Buoyed by strong demand uptick, India's QSR segment expected to grow by 20-25% in FY24, eyes tier-2 and 3 cities

India's Quick Service Restaurant (QSR) sector is gearing up for a robust growth trajectory in the fiscal year 2024, driven by a strong uptick in consumer demand.

According to a report from credit rating agency ICRA, domestic QSR industry is expected to grow by 20-25 per cent in FY2024.

The segment is witnessing a robust revenue expansion of about 30-35 per cent in year-on-year (YoY) terms estimated for FY2023, it added. The segment is also witnessing increasing penetration to Tier 2 and Tier 3 cities which is mostly driven by capital expenditure and rapid expansion. 

With renewed consumer confidence and a growing preference for convenient dining options, QSR chains are gearing up for an exciting opportunity and hopping on the trend like the leading QSR food franchise in Gujarat - Ajay's. "We are delighted to open our first flagship COCO outlet in Ahmedabad, In addition to our currently operational 12 franchise outlets in the city.  Ajay’s is built on the pillars of high-quality but value-for-money food. We will redefine the QSR landscape in Ahmedabad,” said the Solanki brothers Jai and Ajay, Founder Directors - Ajay’s Good Food Pvt. Ltd.

QSR chains are increasingly focusing on the emerging markets, tapping into the growing disposable income of residents. Ajay’s is one of the fastest-growing QSR chains in India which recently announced its first flagship Company-Owned Company Operated (COCO) outlet in Ahmedabad, the financial capital of Gujarat. 

Despite the optimistic outlook, the QSR segment still faces challenges such as rising input costs, competition, and the need for maintaining high-quality service standards. Since launching its first outlet in Navsari on 17th August 2014, Ajay’s has been on a mission to serve food that is good, affordable and accessible to all. With over 150 outlets in 42 cities, Ajay’s has ensure quality and customer satisfaction which has helped the company grow exponentially in terms of capex and revenue. 

India's QSR industry is gearing up for a remarkable year of growth, driven by increased demand and a strategic focus on expansion. With the right strategies in place, QSR chains are poised to tap into the growing appetite of Indian consumers for convenient and varied dining experiences.