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Future of QSR Industry in India

Food consumption as a need is a thing of the past. Nowadays, an increasing number of people want to dine out not just to satiate their hunger but also to enjoy the complete eating experience.

In recent years, QSRs, fine dining restaurants, cafes, pubs, bars, clubs, lounges, and international fast food establishments have sprung up across India.

Dine-out at Quick Service Restaurants (a.k.a. QSR) has recently grown fairly popular in India. It has pushed the hospitality business to new heights. The Millennial generation’s altering eating habits have a big impact on the QSR industry in India. This is not it; there are several other factors impacting the foodservice industry in India.

You should, however, be interested in the prospects for the quick service restaurant industry in India.

If that’s the case, then carry on reading. Everything you need to know about the QSR and what it means for India’s future may be found in this article.

Let’s get started

What are Quick Service Restaurants?

Quick Service Restaurants, or QSRs, are a type of fast-food establishments where customers pay for their food at the counter before eating the dish, such as SubWay. The most common term used for QSR establishments is Fast Food restaurants.

These restaurants offer both fast food cuisines and table services. In the past few decades, both the chain QSR and standalone QSR segments have experienced exponential growth in India.

Research indicates that Quick Service Restaurants and casual dining accounted for 75% of the market share in 2010, and their growth has been constant and exponential since then. During the fiscal years 2016 to 2020, the QSR market grew at a rate of 17.27%, and it is predicted to reach INR 827.63 billion by the fiscal year 2025.

The QSR industry includes businesses such as Burger King, KFC, McDonald’s, Subway, Wendy’s, and Taco Bell, to name a few. Burger King is the most well-known QSR brand.

What factors have contributed to the extraordinary success of QSRs in India?

Numerous factors have contributed to the rising popularity of QSR restaurants in India. Some of them are as follows:

Millennial Generation

Our ancestors used to have food to satiate hunger; however, today’s generation eats for fun and enjoyment. People between the ages of 15 and 40 enjoy dining out and indulging in delectable cuisine today. A growing number of people opt to eat outside as a part of their leisure activities or shopping excursions, which leads to increased demand for QSR establishments in India.


Not everybody enjoys cooking. And the ones who enjoy cooking are already busy sharing their skills and making money on YouTube and Instagram.

But what about others?

More often than not, people grow tired of cooking food, especially after a long day at work. And boredom is one of the factors contributing to the rapid growth of quick service restaurants in India. It’s simple – working people don’t mind paying for the convenience of not having to cook.

Time Pressure

Unlike in the past, modern women are ambitious; they prefer to work rather than remain at home. Additionally, they are not restricted to desk occupations or sitting jobs; they are now involved in marketing, sales, and various other positions requiring them to make sales, meet clients, manage teams, etc.

Making time for cooking gets a little more challenging in the midst of all of this. This tendency is most noticeable among people between the ages of 25 and 40. As a result, people look for quick fixes and what could be more convenient than a local quick service restaurant. As a result, people inevitably spend a significant portion of their wages on fast food.

Unique Taste

Dominos’ pizza, without a doubt, tastes better than pulao. Taste is a crucial factor in why people spend money to dine out and contributes to the growth of the QSR business in India. The distinct flavor of fast food items entices customers to consume them frequently. According to studies, 69.2 percent of people eat out for taste alone.



One of the most critical elements in selecting whether or not to purchase something is the price. Fine dining is a pricey alternative that millennials, especially college-goers and students, cannot afford. Also, those who wish to grab a snack on their way home from the office are also out of luck with these establishments.

The best thing is that most quick-service restaurants are inexpensive and budget-friendly, making it easier for college-goers, students, and working professionals to eat on a shoestring budget.

Increased per capita income

India is a rapidly growing country with an increasing per capita income, which has fueled the growth of quick service restaurants. Modern-day Indians love to eat out at least once a week, if not more often.

In addition, innovative payment systems and point of sale systems are the key reasons driving the expansion of the QSR industry in India.

Easy Availability of Internet Service

Internet services are currently more accessible than ever before. The online ordering systems have improved significantly. Consumers in second and third-tier cities are now demanding the same perks and amenities available in major cities. Restaurants that offer rapid service and third-party delivery are also expanding in small towns and cities.

India has the highest per capita data usage in the world, which makes the situation even better for these chains. As a result, a number of fast-food chains have opened outlets in second and third-tier cities.

Global Exposure

Lastly, but certainly not least, global exposure is another factor that contributes to the popularity of Quick Service restaurants in India.

Consumption of food outside the home has increased in India due to increased exposure to other lifestyles and cultures. More and more people are beginning to develop their own culinary preferences and are dining out at restaurants on a more regular basis in order to experience and savor a variety of cuisines.

How has the outbreak of the Covid-19 affected the QSR Industry?

Without a doubt, the outbreak of the COVID-19 pandemic has had a negative impact on the whole economy, including the hospitality industry.

The subsequent prolonged global lockdown, in particular, had a severe effect on the Indian food service business. Almost all hotels, restaurants, and fine dining establishments were temporarily closed as a precautionary move to halt the spread of the virus.

Surprisingly, despite the pandemic, quick-service eateries thrived. Since the crisis began, they are the only ones to have reached positive sales territory.

Quick service restaurants (QSRs) have shifted their focus increasingly to the meal delivery market. The majority of QSR establishments have shifted to 100% take-out to offer safe, hygienic, and customized services.

Additionally, drive-thrus aided in the expansion of food businesses throughout the pandemic. In an effort to avert mass coronavirus infections, drive-thrus became more critical than ever. Research indicates that the quick-service restaurants in India held the largest market share, accounting for 54.2% in the fiscal year 2020.

So, what is the future of quick-service restaurants in India?

We’re confident that you’ve grasped that the concept of quick service restaurants has come a long way and will continue to thrive in the future. These establishments are so common and pocket-friendly that we all tend to stop by them without being fueled by special events.

According to research, the foodservice industry is expected to rise by 11% on an annual basis by 2023. By the end of 2022, sales will have surpassed the 5-trillion-dollar barrier, making QSR one of the largest foodservice industries in India.

The best thing is that quick-service restaurants are not very demanding. One does not have to be concerned about incurring budget-breaking expenses. A further advantage for the quick service restaurant owner is that the capital investment required is minimal.

Another factor contributing to their ability to survive in such a fiercely competitive environment is their low cost of operation. In addition, digitization and cashless payment alternatives are helping these eateries attract more customers. Mobile ordering will continue to soar in the future, and people will take advantage of drive-thrus.

Big guns and food industry leaders are now coming up with innovative solutions to appeal to health-conscious consumers. Entrepreneurs in India are planning to invest over Rs. 1000 crore over the next three years to introduce creative food options.

All this, in turn, will significantly open job opportunities for people seeking to enter the hospitality industry in India. Foodservice businesses will hire more and more people to provide their customers with the best ordering and eating experience ever from the comfort of their homes.

Take Away

The demand for QSR establishments has skyrocketed as a result of changed eating habits, increased disposable income, global exposure, changing lifestyles, the availability of the internet, accessibility, and the expansion of the online meal delivery system, among other factors.

Additionally, the future of Quick Service Restaurants appears to be promising, with revenues expected to reach INR 827.63 billion by the fiscal year 2025. All in all, quick service restaurants are doing an excellent job and are sure to thrive in the future as well.

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