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QSR industry rapidly expanding to Tier II and Tier III markets
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Friday, 24 July, 2026, 08 : 00 AM [IST]
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Anurag More, Mumbai
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Indian consumer market is undergoing a significant transformation, fuelled by robust economic growth, rising disposable incomes and increasing digital adoption. According to an Ambit research report, India's GDP per capita is expected to grow by nearly nine per cent annually through 2030, while the country's internet user base is projected to cross one billion by 2029. These trends are reshaping consumer preferences towards convenience, quality and digital-first experiences, making affordable lifestyle choices more accessible across urban and emerging markets.
The Quick Service Restaurant (QSR) industry has emerged as one of the biggest beneficiaries of this shift. Once concentrated largely in metropolitan cities, QSR brands are now expanding aggressively into Tier II and Tier III markets, driven by the rapid adoption of online ordering, mobile applications and growing demand for branded, convenient dining options. Supported by India's expanding gig economy, rising workforce participation and urbanisation, the food services sector is becoming an important contributor to employment and economic activity. As online and offline food delivery continues to gain momentum, the country's consumer discretionary sector is poised for sustained growth.
The QSR segment today accounts for the largest share of India's restaurant industry, having evolved from traditional street food stalls and neighbourhood eateries into organised, technology-enabled dining formats.
Commenting on the industry's evolving landscape, Pankaj Sharma, Director, Sandwizzaa, said that the biggest challenge for QSR operators is balancing rapid expansion with sustainable profitability. He noted that increasing rentals, manpower costs, food inflation, delivery platform commissions and heavy discounting continue to put pressure on outlet economics. Maintaining consistency in taste, portion sizes, hygiene standards and customer service across multiple locations also becomes increasingly challenging as brands scale.
Highlighting the opportunity for homegrown brands, Sharma said companies like Sandwizzaa possess a strong understanding of local tastes, eating habits and customer expectations. He added that the company's objective is to build a professionally managed and scalable business while preserving its local relevance. Drawing on over four decades of customer trust, Sandwizzaa aims to take its signature flavours and products to new markets while continuously enhancing customer experience and operational systems.
Outlining the company's growth strategy, Sharma said Sandwizzaa plans to strengthen its presence across Mumbai and the Mumbai Metropolitan Region before entering Pune as its next key market over the next three to five years. Expansion will continue through company-owned outlets, with a combination of dine-in cafés, compact stores and delivery-focused formats selected according to local market requirements. He emphasised that the company will prioritise profitability and operational consistency over aggressive outlet expansion.
Explaining the company's site selection strategy, Sharma said Sandwizzaa evaluates multiple factors including residential and office density, customer demographics, food consumption patterns, delivery demand, competitive intensity, rental costs and the performance of other food brands within the catchment area. The outlet format is then customised to suit the specific market, ensuring both customer potential and long-term financial sustainability.
On the role of technology, Sharma said Sandwizzaa leverages integrated point-of-sale systems, food aggregator platforms and customer relationship management (CRM) tools to monitor outlet-level sales, product performance, average order value, customer behaviour, online reviews and complaints in real time. While technology provides greater operational visibility and enables faster corrective action, he stressed that consistency ultimately depends on standardised recipes, employee training, quality control measures and disciplined operating processes.
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