HYDERABAD: The National Restaurant Association of India (NRAI) recently unveiled its comprehensive India Food Services Report 2024 (IFSR 2024), which highlighted Hyderabad’s contribution to the sector.
The report put the value of the Indian food services market at `5.69 lakh crore in 2024, expected to soar to `7.76 lakh crore by 2028. The organised sector was projected to expand even more rapidly. It said that Hyderabad food services industry was valued at `10,161 crore, the sixth largest nationwide.
It said Hyderabad had 74,807 restaurants, including 41,144 in the organised. The city has 16,379 cloud kitchens, the highest category in the organised sector. Quick service restaurants were at 13,544 and casual dining restaurants 6,468.
The most preferred cuisines in Hyderabad were South Indian and Indian snacks.
The frequency of dining out in Hyderabad averaged 6.96 times per month, with residents dining out 3.09 times and ordering in 3.87 times monthly. The average spend per visit for dining out was `990.
The IFSR also highlighted key trends shaping the food services industry in Hyderabad and across India. Social media influence, especially platforms like Instagram, is driving demand for visually appealing dining experiences. Additionally, there’s a shift towards higher-quality and fine dining establishments, fuelled by a preference for unique and premium experiences.
Despite its growth, the industry faces challenges such as rising input costs, regulatory compliance issues, and the dynamics of delivery services. The report emphasises the need for a separate food services ministry, a dual GST regime, and equitable e-commerce policies to foster further growth.
