industry:
- The
organized market (chain and organized standalone) is valued at INR 7,870 crore
(USD 1210 million), which is significant at 8% of the total organized food
services market in India.
- The
unorganized market holds around 33% share in the pie and is valued at INR 3,870
crore (USD 590 million).
- The
chain market in Bangalore is estimated to INR 2,855 crore (USD 440 million) and
is 14% of the overall chain market in the country and is dominated
by Casual Dining Restaurants (CDRs), contributing to INR 1,205 Cr. (43%)
of the city’s chain market followed by Quick Service Restaurants
(QSRs) at INR 1,070 Cr. (38%).
- Organized
standalone market in Bangalore is again dominated by CDRs. The market size of
CDRs in the standalone market is estimated to be INR 2,770 Cr. (55%) followed
by Pubs, Bar Cafes and Lounges (PBCL) segment with 19% market
share.
- The
organized food services market in Bangalore is estimated to contribute INR
800-900 crore as taxes. An additional tax contribution of INR 250-300 crore can
be added to the same by conversion of around 30-35% of
the unorganized segment to the organised.
Sharing his thoughts on the recent
developments in the restaurant industry in Bangalore, Mr Ashish
Kothare, Chapter Head, NRAI Bangalore remarked,“In
the last couple of years, Bangalore has witnessed a number of trends including
farm-to-fork, food walks, pub crawls and molecular gastronomy and regional
cuisines. Beer remains the city’s choice beverage and
microbreweries have sprung-up giving lovers of lager much choice in artisanal
beer. Gastronomically speaking, Bangalore is India’s melting
cauldron!”
He further added, “The food
industry does robust business catering to tourists and locals alike and despite
the challenges, Bangalore food services sector has come up trumps. It is
for the first time that the report is being released in Bangalore and I believe
that this initiative would help in bridging gap between the fraternity members
and policy makers for accelerating industry’s growth. Simplified licensing
structures and law & order situation will allow restaurants to flourish,
leading to their contribution in a variety of meaningful ways.”
The launch was a high-profile event that
witnessed the coming together of CEOs of all the popular restaurants
such as Chef Manu Chandra of Monkey Bar & Fatty Bao, Mr
Ananth Narayan of Fusion Lounge, Mr Dominic Savio of
Hangover, Mr Jude Koshy of Millers 46, Mr Abhijit Saha of
Fava Restaurant, Mr A R Maheedar of Indigo Live Music
Bar, Mr Dheeraj Kumar of Opus Out of the Box, Mr Viraj
Suvarna of Take 5, Ms Zarine Kharas of Red
Fork, Mr Jacksy Verghese of Mekong, Mr Sunil Shetty of
Highnote & B Flat Bar, Ms Meghana Vakada of Barley &
Grapes, Mr Rajesh Rajaram of Ebony, Mr Shreyas Patel of
Bootlegger, Mr Ajay Alexander of Barbeque Factory, Mr Bhuvan Mahara of Guzzlers
Inn, Mr Manjit Singh of Windmills, Mr and many more.
NRAI IFSR 2016 includes results from
in-depth interaction with a variety of companies, meetings with over 50
CEO’s, consumer research that covered 2000 people across 20 cities of India and
trade research at restaurants. The report addresses international market
perspective for nine countries including USA, China, South Africa, Turkey
and UAE and reveals that the food services market in
India has triggered growth across a wide range of ancillary industries, thus
providing a boost to the entire ecosystem.
WatConsult and Lodha Capital Markets have
also contributed chapters on ‘Digital Marketing Practices’ and ‘Prospects
of Private Equity/ Venture Capital Investing in
India’ respectively to this report.
About NRAI
National Restaurant Association of India
(NRAI) was founded in 1982 and since been the leading association of the Indian
restaurant industry. Headquartered at Delhi, we represent both independent and
chain restaurants owners and operators in India.
The association in its 34th year
has a pan India presence with members comprising of restaurants,
suppliers and educational institutes associated with it. NRAI is governed
by a committee of members and led by a President and Office Bearers
representing various national and international brands from the F&B
sector.
The Association represents interests of the
members by offering advisory, training, research services and organizing
industry events.
Regional Chapters
NRAI works closely with a network of State and
City chapter partners in Mumbai, Bangalore and Gurgaon. More Chapters in Noida,
Pune, Hyderabad, Chennai and Kolkata are being set up.
