In India, fast-food businesses have expanded and tailored their menus to local preferences. With a CAGR of 23% between 2020 and 2025, the fast-food sector in India is expanding quickly. In 2020, the industry had a value of $348 billion; by 2025, it was predicted to be worth $1.01 trillion. Rising earnings, shifting lifestyles, and growing urbanisation are just a few causes fueling the fast-food industry’s expansion.
The average Indian spends 2,500 on fast food each year. Over 10,000 locations are operated by India’s top 10 fast-food chains. This sector employs around 7 million people in India and is anticipated to expand at a CAGR of 11.19% from 2022 to 2028.
Fast-food restaurants are now a common and changing feature of India’s culinary scene, serving a broad and constantly growing customer base. This fusion of global and local tastes.
See also: Top Italian companies in India
Fast food business in India: An overview
The current market situation of the fast-food business in India is characterised by significant growth and transformation. Here are some key points:
Rapid growth: The Indian fast-food industry is experiencing substantial growth, with an annual increase of approximately 40%. By 2020, the market was expected to reach around USD 27.57 billion, with projections indicating continued growth at 18%.
Consumer preferences: There has been a notable shift in consumer behaviour, with more people opting for fast food due to busy lifestyles, an increased number of working women, and the nuclear family concept. This change is also influenced by urbanisation and rising disposable incomes, leading to a growing acceptance of dining out.
Market presence of global brands: Major international fast-food chains have established a strong presence in India. For instance, McDonald’s aimed to increase its outlets from 300 to 500 by 2020, while Domino’s expanded from 227 outlets in 2008 to 1126 by 2017. Other brands like Pizza Hut and Subway are also expanding their footprint .
Demographic focus: The fast-food market in India is diversifying its target demographics, catering to various age groups, income levels, and family structures. Children are a significant consumer segment, with brands introducing products to attract them and, indirectly, their parents.
Challenges: Despite the growth, the industry faces challenges, including health concerns associated with fast food consumption. There is a growing need for fast-food companies to improve the nutritional value of their offerings to address these health issues
Read also: Top insurance companies in India
Top food chains in India
McDonald’s
Industry: fast food
Company type: Private
Location: Basant Lok, Vasant Vihar, New Delhi.
Founded in: 1940
The happy meals, McDonald’s birthday celebrations, and the excited squealing when Ronald McDonald arrived at the party were a part of the childhoods of Indian children in the 1990s. McDonald’s was first established in California, USA, by Maurice and Richard McDonald. It moved to New Delhi, India, in 1996. The first McDonald’s to offer a menu without beef or pork was in India. With Indians’ eating habits in mind, vegetarian choices, including McAloo Tikki, Pizza McPuff, and McVeggie, were added to the menu. There are numerous chicken and fish options for non-vegetarians. McDonald’s also offers a breakfast menu, which includes hotcakes, drinks, hash browns, and McMuffins (burgers) with vegetarian, chicken, or egg options, until 10 a.m. at some locations.
Dominos
Industry: fast food
Company type: Private
Location: Tower-D, Plot No. 5, 5th Floor, Logix Techno Park, Sector 127, Noida 201304
Founded in: 1960
Thirty minutes, or it’s free. We’ve all brazenly waited for the delivery person to be late to get the pizza order for free. They were punctual, though. Fresh, hot pizza delivered to your door was a revolutionary idea never thought of before Domino’s. Tom and James Monaghan launched the Domino’s Pizza brand of pizza restaurants in the United States in 1960. There was a general enthusiasm when Domino’s opened in India in 1996 for their cheese pizzas and mouthwatering twisted breads (no longer offered). It has never failed to deliver a Domino’s pizza box to an urban Indian home.
Pizza hut
Industry: fast food
Company type: Private
Location: 12th Floor, Tower D, Global Business Park, Gurugram 122002, Haryana
Founded in: 1958
Dan Carney and Frank Carney established Pizza Hut in Kansas, Kansas, USA. With the opening of its first location in Bangalore (Bengaluru), Karnataka, the American restaurant brand Pizza Hut entered the Indian market in 1996. Pizza Hut offers everything, including many pizzas, creamy pasta dishes, and crunchy garlic bread. Pizza Hut is currently one of the most well-known fast-food companies in India, having operated there for more than 20 years with more than 400 locations.
KFC
Industry: fast food
Company type: Private
Location: 4th Floor, World Mark, Tower-2, Maidawas Rd, Sector 65, Gurugram, Haryana 122001
Founded in: 1952
In the world, there are more than 23,000 KFC locations. In Bangalore in 1995, KFC made its debut in India. Chicken popcorn, tenders, burgers, rice bowls, spicy chicken, and the original secret recipe fried chicken are all offered by KFC in India. Considering the Indian clientele, many vegetarian options are also provided.
Taco bell
Industry: fast food
Company type: Public
Location: Ashi Bhawan Ground Floor, 19 Rouse Avenue, New Delhi 110002
Founded in: 1962
Taco Bell and Tex-Mex come to mind. Taco Bell has many delectable options, including tacos, burritos, nachos, and quesadillas. With only 35 locations across India, Taco Bell is a recent market debut. Glen Bell, the company’s founder, set up shop in Downey, California, for the first Taco Bell. With more than 300 restaurants, it went public in 1970. When 1978 rolled around, Glen Bell sold Taco Bell to PepsiCo.
Burger King
Industry: fast food
Company type: Public
Location: Office no 1003 to 1007, B Wing, 10th Floor, Mittal Commercia, Andheri (E), Mumbai 400059
Founded in: 1954
What a whopper! James McLamore, David Edgerton, William R. Jarvis, and James Duncan Rae established Burger King in Florida, USA. The burger chain arrived in India in 2014 to a warm reception. Indian dishes were created with plenty of vegetarian alternatives and no beef or pig.
Haldirams
Industry: fast food
Company type: Private
Location: B 1, H 3, NH-19, Block B-1, Mohan Cooperative Industrial Estate, Okhla Industrial Estate, New Delhi, Delhi 110044
Founded in: 1930
Indian global sweets, snack, and restaurant firm Haldiram’s is based in Noida. It was established in Bikaner, Rajasthan. In addition to more than 100 locations abroad, Haldiram has more than 5,000 locations in India. The company’s top-selling items are bhujia, namkeen, and munchies. People of all ages and socioeconomic backgrounds makeup Haldiram’s target market. Because of its extensive product line, dedication to quality, and reasonable costs, the company is regarded as one of the top fast-food chains in India.
Cafe coffee day
Industry: fast food
Company type: Private
Location: 23/2, Vittal Mallya Road, Bangalore 560001
Founded in: 1996
Bengaluru, Karnataka, is home to the corporate headquarters of the international chain of coffee shops known as Cafe Coffee Day. The largest coffee chain in India, with more than 1,700 locations nationwide. The top-selling items at CCD include ice cream, sandwiches, pastries, tea, coffee, and tea sandwiches. Young professionals and students are the target market for the organisation. CCD is regarded as one of India’s best fast food franchises for its variety of coffees, the welcoming atmosphere it creates, and the convenient locations.
Faasos
Industry: fast food
Company type: Private
Location: 2nd Floor, Adjacent To Nahur Railway Station, Subhash Nagar Road, Bhandup West Mumbai-400078
Founded in: 2004
An Indian fast-food franchise called Faasos was established in 2004. With over 500 locations spread over 10 countries, it is the largest QSR chain of Indian origin. Fast delivery, high-quality ingredients, and mouthwatering food are hallmarks of Faasos. Wraps, bowls, and biryani are some of its best-selling items. Young professionals and families are the company’s target market. Faasos is regarded as one of India’s best fast food businesses thanks to its reliable quality, creative menu, and practical delivery choices.
Subway
Industry: fast food
Company type: Private
Location: F3JJ+62C, Metro Station, MGF Metropolis Mall, Mehrauli-Gurgaon Rd, Gurugram, Haryana 122002
Founded in: 1965
Subway is a national brand of quick-service restaurants. With more than 40,000 sites spread across 100 countries, it is the largest restaurant chain in the world. With more than 1,500 locations nationwide, Subway has been operating in India since 2001. Subs, wraps, and salads are the most popular menu items at the chain. Consumers interested in good nutrition and searching for quick, inexpensive meals make Subway’s target market. The business is regarded as one of India’s top fast-food restaurants because of the diversity of menu items, emphasis on healthy eating, and convenient and reasonable prices.
Barbeque Nation
- Industry: Casual Dining
- Company Type: Public
- Location: Ayyappa Central, 1st Floor, Survey No. 419, Near Vikas Kendra, Kondapur, Hyderabad, Telangana 500084
- Founded in: 2006
Barbeque Nation was established in Mumbai, Maharashtra, by Sayaji Hotels Ltd. It introduced the concept of live grills in India, allowing customers to barbecue their dishes at the table. Known for its extensive buffet menu, which includes Indian, Mediterranean, and Oriental cuisines, Barbeque Nation is a favourite for large gatherings and celebrations. With over 150 outlets, it has expanded to multiple cities across India.
Costa Coffee
- Industry: Coffeehouse
- Company Type: Subsidiary of The Coca-Cola Company
- Location: 3rd Floor, Worldmark 3, Aerocity, New Delhi 110037
- Founded in: 1971
Costa Coffee, founded by Sergio and Bruno Costa in London, entered the Indian market in 2005 through a joint venture with Devyani International. Costa Coffee is known for its handcrafted coffee, which uses beans from all over the world and is roasted to perfection. In addition to coffee, it offers a range of snacks and bakery items. With its premium coffee and cozy ambience, Costa Coffee is a go-to spot for coffee enthusiasts across major Indian cities.
Dunkin’ Donuts
- Industry: Fast Food
- Company Type: Private
- Location: Block 7, DLF Cyber City, Gurugram, Haryana 122002
- Founded in: 1950
Established by William Rosenberg in Quincy, Massachusetts, Dunkin’ Donuts debuted in India in 2012 through a partnership with Jubilant FoodWorks. Known for its wide variety of doughnuts, coffee, and breakfast sandwiches, Dunkin’ Donuts offers a unique mix of traditional and fusion flavours that cater to the Indian palate. Dunkin’ Donuts has become a popular destination for young adults and families with its trendy and comfortable stores.
Barista Coffee
- Industry: Coffeehouse
- Company Type: Private
- Location: 1st Floor, Plot No. 24, Okhla Industrial Estate, Phase-III, New Delhi 110020
- Founded in: 2000
Barista Coffee is one of the first international-style coffeehouse chains in India. Founded in New Delhi, it introduced Indians to the espresso culture and Italian-style coffee. Barista Coffee serves a variety of coffees, teas, and snacks with a focus on quality ingredients and an authentic café experience. Over the years, Barista has expanded to more than 200 outlets across India, making it a prominent name in the Indian coffee scene.
Tim Hortons
- Industry: Coffeehouse & Fast Food
- Company Type: Public
- Location: New Delhi, India
- Founded in: 1964
Tim Hortons, a Canadian multinational coffeehouse and restaurant chain, was founded by hockey player Tim Horton in Ontario, Canada. The brand entered India in August 2022, expanding its offerings beyond coffee to include baked goods, sandwiches, and breakfast items. Known for its “double-double” coffee, Tim Hortons caters to Indian customers seeking quality coffee and comfort food with a Canadian touch, and the brand has ambitious expansion plans across Indian cities.
Bikanervala
- Industry: Food & Beverage
- Company Type: Private
- Location: A-28, Lawrence Road Industrial Area, New Delhi 110035
- Founded in: 1950
Bikanervala, a famous Indian sweet and snack brand, originated in Bikaner, Rajasthan, and was established in New Delhi by the Agarwal family. Bikanervala offers various Indian sweets, snacks, chaats, and traditional meals. Known for its hygienic and high-quality food, it has become a favourite among Indian families. With numerous outlets across India and international locations, Bikanervala is a go-to brand for authentic Indian flavours.
Goli Vada Pav
- Industry: Fast Food
- Company Type: Private
- Location: 8th Floor, Technopolis Knowledge Park, Mahakali Caves Road, Andheri East, Mumbai 400093
- Founded in: 2004
Founded by Venkatesh Iyer and Shivadas Menon in Mumbai, Goli Vada Pav brings a unique twist to the traditional Maharashtrian snack, the vada pav. The brand has popularised this Indian burger with a fast-food approach, offering a range of flavours and fillings. Known for its affordable and quick-service model, Goli Vada Pav has expanded to over 300 outlets across India, making it a favourite for street food lovers.
Nirula’s
- Industry: Food & Beverage
- Company Type: Private
- Location: 2nd Floor, Tower-B, Vatika Towers, Sector 54, Gurugram, Haryana 122002
- Founded in: 1934
Nirula’s, one of India’s oldest fast-food chains, was founded by the Nirula family in New Delhi. Known for its unique Indian take on fast food, the brand offers various items, including burgers, pizzas, Indian thalis, and ice cream. Nirula’s has a nostalgic value for many Indians, and its iconic HCF (Hot Chocolate Fudge) is a crowd favourite. With a strong presence in North India, Nirula’s has become a cherished brand over the decades.
Smokin’ Joe’s
- Industry: Fast Food
- Company Type: Private
- Location: A-11, MIDC, Andheri East, Mumbai 400093
- Founded in: 1993
Parsi entrepreneur Kaizad Hansotia established Smokin’ Joe’s in Mumbai. Known for its fresh, handmade pizzas with a unique Indian twist, the brand offers a variety of flavors and toppings that cater to Indian taste preferences. Smokin’ Joe’s is popular for its quick-service model and has expanded to multiple outlets across Maharashtra, with a loyal customer base that enjoys its quality pizzas.
Vadilal
- Industry: Food & Beverage (Ice Cream)
- Company Type: Public
- Location: Vadilal House, Shreeji Bhuvan, 43, Charni Road, Mumbai 400004
- Founded in: 1907
Vadilal is a heritage brand in India, famous for its wide variety of ice creams and frozen desserts. Established by Vadilal Gandhi in Ahmedabad, Gujarat, the company has become one of India’s leading ice cream brands. Known for its innovation and unique flavors, Vadilal offers ice cream cakes, kulfi, and other frozen treats. It is available in retail stores and parlors nationwide, making it a household name in India.
Wow! Momo
- Industry: Fast Food
- Company Type: Private
- Location: 12th Floor, Godrej Waterside, Sector V, Salt Lake City, Kolkata 700091
- Founded in: 2008
Wow! Momo, founded by Sagar Daryani and Binod Homagai in Kolkata, specializes in momos, a popular Tibetan-inspired dumpling. The brand offers a wide range of momo varieties, including fusion flavours like chocolate momos and momo burgers. Wow! Momo’s innovative approach to fast food has helped it expand rapidly, with over 400 outlets across India, making it one of the country’s most successful quick-service restaurant chains.
Business landscape for fast food chains in India
Office space: India’s expanding fast-food chain market fueled the demand for larger restaurant premises and more contemporary dining options. This expansion is fueling the construction of modern restaurant complexes and infrastructure, improving the nation’s fast-food dining scene.
Rental space: India’s fast-food chain industry’s explosive growth supports an active commercial real estate market. High demand for desirable locations results in competitive lease rates and rising property values, which is advantageous to developers and property owners.
Challenges faced by the fast food Industry in India
The fast-food industry in India faces several significant challenges, as highlighted in the research. Here are the key challenges:
Cultural and Dietary Diversity: India has a rich tapestry of cultural and dietary preferences, which poses a challenge for fast-food chains. While some consumers adopt Western fast-food styles, many still prefer traditional Indian cuisine. Additionally, there are regional variations in food preferences, with a substantial portion of the population adhering to vegetarian diets. Fast-food companies must adapt their menus to cater to these diverse tastes while incorporating healthier options due to the growing health consciousness among consumers.
Market Saturation and Competition: The Indian fast-food market is highly competitive, with numerous domestic and international players vying for consumer attention. Established brands like McDonald’s, KFC, and Domino’s face stiff competition from local favourites like Haldiram’s and Café Coffee Day. This intense rivalry often leads to pricing wars and aggressive marketing strategies, making it difficult for new entrants to gain a foothold in the market.
Supply Chain Management: Effective supply chain management is crucial for fast-food businesses, but India’s infrastructure presents significant challenges. Issues such as unreliable electricity supply, poor transportation networks, and logistical difficulties can disrupt supply chains, leading to increased costs and delays. Additionally, sourcing high-quality ingredients locally can be challenging, particularly for global chains that rely on standardised procedures .
Regulatory Compliance: The regulatory landscape in India is complex and can be cumbersome for fast-food companies. Obtaining necessary licenses and permits, as well as adhering to food safety regulations can be time-consuming and bureaucratic. Regulation changes, such as import or tax law shifts, can also impact operational costs and profitability. Companies must maintain a thorough understanding of local regulations and proactively engage with government authorities to navigate these challenges.
Changing Consumer Preferences: The fast-food industry is experiencing shifts in consumer behaviour driven by factors such as inflation and economic conditions. There is a growing demand for healthier food options and various menu items. Fast-food chains must continuously innovate and adapt their offerings to meet these evolving consumer preferences, which can be resource-intensive.
Technological Adaptation: The rise of digital technology has transformed how consumers interact with fast-food brands. The emergence of mobile ordering apps, contactless payment systems, and meal delivery services requires fast-food companies to invest in technology infrastructure. Adapting to these technological changes involves significant staff training and system implementation costs.
Future trends of the fast food industry
Emphasis on healthier options: As consumers become more health-conscious, there is a growing demand for healthier menu items. Fast-food chains are expected to innovate by offering nutritious alternatives, including salads, whole grain options, and meals with lower calories and fat content. This trend reflects a shift in consumer preferences towards healthier eating habits.
Technological integration: The fast-food industry is increasingly adopting technology to enhance customer experience and streamline operations. This includes mobile ordering apps, contactless payment systems, and meal delivery services. Companies that invest in technology infrastructure will likely gain a competitive edge by improving efficiency and customer satisfaction.
Sustainability practices: Consumers are increasingly aware of environmental issues, leading to a demand for sustainable practices in the fast-food sector. This includes sourcing ingredients locally, reducing waste, and implementing eco-friendly packaging. Fast-food chains prioritising sustainability may attract environmentally conscious consumers and improve their brand image.
Customisation and personalisation: Consumers are increasingly seeking personalised dining experiences. Fast-food chains may respond by allowing customers to customise their orders, catering to individual tastes and dietary restrictions. This trend can enhance customer loyalty and satisfaction.
Expansion of delivery services: The growth of food delivery platforms and changing consumer behaviours drive the expansion of delivery services in the fast-food industry. Companies are likely to invest in partnerships with delivery aggregators and enhance their delivery capabilities to meet the rising demand for convenience.
Focus on local flavours: To cater to the diverse tastes of Indian consumers, fast-food chains are expected to incorporate local flavours and ingredients into their menus. This adaptation can help brands resonate more with regional preferences and enhance their appeal in the Indian market.
Digital marketing strategies: As digital engagement becomes more critical, fast-food companies will likely invest in digital marketing strategies to reach consumers effectively. This includes leveraging social media, influencer partnerships, and targeted online advertising to engage with younger audiences.
Increased competition: The fast-food market in India is expected to remain highly competitive, with domestic and international players vying for market share. Companies must continuously innovate and differentiate themselves to stay relevant in this crowded landscape.
Impact of the fast food chain on India
India has seen a significant impact from fast food franchises. They have boosted economic development, brought about convenience, and produced jobs. They have, however, also been connected to health problems because of their frequently harmful goods. The prevalence of Western fast food can put established eating customs in jeopardy. Environmental waste and the level of local cuisine rivalry are issues. India’s future depends on balancing the comfort and economic advantages it provides and the health and cultural issues it presents.
Real estate impact of fast food companies in India
The expansion of fast-food companies in India has significantly influenced the real estate market. As these chains establish new outlets, there’s a notable demand for commercial spaces in urban areas, especially in high-traffic locations.
This has increased rental rates in prime areas and boosted demand for retail properties. Furthermore, the presence of popular fast-food brands can enhance foot traffic, benefiting nearby businesses and contributing to the overall vibrancy of neighbourhoods. As the fast-food sector continues to grow, its impact on commercial real estate will likely be profound, driving further development and investment in urban landscapes.
Housing.com POV
The fast-food industry in India has transformed dramatically, integrating global trends with local tastes and preferences. This blend of flavours has created a dynamic and accessible dining option for many, catering to diverse demographics. While the growth has been impressive, the challenge remains for these brands to address health concerns associated with fast food. As the sector continues to evolve, it will be interesting to see how it balances convenience and nutrition, shaping the future of dining in India. The ongoing expansion signifies a thriving market and a changing culinary landscape, reflective of our modern lifestyles.
FAQs
What are some popular fast food chains in India?
Popular fast food chains in India include McDonald's, Domino's, KFC, Subway, Pizza Hut, Burger King, and many local brands like Faasos and Haldiram.
Are there vegetarian options available at fast food chains in India?
Yes, most fast food chains in India offer various vegetarian options, including veggie burgers, pizzas, wraps, and sandwiches, to cater to the diverse dietary preferences of the population.
Do fast food chains in India offer regional or local flavours?
Many fast food chains in India adapt their menus to incorporate regional flavours and ingredients, providing a taste of local cuisine alongside their regular offerings.
Are there healthy choices available at fast food chains in India?
Some fast food chains offer healthier options such as salads, grilled items, and wraps with lean proteins and fresh vegetables. However, it's essential to check the menu for these choices.
Are there vegetarian or vegan fast food options in India?
Yes, vegetarian and vegan fast food options are available in India, including plant-based burgers, wraps, and pizzas, to cater to the growing demand for vegetarian and vegan food.
Do fast food chains in India offer delivery and online ordering services?
Yes, most fast food chains in India offer delivery and online ordering services through their websites or mobile apps, and they often partner with food delivery platforms like Swiggy and Zomato.
Are fast food chains in India open 24/7?
Not all fast food chains in India are open 24/7. Operating hours may vary by location and city, so checking with the specific outlet is advisable.
What measures do fast food chains take to maintain food safety and hygiene in India?
Fast food chains in India are required to adhere to food safety and hygiene regulations. They typically have strict quality control and training programs to ensure the safety and quality of their food.
How can one find the nearest fast food chain outlet in that particular area?
Customers can use the official website or mobile app of the fast food chain, or customers can search on popular food delivery platforms to find the nearest outlet in your area.
Do fast food chains in India offer discounts and loyalty programs?
Many fast-food chains offer discounts, combo deals, and loyalty programs to attract and retain customers. Check their websites or apps for the latest promotions and offers.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
