Rohit Aggarwal, director at Lite Bite Foods, said: “The kind of growth that is expected in food services – we are trying to maximise that opportunity.”
He said India’s young population had been a key growth driver for the industry, with younger people dining out or ordering in a lot more now, and many of these people soon entering the earning bracket. “Younger people are eating out far more. Dinner rooms and timings are becoming individualised and kitchens are smaller with nuclear families,” he said.
At a group level, Lite Bite has 200 outlets, including those at airports. The chain plans to focus on tier 1 and 2 markets for expansion.
Aggarwal said Lite Bite’s revenue growth has tripled in the last two years, with dine-ins and delivery put together. “Our focus is to make sure we give returns to shareholder value,” he said.
According to a report by consulting firm Wazir Advisors, India’s organised food services sector is now growing faster than the unorganised sector, riding on an influx of domestic players and attention from international businesses. The report noted that India’s organised food service market is projected to reach $78.8 billion by 2026, from $57.2 billion currently. The report flagged growth drivers to the sector such as increased frequency of dining out, rising disposable incomes and urbanisation, dining outside of homes without a specific occasion and growing demand for diverse food varieties and cuisines. “Millennials today exhibit more adventurous eating habits. This trend has been motivating both domestic and international food establishments to expand their menus and reach,” the report said. Other factors fuelling this growth include time-pressed schedules of employed individuals, an increased number of women in the workforce, and increasing reliance on prepared food. “This shift is also driving innovations in food service distribution channels, with companies increasingly forming partnerships with online foods service providers to broaden their reach,” according to the report.
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