In a post-pandemic resurgence, the food services industry is experiencing a revival marked by a flurry of mergers and acquisitions (M&A), investments, and funding activities. The hiatus of more than two years induced by the pandemic is now giving way to heightened activity, with the sector witnessing an influx of global brands and renewed investor interest driven by younger consumers with increased spending capacity, according to industry insiders.
Speciality Restaurants, the operator of Mainland China and Oh! Calcutta, is reportedly in advanced talks for its first set of acquisitions. Anjan Chatterjee, the chairman of Speciality, revealed that the company has earmarked Rs 125 crore for M&As in the current calendar year. Meanwhile, Rebel Foods, the owner of Faasos and Mandarin Oak, is gearing up for an initial share sale, positioning itself as the first cloud kitchen company to go public.
Rohit Aggarwal, director at Lite Bite Foods, emphasized the pivotal role played by India’s young population in driving the growth of the food services sector. He highlighted the data indicating increased dining-out and ordering habits among the younger demographic. Aggarwal further shared Lite Bite Foods’ ambitious plans to double its network of restaurants from the current 200 within the next 3–5 years.
Despite inflationary concerns and heightened competitive intensity, the positive consumption outlook remains strong. Chatterjee of Speciality Restaurants underscored the sector’s high growth potential, citing socio-economic factors such as the rise in nuclear families with higher incomes and a preference for established brands, a trend that gained momentum during the pandemic and continues to thrive.
Sagar Kochhar, co-founder of Rebel Foods, expressed optimism about the growth trajectory of their category-leading brands, expecting 20–25% growth in 2024. The company, which also operates the food court format EatSure, is accelerating expansion across its brands, with plans to open 100 offline stores in the next two years.
Several other major chains, including Impressario Handmade Restaurants and Massive Restaurants led by Zorawar Kalra, are either in the process of public listings or expanding. Wow! Momo Foods recently secured ₹350 crore in its largest-ever fundraise from Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia. Sagar Daryani, co-founder of Wow! Momo Foods, revealed plans to utilize the fresh capital to expand to 100 additional cities with over 1,500 stores in the next three years, from the current 630 stores across 35 cities.
In a January report, consulting firm Wazir Advisors highlighted the outpacing growth of India’s organized food services sector over the unorganized sector. This growth is driven by the influx of new brands and robust investor interest.