India is considered as one of the world’s biggest market for food establishments. Economy is booming due to strong business model adopted by industrialist, however, IT industry has witnessed progress all major companies now in the list of top service providers. According to analytical reports, Indian food and beverage industry is expected to grow rapidly due to effective contribution of franchise business model. Over past few years, India is emerged as fast-growing services sector; locals are spending more money on outside home foods.
Impact on economy Restaurant sector is contributing largely to Indian economy in the form of tax, approximate INR 25,500 crore. However, total food service market has grown a lot and is expected to growth at 10% annual rate by 2020 to become multitrillion sectors. Furthermore, restaurant industry is divided into organised and unorganised market; near about 20% market is dominated by professionals’ players and rest by local vendors. By 2015, 6 million people get employment, as number of establishments increase employment opportunities will also get double.
Restaurant franchise opportunities are increasing these days; entrepreneurs want to invest on foodservice sector to generate more revenues. Market for online foodservice providers is quite notable, technological advancements have made life easy for consumers as well as food operators. Number of restaurant franchise opportunities gone up due to cultural diversity and preferences of customers. As per reports, average middle class family visit once or twice in a month to restaurants.
These numbers will definitely get doubled in coming years. As far as number of restaurant franchise brands concern, metropolitan cities are already overloaded with small, medium and large sized firms. In addition, tier1 and tier 2 cities are still untapped, Indian and global brands eyeing to target youth as they are spending more on food related items. Thus restaurant sector is mainstay of Indian economy.