Fast food chains buck Indian trend

Fast food spending in India is soaring.

The annual national spend on fast food restaurants in India’s second and third tier cities increased by 108 per cent, thanks to consumers’ need for convenience, increased appetite and insatiable hunger for international food.

According to The Associated Chamber of Commerce and Industry of India secretary general D S Rawat, the trend is propelled by factors such as changing economic and demographic profiles of consumers, exposure to global media and cuisine, and an increase in the annual spending of middle class households.

“More than 65 per cent of the population is aged less than 30 years and are exposed to international brands. Considering a large portion of customers are youth, this remains a key growth driver too. It is one of the sector that has managed to grow even during the economic slowdown,” adds Rawat.

With increased competition and cost of operations in the metros and first tier cities, a number of second tier and third tier cities may offer better growth prospects for players across sectors, driven by factors such as favourable demographics, infrastructure growth and higher disposable income driven by both strong economic growth and government support through various employment schemes, it says.


The report also says the growth in nuclear families, particularly in urban India, and an increasing number of women joining the workforce have had an impact on dining out trends.

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