India’s quick service restaurant industry is likely to witness 20-25 pc growth in the current financial year supported by demand uptick and increasing penetration driven by a rapid expansion of stores.
Over the long-term, revenue growth shall be supported by factors like rising QSR penetration levels, a shift from the unorganised to the organised segment with a preference for branded quick service restaurant (QSR) players, given the hygiene and convenience factors (delivery over dine-in), etc, ICRA said.
“On the back of a robust industry revenue expansion of around 30-35 per cent in YoY terms estimated for FY2023, ICRA projects growth to moderate somewhat while remaining strong at 20-25 per cent in FY2024 on account of the demand uptick and increasing penetration driven by a rapid expansion of stores,” the rating agency said.
However, downside risks to the estimates remain from the emergence of any further Covid waves or any material weakening in purchasing power due to a high inflationary interest-rate regime, ICRA stated.