Food Service Industry: Kolkata’s Food Service Sector to Touch Rs 10k Cr in 2 Years

Kolkata: The food services industry in Kolkata is set to touch Rs 10,000 crore in two years. Currently valued at Rs 8,055 crore, the industry is growing at a healthy rate of 15 per cent. “At the current rate of growth and our projections, a five-digit value is not far away,” said National Restaurant Association of India (NRAI) vice-president Sagar Daryani after the release of the NRAI Food Services report on Thursday. His optimism is shared by Hotel and Restaurants Association of Eastern India (HRAEI) president Sudesh Poddar, who believes the growth will be even more spectacular. “With eating out now being a part of weekend entertainment, we will see families eating out more. Like in some South-East Asian countries, eating out will gradually replace home cooking in metropolitan cities and we will see a quantum leap in food delivery,” Poddar said. The average frequency of consuming ‘non-home food’ in the city, including eating out and ordering food home, has already increased to 7.9 times a month. While the average frequency of eating out at a restaurant was 3.4 times a month, ordering food home has a higher frequency of 4.6 times a month. The average spend per restaurant visit is Rs 960. According to the NRAI report, greater Kolkata has as many as 61,305 restaurants, of which 33,718 units are in the organised sector. The latter figure includes 12,830 cloud kitchens that have been set up in the last five-six years. Kolkata ranks seventh among Indian cities in terms of the size of the organised food service market, with the city seeing a four-fold growth in the food and beverage sector between 2010-11 and 2023-24, the fastest growth in a little over a decade. Nationally, the foodservice market is worth Rs 5.7 lakh crore, of which the organised sector accounts for Rs 2.5 lakh crore. Nationally, as well as in Kolkata, casual dining restaurants account for the largest segment, followed by quick service restaurants (QSRs). While casual dining restaurants accounted for Rs 1.2 lakh crore, QSRs contributed Rs 67,560 crore in 2024. Pubs, bars and lounges (PBLs) contributed Rs 21,807 crore. According to Abhimanyu Maheshwari, head of NRAI, Kolkata, Kolkata, Kolkata stands out as a city rich in culinary tradition and innovation. “With over 30,000 restaurants contributing to the organised sector, Kolkata is an example of resilience in the face of licensing challenges, demonstrating our determination to grow and set new standards in the food industry,” said Maheshwari. Fine dining restaurants account for 33% of family dinner outings, followed by quick service restaurants at 21%, casual dining restaurants at 17%, food courts at 12% and cafes at 6%. “We have seen a significant growth in fine dining over the last decade and this trend looks set to continue. As eating out has become a part of regular family outings, we have seen more experimentation with food and fine dining has become the most preferred and popular option,” says Anirban Sengupta, owner of a popular rooftop cafe in south Kolkata.