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Indian QSR industry to touch $2 billion by 2016-17

CRISIL Research estimates show India’s organised quick service restaurant (QSR) market size to be worth Rs 58 billion in 2013-14. The industry is expected to grow at 26 per cent CAGR (Compound Annual Growth Rate) over the next three years to Rs 117 billion by 2016-17. Nevertheless, its share will remain a miniscule 2-3 per cent in comparison to the overall domestic food services industry. [National Restaurant Association of India estimates the size of the domestic food services industry (organised and unorganised) at Rs 2,476 billion in 2013, and projects about 11 per cent annual growth to Rs 4,080 billion by 2018].

Growth of QSR industry
Growth to be driven by outlet expansions
The QSR industry’s growth over the next three years will be primarily propelled by an average 16-18 per cent growth in store additions. During this period, same-store sales growth will be muted, averaging 6-8 per cent (significantly lower than 12-15 per cent average of last three years). We expect same-store sale…