Indian Restaurant Industry | What’s On Your Menu?

The Indian restaurant industry is worth Rs.75,000 crores and is growing at an annual rate of 7%. The industry is highly fragmented with 1.5 million eating outlets, of which a little more than 3,000 outlets form the organized segment. However, the organized segment is rapidly growing at an annual rate of 16%. Quick service segment is the clear winner in the eating out market with a growth rate of 21%.

Organized Segment is expected to reach Rs.22,000  crore by 2017, driven by:

• Rising disposable income


• Nuclear family structure


• Increasing working population


• Rapid urbanization and consumerism
  

  Brands By Segments

  
  


• Quick Service Restaurants (QSR): Domino's, KFC, McDonalds


• Casual dining restaurants: Pizza Hut, Yo! China, Sagar Ratna


• Cafes: Cafe Coffee Day, Barista Lavazza, Costa Coffee


• Fine Dining Restaurants: Mainland China, Sahib Sindh Sultan, Copper Chimney


• Pubs, bars, clubs, lounges: Hard Rock Cafe, Xtreme Sports Bar, TGIF


• 
  

  Key Private Equity (PE) & Venture Capital (VC) Firms which have invested in the Restaurant Industry

  
  


• NSR: Coffee day (360cr), Adiga’s (200cr), Ohri’s (200cr)


• India Equity Partners : Sagar Ratna (180cr)


• SAIF Partners: Specialty Rest. (120cr), Ammi’s Biryani (40cr)


• Everstone Capital: Pind Balluchi  (110cr)


• ICICI Venture: Devyani Intrnl–Pizza Hut, KFC, Costa (250cr)


• Aditya Birla PE: Olive Bar (54cr)


• Premji Invest:  JSM Corp-HRC, Shiro, CPK (130cr)


• TVS Capital: Om Pizza (50cr), Indian Cookery-Yellow Chili


• Helion Venture: Mast Kalandar (33cr), Booster Juice (16cr)


• Sequoia Capital: Faaso’s (28cr)


• VenturEast: Goli Vadapav (26cr)


• IncuCapital: Steammo (40lakhs)


• Matrix India: Yo! China (27cr)


• Accel Partners : Kaati Zone


• 
  

  For a 30-40% stake, a typical PE investment is Rs.150-200 crores and a typical VC investment is Rs.20-30 crores. Funds are used for brand building, to open new outlets, standardize, and to expand to other geographic locations.