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How India Eats
How India Eats
Source: McDonald’s, Dominos for images 20 THINGS ABOUT HOW INDIA EATS 02
EVEN THEN, TOP PERFORMERS IN FOOD DELIVERY ARE NOT
PIZZA OR BURGER, BUT BIRYANI AND DOSA!
80
02 Chaat
60
03 Sandwich
40
04 Chicken Starters
20 05 Dosa
0 Value of 100 represents the highest order volume dish in the region
Chicken Chicken Veg Samosa Kachori Cookies
Biryani Burger Sandwich
THE TOP ITEMS ORDERED ON SWIGGY ARE BIRYANI, DOSA, FRIED RICE,
PANEER, NAAN, AND CHAAT 😋
● Hanging out with work friends is not at a pub post work but
usually over chai samosa in the evening, i.e. 'second
breakfast'
● Mom, Dad, Grandparents and Kids eat different cuisines when they go out but they all eat together, since eating out in India is a social activity
● Indian menus have to appeal to a wide range of preferences and that’s why our menus are the size of small books
AS INCOMES RISE, MORE ARE TURNING NON-VEGETARIAN TO ACCESS BETTER WHILE WE HAVE THE MOST VEGETARIANS IN THE WORLD, DESPITE
PROTEIN POPULAR BELIEF, VEGETARIANS IN INDIA ARE A MINORITY
Source: ICICI, Wikipedia, Hindustan Times, Bikaji 20 THINGS ABOUT HOW INDIA EATS 9
On the other end, STARBUCKS
leads the K-SHAPED RECOVERY
● Free wi-fi
● “Cool workspace"
● Instagram-able cups!
● Being in America :)
NOTABLE ONES:
2023
2022
2021
2020
2019
2018 $1.5B $636M $288M
2017
1,200 50
2016
40
2015 800
30
2014 20
400
2013 10
2012 0 0
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
0 100 200 300 400
ODDS IN FOODTECH ARE NOT GREAT … BUT THE LARGE OUTCOMES COME FROM CRAZY IDEAS
FUNDING IN $M
SUPER
+ APP + LOGISTICS = ?
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
7M 100%
restauran ~150k, or 5% on Zomato
ts in India 80%
60%
40%
20%
1M 0%
restaurants ~450k, or 45% on Doordash India China Japan Indones ia Thailand Brazil Germany USA Kore a
in USA
Caf es/Bars & Full Service Restau ran ts Limited-Service Restaurants Street Stalls/Kiosks & others
Act ive restaurants Act ive delivery partners Transacting customers (mn) - RHS
Plateauing metrics?
ORDER FREQUENCY MONTH
3.4
Most of Urban middle white collar is already ordering online
3.3
3.2
3.1
Incremental growth has to come from upward mobility
3
2.9
2.8
Because our order frequency is comparable to global peers
2.7
2.6
2.5
Is delivery needed beyond big cities?
Deliveroo Meituan Zomato Justeat Takeaway
100
WHAT IS YOUR LUNCH
80
BUDGET?
60
40
31.1 01 Food delivery AOV is 1/6th of DoorDash (the median
30.4 30.2
AOV on food delivery in India is likely lower)
20
5.3 7.6
0
02 Since order frequency is broadly at par with global
Zomato Deliveroo Just Eat Doordash Meituan
peers, India GMV is compressed
GMV FY22 ($ B) AOV ($)
Source: Zomato Annual Report, Motilal Oswal 20 THINGS ABOUT HOW INDIA EATS 17
LOWEST AOV MEETS HIGHEST TAKE TAKE RATES OF GLOBAL FOOD DELIVERY
RATE; RESTAURANTS FIND WAYS... PLATFORMS
25%
20%
15%
10%
5%
Take rates for Zomato/ Swiggy are at par with global peers 0%
so there isn’t room for increase
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Restaurants are raising prices to compensate
m
Zo
Swiggy/ Zomato are adding various “fees” to turn profitable
Source: Forbes, Google images, Twitter, ottonomy.io, Techcrunch 20 THINGS ABOUT HOW INDIA EATS 21
INDIA QUOTIENT: EARLY STAGE SPECIALISTS
We did the same thing in fintech with Lendingkart, and with software plays like Vyapar.
We hope this compilation of insights will spark the imagination of founders who are building for India.
It’s never too early for us to invest. We prefer demos over decks, but an email will do just fine.