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Organised sector’s share of food services pie expanding


Wants uniform licensing policy, single window system

A report released by the National Restaurants Association of India and Technopak says sound macro-economic performance in India will help the food services industry become a key sector.

The size of the total market (organised and unorganised) is T3.09 lakh crore ($48 billion) in 2016 and is projected to grow at a CAGR of 10 per cent to reach T4.98 lakh crore ($77 billion) by 2021.

The unorganised market holds a 67 per cent share with an estimated size of T2.07 lakh crore in 2016. However, the share of the unorganised segment is expected to fall and reach T2.93 lakh crore (59 percent) by 2021.

The organised market which includes chain outlets, organised standalone outlets and restaurants in hotels is estimated at Ti.01 lakh crore in 2016 and is projected to grow at a CAGR of 15 percent to reach T2.04 lakh crore by 2021. The share of the chain segment in the organised market is T20,400 crore (20 per cent ) and is expected to grow at a CAGR of 20 per cent to reach T50,950 (25 percent of the organised market) by 2021.

The QSR (quick service restaurant) and ACDR (affordable casual dining restaurant) formats make up around 60 per cent of the total organised market, with ACDR having the highest market share at 41 per cent. The density of outlets is highest in metros and mini metros. Delhi and M timbal account for 22 per cent of the food services market while the six mini metros constitute 19 per cent of the food services market.

In terms of tax revenue, the chain and standalone market together will contribute an estimated T22,000-22,400 crore in 2016 and T42,000-45,000 crore in 2021. The chain market will contribute an estimated T4,800-5,000 crore towards tax in 2016 and T12,000-13,000 crore in 2021.

The report has suggested a uniform national policy for restaurant licensing, early implementation of GST, immediate establishment of a single window licensing system which is completely online, responsive, transparent, time-bound, and move from the present licensing regime to a registration/self-regulation system.

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Source : Hindu Business Line

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