India Quick Service Restaurant Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Segment Analysis

By Service Type: Delivery Gains Share Despite Dine-In Dominance

In 2025, dine-in services accounted for 48.21% of the market share, highlighting a steady consumer preference for experiential dining. This trend is particularly evident among families and social groups who value ambiance, attentive table service, and the tradition of dining out. Meanwhile, the delivery segment is experiencing significant growth, with a 10.58% CAGR, fueled by urban consumers seeking convenience amid time constraints. Takeaway services occupy a middle ground, appealing to office workers and students who prioritize speed and aim to avoid delivery fees. Delivery services are primarily thriving in metropolitan and tier-1 cities, where dual-income households and long commutes enhance the appeal of home delivery. Conversely, dine-in services maintain their strength in tier-2 and tier-3 cities, where QSR visits are social occasions, and delivery infrastructure remains underdeveloped. Jubilant FoodWorks reported that delivery constituted 70% of Domino's orders in the second quarter of fiscal 2025. 

To counter competition from cloud kitchens, the company is piloting 15-minute delivery guarantees in select areas. However, takeaway services face challenges from both ends. Delivery aggregators offer discounts that erode the cost advantage of self-pickup, while dine-in formats improve their ambiance to justify the time investment. As a result, takeaway services primarily cater to price-sensitive customers and those placing orders while on the move. The strategic focus for QSR chains is clear: they must optimize omnichannel fulfillment by designing kitchens capable of handling dine-in, takeaway, and delivery orders simultaneously. While delivery is expected to drive incremental growth, QSR chains must also address the pressure it places on unit economics.

Note: Segment shares of all individual segments available upon report purchase

By Cuisine: Bakeries Lead, Pizza Accelerates on Value Innovation

In 2025, bakeries accounted for 25.38% of the market share, driven by the rise of café culture, increased snacking occasions, and the premiumization of baked goods. Pizza, on the other hand, was the fastest-growing cuisine, achieving an impressive 11.21% CAGR due to aggressive store expansions, value-meal bundling, and menu localization. Burger chains, supported by the strong brand equity of McDonald's and Burger King, ranked third, although their growth has slowed as the market matures. Ice cream parlors, benefiting from discretionary spending and seasonal demand, experienced steady but modest growth. Meat-based cuisines, particularly chicken-focused formats like KFC, gained traction in non-vegetarian-dominant states but faced challenges in vegetarian-majority regions. Other quick-service restaurant (QSR) cuisines, such as momos, dosas, and regional snacks, represent a fragmented yet rapidly growing segment as regional brands expand beyond their home markets.

Bakeries' market dominance stems from structural advantages: baked goods deliver gross margins of 40-50%, significantly higher than those of savory items. Additionally, baked goods cater to all-day consumption occasions, including breakfast, mid-morning snacks, afternoon tea, and evening desserts. Chains like Theobroma and Monginis expanded into tier-2 cities during 2024-2025, collectively opening 150 outlets. They introduced premium cakes priced between USD 9.60-14.40, targeting gifting occasions and celebrations. Pizza's growth has been fueled by strategic value engineering: Domino's launched "Everyday Value" meals priced at USD 1.19, bundling a personal pizza with a beverage. This initiative increased transaction frequency by 18% among price-sensitive customers while maintaining contribution margins through beverage upsells. Burger chains are encountering saturation in metropolitan areas. McDonald's and Burger King, with a combined 800 outlets in the top 10 cities, are now focusing on tier-2 markets, where brand novelty drives initial trials, though repeat visits remain below metro benchmarks. 

By Outlet: Chains Scale, Independents Exploit Hyperlocal Niches

In 2025, chained outlets accounted for 68.32% of the market share, highlighting their franchise scalability, brand reliability, and access to capital. However, independent outlets are growing at a notable 10.85% CAGR. These regional players effectively cater to hyperlocal taste preferences, benefit from reduced overheads, and demonstrate flexibility in menu adjustments. Chains capitalize on centralized procurement, standardized operations, and nationwide marketing campaigns, advantages that independents cannot match. Meanwhile, independents differentiate themselves through authenticity, personalized service, and the ability to modify recipes and pricing in real time. The competitive landscape is diverging: chains dominate metros and tier-1 cities, where consumers prioritize consistency and hygiene, while independents maintain a stronghold in tier-2 and tier-3 cities, relying on local reputation and word-of-mouth over brand equity.

Chained outlets are driving market-share growth through franchise models that distribute capital risks and accelerate geographic expansion. For example, Jubilant FoodWorks operates 1,900 stores across brands like Domino's and Dunkin', with 80% of these stores franchised. In fiscal 2025, the company added 200 outlets, focusing on tier-2 cities where real estate costs are 40% lower than in metros. Similarly, Westlife Foodworld, which follows a company-owned model for McDonald's, opened 50 stores in fiscal 2025. The company also invested in technology, such as self-order kiosks, mobile ordering, and kitchen automation, which collectively reduce labor costs by 15% and enhance order accuracy. On the other hand, independent outlets face structural challenges, including limited access to institutional capital, fragmented supply chains, and exposure to regulatory audits. However, they mitigate these disadvantages through niche positioning: Goli Vada Pav targets the INR 30-50 (USD 0.36-0.60) price range with street-food-inspired offerings, Saravana Bhavan leads in South Indian vegetarian dining, and Bikanervala commands premium pricing for traditional sweets and snacks.

By Location: Standalone Sites Dominate, Travel Hubs Surge

In 2025, standalone locations accounted for a significant 72.38% share of the market, highlighting QSR operators' preference for high-visibility sites with dedicated parking and drive-through access. However, travel hubs, airports, and railway stations emerged as the fastest-growing segment, recording a strong 11.25% CAGR. These locations benefit from captive audiences, a willingness to pay premium prices, and extended operating hours. Retail locations, primarily mall-based outlets, attract foot traffic and offer co-marketing opportunities but face challenges such as high rental costs and restricted operating hours. Lodging venues, including hotel food courts and in-room delivery services, cater to business travelers and tourists. While they generate additional revenue, revenue-sharing agreements often reduce profit margins. Leisure venues, such as amusement parks and entertainment complexes, provide experiential benefits but are impacted by seasonal demand fluctuations.

The success of standalone sites is driven by their operational flexibility. Brands maintain control over site selection, lease terms, and store design, while capturing 100% of customer spending without revenue-sharing. Devyani International capitalized on this trend by focusing on standalone KFC and Pizza Hut outlets in tier-2 cities. In fiscal 2025, the company opened 80 stores, achieving same-store sales 20% higher than mall-based locations^{[2]Source: Devyani International Investor Presentation 2025, devyani.com}. This performance is attributed to the drive-through facilities and extended hours offered by standalone sites. The rapid growth of travel hubs is fueled by significant infrastructure investments. Between 2020 and 2025, India inaugurated 25 new airports. Additionally, the Airports Authority of India required that 30% of concession space at these airports be allocated to food and beverage outlets, creating 500 new QSR opportunities^{[3]Source: Airports Authority of India "Airports Authority of India Mandates 30% Concession Space for food and beverages", aai.aero}. Leading brands such as Starbucks, McDonald's, and Burger King secured multi-year concessions at major airports in Delhi, Mumbai, and Bangalore. In exchange for 12-15% revenue-sharing fees, these brands gained access to 200 million annual passengers, who spend 40% more on average than street-level customers. Railway stations are following a similar trend. 

Geography Analysis

India's QSR market showcases distinct regional dynamics. While metros and tier 1 cities are projected to contribute 65 percent of the revenue in 2025, it is the tier 2 and tier 3 cities that are set to drive 75 percent of the incremental growth as chains look beyond their saturated urban hubs. The northern and western regions, including Delhi NCR, Mumbai, Pune, and Ahmedabad, dominate the market share, buoyed by higher disposable incomes, diverse food preferences, and robust delivery infrastructures. Meanwhile, southern states like Karnataka, Tamil Nadu, and Telangana are witnessing rapid expansion, fueled by a booming IT sector and a youthful demographic. Eastern and northeastern states, though underpenetrated due to lower per capita incomes and fragmented supply chains, are seeing brands like Kolkata's Wow! Momo capitalizes on regional insights to carve out significant market positions.

Tier 2 cities such as Coimbatore, Indore, Jaipur, Lucknow, and Visakhapatnam are emerging as the focal points for the next growth surge. Jubilant FoodWorks revealed that in fiscal 2025, 60 percent of new Domino's outlets were launched in tier 2 and tier 3 cities. Here, same-store sales growth hit 12 percent, outpacing the 6 percent growth in metros. To optimize capital, the company is experimenting with smaller format stores featuring limited seating and kitchens tailored for delivery. Westlife Foodworld mirrored this approach, inaugurating 30 out of 50 new McDonald's in tier 2 locales. They have also rolled out regional specialties like the Masala Grill Veg in Gujarat and Chicken Chettinad in Tamil Nadu, boasting 15 percent higher trial rates than their standard menu. Regional players are capitalizing on their foothold. Haldiram's boasts 200 outlets in North India, Bikanervala enjoys a premium status in Delhi and Jaipur, and Saravana Bhavan leads the South Indian vegetarian scene with 100 outlets in Tamil Nadu and Karnataka.

State-by-state regulatory landscapes differ, with Maharashtra and Karnataka imposing stringent FSSAI compliance, unlike Uttar Pradesh and Bihar, where enforcement is sporadic. This inconsistency complicates operations for national chains, necessitating adherence to diverse compliance protocols. Such fragmentation poses a challenge for smaller independents, who often lack the means to navigate these multi-state regulations. The takeaway? Expanding geographically demands not just capital and brand strength, but also a keen understanding of regulations and local alliances. This reality tends to benefit chains with robust government relations, overshadowing pure play startups.