Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. Trends are very important and DFIPL is well positioned for the current interest in lighter, healthier foods at moderate to low prices.
The food service business is the third largest industry. It accounts for over Rs. 32000 billion annually in sales. The independent restaurant accounts for 15% of that total. The average Indian spends 10% of his/her income on meals away from home.
This number has been increasing for the past ten years.In the past five years the restaurant industry has out-performed the national GNP by 40%. The reasons are
There are 600 new restaurants opening every month and over 200 more needed to keep pace with increasing demand.
Besides, interest by several private equity firms to invest in the restaurant space is likely to boost the sector. The most recent private equity deal concluded was for Coffee Day Holdings, where three PE major New Silk Route, KKR and Standard Chartered private equity invested around Rs. 800 crore for around 25% stake in the company.