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November 25, 2022

The Indian food and beverage (F&B) industry, which reopened after the shocks of the pandemic, is gearing up for good business. After two consecutive years of washouts following the Covid-19 pandemic, the industry is poised for rapid growth. Currently, the market size of the industry is Rs 4.5 lakh crore, of which nearly 65 percent comes from the unorganized sector.

Industry experts said the Indian F&B industry is growing at a double-digit compound annual growth rate (CAGR), which is a healthy sign for the industry. The target is Rs 6 billion over the next two years.

According to the Food, Service and Restaurant Business Report 22-23, the restaurant sector is showing new trends that are critical to the success of the sector in the coming years. In general, the industry is in a very disruptive state of affairs and inflation is one of the main operational challenges.

The market value of the restaurant and food service industry, which was over Rs 4 lakh crore, is mainly divided into two segments: the unorganized segment which accounts for the bulk of the market size and the organized sector which grew at a strong rate between 2014 and 2020.

India’s foodservice market was expected to project robust growth at an impressive CAGR of 11.19 percent and reach USD 79.65 billion by 2028. The report noted that the value of chain segment, including quick service restaurants (QSRs) which doubled and saw a 9.3% increase in the value of the global foodservice industry after subtracting the rate of inflation at 4 %.

The unorganized segment includes individuals or families selling ready-to-eat food through vendors, dhabas, food carts, street stalls and more. According to the survey, the takeaway and home delivery segments are witnessing moderate growth following a higher growth rate between FY20 and FY21 as compared to home food segment, which is now growing steadily since FY21.


QSR companies rebounded sharply in 2Q12 due to increased footfall as lockdown restrictions were eased and the pace of the vaccination campaign picked up in the country . The QSR sector grew 67% year-on-year with a 383bp improvement in margins in Q2FY22. It established the chain QSR market as the fastest-growing sub-segment of the foodservice market over the next five years.

“During fiscal year 2025, the chain QSR market is estimated to be the fastest growing sub-segment, 23% CAGR, not only of the chain market, but also of the entire foodservice market” , the Edelweiss report said. The growing trend of eating out in India’s urban cities, across all economic classes, without the need for any special occasion, has increased the demand for QSRs. People are increasingly preferring to eat out as part of their leisure outings or shopping experience. This trend is primarily visible among the 25-40 year old millennial age group.

Also, with increasing exposure to international lifestyles and culture, people have started to develop their tastes and are eating out more often in restaurants to experience different cuisines. In India, foodservice companies are likely to spend 4-6% of their net revenue on marketing, of which 45% is spent on online marketing and digital media.


India’s quick service restaurant (QSR) market is expected to grow at a CAGR of 23% by FY 2025 as major food service chains such as McDonald’s, Burger King and Domino’s, among others, deepen their reach in smaller areas of India. cities and benefit from a younger demographic. The QSR industry is growing at a rapid pace leading to a $134.3 million industry in Tier II and III cities alone.

BIG GROWTH IN 2021-2022

Owing to increased footfall following the unblocking of curbs, QSR businesses rebounded sharply in Q2FY22. The sector grew 67% YoY (YoY) with a 383bp improvement in margins during the second quarter of FY22. It established the QSR chain market as the fastest-growing sub-segment of the foodservice market over the next five years. “During FY2020-25, the chain QSR market is estimated to be the fastest growing sub-segment (23% CAGR) not only of the chain market, but also of the entire foodservice market ,” Edelweiss said in its report. The growing trend of eating out in India’s urban cities, across all economic classes, without the need for any special occasion, has increased the demand for QSRs. People are increasingly preferring to eat out as part of their leisure outings or shopping experience. This trend is primarily visible among the 25-40 year old millennial age group.


New product development strategies and menu themes are now seen in restaurants. New product development will remain a key driver of traffic despite headwinds.

Exploring collaborations: This is based on collaborations between two groups that have synergies and are consumer favorites. Restaurants are pushing the boundaries of brand collaborations in interesting and unexpected places to stand out. For example: For the first time in what is undoubtedly the most epic collaboration of 2022, KFC India is partnering with Nestlé to delight fans with the KFC Popcorn Bowl Made with Maggi.

Product Positioning: Product positioning around health, nutrition, wellness, convenience, local sourcing and sustainability will continue to be favorable to consumers under current conditions. Just like Subway has been our favorite restaurant when it comes to a healthy diet. Keeping in mind the taste of customers, in 2021, Subway India has improved the quality of its protein flavors and revitalized its menu across its 660+ restaurants across the country. With this, Subway aims to provide a healthier and tastier dining experience for its customers.


The focus on protein-based diets is also very big these days. The focus on plant-based proteins continues to grow to cater to the dining out experience for vegans and vegetarians. However, restaurateurs are also adding chicken variety menus through salads and fried chicken. Capitalizing on the plant-based revolution, Starbucks has launched its newest dairy-free addition to its menu at Indian outlets: oat milk. The addition of oats is an extension of the already existing variety of plant-based options such as almond and soy.


Food costs, labor costs and supply chain disruptions are the industry’s main challenges.

Food costs: According to companies in the restaurant supply chain, food costs increased by 38% during the pandemic, with some industry staples. Cost increases are occurring with a variety of food products. According to the Poultry Federation of India (PFI), the cost of egg production has increased by 20-25% this year, while chicken price inflation rose over 20.74% in March 2022, while that overall food inflation in the meat and fish category was 9.63 percent. The new average retail prices of common garden vegetables have now shot up to Rs 120-140 per kg from the earlier Rs 60-80 per metre.

Labor Costs – The human resource structure is the core of the hospitality industry and the labor cost accounts for the majority of expenses in the restaurant business. The percentage of restaurant labor costs to sales averages 22 to 40 percent, and in some cases can be as high as 75 percent. Add to that the potential for minimum wage increases and a still-uncertain future, and restaurant owners will be paying more for staff than ever before.

Supply Chain Disruptions: Supply disruption issues have had a significant impact on the industry. Along with the Covid-19 lockdowns, geopolitical tensions around the world have affected restaurant supply chains, making it difficult for some restaurants to source their normal ingredients affecting raw material prices.


Rajat Agrawal, CEO, Barista: Post-Covid business is back with a vengeance and the take-out and home delivery ratios are up nicely. We would like to compare our business with the pre-Covid period, which shows a strong recovery. Compared to FY21, our business in FY22 grew by 70% and had a similar growth trend in FY23 as well as in FY22.In addition, we gained share market and we have increased our points of presence. There has been attractive real estate and consolidation in the industry as independent coffee shops could not sustain themselves during the Covid era. Barista has opened nearly 100 more stores in the past two years, which includes much of the period that was affected by the pandemic. Today, we operate more than 340 outlets in various cities.

Himanshu Chawla, Co-Founder, Bakingo: The Covid-19 pandemic has affected various industry sectors including tourism and hospitality, food processing and other retail sectors. The restaurant industry has been devastated by this pandemic across the country. Cloud kitchens, delivery apps and home cooks stormed the market in 2020 during lockdowns. This year, restaurants focused more on learning from these trends and developing niche experiences for customer loyalty and international experiences. The entire restaurant industry has improved since the pandemic due to new developments such as cashless transactions, a greater emphasis on health and safety practices and newly improved digital menus. A significant increase in online deliveries has also been a major factor. These developments did not adversely affect the industry, but served as an obvious benefit, resulting in much smoother operations than pre-Covid times.

There have been both positive and negative effects on the restaurant industry, while dining experiences have taken a backseat, online deliveries have been booming. Post-Covid, as the world has slowly started to recover and things are moving towards normalcy, dine-in restaurants have started to make a comeback, while Cloud Kitchens with their home services also continue to thrive.

Is F&B a promising career? Absolutely, the food and beverage industry is one of the best career choices in 2022.

What should I say in a F&B interview?

Let’s get started!

  • What do you like most about working in F&B? …
  • What do you think are the essential qualities to be successful in F&B? …
  • How important is customer service to you? …
  • What makes you the right person for this job? …
  • Why do you want to work in this organization?

How do I present myself at the Careervidz interview?

How do you present yourself at the food and beverage interview? SUGGESTED ANSWER: “I believe that I am a professional, caring, customer-focused and flexible person who enjoys working in a customer-facing role. The experiences I have gained in life so far mean that I will be able to carry out the duties of this food and beverage role to the required standards.

Why should we hire you answer best?

Show that you have the skills and experience to get the job done and get great results. You never know what other candidates are offering the company. But you already know yourself – emphasize your key skills, strengths, talents, work experience and professional achievements that are critical to achieving great things in this position.

Why should I hire you Sample answer? “Honestly, I have all the skills and experience you are looking for. I’m pretty sure I’m the best candidate for this job. It is not only my background in previous projects, but also my people skills, which will be applicable in this position.

Why should we hire you the best freshest answer? “As a fresher, I bring a lot to the table in terms of ability and skill. I am very flexible and adaptable to learn new things, which means I will be able to contribute something capable to the growth of the company. My last project in Operations taught me to be a team player.

Why do we hire you for this job?

As a fresher, I have theoretical knowledge, I am looking for a platform to implement my skills and knowledge. I think yours is a great organization for me and I will give my 100% for the growth of the company. I am the right candidate for you. looking for.


Why are you interested in F&B?

Why did you choose food and beverage service? Sample answer: Because F&B is a dynamic industry that covers a wide range of job roles. From baristas to head waiters, waiters, etc. it is a career with many development opportunities. Also, there is a sure chance to meet and interact with people from different nations.

Why do you want to work in a beverage company? Learn new skills Working in the food and drink industry will enable you to acquire a wide range of skills, including logical thinking, good communication, creativity, teamwork and leadership. If you already have some of these skills, you could be the perfect person in the food and beverage industry!

Why are you interested in this opportunity?

Example: “I am interested in this job because I see that, in this role, my skills could help solve this problem within your company. I also see an opportunity for me to learn and grow these skills, so that all we would both benefit personally, professionally and financially.

Why are you interested in this opportunity answer? â¦â I see this opportunity as a way to contribute to an exciting/forward-thinking/fast-moving company/industry, and I believe I can do that with/with my â¦â â The skills are particularly suited to this position because â¦â “I think I have the kind of knowledge to be successful in this position and in the company because â¦â

Why do you want this opportunity? Focus on the job at hand “I want this job because I have clear skills that will help me achieve…” “This role will give me the opportunity to combine my skills in [skill 1] and [skill 2] to achieve it. …’ ‘I love [job specific task] and my last job took me away from that.

What do you enjoy most about working in F&B?

You have the opportunity to climb There are many specialties to choose from, such as selecting wine, sourcing ingredients and being a chef. Whatever you decide to focus on, there are always opportunities to take on more responsibility, manage other employees, or move into a position at a more prestigious location.

Why do you want to work at Bath and Body Works? Why do you want to work at Bath and Body Works? Say that you love the product and service you’re getting, and that you’ll be proud to represent them. Say that you are a good communicator and that you will enjoy working with clients.

What is the most successful beverage company?


Which drink sells the most? 2021 U.S. Beverage Consumption Share, by Segment In 2021, bottled water accounted for approximately 25 percent of U.S. beverage consumption, making it the most consumed type of beverage that year year. Value-added water and energy drinks were among the least preferred beverages that year.

What is the future of food industry in India?

Customers prefer low waste and ecological ways of consuming food. Even brands have started no plastic and only biodegradable packaging. Increasing demand for gourmet food: Indian consumers shifting their demand from traditional food to gourmet food is the result of significant expansion in the gourmet food market.


Which industry will boom in next 5 years?

The travel industry is poised to grow by more than 13% between 2022 and 2026.

Which industry will grow in 2025? In fact, according to an EY report, India’s agritech market has the potential to reach $24 billion by 2025.