Organised QSR Players On A Strong Growth Wicket Despite Margin Concerns: Yes Securities

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Aggressive expansion plans laid out by all the organised quick service restaurant players in India indicates the QSR industry is poised for exponential growth trajectory driven by a structural increase in consumer preference for online food ordering.

The superior experience that consumers realize from online ordering through apps and seamless websites to quick delivery are key drivers for the double‐digit growth in the food service industry.

The overall industry is poised for a 15% compound annual growth rate with organized QSR segment expected to grow at a robust 23% CAGR over FY20‐FY25, which would make it one of the fastest growing industries in the current economic landscape.

The Covid‐19 pandemic seems to have added rigour to growth plans as companies have embarked on a 10‐15% annual footprint expansion, updating product offerings as well as adding innovative menu offerings to stay competitive.

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