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Organised QSR sector expands as digital adoption accelerates
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Thursday, 06 August, 2026, 08 : 00 AM [IST]
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Anurag More, Mumbai
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India's QSR market is projected to grow from US$ 27.80 billion in 2025 to US$ 30.37 billion in 2026, before reaching US$ 47.28 billion by 2031, registering a CAGR of 9.26 per cent during 2026-2031, according to Mordor Intelligence. The growth is being driven by changing urban eating habits, increasing digital adoption and the expansion of organised foodservice across the country.
Digital ordering has become a key growth engine, accounting for nearly 70 per cent of transactions at leading pizza chains, while food delivery platforms such as Zomato reported 30 per cent annual order-volume growth through Q2 FY2025. Industry growth is further supported by lower customer acquisition costs through aggregator platforms, increasing menu localisation by international and domestic brands, and a young consumer base. Generation Z, which contributes around 40 per cent of QSR spending, continues to influence purchasing decisions through social media engagement and demand for experiential dining.
Pankaj Sharma, Director at Sandwizzaa, believes India's quick-service restaurant (QSR) industry is poised for sustained growth despite rising operational costs, with homegrown brands well-positioned to capitalise on evolving consumer preferences through localisation, technology adoption and disciplined expansion.
However, Sharma noted that maintaining profitability remains one of the sector's biggest challenges.
"The biggest challenge is balancing growth with profitability. Rentals, manpower costs, food inflation, delivery commissions and discounting continue to put significant pressure on outlet economics. At the same time, maintaining consistency in taste, portion sizes, hygiene and service standards across multiple outlets becomes increasingly challenging as brands expand," he said.
Highlighting the strengths of domestic brands, Sharma said local players enjoy a competitive advantage because of their understanding of regional tastes and customer preferences.
"Homegrown brands understand local tastes, eating habits and customer expectations deeply. The opportunity lies in building scalable businesses without losing that local relevance. For Sandwizzaa, it means taking four decades of customer trust, familiar flavours and signature products into new markets while continuously improving our formats, systems and customer experience," he added.
Looking ahead, the company plans to strengthen its footprint in western India through measured expansion.
"Our focus is to deepen our presence across Mumbai and the Mumbai Metropolitan Region while entering Pune as our next market. We will continue to expand through company-owned outlets, adopting a mix of dine-in cafés, compact stores and delivery-led formats depending on the location. Growth will remain measured, with profitability and operational consistency taking priority over outlet count," Sharma said.
On selecting new outlet locations, Sharma explained that the company follows a data-driven approach.
"We evaluate residential and office density, customer demographics, food consumption patterns, delivery demand, competition, rental costs and the performance of other food brands in the catchment area. The outlet format is then selected based on the local market. Every location must offer strong customer potential along with a sustainable path to profitability," he said.
Technology has also become central to maintaining operational consistency across Sandwizzaa's growing network.
"Our point-of-sale, aggregator and CRM platforms enable us to monitor outlet-level sales, product mix, average order value, customer behaviour, online performance and customer complaints. This provides greater visibility and allows us to take corrective action quickly. While technology supports consistency, it must be backed by standardised recipes, robust training, quality checks and disciplined operating processes," Sharma concluded.
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