The financial capital has pipped the national capital to become the largest organised food service market in the country. A recent report by the National Restaurant Association of India (NRAI) has pegged the market here at Rs 40,880 crore compared to Delhi's Rs 31,132 crore in the year 2018-19.
"Mumbai metropolitan region's market, trailing Delhi's for a long time, is now leading Delhi by 31%. It's brilliant to see it has grown to almost 10% of the national market worth Rs 4,23,865 crore in the period under review," said Anurag Katriar, executive director and CEO, DeGustibus Hospitality.
The coastal metropolitan's food service industry employs 4,28,358 people, 42% higher than Delhi-NCR's 3,01,715. "The figure doesn't include employment opportunities generated in allied sectors," said Katriar, who heads NRAI's Mumbai chapter.
Incidentally, Mumbaikars dine out or order in less than Delhiites do, yet they spend more on it.
A citizen here eats non-homecooked food over four times a month compared to a Delhi denizen's six times. The Delhiite also outscores the Mumbaikar when it comes to eating out: 4.5 times a month against 2.9 times. But a Mumbai household spends Rs 2,890 a month while in case of Delhi it is Rs 1,381.
Both, however, prefer affordable casual diners followed by quick service restaurants. And while Mumbai orders South Indian cuisine the most, Delhi, of course, goes for North Indian food, but both like Italian and Chinese.
Speaking to DNA Money, Rajeev Matta, chief executive officer, SK Restaurants, a chain started by celebrity chef Sanjeev Kapoor, said millennials is why Mumbai is taking the lead. "Consumption has definitely gone up because of millennials, who don't need an occasion to eat out and keep exploring different concepts that are mainly bar-related. That's why consumption of beverages, mostly alcoholic, has also gone up significantly."
Then, there is home delivery which has grown by leaps. "This is evident from the phenomenal growth of the likes of Zomato and Swiggy," said Matta.
When it comes to staff remuneration, Delhi pays better wages: Rs 538-652 a day compared to Maharashtra's Rs 343-400, depending on the location. And this may have something to do with how unorganised the sector is in Mumbai.
Mumbai has 87,650 food outlets, but the restaurants in the organised segment account only for about 32%. This is worrying for an industry the size of this.
"This is where we are seeking government intervention. With ease of doing business and other norms coming in, we hope the number of organised players grows significantly, as 32% is not the real reflection of how Mumbai eats out. I see no reason why someone like a Shiv Vada Pav operator cannot become a part of the organised sector. I think we can soon achieve that as well," said Katriar.
The size of the unorganised food sector in India is estimated to be Rs 2,75,512 crore, while the organised sector is at Rs 1,48,353 crore. The latter is expected to grow at a compound annual growth rate of 15% to reach Rs 2,57,907 crore over the next three years.
Capital Shift
- Mumbai’s food service market, which had long been second to Delhi’s, is now biggest in country
- A Mumbai household spends Rs 2,890 a month on eating out compared to Delhi’s Rs 1,381
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