Indians Prefer Ordering In Over Dining Out

According to a report by the National Restaurant Association of India, the average Indian consumer orders food 4.2 times a month but dines out at a restaurant only 3.7 times. Consequently, while the average monthly expenditure on food delivery is ₹1300, the spending on dining out is less than ₹1,000.

Nitin Saluja, founder of the restaurant chain Chayod, clarified, "This doesn't mean that ordering in is replacing going out events. It just shows that all of us are cooking at home fewer times than before and choosing to order in."

During the report's launch, the restaurant association proposed several recommendations to the government, including permitting 24-hour operations in major cities with active night lives, enabling input tax credit for goods and services tax for the sector, recognizing it as an industry, and creating a dedicated food services ministry.

The report estimates that India's food services market is currently valued at ₹5.7 lakh crore, growing at a compound annual growth rate (CAGR) of 8.1%.

Kabir Suri, President of NRAI and Co-Founder & Director of Azure Hospitality, commented, “Despite the setbacks during the COVID-19 pandemic, the Food Service Industry in India is experiencing rapid growth. The sector directly employs 85.5 lakh people and contributes ₹33,809 crore to the Indian Exchequer. The post-COVID recovery highlights the resilience of the industry, emphasizing the need for the Government to recognize its socio-economic impact and take immediate steps to unlock the sector’s full potential.”

Earlier this year, data showed that households from urban elite backgrounds spent nearly 50% of their monthly food budget on packaged food, dining out, and food delivery services in FY23, compared to 41.2% a decade ago, according to the Ministry of Statistics and Programme Implementation (Mospi) and ICICI Securities.

This data indicates a significant decline in home cooking among Indians over the past ten years, evidenced by increased spending on dining out and processed foods. This trend is expected to continue, driven by the growth of rapid commerce and food delivery apps, rising incomes, and changing culinary preferences, as noted in a report by the Economic Times (ET).

Additionally, Mospi data revealed that "spending on dry fruits has risen to 1.3% of total household expenditure from 0.8% a decade ago in urban areas, and 1.2% from 0.6% in rural households, another sign of rising incomes and aspirations."