By bigbreakingwire 
The Indian food services market, currently valued at $80 billion in 2024, is on track to grow at a compound annual growth rate (CAGR) of 10-11%. By 2030, it is expected to reach between $144-152 billion, according to a recent report from Redseer Strategy Consultants. The growth is being largely driven by the shift from unorganised food services to more structured, organised models, thanks to the rising popularity of online food delivery and the influx of branded players in the market.
A key player in this transformation is the rise of cloud kitchens. These kitchens, which share infrastructure and resources to run multiple brands, are growing faster than traditional dining establishments. They offer flexibility and scalability, allowing brands to adapt quickly to the evolving needs of various customer segments. These kitchens operate efficiently by cutting capital expenditures (capex) and overhead costs, allowing for rapid growth. The report points out that new cloud kitchen brands can achieve Rs 100 crore in revenue in just 2-3 years, a pace much faster than the typical 6-10 years it takes for dine-in restaurants to reach the same level.
Consumers in metro and tier 1 cities are increasingly choosing the convenience of ordering food online or dining out, seeking a break from their routine. The experience of eating out is also becoming more of a social activity, offering a chance to bond with loved ones and celebrate various occasions. This cultural shift, along with the influence of social media and pop culture, has led to a growing demand for niche cuisines, which further fuels the frequency of dining out and ordering in.
According to the report, the success of multi-brand strategies is emerging as a key formula for growth. By diversifying their portfolios, businesses can mitigate risks and scale efficiently across different customer segments and meal times. However, only a small percentage—1-2%—of food service companies in India have managed to scale beyond Rs 500 crore, and most of this success is attributed to the multi-brand approach.
Despite the potential for rapid growth, the report cautions that merely expanding the number of stores will not guarantee success. As the market diversifies with new cuisines and service models, businesses must innovate and adapt to avoid diminishing returns. Expanding quickly can be beneficial, but only if companies continue to meet the changing preferences and needs of their customers.
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