Endless Opportunities for Business Houses Planning to Enter the Indian QSR Segment

The Indian Quick Service Restaurant (QSR) industry is flourishing with a bundle of opportunities. The industry has evolved as a vibrant and high-potential sector within the Indian food retail market. QSRs have grown into more than simply fast-food restaurants & cafes, with a healthy mix of both international and domestic brands. 

They are becoming a way of life due to rising urbanization, increased disposable incomes, a young population, and rise in food delivery apps & platforms. The market is expected to expand at a CAGR of 8.74% to reach USD 38 billion by 2029. 

There has been a significant shift in the QSR industry in the last few years. In response to changing eating habits, businesses have expanded their menus beyond classic burgers, pizzas, fries and soft drinks. There has been a rising demand for salads, vegan alternatives, smoothies, bakery items, subs, and local specialties including regional delicacies & street foods. 

Big brands are no more just limited metros but aggressively penetrating in the Tier 2 & 3 cities, either on their own or through franchises. Independent quick-service restaurants are also emerging in these smaller cities. Many of them are expanding faster than established chains by offering price-sensitive menus and customized experiences. There is also visible pick-up in technologically driven innovations, long-term loyalty programs, smaller formats such as self-order kiosks & express outlets, real-time tracking, inventory tracking software, etc. 

This expansion is further being driven by several major factors like a shift toward convenience-driven eating, development of cloud kitchens and the rising spending capacity of Indian customers. Hence, India's QSR sector has transformed into an alluring destination for investors, business owners, and foreign brands looking for scalable prospects.

Outlook on Key Players and Major Cuisines in the Indian QSR Segment:

India’s QSR market is richly diverse, with multiple cuisine segments catering to varied tastes and price points. Here are some prominent cuisines in the Indian QSR market and major players across each vertical:

Ø Bakeries & Snacks: This market thrives on consistent demand for sandwiches, pastries, savory snacks, and confectioneries. The vertical leads in both volume and coverage, with more than 2,000 organized bakeries and lakhs of unorganized eateries. Well-known brands include Nirula's (77 locations, primarily in the NCR), which offers fast food, ice cream, and Indian-Western fusion from a "Desi QSR" perspective. With a combination of high-quality baked goods, delivery integration, and café-style formats, promising businesses like Theobroma (100+ outlets), Karachi Bakery, 7th Heaven, and Bakingo are also gaining popularity. These ventures provide dine-in and takeaway options along with taking advantage of both festive and everyday consumption trends. The classic bakery business is being transformed into a contemporary, scalable QSR category with its emphasis on quality, freshness, and brand identification.

Ø Pizza Segment: With a significant 18.1% market share in 2024, pizza has established a significant niche in India's QSR industry. Its capacity to accommodate Indian tastes and broad appeal among urban millennials accounts for the rising popularity. Domino's leads the market with more than 2,200 locations across 450+ cities. The brand's success is attributed to its digital-first approach, which generates over 70% of purchases. Additionally, a new wave of pizza companies is using creative formats to transform the market. With more than 150 locations, Chicago Pizza caters to foot traffic and impulsive eating with its reasonable pricing and mall kiosks. Using digital platforms and cloud kitchen networks, Oven Story Pizza delivers high-quality and cheese-rich pizzas. Similarly, MOJO Pizza is also expanding throughout metro and Tier 1 cities by emphasizing thick toppings and youth-focused branding.

Ø Burgers & Meat-Based Formats: The burger and meat-based QSR category in India accounts for around 14% of the market. The country has a mix of domestic and international brands thriving in the market. For instance, McDonald's has 500+ outlets whereas KFC rules the vertical with more than 1,000 locations. Burger King is growing quickly due to its affordable pricing and value-driven cuisine and boasts over 400 outlets across the country. American giant Wendy's is also modifying its standard menu to suit Indian preferences by experimenting with cloud kitchens and delivery-first arrangements. Domestically, Wat-a-Burger and Burger Singh are becoming more well-known in Tier 2 and Tier 3 cities with their desi fusion burgers. The meat-based and burger vertical is popular among young people and families because of its adaptability, affordability, and extensive customization options.

Ø Ice Cream & Frozen Desserts: The ice cream and frozen desserts category, which makes up 16% of India's QSR market, benefits greatly from family meals, impulsive buying, and high store exposure. Particularly in North India, consumers have a strong sense of confidence in traditional brands like Amul and Nirula's. Regional leaders like Natural's keep attracting customers with their nostalgic charm and fresh, fruit-based menus. With more than 800 locations, Baskin-Robbins is growing gradually through high-end mall and high-street placement and franchising. Delhi-based GIANI's, which has more than 200 locations, attracts a varied audience by combining traditional Indian sweets with Western-style ice creams. Hence, seasonal demand peaks, changing tastes, and rising disposable income make this vertical a reliable performer with cross-format scalability possibilities.

Ø Other QSR Formats: Various other QSR categories collectively contribute nearly 19–20% of the market, with their regional innovation and affordability-led appeal. Local snacks have been turned into scalable QSR models exemplified by companies like Wow Momo (600+ locations) and Goli Vada Pav (300+ outlets). New-age players like Rolls Mania, The Belgian Waffle Co. (400+ stores), and The Good Bowl (Rebel Foods) are scaling through cloud kitchens and franchise-led models. This vertical continues to draw customers from both metro and non-metro areas due to its high flexibility, cheap capital expenditure, and regional resonance.

 How The India Watch can Help

If you are business house or an entrepreneur looking to the enter the QSR and the wider F&B business in India, The India Watch can help you with tailor made market insights and research. Our scope of services includes but aren’t limited to the following 

 · Market research studies and surveys to map consumer behaviour insights

· Tailor-made insights on industry size, addressable market size, value chain analysis, growth strategy, competitive inputs, raw material sourcing, etc. 

· Insights and inputs on supply chain, branding and marketing, targeting and positioning, etc.

· Feasibility study reports and business plan presentation

· Strategic market insights and growth planning 

For any further inputs, please feel free to drop us a mail at info@theindiawatch.com