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Restaurant Industry

Market Size

Rs. 75,000 Crores in CY12

Organized Segment

Rs. 10,500 Crores in CY12

Expected Annual Growth Rate

Overall: 7% Annual

Organized: 16% Annual

QSR: 21% Annual

Average Eating Out

India: 2 times a month

Singapore: 40 times a month


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
  • Increased private equity interest
 Segment Market Size (Rs Cr) Expected Growth Rate
 Quick service Resturants 4675 21.5%
 Casual dining 2365 11.9%
 Cafes 1265 12.3%
 Fine dining 1045 12.0%
 Pubs, bars, clubs and lounges 963 11.0%

"Indians on an average eat out lesser than 2 times a month, compared to 40 times in Singapore. Even a small increase in this number   provides a huge market opportunity for restaurants in India."

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. 

Valuation Multiples for the Indian Restaurant Industry | Publicly Traded Restaurant Companies
Apart from the positive macro outlook, lack of listed pure play restaurant companies in India driving up valuation multiples






Fine Dining Restaurants

Speciality Restaurants



Quick Service Restaurants

Jubilant FoodWorks






Median EV/Revenue


Fine Dining Restaurants

China Bistro, Cheesecake Factory and 3 other restaurants



Casual Dining Restaurants

Darden Restaurants, Buffalo Wild Wings and 15 other restaurants



Quick Service Restaurants

Domino's, Yum! Brands, McDonalds & 7 other restaurants



*EV: Enterprise Value (measure of company's value)
**EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization (measure of company’s profitability)
CY: Calendar Year Ending December
 Source: India - TTM Multiples as on 14 March 2013