Health Oriented Orders are Growing 2x Overall: Rajat Tuli, Kearney India

India’s quick service restaurant (QSR) industry is on the boil. Valued at $27.8 billion in 2025 and set to grow at a brisk 9.36% CAGR through 2030, the sector is no longer just about burgers, fries, and pizzas, it’s a reflection of how India eats, celebrates, and experiments with food. From hyperlocal delicacies finding space on delivery menus to sushi and Korean BBQ becoming weeknight staples, the QSR market is mirroring the country’s rapidly evolving palate.

But beneath this exciting growth story lie deeper shifts. Young India is stretching mealtimes into new dayparts, Tier-II and Tier-III cities are emerging as hotbeds of opportunity, and health-first orders are doubling the pace of overall industry growth. Technology is not just an enabler but a growth engine, helping brands scale, forecast demand, and engage consumers in entirely new ways.

To unpack these transformations, we spoke with Rajat Tuli, Partner at Kearney in the Consumer and Retail practice, who shares his perspective on the structural drivers, consumption shifts, technological accelerators, and future-defining trends that will shape India’s QSR market in the years to come.

The Indian QSR market is estimated at $27.8 billion in 2025, with a projected 9.36% CAGR to 2030. Beyond urbanisation, rising disposable incomes and the growth of delivery platforms, what other structural and demand-side drivers are powering this expansion?

Growing exposure: Exposure to global cuisines through travel & digital media broadened consumer palate

Socialising & Celebrations: Urban youth prefer dining out for convenience, socializing, & celebrations

Infrastructure Push: Infrastructure growth led proliferation of malls, office complexes, & retail

Innovative Formats: Innovative business models including cloud kitchens, House of Brands (HOB) & QSRs reduced entry barriers

Speed-led quick commerce propositions (e.g., Bolt, Bistro)

What major shifts are you seeing in consumption patterns within the QSR segment? For example, changes in preferred price-points, portion sizes, day-parts, and menu choices?

Considering the day parts, late-night meals have seen the fastest growth, driven by customers seeking indulgent options. For young India, evening snacking has actually become an extension of lunch, and dinner has become late night

India is seeing two exciting frontiers for growth in food services:

Rediscovering India’s Rich Culinary Heritage: From Kashmir to Kanyakumari, hyperlocal delicacies are making their way into mainstream delivery menus. Hyper local cuisines like Goan, Naga, Bihari and Pahari are experiencing much accelerated growth, when indexed to the dominant North Indian & South Indian cuisines

Embracing Global Culinary Diversity Like Never Before: Sushi, tacos, and Korean BBQ are no longer niche—they're becoming weeknight staples for urban foodies and witnessing much higher growth when indexed to say a Chinese cuisine

Health-first is the new norm, with brands focusing on healthy & clean-label ingredients and actively marketing wellness cues e.g. Protein, No added sugar, vegan, low calorie meals etc. Health oriented orders are growing 2x of overall orders.

How is technology accelerating QSR growth today? Which tech investments (cloud kitchens, point-of-sale, order management, AI-driven demand forecasting, loyalty and CRM, last-mile logistics) are delivering the biggest ROI?

All of these technology components are essential to enable consistency of user experience, reduce cost and drive sales growth. What brands need to think about is what technology to deploy at what scale / phase of their growth – which determines the right ROI. While POS, order management and demand forecasting is critical for all – loyalty & CRM implementations deliver better returns when the brand has reached a critical scale.

How do you expect Tier-II and Tier-III towns to contribute to QSR growth over the next 3–5 years? What adjustments should brands make to product, pricing, store formats and distribution to win in smaller cities?

While today’s 90% of the organised market is concentrated in ~100 top cities, many Tier-II & Tier-III cities are witnessing rapid growth and gaining share. From a pros standpoint these cities offer much lower rentals, limited competition and lower cost of workforce. On the cons, connectivity which can have bearing on the supply chain from logistics standpoint and power infrastructure which can increase the utility bill. Availability of warehouses with cold storage and skilled manpower are other challenges. These cities also have more value conscious consumers who value deals, combos and portion sizes and hence brands should think of localised pricing and not simply replicate pricing from metros.

What are the key challenges that could constrain the QSR market in India, and how should operators mitigate them?

The biggest challenge includes the rising operational costs (rentals, labour cost) coupled with supply chain complexity to deliver consistent experience at affordable pricing. Hence operators need to be crystal clear on their value proposition, strategy playbook & unit-level economics by type of city before taking the plunge to expand & scale-up. 

 

Looking ahead, what are the top five trends that will define the Indian QSR industry?

Speed: Quick commerce mindset is reshaping food delivery, with niche brands experimenting with ultra-fast formats

Affordability & Niche Premium: Restaurants are innovating to provide high ‘value for money’ to customers while niche premium is growing across certain cuisines

User Experience & Packaging: Innovative formats and smarter packaging are enhancing dining experiences and building stronger customer loyalty. On packaging there is narrative packaging to narrate food traditions, smart packaging to enable easy spill-free dining, functional designs which are reusable etc.

Consumer Health: Health-first is the new norm, with brands focusing on healthy & clean-label ingredients and actively marketing wellness cues

Engagement: Restaurants are increasingly investing in digital assets to engage with Gen Z. This is through new-age events like coffee rave parties, promoters acting as brand ambassadors for their restaurants/ kitchens, Instragrammable Locations/ Menu etc.