ICRA projects about 20-25% growth for India's quick service restaurant industry in FY24
- IBEF
- April 21, 2023
The rating agency, ICRA said, the quick service restaurant sector (QSR) in India is anticipated to grow by 20–25% in the current fiscal year due to an increase in demand and more market penetration driven by a rapid shop expansion. Long-term, factors like increasing QSR penetration rates, a shift from the unorganised to the organised segment with a preference for branded QSR players, given the convenience and hygiene factors (delivery over dine-in), etc., will support revenue growth.
ICRA predicts that the top five players in the domestic quick-service restaurant market will likely open an additional 2,300 stores between FY23-FY25, spending an estimated US$ 707 million (Rs. 5,800 crore) on capital expenditures (CAPEX) (excluding renovations) during this period.
As per the observation of Mr. Suprio Banerjee, the Vice President and Sector Head of Corporate ratings at ICRA, there is expected to be a capex boom in the QSR business due to favourable demographics, India's gradual urbanisation, rising per-capita gross domestic product (GDP), and greater headroom for QSR penetration compared to a developed nation like the US. "The CAPEX over FY23-FY25 has been estimated at around approximately US$ 219.4-243.8 million (Rs. 1,800-2,000 crore) per annum, which would be around 2.5 times that of the levels seen in FY20," he added.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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