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Bengaluru’s organised food service market estimated at Rs 20,014 crore



Organised food services is the largest industry in the country’s service sector after retail and insurance

Bengaluru’s organised food service market, at Rs 20,014 crore, is ranked third highest among other metros in India, revealed NRAI India Food Services Report – 2019.

The average expenditure per month per household on eating out is Rs 3,586 in Bengaluru, which is higher than the national average of Rs 2,500. The city has approximately 42,000 restaurants and employs over one lakh people.

Organised food services is the largest industry in the country’s service sector after retail and insurance. It is 20 times the size of the film industry, 4.7 times bigger than hotel services and 1.5 times larger than the pharmaceutical sector.

The NRAI IFSR 2019 estimates the overall Indian food service industry’s market size at Rs 4,23,865 crore in 2018-19 which is expected to grow at a CAGR of nine per cent to reach Rs 5,99,782 crore by 2022-23.

Nandan Nilekani, Co-Founder and Chairman, Infosys, on Monday released the latest NRAI India Food Services Report – 2019 (NRAI IFSR 2019), along with a Bangalore specific report.

The report released once every three years, NRAI IFSR 2019 – is the fourth edition of National Restaurant Association of India’s study to map trends, opportunities and challenges of India’s food services sector.

Nilekani said ,“Formalization of this industry is inevitable. Multiple forces play a major part here. GST being a major one. Followed by Digital payments and food quality.”

Speaking about the aggregators, he said, “They are ‘frenemies’. Although brick and mortar will always thrive, the restaurants need to make sure they have a good supply chain to support the tight timelines the delivery boys have.”

He urged the people to bring out a certification system to raise the skills of millions of people. “This will help you build employment for the industry and go beyond 10mn in the near future,” Nilekani added.

Rahul Singh, President, NRAI while noting contributions of the Restaurant sector mentioned, “The Indian Restaurant Industry employed 7.3 million people in 2018-19. The organized food service sector, which is only 35 pere cent of the total market, contributed a whopping Rs 18,000 crore as way of taxes in 2018-19. The number is expected to more than double if the unorganised sector becomes organised.”

Chef Manu Chandra, the head of NRAI’s Bengaluru chapter, said “The growth of Bengaluru’s food service industry has been accredited to the cosmopolitan culture and IT and ITES sector jointly sparking a revolution in the eating and cooking habits of the residents”.

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