The Indian organized food services market is projected to exceed $100 billion by 2028, growing at a CAGR of 8–12%. This growth, driven by evolving consumer behavior, is expected to double the market from $30 billion to $60 billion. To capitalize on the heterogenous nature of the market, brands are urged to embrace diverse cuisines. The House of Brands (HoBs) strategy emerges as a fitting approach, with an average HoBs revenue at least 5 times higher than that of a standalone brand. Successful implementation of the HoBs model hinges on the ability to build and scale multiple brands while ensuring operational excellence. For an in-depth exploration, download the full report now!

1. February 2024
Bangalore. Delhi. Mumbai. Dubai. Singapore. New York
© 2024 Redseer Strategy Consultants Confidential and Proprietary Information
Summary Report
Winning Recipe
for Food Brands
in India

2. Consumer behaviour
evolution to eat more
outside
Need for more
variety in cuisines/
avenues etc
More choices
available to
consumers
More brands emerging
serving consumers
across channels
Indian food services flywheel
Descriptive
Food services market (value) segmented by organized and
unorganized
USD Bn (INR Cr.), %, 2022-2023E, 2028P
Source(s): Secondary Research, Redseer Analysis
© Redseer 02
Indian consumer behaviour is evolving resulting in increasing organization
42%
58%
44%
56%
55-60%
40-45%
Organized
Unorganized
USD 62 Bn
(INR 500k Cr.)
USD 70 Bn
(INR 560k Cr.)
USD 115-120 Bn
(INR 900-1,000k Cr.)
2022 2023E 2028P
10-12%
13-18%
~3X
XX% CAGR
3-5%

3. 2018 2023E 2028P
2018 2023E 2028P
USD 1 Bn
(INR 8k Cr.)
USD 18 Bn
(INR 150k Cr.)
USD 23 Bn
(INR 185k Cr.)
USD 40-45 Bn
(INR 300-350k Cr.)
USD 7 Bn
(INR 55k Cr.)
USD 15-20 Bn
(INR 100-150k Cr.)
+38%
+15-20%
+5%
+10-15%
Source(s): Secondary Research, Redseer IP, Redseer Analysis
© Redseer 03
This growth is being led by both online food delivery and organised dine-in
Online food delivery
growing fast on a lower
base, driven by discounts
provided to drive adoption
COVID severely impacted
the dine-in space with
restaurants bearing
negative effects till 2022
With new brands/ eating
out avenues, the space
has been re-energised
Discounts rationalized,
and the sector maturing in
certain high demand
pockets
Availability
OFD platforms have
created a flywheel
~100 stores
2016
OFD Increase
since 2019
1,700+ stores
2023
Dominos has expanded
across India
Affordability
Both Swiggy and
Zomato have
reduced the prices
of their loyalty
program to acquire
and re-acquire
consumers
Network Effect
2x MTUs
2.4x Restaurant
Partners
Online food services market size and growth
USD Bn (INR Cr.), 2018, 2023E, 2028P
Offline organized food services market size and growth
USD Bn (INR Cr.), 2018, 2023E, 2028P
XX% CAGR XX% CAGR

4. No cooking
facility
Hectic
schedule
Recreation
34%
29%
25%
2.0
2018 2023E
0.5
0.6
3.0
There has been significant uptick in outside food consumption
Outside eating frequency evolution
# of outside meals eaten outside weekly, 2018, 2023E
Top 3 reasons for preferring outside food
% of respondents, N=170
Q. What are the key reasons to eat outside food?
© Redseer 04
And is largely centered around young consumers in metro and tier 1 cities
for whom outside eating is now a habit
Outside meals is now a habit for both students/young adults and midlifers+
Occasions
Recreation
Hectic
schedule
42%
35%
19%
30% growth
20% growth
Students and
Young Adults
Metro + Tier 1
(70 Mn
~5% of India’s
population)
Midlifers +
Metro + Tier 1
(150 Mn
~10% of India’s
population)
Students/Young adults Midlifers+
Source(s): Customer Surveys, Secondary Research, Redseer Analysis
Note(s): 1. Consumers considered for Metro + Tier 1 cities

5. Major QSR brands outlet count, and top 25 cities share
As depicted, FY23
Source(s): Company Filings, Secondary Research, Customer Surveys, Redseer Analysis
© Redseer 05
Brands are capitalizing on this by expanding their presence
Major QSR brands have a 50%+ share of outlets in top 25 cities
And significant plans for further expansion going forward
1,700+
55-60% 65-70%
45-50% 60-65% 90-95%
1,000+
800+
500+
350+
Number of outlets in top
25 cities as a % of total
XX

6. Categorization of organized brands – by revenue¹
INR Cr., FY23
Source(s): Secondary Research, Company Filings, Redseer Analysis
Note(s): 1. Companies considered are illustrative and not exhaustive, basis the data available through annual reports and secondary articles
© Redseer 06
However, only a few companies have been able to scale beyond INR 100 Cr.
Emerging
< INR 50 Cr.
Growth Stage
INR 50-100 Cr.
Large
INR 100-300 Cr. > INR 300 Cr.
#
of
Companies
Revenue (INR)

7. Key cuisine categories split by region¹
Bubble: Represents size of food services market in a particular region
Source(s): Secondary Research, Redseer Analysis
Note(s): 1. Includes only region-specific dishes and does not include universal dishes such as Italian, Asian, Fast Food, etc., which form a smaller portion of the overall consumption
© Redseer 07
This is driven by the heterogenous nature of the market
North India
~USD 24 Bn
West India
~USD 16 Bn
South India
~USD 24 Bn
East India
~USD 6 Bn
Key dishes eaten in North India
Meal Slot Key food
Parathas, Poha, Omelette,
Tea, Chole-bhature, Khichdi
Breakfast
Punjabi, Mughlai,
Paneer dishes, Roti, Rice
Lunch
Samosa, Chaat,
Pakoras, Momos
Snacks
Punjabi, Chicken Dishes,
Paneer Dishes, Roti, Mughlai,
Dinner
Key dishes eaten in West India
Meal Slot Key food
Parathas, Dhokhla, Khakhra,
Tea, sabudana khichdi,Poha
Kachori, Samosa,Misal Pav
Breakfast
Khichdi, Roti, Thepla, Dal, Rice
Sea-foods, Dal Bati Churma
Lunch
Pav Bhaji, Bhelpuri, Chivda,
Chaat, Mirchi Vada
Snacks
Lal Mans, Roti, Sea-foods,
Khichdi, Dal
Dinner
Key dishes eaten in East India
Meal Slot Key food
Poori-sabzi, Poha, Pitha,
Thukpa, Tea
Breakfast
Rice Dishes, Fish-dishes,
Pakhala Bhat, Khar, Tenga
Lunch
Litti-chokha, Sattu, Jhal-moori,
Pitha, Tea
Snacks
Rice Dishes, Fish-dishes,
Sattu Paratha, Pulao
Dinner
Key dishes eaten in South India
Meal Slot Key food
Dosa, Idli, Vada, Upma,
Sambhar, Uttapam, Pongal
Breakfast
Rice Meals, Biryani,
Flavoured Rice Dish
Lunch
Vada, Bonda, Murukku, Bajji
Snacks
Rice Meals, Parotta, Biryani
Dinner

8. Source(s): Redseer IP, Redseer Analysis
Note(s): 1. Total 8 cities are taken as metro with a metro city market share of 10%; 2. We have assumed that metros will have 75% of the organized market share across cuisines; 3. Representative list of players
© Redseer 08
Which restricts the TAM for any brand offering limited cuisines in limited
cities
Reasons for limited geographical expansion
As depicted, 2023
Overall market size
Organized market size
Avg. Organized size in a
Metro City 1,
2
Market share
required for
INR 100Cr+
revenue
For any given cuisine
USD 3-4 Bn
(INR 20-30k Cr.)
USD 1-2 Bn
(INR 10-15k Cr.)
USD 100-150 Mn
(INR 800-1200 Cr.)
USD 20-22 Bn
(INR 160-180k Cr.)
USD 2-3 Bn
(INR 15-25k Cr.)
USD 250-300 Mn
(INR 2000-2500 Cr.)
USD 4-5 Bn
(INR 30-40k Cr.)
USD 1-2 Bn
(INR 10-15k Cr.)
USD 150-200 Mn
(INR 1200-1600 Cr.)
USD 9-10 Bn
(INR 70-80k Cr.)
USD 5-6 Bn
(INR 40-50k Cr.)
USD 500-600 Mn
(INR 4000-5000 Cr.)
10-15% <5% 5-10% <5%
To scale beyond INR 100 Cr. brands have had to expand their presence across cities3
Biryani Indian Asian Desserts
In Biryani segment a
player will need 10-15%
market share in a metro
city to reach INR 100
Cr+ revenue

9. Source(s): Secondary Research, Company Filings, Redseer Analysis
Note(s): 1. The list of HoBs and their brands is representative in nature and not exhaustive; 2. Revenue figures basis public sources for top 20 food services companies have been added
© Redseer 09
In this context, HoBs have emerged as the best way to scale food services
companies in India
HoBs definition and India HoB representative players¹
Descriptive
Annual revenue of top food services companies²
In INR Cr. FY23
HoB is a company that owns multiple brands
(across different cuisines) under same corporate umbrella
Representative
HoBs
Representative Brands
House of Brands Standalone Brands
6,000
0
1,000
2,000
3,000
4,000
5,000
Average HoB revenue
Average standalone
brand revenue
~5X

10. Source(s): Secondary Research, Redseer Analysis
© Redseer 10
As they cater to larger TAMs across meal-slot and cuisines
Indicative TAM benchmarking for key players
X-axis: TAM for a brand basis the cuisines it caters, Y-axis: TAM for a brand basis the meal slots it caters
Low
(Present in a single
niche cuisine)
Low
(Present
in
single
niche
meal
slot)
High
(Present
across
multiple
meal
slots)
High
(Present across
multiple cuisines)
Cuisine coverage
Meal-slot
coverage
Both brands cater to only
beverage cuisine resulting
in a limited meal slot
coverage
Curefoods and Rebel cater
to 5-6 cuisines which result
in them covering all 5 meal
slots

11. Source(s): Secondary Research, Expert Interaction, Redseer Analysis
© Redseer 11
Which allows them to utilize their resources more efficiently
Typical kitchen utilization across meal slots
Descriptive
COGS – Standalone vs. HoB restaurants
% of revenue, 2023
Salary costs – Standalone vs. HoB restaurants
% of revenue, 2023
HoBs have a higher kitchen utilization across the day owing to
their multi cuisine coverage
This results in higher operating leverage
Pizza South
Indian
Desserts
Breakfast
(6-10 AM)
Lunch
(10-4 PM)
Snacks
(4-7 PM)
Post Dinner
(12-6 AM)
Dinner
(7-12 PM)
Kitchen utilization
Low High
Standalone HoB
~5 p.p.
Standalone HoB
~3 p.p.

12. Source(s): Redseer Analysis
© Redseer 12
To fully utilize their potential, HoBs need to scale multiple diverse brands
and achieve operational excellence
HoB opportunity flywheel
Descriptive
HoBs’ success can
be measured on these
two pillars
Consumer behaviour
evolution to eat more
outside
Need for more
variety in cuisines/
avenues etc
Consumer need for
more variety results
in a brand building
opportunity.
Be present in the
right use cases to
expand their
toplines
This let’s HoB
develop a scalable
and diversified
brand portfolio
To successfully
scale, brands
HoBs need to..
Optimize their
operations to
become bottom-
line efficient
More choices
available to
consumers
Brand building ability
Operational
excellence

13. Source(s): Expert Interaction, Secondary Research, Redseer Analysis
© Redseer 13
New Age HoBs have developed a playbook enabling them to scale their
newer brands faster
Time to reach INR 100 Cr.
# in years from its inception, 2023
Case Study – Rapid growth of Olio
Descriptive
1st
Brand
Capex investment requirement
of only INR 9-10 lakhs per kitchen
enabling rapid growth across
metro and T1 cities
Wood-fired pizza against the
traditional hand tossed or
pan pizza offerings
Cuisine customization through
its SKU such as Half-Half Pizza
Slightly lower AOV making it
more pocket friendly for students
2nd
Brand
3rd
Brand
4th
Brand
6-7 Years
5-6 Years
4-5 Years
3-4 Years
Olio has been successful in growing its revenue by 18X
This has been possible due to 2 major factors
Newer brands have
taken ~half the time
to scale
FY22 FY23 FY24P
INR 1.5 Cr.
INR 12.0 Cr.
INR 25.0 Cr.
~18X Revenue Growth
1. Plug and Play model 2. GenZ consumer focus
4
FY22
100
FY24
No. of outlets

14. Source(s): Expert Interaction, Secondary Research, Redseer Analysis
© Redseer 14
While also having an inherently agile and cost effective operating model
Upfront CAPEX – cloud kitchen vs. dine-in restaurants
%, 2023
Property cost
(upfront deposits)
Licenses
Equipment,
furniture and
other setup cost
79%
13%
9%
2%
13%
32%
Particulars Cost share
Interior design 2-5%
Equipment
70-80% of the equipment and other furniture costs
are salvageable resulting in efficient experimentation
to optimize their brand and outlet portfolio
60-70%
Furniture 5-10%
Inventory costs
(kitchen wares etc.)
10-15%
Civil costs 5-10%
Dine-in restaurant Cloud kitchen
~2x cost for
setting up outlet
led restaurant

15. Sl. No. Keywords Definition
1 Metro cities The top 8 cities – Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, Pune, Ahmedabad
2 Tier 1 cities Indian non-metro cities with population of at least 1 million
3 Tier 2+ Rest of India
4 USD INR Exchange 1 USD = 80 INR
5 Food Services
Food prepared and sold by restaurants, cloud kitchens, hotels, unorganised make-shift units, and
catering services of India
6
Organized food
services players
Food services players which are registered with concerned authorities from a business and taxation
perspective and have the required food safety certifications
7
Unorganised food
services players Other food services players who lack either the relevant registrations or certifications
8
House of Brands food
services players (HoB) House of Brands is a company that owns multiple brands under a common corporate umbrella
9
Standalone food
services players Companies that have a single brand under the corporate umbrella
10 Students/Young adults Studying in school or college and young working professionals between the ages of 18-30 years
11 Midlifers+ Experienced employees or self-employed, in the age group of >31 years
Glossary

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For inquiries and discussions regarding the report,
please contact
Rohan Agarwal
rohan@redseerconsulting.com
Partner | Head of Food Practice at Redseer