As per the recently released report by NITI Ayog CEO Amitabh Kant, the chain and standalone market is expected to contribute an estimated INR 22, 400 crores in terms of tax revenue in 2016. Also, on the employment front, the restaurant industry is likely to provide direct employment to over 5.8 million people.
NRAI India Food Services Report 2016 (NRAI IFSR 2016) was launched by Amitabh Kant, CEO, NITI Aayog (National Institution for Transforming India), GOI in the national capital recently. Commissioned by the NRAI and compiled by Technopak, NRAI IFSR 2016 is the only and most comprehensive trade report on the Indian food services sector.
Introducing the report, Samir Kuckreja, Past President and Trustee, NRAI said, “The NRAI’s 3rd research on the Food Services Industry is a comprehensive Report that includes results from in-depth interaction with a variety of companies, meetings with over 50 CEO’s, consumer research that covered 2000 people across 20 cities of India and trade research at restaurants.” The report addresses international market perspective for nine countries including USA, China, South Africa, Turkey and UAE. The report also covers PE/VC funding in the industry and digital and social media marketing.
NRAI IFSR 2016 estimates suggest that the total contribution of the restaurant industry alone would contribute 2.1% to the GDP of India by the year 2021.
Commenting on the report, Amitabh Kant said, “India has been on a high growth trajectory over the last couple of years. India’s exponential growth and consumption in terms of frequency of eating out and experimentation with cuisines and concepts has given the F&B services sector such a fillip that this industry is currently estimated to be worth USD 48 billion in terms of overall market size. I am happy to unveil the NRAI India Food Services Report 2016, an industry paper that documents the various developmental parameters, for the F&B sector at large. I congratulate the NRAI team for spearheading a project of this calibre and wish them success for their future endeavours.”
Rahul Singh, Honorary Secretary, NRAI, while presenting details from the report pointed out that the NRAI IFSR 2016 documents the unprecedented growth that this sector has witnessed while outlining some of the challenges our industry faces that pose a barrier to entry and optimal operational efficiency. He also noted that the report findings reveal that the food services market in India has triggered growth across a wide range of ancillary industries, thus providing a boost to the entire ecosystem.
Key allied industries which support food services and have benefited from its growth are agriculture and food processing, supply chain and logistics, real estate, kitchen equipment, and commissary.
While discussing the report, Riyaaz Amlani, President, NRAI at the launch event said, “The total food services market today stands at `3, 09, 110 crores and has grown at 7.7 % since our last report in 2013. This is projected to grow to `4,98,130 crores at a CAGR of 10% by 2021. This year alone, the Indian restaurant sector will create direct employment for 5.8 million people and contribute a whopping `22,400 crores by way of taxes to the Indian economy.”
As per the NSDC, restaurants contribute the maximum manpower requirement within the hospitality sector.
The report notes that the share of the organized market was merely 33%. Expressing distress on this, he remarked, “This is largely due to over regulation of our industry, the complex maze of approvals and licenses required and high tax brackets. It is about time that our industry’s socio-economic impact is recognized by the government, and it initiates immediate steps to unlock the true potential of this
Commenting on NRAI’s contribution to the Indian food services industry, he stated, “I am delighted to report that a lot has been achieved at the NRAI already and we are expecting brighter days in the near future.”
The main aim of the report is to aid entrepreneurs and investors take informed decisions and unite the industry under one banner.