National Restaurant Association of India (NRAI) released its India Food Services Report 2024 (NRAI IFSR); Hyderabad Food Services Industry estimated to be valued at ₹ 10,161 crores in the organised food services sector

~Data insights from the IFSRR are resulting from in-depth interaction with restaurants, meetings with over 140 plus CEOs and consumer research covering 5300+ people across 40+ cities in India~

National Data:

· Food Services sector to grow by 8.1% CAGR during 2024-2028. Organized to Grow at 13.2%

· Third Largest Industry in India valued at 5.69 Lakh crores contributing 1.9% to India’s GDP; Estimated to grow to 7.76 Lakh crores by 2028

· Tax contribution of ₹33,809 Crore in 2024, reaching ₹55,594 Crore by 2028.

· Size of food services sector is 33.5x of Indian Film Industry, 2.18x of the Hotel Industry and 1.26x of Pharmaceuticals Industry of India

· Second largest employer with 85.5 Lakhs in 2024; estimated to increase to 103.2 Lakhs by 2028

· Organised sector to grow to 52.9% in 2028 from 43.8%; CDRs segment is the largest with 48% share

· India to be the 3rd Largest Food Services Market by 2028 overtaking Japan. 2nd Fastest growing Food Services Industry Globally after Brazil.

· Contributes 1.4% to GST collection.

Hyderabad, July 11th, 2024: The National Restaurant Association of India, the voice of the Indian restaurant industry has recently released its long-awaited India Food Services Report 2024 (NRAI IFSR 2024) in New Delhi on July 9th, 2024.

In Hyderabad today, the report was launched by Shri Duddilla Sridhar Babu, Minister for Industries and IT. Also, gracing the occasion with their presence were the Office Bearers of the Hyderabad Chapter, Mr. Sampath Srinivas Tummalla, Chapter Head, Mr. Chef Shankar, Founding Chapter Head, and NRAI National Committee member, Mr. Sandeep Balasubramanian, Co-Chapter Head, Ms. Kavitha Mantha, Secretary, and National Committee member, Mr. Faisal Tayabali, Joint Secretary, and Ms. Sarita Sarkar, Treasurer.

The 5th edition of the NRAI India Food Services Report along with a brief report on the Food Services sector in Hyderabad provides an in-depth analysis shared by the industry stakeholders and consumer voices. The report delivers valuable insights into operational models and practices, investment strategies, dining trends, and sustainability efforts.

Srinivas Sampath, Hyderabad Chapter Head, NRAI, Partner – Sri Ravindra Foods said, “Hyderabad has become the fifth largest contributor to the growing food services industry, highlighting the city’s vital role in shaping culinary trends and consumer preferences nationwide. This report not only celebrates our achievements but also outlines a strategy for sustained growth and innovation in the food services sector. We are excited to continue expanding Hyderabad’s culinary landscape and invite more customers to experience our diverse offerings. With Hyderabad’s distinct blend of tastes, aromatic spices, and mouth-watering dishes, this study not only celebrates our accomplishments but also determines a route forward for continued growth and innovation in the food services sector.”

According to the NRAI IFSR 2024, the market size of Hyderabad Food Services Industry is estimated to be valued at ₹ 10,161 crores and comes in at #6 amongst the top 21 cities in the organised food service sector. There are a total of 74,807 restaurants in the (Organised + Unorganised) Food Services sector in Hyderabad with Fine Dining and Casual Dining Restaurants together making up more than 50% of the preferred choice for eating out by families. This Report not only showcases Hyderabad’s rich food culture, but also emphasizes the city’s vital contribution to India’s booming food services industry. Hyderabad’s rich culinary tradition and culinary creativity continue to captivate food connoisseurs around the world.

The food services industry has demonstrated remarkable resilience and recovery following the pandemic’s impact, now experiencing several key trends. Consumers are increasingly investing in higher-quality and fine dining experiences, significantly influencing the industry. Moreover, social media platforms have profoundly shaped consumer demand. This report aims to be a credible source of information for all stakeholders, detailing the industry’s size, segments, and growth opportunities. It will guide restaurant owners and operators in understanding the key drivers of business growth, helping them to increase their revenues profitably.