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Indian food-service industry becoming increasingly diverse
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Wednesday, 16 September, 2026, 08 : 00 AM [IST]
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Anurag More, Mumbai
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India’s food-service market is expected to offer significant opportunities over the next three to five years, particularly for restaurant brands with a clear identity and a strong understanding of their target consumers, according to Anirudh Kheny, Founder and Managing Partner, Keen Mustard Ventures (KMV).
Kheny said the market is becoming increasingly diverse, with consumers seeking different dining experiences for different occasions. He believes the opportunity lies not in opening restaurants merely to expand outlet numbers, but in developing differentiated brands with a clear purpose that can operate independently while being part of a larger hospitality platform.
He said restaurant operators should also look beyond specific formats such as premium casual dining, neighbourhood restaurants, experiential bars, gourmet QSRs or delivery-led models. According to Kheny, the key consideration should be whether a format genuinely understands the occasion it is designed to serve. KMV’s portfolio spans multiple formats, reflecting the view that there is no single formula that can address every audience.
Kheny expects dining behaviour in India to increasingly focus on the overall experience rather than food alone. Restaurants are becoming spaces where consumers spend time, socialise, celebrate and meet, making food, design, service and ambience equally important components of the proposition. He said the ability to give customers a reason to return is a stronger measure of a restaurant brand’s success than simply attracting customers during the opening phase.
On evaluating the viability of a restaurant concept or location, Kheny said both the business idea and financial fundamentals need to be assessed. Location, target audience, positioning, commercial viability and the ability to generate repeat visits are among the factors he considers before taking a decision. He emphasised that a strong restaurant concept must connect with consumers while also making commercial sense.
Data and technology, he added, have an important role in supporting operational and business decisions, although they should not overshadow the guest experience. With an analytical approach, Kheny said KMV focuses on using information, processes and standards to improve consistency as the business scales. Serious Slice, for instance, follows detailed protocols covering fermentation, portioning, training and baking to maintain consistency across operations.
Rising rentals, staffing costs and raw-material prices remain major challenges for restaurant operators, but Kheny believes profitability ultimately depends on how effectively the different elements of the business work together. A strong food concept alone is not sufficient if operations, staffing and execution are unable to support it. Restaurant businesses therefore need to establish a clear proposition and appropriate systems from the outset.
Kheny also highlighted repeat business as one of the most important indicators of a restaurant brand’s health. While a new outlet can attract customers through the novelty of its launch, sustained success depends on whether customers continue to return once the initial excitement has faded.
He said investments in interiors, design, service and guest experience need to be viewed alongside unit economics. These elements are integral to creating a compelling restaurant proposition, but every investment should have a clear purpose. The food, space and service should collectively communicate a consistent brand story while ensuring that the underlying business remains financially sustainable.
According to Kheny, identifying market gaps does not necessarily begin with finding an underserved cuisine or restaurant format. Instead, he looks at consumer behaviour, how people spend their time and the occasions for which they seek particular experiences. KMV currently operates six brands — Serious Slice, Heyou, Daysie, Suzy Q, 1Q1 and Quarter House — each targeting a distinct audience and possessing its own personality. The central question, he said, is whether there is a genuine reason for a new concept to exist.
As restaurant companies expand, maintaining the personality of individual brands can be challenging. Kheny said systems and processes are essential for ensuring consistency, but these should not eliminate the character that differentiates a brand. KMV aims to establish processes around aspects that require standardisation while allowing individual brands to retain their distinctive identities.
He identified falling in love with an idea without adequately assessing the business behind it as one of the common mistakes made by first-time restaurant entrepreneurs. Restaurants involve multiple interconnected elements, including finance, people, operations, food, design and service, and these need to work together effectively. He also cautioned against equating a successful opening with a successful restaurant, noting that the real test is the ability to consistently deliver the promised experience and encourage customers to return.
Looking ahead, Kheny said KMV’s growth strategy will focus on building strong brands rather than simply maximising outlet numbers. The company aims to expand while preserving the qualities that make each concept distinctive. Over the next five years, he said success would mean having a portfolio of independent, recognisable brands with clear identities that consumers continue to choose and return to.
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