Why India's middle class is avoiding casual dining
Despite inflation easing in recent quarters, India's middle class is dialing back on eating out, and quick-service restaurants (QSRs) are taking the hit.
Dine-in visits are down, while food delivery remains resilient—chains like Domino's, Pizza Hut, and Barbecue Nation are all seeing big shifts.
Dine-in disaster for most chains
Most major QSR chains saw fewer people eating in this June. Domino's bucked the trend by leaning into delivery—about 75% of its orders came from there, helping it grow.
Pizza Hut and Barbecue Nation weren't so lucky; their dine-in numbers dropped, with Barbecue Nation's revenue falling 7%.
Reserve Bank of India survey shows people cutting back
Middle-class diners seem to be saving on casual meals but still continuing to dine at fancier places like Punjab Grill.
A Reserve Bank survey found over 60% of people expect to spend the same or less on discretionary spending such as dining out this year.
Food delivery platforms growing
Food delivery platforms Zomato and Swiggy grew 16-19% in the June quarter. Many QSRs are shrinking store sizes to focus more on deliveries.
An upcoming GST Council meeting could help lower costs for these chains—a small win if you're rooting for your favorite takeout spot.