Riding on urbanization, rising income levels and improved investment climate, India’s food service sector has grown at 11 per cent in the last three years and is estimated at Rs.423,865 crore in 2018-19, proving employment to some 7.3 mn people. Growing at 9 per cent, it is projected to reach Rs 599,784 crore by 2022-23, the National Restaurants Association of India (NRAI) said in its India Food Services Report 2019. The growth is noticeable at the segment and format levels of the sector,” the report said, adding that the organized segment, which holds a 35 per cent share, grew 13 per cent in the last three years and is estimated at Rs.148,353 crore in 2018-19. It is estimated to grow at 15 per cent to Rs.257,907 crore in 2022-23. Within the organized sector, affordable casual dining restaurants accounted for a whopping Rs.60,255 crore in 2018-19 and fine diners for Rs.2,872 crore with PBCLs (pubs, bar cafes and lounges) and cafes in between at Rs.17,979 crore and Rs.9,370 crore, respectively. The unorganized sector rose 10 per cent in the past three years to touch Rs.275,512 crore in 2018-19 and is expected to touch Rs.341,877 crore by 2022-23 – a growth of 6 per cent. However, its share is expected to drop to 57 per cent in 2022-23 from the present 57 per cent.

(Business Standard)