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Summary:

According to Macquarie Equity Research, the Indian restaurant industry has been experiencing steady growth, with a notable acceleration in December. This growth is driven by rising discretionary spending, changing demographics, and increased female workforce participation. Higher per capita incomes, smaller household sizes, and a decreasing dependency ratio all contribute to a favorable environment. The report focuses on value offerings and cost control to stabilize same-store sales growth (SSSG) and boost profitability.

 

International brands are gaining an advantage over local players due to their broader appeal and ability to operate in lower-rent locations, improving unit economics, particularly in high-rent areas. Macquarie anticipates support from the upcoming Union Budget, which may include tax cuts for lower- and middle-income households, increasing discretionary income and accelerating the sales recovery. The research is optimistic about the long-term success and expansion of multinational brands.

 

Source: IBEF

 

Disclaimer: The information on this website comes from the India Brand Equity Foundation (IBEF), a reliable source for thorough insights into numerous areas of the Indian economy. While we aim to offer accurate and up-to-date information, the views, opinions, and analyses stated herein are solely those of the authors and contributors and do not necessarily represent IBEF's official stance or position. Readers should check information from credible sources and use their own discretion when relying on content provided on this site. We assume no responsibility or liability for the supplied content, including its accuracy, completeness, and usefulness.

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