With the daily life of working couples getting very hectic we see a rise in eating out and home delivery of food in India. The Indian Quick Service Restaurant (QSR) industry is considered to be around $1.6 Billion. The QSRs are growing at 20% per annum in India.
Some interesting stats related from today’s Economic Times (February 15, 2015),
- India’s food market is pegged at $14 billion, negligible portion is online
- Below 10% of India’s food industry is organized
- 52% of restaurants don’t offer home delivery in India
- Average food delivery time in India today is 50 minutes
- 30% of all restaurants shut int he first year of operation (it costs Rs 25-30 lakhs per month to operate a fine dining restaurant in urban India)
- 60+ online food companies founded in 2014 alone
- India has 15 online-only restaurants
- Well funded Zomato has not stopped 18 restaurant discover startups to plunge into this space (source Traxn)
- Orders from mobile apps constitutes a healthy share of the total orders (as high as 50% for Zomato)
Home delivery or takeaway orders placed online by country
- Denmark: 40%
- US: Over 25%
- India: Well below 10%
Food Ordering Pattern on JustEat in India
- 80% of the Indian food industry is for Indian cuisine. 20% is for international cuisine like pizza, burgers, sandwiches etc.
- 60% of dishes ordered on Justeat are vegetarian.
- In Tier 1 cities consumer on an average orders food once a week. The average ticket size is Rs.350-400.
- 90% of orders on Justeat are paid online.
Top Players in Online Food Market
Food players mentioned in the article,
- Fresh Menu – online only restaurant, Bangalore only.
- Hola Chef – 6,000 orders in Feb 2015, Mumbai only.
- Hopping Chef – curated meals by top chefs, Mumbai only
- TinyOwl – Mumbai, Powai
- Yumist – Gurgaon only
I came across NutriTown today, a Bangalore based online food store that delivers food endorsed by nutritionists.
Acquisitions in Online Food Market
Recently it was heartening to read about the acquisition of JustEat, they operated out of Oneindia office during their early days. Always happy to see when people you know get an exit.