Founded in 2022, Sumosave operates a Company-Owned, Company-Operated (COCO) chain of neighbourhood supermarkets focused on middle and lower-middle-income households across East and North India. Unlike premium supermarkets or hypermarkets that largely cater to affluent consumers, Sumosave’s proposition revolves around everyday grocery savings without compromising on product quality, assortment or convenience. The fresh capital will primarily fund store expansion, strengthen the supply chain and support leadership hiring as the company pursues an ambitious target of 500 stores by 2030.

The retailer currently operates 35 supermarkets and reported a revenue base of around Rs. 32.9 crore. While the company has not disclosed profitability figures, investors have highlighted its focus on affordability, operating discipline and capital-efficient growth as key reasons for backing the business.

Kampani, who brings more than three decades of experience in organised retail and previously held senior leadership roles with major retail businesses, believes India’s next phase of organised grocery growth will not come from India’s largest metros but from hundreds of underserved cities and neighbourhoods. Sumosave has therefore deliberately positioned itself away from premium retail, instead targeting consumers who spend a significant portion of their monthly household budgets on food and grocery purchases and actively seek everyday value.

What differentiates Sumosave from conventional supermarket chains is the simplicity of its retail model. Rather than relying on aggressive promotional campaigns, complex loyalty programmes or cashback offers, the retailer displays straightforward selling prices and communicates in regional languages. The company also stocks a mix of national and carefully selected local brands, reflecting regional consumption patterns instead of adopting a uniform assortment across markets. Its stores, typically spanning around 2,000 sq. ft. and 5,000 sq. ft., are designed to function as full-fledged neighbourhood supermarkets located within dense residential catchments.

Kampani has also argued that consumer behaviour in these markets differs significantly from that of metro shoppers. According to him, nearly half of Sumosave’s daily sales occur during the evening shopping window between 7 p.m. and 10 p.m., while cash continues to account for around 60% of transactions despite the rapid growth of digital payments. These insights have shaped the company’s operating model around local shopping habits rather than replicating metro retail formats.

The investment also reflects growing confidence that India’s value grocery segment can coexist with both national supermarket chains and quick-commerce platforms. While large retailers such as DMart, Reliance Smart Bazaar, Spencer’s and More Retail continue expanding across the country, Sumosave is attempting to win customers through neighbourhood proximity, transparent pricing, local merchandising and a sharper focus on value-conscious households—an area that remains relatively underpenetrated in many parts of East and North India. Rather than competing head-on with hypermarkets or instant delivery platforms, the company is building a format centred on routine monthly grocery shopping, where trust, affordability and familiarity often outweigh speed.

With organised grocery retail still accounting for only a fraction of India’s overall food and grocery market, investors appear to be betting that regional, execution-led supermarket chains can carve out meaningful positions alongside larger national players. Sumosave’s latest fund raise provides Mohit Kampani with the capital to test that thesis at scale, as the company embarks on its journey from just 35 supermarkets today to a targeted network of 500 neighbourhood stores by the end of the decade.

The post Mohit Kampani Bags Rs.50 Crore to Accelerate Sumosave’s 500-Supermarket Vision appeared first on Business of Food.

Paradise Biryani’s announcement of 20 new outlets in Bengaluru is only the visible part of a much larger story. Behind it lies a decade-long transformation that has seen the 73-year-old Hyderabad brand evolve from a regional restaurant chain into a professionally managed, technology-enabled food service platform targeting national scale. Today, backed by Samara Capital, Paradise is no longer merely expanding its restaurant network. It is attempting something far more significant—transforming a heritage regional brand into a professionally managed, technology-enabled national food service platform.

The latest evidence of that ambition comes from Bengaluru, where Paradise has announced plans to invest Rs. 25 crore to open 20 new outlets. While the city expansion is significant in itself, it is also the first visible milestone of a much larger strategy to invest Rs. 100 crore, add 100 new outlets over the next three years and expand the network from 57 operational restaurants across six cities to around 150–160 outlets.

For India’s organised foodservice industry, the announcement signals something bigger than another restaurant rollout. It demonstrates how private equity is increasingly backing proven regional food brands that combine strong consumer equity with the ability to scale nationally through disciplined execution.

Reinventing a Seventy-Three-Year Legacy

Paradise’s transformation has unfolded over more than a decade.

Samara Capital first invested in the company in 2014, acquiring a 35% stake for Rs. 70 crore, when Paradise operated just six restaurants in Hyderabad. Rather than pursuing rapid expansion, the initial years focused on professionalising the business, strengthening leadership, modernising operations and creating systems capable of supporting long-term growth.

The journey entered a new phase in February 2022, when Samara acquired the remaining promoter stake, taking complete ownership of the business. Since then, the company has accelerated investments in technology, people, operating systems and expansion planning, positioning Paradise for its most aggressive growth phase yet.

“The successful store model, best-in-class technology systems and strengthened leadership team provide a strong foundation for national expansion,” says Nilay Pratik, Managing Director, Samara Capital. “Our focus extends beyond adding stores to building a business that delivers consistency, operational discipline and an authentic customer experience across geographies.”

That philosophy reflects a broader shift taking place across India’s restaurant industry, where investors are increasingly favouring scalable operating models over rapid, capital-intensive expansion.

Beyond Restaurants, Building a Scalable Platform

Paradise’s current strategy is built around three complementary formats – high street restaurants, shopping mall outlets and cloud kitchens.

Rather than viewing delivery as an extension of dine-in, the company is designing an omnichannel business where every format serves a distinct purpose. Compact restaurants improve capital efficiency, malls strengthen brand visibility and impulse consumption, while cloud kitchens extend delivery reach into dense urban neighbourhoods.

Bengaluru has emerged as the ideal testing ground for this model. The company reports 30% year-on-year revenue growth in the city, with its latest mall outlets outperforming internal benchmarks and encouraging a wider rollout across organised retail destinations.

For Managing Director & CEO Abhik Mitra, however, expansion is only one part of the equation.

“The challenge isn’t opening more restaurants; it’s ensuring that customers receive the same Paradise experience every single time,” he has said in earlier media interactions.

That objective explains why Paradise continues to retain a company-owned, company-operated model rather than pursuing large-scale franchising.

Technology as the Secret Ingredient

As Paradise expands nationally, technology is becoming as important as its famous biryani recipe.

Automated kitchen systems, centrally managed recipes, digital operating dashboards and real-time quality monitoring have become integral to maintaining consistency across the network. Every outlet follows identical standard operating procedures, supported by structured staff training and continuous quality audits.

This investment in operational discipline is designed to ensure that the biryani served in Bengaluru, Chennai or Gurugram delivers the same experience that made Paradise a Hyderabad institution.

The Road Ahead

Paradise’s financial ambitions are equally ambitious. Management has outlined a roadmap to grow annual revenues from the current Rs. 260–300 crore to Rs. 500–550 crore by FY29, supported by a network of 150–160 outlets.

To fund this next chapter, the company is planning to raise Rs.100 crore through a 10–12% equity dilution, with the proceeds earmarked primarily for new store development rather than operational funding.

The strategy reflects confidence not only in the Paradise brand but also in the broader evolution of India’s organised foodservice market. Consumers are increasingly gravitating towards trusted regional brands that offer consistent quality, strong delivery capabilities and modern retail experiences.

For Paradise, the expansion into Bengaluru is therefore, not the destination. It is the opening chapter of a larger journey—one that seeks to demonstrate that an iconic regional restaurant chain can successfully scale into a national food brand without losing the authenticity that made it famous.

The post Paradise Biryani’s Second Serving: How Samara Capital is Cooking Up India’s Next Organised Food Brand appeared first on Business of Food.

Most airport stories revolve around aircraft, passenger traffic and connectivity. For the organised foodservice industry, however, the more important story starts after passengers leave the terminal. Around the airport, an entirely new urban ecosystem is taking shape—one that could eventually support cafés, quick-service restaurants, food courts, destination dining, hotel restaurants, cloud kitchens and drive-thrus on a scale rarely seen in a greenfield development.

The Airport Is Only the Beginning

Across the world, successful airports have evolved into far more than transport hubs. They have become magnets for investment, attracting hotels, convention centres, corporate offices, logistics parks, retail developments and residential communities. Foodservice is invariably one of the earliest beneficiaries because every new business, hotel or neighbourhood creates fresh dining occasions.

Noida International Airport appears to be following the same trajectory.

While the airport itself is designed to serve millions of passengers, the larger opportunity lies in the 5,100-hectare Aerotropolis planned by the Yamuna Expressway Industrial Development Authority (YEIDA). As commercial districts, hospitality projects and urban infrastructure gradually emerge, the airport will evolve from a point of transit into the centre of a new consumption economy.

For restaurant operators, that distinction changes everything. Instead of evaluating the airport as a standalone location, they must begin looking at it as the anchor of an expanding metropolitan market.

Two Food Economies, One Airport

Every airport creates a captive dining market inside its terminals, but the world’s most successful airport cities generate a second, much larger food economy outside their boundaries.

The first is driven by travellers. It rewards brands that deliver speed, familiarity and operational efficiency within highly regulated environments. Compact kitchens, standardised menus and rapid service are essential because passengers value convenience above almost everything else.

The second economy grows more gradually but ultimately becomes far more significant. Hotels create breakfast, banqueting and all-day dining demand. Office districts generate weekday consumption. Residential neighbourhoods produce repeat local business, while logistics parks and entertainment venues keep foodservice active well beyond traditional meal periods. Together, these diverse demand drivers transform airport retail into a full-fledged urban food ecosystem.

It is this second economy—not the terminal itself—that deserves the closest attention from the foodservice industry.

A Carefully Curated Beginning

The airport’s initial foodservice mix offers important clues about the commercial strategy being adopted.

Rather than filling every available space, the airport has opted for a carefully curated portfolio managed by specialist concessionaires. Travel Food Services (TFS) and HMSHost India (Avolta) oversee the terminal’s food and beverage programme, while TajSATS is establishing a 40,000 sq. ft. in-flight kitchen to support airline catering, airport lounges and selected food operations.

The choice of brands reflects the changing preferences of today’s travellers. Global QSRs sit alongside premium coffee, Indian tea specialists and grab-and-go concepts, creating a balanced portfolio designed around convenience, consistency and throughput rather than sheer variety. It is a strategy increasingly adopted by leading international airports, where operational efficiency is considered as important as culinary choice.

For established foodservice companies, these early openings are significant not merely because they occupy premium airport locations, but because they signal the beginning of a much broader commercial ecosystem.

Looking Beyond the Terminal

Winning an airport concession has traditionally been regarded as the ultimate milestone for restaurant brands. At Noida International Airport, it may prove to be only the first step.

As hotels, commercial districts, logistics hubs and residential communities emerge around the airport, the opportunities for organised foodservice are likely to multiply far beyond the terminal itself. The brands that establish an early presence across this evolving ecosystem—rather than focusing solely on airport retail—could ultimately be the ones that shape North India’s next major foodservice destination.

THE REAL PRIZE LIES BEYOND THE RUNWAY

The first wave of foodservice investment at Noida International Airport is already visible inside the terminal. The second—and potentially far larger—wave will be determined by what happens outside it.

Unlike conventional airports that function largely as transport hubs, Noida International Airport has been conceived as the centrepiece of an integrated Aerotropolis. As hotels, office districts, logistics parks, retail developments, educational institutions and residential communities emerge over the coming years, each will create its own foodservice demand. Collectively, they will transform the airport from a passenger destination into a year-round consumption ecosystem.

For organised foodservice, that distinction is fundamental. Passenger numbers may trigger the opportunity, but they will not define its long-term scale.

Why the Aerotropolis Changes the Rules

Airport terminals are designed for operational efficiency. Every square foot is carefully planned, security protocols are stringent and restaurant formats are optimised for speed and throughput. Outside the terminal, the rules change completely.

The Aerotropolis offers space to build destination restaurants, signature cafés, entertainment-led food courts, neighbourhood dining hubs, hotel restaurants, drive-thrus and even central production kitchens. Unlike airport concessions, which operate within fixed commercial parameters, these developments allow brands to create long-term assets and stronger customer relationships.

More importantly, they generate recurring business. A traveller may pass through an airport once every few months, but an office employee buys coffee every morning, a hotel hosts conferences every week and a residential community creates demand every day. That recurring demand is what turns airport-led development into a sustainable food economy.

A Market That Grows with the City

Perhaps the most compelling aspect of the Yamuna Expressway corridor is that the foodservice market will expand alongside urban development. Every new hotel increases breakfast and banqueting demand. Every office tower creates opportunities for cafés, quick-service restaurants and food courts. Residential neighbourhoods support neighbourhood dining, while convention centres and entertainment venues generate premium dining occasions.

This creates a diversified customer base that extends well beyond airline passengers. Instead of depending on a single source of demand, foodservice operators will be able to serve travellers, business visitors, airport employees, logistics professionals, office workers, local residents and expressway commuters—all within the same geographic corridor.

That diversity is one of the defining characteristics of successful airport cities around the world.

Who Stands to Benefit Most?

Coffee chains are likely to be among the earliest beneficiaries because they naturally serve multiple customer segments throughout the day. Quick-service restaurants will continue to thrive on speed, familiarity and operational consistency, while food courts are expected to become anchors of future mixed-use developments.

Hotels will expand opportunities for premium dining and banqueting, while drive-thrus along the Yamuna Expressway can cater to increasing inter-city traffic. At the same time, cloud kitchens and central commissaries will have an opportunity to build efficient supply networks serving airport outlets, hotels and nearby commercial developments from shared production facilities.

For shopping centre developers, the implications are equally significant. Foodservice is increasingly becoming the primary reason consumers visit retail destinations. Around the Aerotropolis, restaurants, cafés and entertainment-led dining precincts are likely to become destination anchors that enhance footfall, extend dwell time and strengthen the commercial viability of mixed-use projects.

The First Movers Will Shape the Market

One lesson is common to every successful airport city—from Amsterdam and Singapore to Dubai and Delhi Aerocity. The companies that establish an early presence are often the ones that define the market.

Early entrants secure the best locations, develop supply chains ahead of competitors and build brand familiarity before surrounding development reaches maturity. More importantly, they have the opportunity to grow alongside the city rather than enter after the market becomes crowded.

For foodservice companies, this means thinking beyond a single airport outlet. The stronger strategy may be to build an integrated network comprising airport restaurants, neighbourhood cafés, hotel dining, food courts, drive-thrus and cloud kitchens, creating multiple revenue streams from one rapidly developing region.

A New Foodservice Geography

The significance of Noida International Airport extends far beyond aviation. It represents the emergence of a new geography of consumption where airports, hospitality, commerce and urban development reinforce one another.

Whether the Yamuna Expressway ultimately evolves into North India’s next ₹10,000-crore foodservice corridor will depend on the pace of development across the Aerotropolis. Yet the direction is already evident. The airport has created the catalyst; the surrounding ecosystem will determine the scale.

For foodservice companies, hospitality operators and shopping centre developers, the opportunity is no longer confined to winning space inside an airport terminal. It lies in recognising that an entirely new market is taking shape—one where the greatest rewards may belong not to those who arrive first at the gate, but to those who establish themselves across the airport city before it reaches cruising altitude.

The post AIRPORT CITY, FOOD CITY: Why Noida International Airport Could Create North India’s Next ₹10,000-Crore Foodservice Corridor appeared first on Business of Food.

Near the fresh produce section, a young software professional examines hydroponically grown lettuce. Across the aisle, a family debates between French Brie and Dutch Gouda. At the bakery counter, customers queue for freshly baked artisanal sourdough. A staff member patiently explains the differences between extra-virgin olive oils to a first-time buyer, while another recommends specialty ingredients for an upcoming dinner party.

To a visitor experiencing it for the first time, this scene may seem perfectly normal. Yet nearly three decades ago, almost none of these products—or shopping experiences—existed in Hyderabad.

The idea that consumers would willingly drive across the city to buy imported cheeses, organic vegetables, gourmet sauces, artisanal breads, specialty teas or exotic fruits would have sounded improbable in the late 1990s. Grocery shopping was largely functional. Consumers bought what they needed, not what they wanted to discover. Food retail revolved around availability and convenience rather than aspiration and experience. But that is precisely the future Q-Mart helped create.

Today, Hyderabad is widely regarded as one of India’s most cosmopolitan food markets. International cuisines are mainstream. Consumers actively seek organic products, premium ingredients, wellness foods and artisanal offerings. Yet long before these categories entered the vocabulary of modern retail, Q-Mart was quietly introducing them to the city.

The retailer’s story began in 1997, at a time when organised retailing itself was still in its infancy. Modern supermarkets were only beginning to emerge. Imported foods were difficult to source and even harder to find. Consumers who wanted specialty products often depended on friends travelling abroad or occasional supplies through hotel networks. For most retailers, the market simply wasn’t ready. The promoters of Q-Mart saw it differently. Having been exposed to international retail formats and evolving consumer lifestyles overseas, they recognised a shift that was beginning to take shape among India’s urban consumers. Hyderabad was transforming. International travel was increasing. Exposure to global cuisines was expanding. The city’s growing population of professionals, entrepreneurs, NRIs and expatriates was developing tastes and aspirations that traditional retail channels were unable to serve.

What followed was not simply the launch of a retail store. It was the creation of an entirely new category. The challenge was formidable. Imported products were difficult to source. Cold-chain logistics were underdeveloped. Supply chains were fragmented. Customs procedures created uncertainty. Product pricing fluctuated constantly. Most importantly, customers were unfamiliar with many of the products Q-Mart wanted to introduce, with frequently asked questions including:

• – What exactly was Brie cheese?
• – Why was extra-virgin olive oil different from regular cooking oils?
• – What made organic produce worth paying more for?
• – Why should consumers care about provenance, artisanal production or specialty ingredients?

These were not questions that could be answered through advertising alone.

Q-Mart realised that success would depend as much on education as on retailing. Every new category required explanation. Every unfamiliar product required storytelling. The retailer invested heavily in customer engagement, staff training and product demonstrations. Sampling sessions encouraged experimentation while a no-questions-asked returns policy reduced the risk of trying something unfamiliar. The strategy required patience.

Categories that today generate significant business often took years to gain acceptance. Yet Q-Mart persisted, introducing products gradually, educating consumers and allowing adoption to happen organically. Over time, customer behaviour began to change.

Consumers who initially visited out of curiosity returned with confidence. Shopping evolved from a transaction into an experience. Product discovery became part of the attraction. In many ways, Q-Mart became Hyderabad’s unofficial culinary classroom.

Long before wellness became a dominant consumer trend, the retailer was building assortments around healthier food choices. Long before hydroponic vegetables entered mainstream retail, Q-Mart was educating customers about freshness and sustainability. Long before specialty cheese counters appeared in modern trade, the retailer was helping consumers understand European varieties and their uses.

Many of the categories that are commonplace today were first encountered by thousands of Hyderabad consumers within the aisles of Q-Mart. The timing could not have been better.

As Hyderabad evolved into one of India’s leading technology and business hubs, consumer expectations evolved alongside it. Rising incomes, international exposure and changing lifestyles created demand for products that extended beyond conventional grocery shopping. Food became an expression of identity, aspiration and lifestyle. Q-Mart evolved with its customers.

The definition of premium retail itself changed dramatically during this period. In the late 1990s, premium largely meant access to imported products. Today, it encompasses wellness, sustainability, authenticity, quality, provenance and experience.

Recognising these shifts, Q-Mart broadened its interpretation of premium retail. International products were complemented by local artisanal offerings. Organic produce sat alongside imported ingredients. Gourmet bakery products shared space with specialty foods sourced from around the world. The result was not merely a store, but an ecosystem that connected global food trends with local consumer aspirations. This approach continues to define the business today.

Unlike many retailers that pursued aggressive expansion, Q-Mart focused on deepening relationships with customers and refining its proposition. Growth came not from opening dozens of stores but from building trust, increasing customer loyalty and strengthening its reputation as a curator of quality. That strategy has delivered remarkable resilience. Over the past decade, the company has consistently recorded annual growth of 8-12 percent, driven primarily by rising basket sizes and customer lifetime value rather than aggressive geographic expansion.

More importantly, it has created something that many retailers struggle to achieve: relevance across generations. Customers who discovered imported foods at Q-Mart in the late 1990s now shop alongside younger consumers searching for plant-based alternatives, wellness products and globally inspired ingredients. The store continues to serve both audiences because its role has never been limited to selling products. It has always been about discovery.

Nearly three decades after opening its doors, Q-Mart remains one of the clearest examples of how retail can shape consumer behaviour rather than simply respond to it. The company did not wait for Hyderabad’s gourmet culture to emerge. It helped create it.

Many retailers sell products. A few create categories. Even fewer influence how an entire city shops, cooks and eats. That may ultimately be Q-Mart’s most enduring achievement.

“We were not simply opening a store. We were building a category and creating a destination where consumers could discover products and experiences that were previously unavailable to them,” says BVK Raju.

THE CURATION MACHINE

How Q-Mart Built Hyderabad’s Most Trusted Gourmet Ecosystem

If the first chapter of Q-Mart’s story was about creating demand, the second was about mastering supply. Every premium retailer can create an attractive store. Far fewer can consistently source products that customers cannot find elsewhere. For Q-Mart, the real challenge was never merchandising shelves—it was building the ecosystem behind them. In the late 1990s, importing specialty foods into India was far more complex than it is today. Reliable suppliers were scarce, import volumes were often too small to interest large distributors, and cold-chain infrastructure was still evolving. Products frequently faced delays, costs fluctuated dramatically and availability was often unpredictable.

Rather than accepting these constraints, Q-Mart set about building its own network. Relationships were forged with specialty suppliers across multiple countries. Consolidators capable of handling smaller quantities were identified. Existing hospitality supply chains were leveraged to bring products into Hyderabad while maintaining quality standards.

“We had to build an efficient sourcing and logistics ecosystem virtually from the ground up. There was no established gourmet supply chain available to us,” BVK Raju explains.

Over time, those relationships became one of the company’s strongest competitive advantages. Today, Q-Mart offers more than 30,000 SKUs sourced from over 500 global and domestic brands. Yet the company’s philosophy has never been about carrying the most products. It has been about carrying the right products.

Every item on the shelf is expected to earn its place. This discipline has helped Q-Mart avoid a trap that affects many retailers: confusing assortment size with assortment quality. Instead of overwhelming customers with endless choices, the company focuses on relevance, uniqwueness and quality. Sales data, customer feedback and emerging global trends all influence assortment decisions, but human judgement remains central to the process.

The promoters continue to travel extensively, attending international food exhibitions, studying retail concepts and identifying emerging categories before they become mainstream. This combination of global scouting and local understanding has allowed Q-Mart to consistently stay ahead of the curve.

Specialty cheeses, hydroponic vegetables, organic foods, gourmet bakery products, wellness foods and plant-based alternatives all appeared on Q-Mart shelves years before they became widely available elsewhere.

Being first, however, carries its own risks. Introducing unfamiliar categories requires customers to change habits, learn new products and often pay premium prices. Q-Mart therefore adopted a gradual approach to category building. Products were introduced in small quantities, supported by demonstrations, tastings and staff recommendations. Rather than forcing adoption, the retailer focused on creating understanding.

The strategy transformed product launches into learning experiences. When specialty cheeses were first introduced, customers were educated about origins, flavours, pairings and serving suggestions. Similar efforts accompanied organic foods, hydroponic produce and plant-based alternatives. The objective was never simply to sell a product but to build confidence around it.

This commitment to education remains central to the Q-Mart model today. The company’s sourcing philosophy has also evolved alongside consumer preferences. In its early years, premium retail was synonymous with imported products. International origin itself carried prestige. Today’s consumers are more discerning. They value authenticity, craftsmanship and provenance irrespective of geography.

Q-Mart responded by creating a balance between global sourcing and local excellence. Today, imported products contribute approximately 55 percent of sales, while Indian artisanal and specialty producers account for the remaining 45 percent. This blend allows the retailer to offer global variety while supporting local entrepreneurship and craftsmanship.

Some of the most successful examples of this approach come from exclusive partnerships. Q-Mart’s collaboration with Hyderabad-based Cravin Bakers created a range of artisanal sourdough products that has become one of the retailer’s destination categories. Similarly, partnerships with premium import specialists have enabled the company to offer specialty cheeses and gourmet ingredients that remain difficult to find elsewhere.

Exclusivity, however, is not pursued for marketing value alone. It reinforces the perception that a visit to Q-Mart will lead to discovery. Customers know they are likely to find products unavailable in mainstream retail channels. Perhaps the most unusual aspect of the company’s strategy is what it has chosen not to do. At a time when retailers increasingly rely on private labels to improve margins, Q-Mart has consciously stayed away from the category. Management believes that its role is not to compete with the brands it stocks but to identify and curate the best products available.

That decision strengthens the retailer’s position as an independent curator.

Customers trust that products are chosen because they meet Q-Mart’s standards rather than because they generate higher margins. In a premium retail environment, that credibility can be more valuable than a private label portfolio.

The retailer’s product mix reflects the same philosophy. Approximately three-fourths of sales come from fresh and gourmet food categories including dairy, produce, bakery, imported foods and specialty ingredients. The balance comes from carefully selected non-food categories such as cookware, crockery and lifestyle products.

These categories are not viewed as separate businesses. Together they support a broader lifestyle proposition. A customer shopping for pasta may discover olive oils, serving platters and gourmet accompaniments nearby. Someone buying artisanal bread may encounter preserves, spreads and specialty kitchenware. The objective is not simply to increase basket size but to create a complete culinary experience.

Nearly three decades after it first introduced Hyderabad to gourmet retail, Q-Mart continues to operate with the same guiding principle: curation creates value. In a marketplace crowded with choices, customers increasingly rely on trusted retailers to help them decide what is worth buying. Q-Mart’s success suggests that the future of specialty retail may belong not to those who stock the most products, but to those who select them best.

“Our focus has never been on stocking more products. It has always been on identifying the right products and presenting them in a way that creates confidence, trust and discovery for our customers,” says BVK Raju.

TRUST, LOYALTY & THE FUTURE

Why Q-Mart Chose Depth Over Scale

Retailers often spend enormous sums attracting customers. Q-Mart spent nearly three decades earning them. That distinction explains much about the company’s success. In an industry increasingly dominated by discounts, promotional campaigns and convenience-driven competition, Q-Mart has quietly built one of the strongest loyalty-driven businesses in Indian food retail. The company has done so without relying on deep discounting, loss leaders or aggressive price-led customer acquisition strategies that have become commonplace across modern retail. Its philosophy has always been simple: if customers trust the quality of products, appreciate the curation and value the experience, they will return.

The strategy has proven remarkably effective.

Over the past decade, Q-Mart has consistently delivered annual revenue growth of 8-12 percent despite operating within a single city. Much of that growth has been driven not by increasing store count but by increasing customer lifetime value and basket size. Today, the retailer’s Average Transaction Value is estimated to be between 2.5 and 3 times higher than that of mainstream supermarkets, reflecting both customer confidence and the premium nature of its assortment.

The numbers tell only part of the story.

Walk through any Q-Mart store and the source of this loyalty becomes immediately apparent. Staff members are encouraged to become advisors rather than salespeople. Conversations revolve around ingredients, recipes, dietary preferences and product recommendations. Regular customers are often recognised personally. Preferences are remembered. Suggestions become increasingly tailored over time.

The experience feels less like a supermarket and more like a trusted neighbourhood specialist. This human connection has become increasingly important as retail becomes more automated. While technology plays an important role in operations, management remains convinced that emotional loyalty cannot be replaced by algorithms.

“Customer service means going over and above giving the best products. It means relating with customers on a personal level.”

That belief was tested during one of the most disruptive periods in modern retail history. The Covid-19 pandemic transformed consumer behaviour across categories. While footfalls initially declined, customers consolidated purchases and became more selective about where they shopped. Quality, trust and reliability suddenly became more important than proximity.

For Q-Mart, the result was a significant increase in basket sizes, which rose by more than 40 percent during the period. Demand accelerated across organic foods, wellness products, immunity-supporting ingredients, premium frozen foods and gourmet cooking essentials. Many of these habits have remained long after the pandemic subsided.

The experience reinforced a lesson that continues to guide the company today: when uncertainty increases, consumers gravitate towards brands they trust. That trust also shapes Q-Mart’s approach to digital commerce.

The rise of quick commerce has altered the competitive landscape of grocery retail. Consumers increasingly expect products delivered within minutes, and many retailers have embraced aggregator platforms to achieve scale. Q-Mart has taken a different route.

Management believes that premium products require premium handling. Specialty cheeses, gourmet bakery products, fresh produce and imported foods demand strict quality control and reliable cold-chain management. Rather than surrendering that control to third-party platforms, the company has invested in its own delivery ecosystem.

Today, home delivery contributes approximately 12.5 percent of revenue, largely driven by high-value repeat customers. The emphasis remains on maintaining product integrity and customer experience rather than chasing delivery speeds.

This measured approach reflects a broader philosophy that increasingly distinguishes Q-Mart from many of its peers. While much of the retail industry has pursued rapid expansion, Q-Mart has consistently prioritised quality over quantity. The company could have entered multiple cities years ago. Markets such as Bengaluru, Chennai and Pune appeared natural opportunities for a premium retailer with strong credentials. Yet management deliberately chose a slower path. The reason lies in the nature of specialty retail itself.

Unlike conventional grocery formats, premium food retail depends heavily on curation, sourcing expertise, customer relationships and service standards. These capabilities cannot be replicated overnight. Expanding too quickly risks weakening the very characteristics that make the business successful.

That philosophy has shaped the company’s growth strategy from the beginning. Rather than chasing national visibility, Q-Mart focused on strengthening its ecosystem within Hyderabad. The approach has allowed the company to deepen supplier relationships, build stronger customer loyalty and refine its operating model. The next phase of growth will follow the same principle.

“Ultimately, our trajectory will be guided by sustainable growth that never compromises the premium quality, distinctive experience and emotional connection we have built with our customers,” says Raju.

Instead of immediately entering multiple cities, the company’s next major milestone is the upcoming store at GMR Interchange near Hyderabad’s Rajiv Gandhi International Airport. The location provides access to travellers, professionals, airport employees and rapidly growing residential communities while allowing the company to remain close to its core market. It represents expansion without dilution. The move also positions Q-Mart to participate in the next wave of premium food consumption. Wellness products, plant-based foods, premium convenience meals, artisanal foods and functional nutrition are all expected to gain further momentum in the years ahead. Having pioneered many of these categories in Hyderabad, Q-Mart is well positioned to benefit from their continued growth.

Yet perhaps the most remarkable aspect of the company’s journey is not its ability to identify trends. It is its ability to remain relevant while staying true to its original values. The retailer that introduced imported cheeses now offers wellness foods and plant-based alternatives. The company that began as a single gourmet store now operates multiple formats. The business that built its reputation through discovery now combines physical retail with direct-to-consumer delivery.

But the core proposition remains unchanged.

• Curate thoughtfully.
• Serve personally.
• Build trust.
• Create discovery.

Nearly three decades after opening its doors, Q-Mart stands as a reminder that sustainable growth is not always driven by scale. Sometimes it is built through consistency, patience and an unwavering commitment to customers. The company may expand further in the years ahead. It may enter new cities. It may evolve into a larger regional or national brand. Yet its most enduring achievement may already be secure. Q-Mart did not simply build a successful retail business. It helped transform how Hyderabad shops, cooks and experiences food.

The post The Gourmet Revolution: How Q-Mart Changed the Way Hyderabad Shops appeared first on Business of Food.

Cities such as Khammam, Warangal, Karimnagar, Nizamabad and Kurnool are rapidly emerging as the new growth engines of organised food retail. Once regarded primarily as agricultural and trading centres, these cities are now attracting significant investments from national, regional and local retailers eager to tap into a new generation of affluent and aspirational consumers.

The recent opening of National Mart’s 30,000 sq. ft. hypermarket and a new Vijetha Supermarkets store in Khammam within just 24 hours is among the clearest signs of this shift. But the story extends far beyond a couple of store launches. It reflects a broader transformation underway across Telangana and Andhra Pradesh—one that is reshaping consumption patterns, food choices and lifestyles.

The Rise of the Telugu Consumer

The emergence of these cities as retail hotspots is rooted in a powerful economic transformation. Across Telangana and Andhra Pradesh, rising agricultural incomes, government employment, infrastructure investments, real-estate development and overseas remittances have created a sizeable middle class with growing spending power.

Khammam benefits from thriving chilli, cotton and paddy cultivation. Warangal has long been a major centre for cotton and rice production. Karimnagar’s economy is supported by agriculture, granite and education. Nizamabad draws strength from rice and turmeric cultivation, while Kurnool is a major producer of groundnuts, chilli and horticulture crops. Adding to this prosperity is the significant flow of remittances from families with members working in the United States, the Gulf countries, Australia and Europe. The result is a consumer base that is increasingly aspirational, digitally connected and eager to embrace modern lifestyles.

For retailers, these cities offer a compelling combination of rising incomes, lower operating costs and relatively low organised retail penetration compared to metros. Organised food and grocery retail still accounts for less than 10-15% of total grocery sales in many Tier-II and Tier-III markets across Telangana and Andhra Pradesh, compared to substantially higher penetration levels in Hyderabad. This leaves a significant runway for growth as consumers increasingly migrate from traditional trade to modern retail formats.

Retailers Follow the Consumption Shift

Organised retailers have been quick to recognise the opportunity. Reliance Retail, India’s largest retailer with annual revenues exceeding Rs. 3.3 lakh crore, continues to expand its grocery footprint through Reliance Smart, Smart Bazaar and JioMart formats. DMart, one of India’s most profitable retailers with revenues of more than Rs. 60,000 crore, has steadily expanded into emerging cities where value-conscious consumers are embracing organised retail.

Alongside national giants, regional players are building strong positions in the Telugu-speaking markets. Vijetha Supermarkets today operates more than 100 stores across Telangana and Andhra Pradesh. Ratnadeep Retail has grown into one of South India’s largest supermarket chains with more than 180 stores across Telangana, Andhra Pradesh and Karnataka. Heritage Fresh, More Retail, National Mart and several local operators are also aggressively expanding into district headquarters and emerging urban centres.

What makes these markets particularly attractive is that organised food retail remains significantly underpenetrated compared to Hyderabad, Bengaluru or Chennai, leaving substantial room for growth.

A New Generation of Retailers Is Expanding the Market

What makes the current wave of retail expansion different is that it is no longer being driven solely by large corporate chains. A new generation of regional and technology-led retailers is taking organised food retail deeper into smaller towns across Telangana and Andhra Pradesh. Among the most notable examples is SuperK, founded by former Flipkart executive Neeraj Menta and former PhonePe executive Anil Thontepu. The company has built one of India’s most successful small-town grocery retail models by focusing exclusively on markets that large organised retailers often overlook.

From a revenue base of approximately Rs. 19 crore, SuperK reportedly grew to Rs. 84 crore within just two years and today operates more than 130 stores across over 80 towns in Andhra Pradesh and Telangana. Backed by more than Rs. 100 crore in funding, the company is targeting communities where populations are often below two lakh and where organised retail penetration remains low. Its model combines the trust of local kirana stores with the efficiencies of modern retail. Local entrepreneurs invest approximately Rs. 12-15 lakh to convert neighbourhood stores into SuperK outlets while gaining access to centralised sourcing, technology, logistics, training and private-label products.

The company’s private labels, including SuperK, Triputi and Aha, are typically priced 15-20% below national brands, helping consumers access better value while improving retailer margins. According to the company, franchise stores often witness dramatic sales growth after joining the network, while its Gold Membership programme accounts for nearly 75% of sales. More importantly, SuperK demonstrates that the next phase of organised food retail growth in India may not come solely from large corporations. Increasingly, it is being driven by entrepreneurs who understand the unique needs, aspirations and purchasing power of consumers in smaller towns.

DocileKart represents another emerging model. The omnichannel retailer has built a network of more than 250 franchise-led grocery and quick-delivery outlets across the Telugu-speaking states, targeting consumers who increasingly expect both neighbourhood convenience and digital ordering capabilities.

Together, these retailers are creating organised retail access in markets that were previously dependent almost entirely on traditional kirana stores.

The Corporate Giants Move Deeper

The larger national players are pursuing equally aggressive strategies.

DMart has steadily expanded its footprint across Telangana and Andhra Pradesh through its highly successful “Everyday Low Cost, Everyday Low Price” model. The retailer has established stores in cities including Warangal, Karimnagar, Khammam, Nizamabad, Kurnool, Nellore, Kakinada, Eluru and Anantapur, often becoming the dominant food retail destination in these markets.

Reliance Retail has adopted an even broader approach. Through Reliance Smart, Smart Bazaar, JioMart and its emerging quick-commerce ecosystem, the company is creating a multi-format presence across the region. Reliance is increasingly entering smaller district headquarters and agricultural growth centres, bringing hypermarket-style retail experiences to consumers who previously travelled to larger cities for organised shopping.

The result is an increasingly competitive marketplace where national chains, regional retailers and local entrepreneurs are all competing for a share of the rapidly expanding food and grocery market.

Khammam: A Snapshot of the Transformation

Few cities illustrate the shift better than Khammam. Within a relatively short period, the city has emerged as one of Telangana’s fastest-growing organised retail destinations. Alongside the newly opened National Mart and Vijetha Supermarkets stores, consumers today have access to DMart, Maangalya Shopping Mall, GV Mall, Chennai Shopping Mall, CMR Shopping Mall, KLM Fashion Mall, South India Shopping Mall, Trends, Zudio and several other organised retail formats.

The concentration of retail development along the Wyra Road corridor has created a modern shopping ecosystem that would have been unimaginable a decade ago. What is happening in Khammam is increasingly visible in Warangal, Karimnagar, Nizamabad and Kurnool as well, where retailers are competing to secure prime locations and establish an early presence in markets expected to drive future growth.

Changing the Food Basket

The most significant impact of organised food retail is not the stores themselves but the transformation of consumer behaviour. A decade ago, grocery shopping in these cities was dominated by traditional kirana stores and local markets. Household purchases largely revolved around staples such as rice, pulses, edible oils, spices and locally produced snacks. Today’s shopping baskets tell a very different story.

Consumers are increasingly purchasing breakfast cereals, premium dry fruits, health foods, protein products, imported chocolates, international sauces, ready-to-cook meals, frozen foods, gourmet ingredients and premium packaged foods. Products that were once confined to supermarket shelves in Hyderabad are now readily available in Khammam, Warangal, Karimnagar, Nizamabad and Kurnool. Retailers report growing demand for categories such as healthy snacks, millet-based foods, plant-based beverages, frozen foods, premium bakery products, ready-to-eat meals and convenience-oriented meal solutions. The modern grocery basket is becoming more diverse, more experimental and more premium.

Bringing India and the World to Emerging Cities

Organised retail is also serving as a cultural bridge. Consumers in these cities can now access foods and ingredients from across India and around the world. Punjabi gravies, Gujarati snacks, Bengali sweets, Kerala banana chips, North Indian frozen foods, Italian pasta, Mexican condiments, Korean noodles, Japanese seasonings, international chocolates, gourmet cheeses and imported breakfast cereals are increasingly becoming part of everyday retail assortments.

This expansion of choice is exposing consumers to cuisines and flavours that were once difficult to access outside major metros. Social media has accelerated the trend. Consumers discover products through Instagram, YouTube, food influencers and OTT content and increasingly expect local retailers to stock them. For younger consumers in particular, supermarkets have become destinations for discovery, experimentation and lifestyle exploration.

The Battle for the Telugu Consumer

The competition is no longer simply about opening more stores. Retailers are targeting different consumer segments through distinct operating models.

DMart continues to dominate the value-conscious family shopper through its low-price positioning and large-format stores.

Ratnadeep Retail, which now operates more than 180 stores across South India, is pursuing a markedly different strategy. Through formats such as Ratnadeep Supermarket, Ratnadeep Select and Ratnadeep Express, the retailer is focusing on affluent consumers in high-growth urban clusters and emerging premium neighbourhoods. Rather than entering every small town, Ratnadeep is selectively targeting high-income catchments, industrial hubs and rapidly urbanising residential corridors.

Meanwhile, SuperK is penetrating deep into underserved small towns, while omnichannel operators such as DocileKart are combining physical stores with digital convenience.

At the same time, digital grocery platforms are extending their reach into cities such as Rajahmundry, Kakinada, Tirupati and Warangal. Tata-owned BigBasket has expanded its Fresho retail network and delivery operations across several emerging markets, while quick-commerce players such as Blinkit and Reliance’s own rapid-delivery initiatives are beginning to establish fulfilment networks beyond the largest cities. The convergence of supermarkets, hypermarkets, franchise chains, digital commerce and quick commerce is creating a retail ecosystem unlike anything these markets have experienced before.

From Necessity to Lifestyle

The evolution of organised food retail is also changing the way consumers perceive food. Shopping is no longer merely about replenishing household essentials. Consumers are increasingly seeking convenience, health, premium experiences and product discovery. Supermarkets are introducing shoppers to healthier eating habits, wellness-focused products, gourmet cooking ingredients and global cuisines. For many families, a visit to a hypermarket or supermarket has become a weekend activity comparable to visiting a shopping mall or dining out.

As organised retail expands, expectations around quality, assortment, packaging and shopping experience continue to rise. This shift is gradually narrowing the gap between consumption behaviour in Hyderabad and that in emerging cities across Telangana and Andhra Pradesh.

The Next Frontier of India’s Food Economy

For decades, Hyderabad served as the gateway for organised retail growth in the Telugu-speaking states. The next phase of expansion, however, is likely to be driven by cities such as Khammam, Warangal, Karimnagar, Nizamabad and Kurnool. These markets combine rising prosperity, improving infrastructure, strong agricultural economies and increasingly aspirational consumers. They represent one of the most compelling growth opportunities for food retailers, FMCG companies and consumer brands in India today.

The implications go far beyond retail. Organised food retail is influencing what people cook, what they eat, what they aspire to buy and how they engage with food. It is introducing new flavours, new cuisines and new lifestyles to millions of consumers. As retailers deepen their presence across Telangana and Andhra Pradesh, they are not merely expanding store networks. They are helping shape the next chapter of India’s food economy – one in which the future of consumption is increasingly being written beyond Hyderabad and beyond the metros.

The post Beyond Hyderabad: How Telangana and Andhra Pradesh Are Becoming South India’s Next Food Retail Growth Engine appeared first on Business of Food.

Nestlé Professional opening a new NESCAFÉ kiosk at Thrissur Railway Station in Kerala, marks the company’s formal entry into one of India’s largest and most influential consumption ecosystems — the Indian Railways network, which serves millions of passengers every day.

The launch is Nestlé Professional’s first kiosk under its partnership with Indian Railways and represents a significant step in the company’s ambition to deepen its out-of-home presence across high-footfall transit locations. For Nestlé India, whose annual report repeatedly highlights “penetration-led volume growth” as a key strategic pillar, railway stations offer something few channels can match – scale, frequency and daily consumer engagement.

Located at one of Kerala’s busiest railway stations, the new outlet offers travellers a range of hot and cold coffee beverages along with curated food options designed to deliver quality, convenience and consistency. More importantly, it gives Nestlé direct access to millions of consumers who increasingly seek trusted food and beverage brands while on the move.

“Indian Railways touches the lives of millions of Indians every day and has earned a place of immense trust in the hearts of consumers across the country. Being associated with such an iconic institution is a matter of great pride for us,” said Saurabh Makhija, Head, Nestlé Professional. “With the launch of our NESCAFÉ outlet at Thrissur Railway Station, we are delighted to bring travellers a comforting and familiar experience through quality coffee and trusted food and beverage offerings during their journeys.”

Building India’s Out-of-Home Consumption Engine

The railway initiative comes at a time when Nestlé Professional has emerged as one of the fastest-growing businesses within Nestlé India.

According to the company’s FY26 Annual Report, the out-of-home business delivered robust volume-led growth driven by strong customer acquisition, deeper channel penetration and expanding consumption occasions. The business continues to embody Nestlé India’s broader strategy of creating growth through increased consumption frequency rather than relying solely on price increases.

This strategy is visible across multiple channels. Educational institutions, hospitals, airports, corporate offices, malls and transit locations have become important growth engines as consumers spend more time outside their homes and increasingly consume food and beverages across multiple daily occasions.

“At Nestlé Professional, we are committed to fueling customer growth through strong partnerships and purposeful innovations. By staying ahead of evolving consumer needs and leveraging our iconic brands with culinary expertise, we enable differentiated out-of-home experiences,” Makhija noted in the annual report.

The Thrissur launch therefore fits into a much larger national play. Rather than viewing railway stations as standalone retail locations, Nestlé sees them as strategic consumption hubs where millions of consumers can engage with its brands every day.

Why Railways Matter

Few consumer channels in India offer the scale and reach of Indian Railways.

For Nestlé Professional, railways represent a unique combination of high traffic, repeat usage and national coverage. Unlike traditional retail outlets where purchases are destination-driven, railway stations capture consumers during travel occasions when convenience, trust and speed become critical purchase drivers.

“Railways is a very important channel for Nestlé Professional, given its scale and ability to connect with millions of consumers on the move every day,” said Jinraj Adyanthaya, Sales Head, Nestlé Professional.

“This new initiative with Indian Railways will enable us to further expand our presence across the network while bringing a wider range of Nestlé’s food and beverage offerings to consumers on the move.”

The company has ambitious plans for expansion.

Adyanthaya indicated that Nestlé Professional intends to participate in railway tenders across divisions throughout India, creating opportunities to establish a significantly larger presence within the railway ecosystem.

“We intend to participate in as many tenders as possible across railway divisions throughout India under this initiative, helping us strengthen our footprint in the travel segment and make our trusted brands more accessible to consumers.”

All railway outlets will be operated through Nestlé-authorised operators to ensure consistent product quality, service standards and consumer experience across locations.

Retail ONE Crosses 1,000 Kiosks

The railway initiative also builds upon one of Nestlé Professional’s most successful growth platforms — Retail ONE.

The operator-funded kiosk model crossed the milestone of 1,000 kiosks across India during FY26, making it one of the largest branded foodservice kiosk networks in the country.

These kiosks operate under formats such as NESCAFÉ Corners, MAGGI Hotspots and KITKAT Break Zones across educational campuses, healthcare institutions, airports, malls and other high-traffic locations.

What makes Retail ONE particularly significant is that it serves both commercial and social objectives.

The network has created employment opportunities for more than 1,700 people, including nearly 300 women and six specially-abled individuals. Beyond sales, the model enables entrepreneurship while expanding Nestlé’s reach into new consumption occasions.

The addition of railway stations potentially opens another large chapter for the network’s expansion.

Innovation Beyond Coffee

While NESCAFÉ remains the flagship brand for many of these outlets, Nestlé Professional’s ambitions extend far beyond coffee.

The annual report highlights the company’s growing focus on becoming a “total solution provider” for foodservice operators.

Recent innovations include NESCAFÉ Duo Gusto machines capable of dispensing both hot and cold beverages, low- and zero-sugar beverage options for health-conscious consumers, and UPI-enabled dispensing solutions that support unattended formats.

The company is also expanding the application of its food brands within professional kitchens.

KITKAT Spread has been introduced to support dessert innovation by chefs. MILKMAID has found applications beyond traditional chai into bakery, desserts and Vietnamese coffee preparations. MAGGI Coconut Milk Powder has expanded into coastal cuisine applications, delivering strong double-digit growth.

Nestlé Professional has also strengthened partnerships across the foodservice ecosystem. Collaborations with Burger King India resulted in the launch of BK Fusion KITKAT Shake and Sundae across more than 500 restaurants, while alliances with Bakingo, Gianni’s Ice Cream and SOCIAL have driven dessert innovation.

India’s Second-Largest Out-of-Home Market in AOA

Nestlé’s out-of-home ambitions are backed by significant scale.

India remained the second-largest market for Nestlé’s Out-of-Home business within the Asia, Oceania and Africa region, trailing only China. Growth was supported by premiumisation, relevant innovation and deeper penetration across metro, mega-city and tier-1 markets.

As India’s foodservice industry continues to grow faster than many traditional packaged food categories, Nestlé Professional is increasingly positioning itself not merely where products are sold, but where food and beverages are consumed.

The launch at Thrissur Railway Station reflects this shift.

For travellers, it may simply mean access to a familiar cup of coffee during a journey. For Nestlé Professional, however, it represents something much larger — another step towards building one of India’s most extensive out-of-home consumption networks, connecting iconic brands with consumers wherever they work, study, travel and spend time beyond their homes.

The post Nestlé Professional Enters Indian Railways with NESCAFÉ Kiosk at Thrissur Station appeared first on Business of Food.

As Reliance Retail completed FY26 with gross revenue of Rs. 3,70,026 crore, EBITDA of Rs. 27,033 crore and net profit of Rs. 13,838 crore, the company also crossed significant milestones in the food and grocery business that increasingly sits at the centre of its growth strategy. Industry estimates suggest food and grocery now contributes nearly 50-60% of Reliance Retail’s overall revenues, making it by far the largest pillar within the group’s retail operations.

The scale of that business is reflected not only in revenues but also in the infrastructure that supports it. Reliance’s flagship grocery format, Smart Bazaar, has crossed the 1,000-store milestone, while the overall retail network has expanded to 20,160 stores serving 387 million registered customers across India. What was once a collection of supermarkets, hypermarkets and convenience stores is today emerging as an integrated food ecosystem spanning sourcing, processing, manufacturing, distribution and digital commerce.

The significance of the 1,000-store Smart Bazaar milestone becomes clearer when viewed through the lens of consumption rather than real estate. In an analysis published earlier this year by IndiaRetailing, Smart Bazaar was described as a nationwide consumption grid rather than merely a store network. Southern markets continue to anchor the format, led by Tamil Nadu, Andhra Pradesh, Karnataka and Kerala, while western and eastern states are becoming increasingly important growth corridors. This geographic spread mirrors India’s evolving consumption patterns, particularly in Tier-2 and Tier-3 cities where organised grocery retail continues to gain market share.

Smart Bazaar: Building India’s Consumption Grid

The store network is only one part of the story. Reliance disclosed at the AGM that it procured over 5.7 lakh metric tonnes of fresh produce during FY26 through a sourcing ecosystem that now connects more than 40,000 farmers across 110 collection centres. This positions the company among India’s largest organised buyers of agricultural produce and gives it unprecedented control over freshness, quality and supply-chain efficiency.

For years, grocery retail in India has been constrained by fragmented sourcing, multiple intermediaries and inconsistent quality standards. Reliance is attempting to address these structural inefficiencies by creating a direct farm-to-consumer model. The implications extend beyond retail. By linking farmers directly to organised distribution channels, the company is building the foundation for a much larger food manufacturing and FMCG business.

The strongest evidence of this shift can be seen in JioMart’s evolution. Once positioned primarily as an e-commerce grocery platform, JioMart has rapidly transformed into one of India’s largest quick-commerce networks. The company revealed that more than 3,100 stores are now functioning as hyperlocal fulfilment hubs, serving over 1,200 cities and 5,100 PIN codes. Unlike pure-play quick-commerce companies that rely heavily on dark stores, Reliance is leveraging its existing retail infrastructure. Every Smart Bazaar, Smart Point and grocery outlet can potentially serve as a fulfilment centre, creating a hybrid model that combines physical retail economics with the convenience of rapid delivery.

This integration of stores and quick commerce is especially important because grocery remains the most frequent consumer purchase category. As quick commerce becomes a daily habit for millions of Indian households, food and grocery orders are increasingly driving customer acquisition, frequency and retention. Reliance’s ability to combine store-based shopping, online ordering and hyperlocal delivery gives it a structural advantage that few competitors can match at national scale.

Yet the most ambitious food-related announcement at the AGM came from Reliance Consumer Products Ltd. (RCPL). Isha Ambani outlined a target that would have seemed unimaginable just a few years ago: building RCPL into a Rs. 1 lakh crore FMCG business by FY30. To support this ambition, Reliance plans to invest Rs. 30,000 crore over the next three years in integrated food parks that will manufacture beverages, chocolates, biscuits, staples and packaged foods using highly automated, AI-enabled production systems.

The scale of this ambition reflects Reliance’s growing confidence in its consumer brands portfolio. Over the past few years, RCPL has assembled an increasingly diverse stable of brands including Campa, Independence, Lotus Chocolates, RasKik, Spinner and several emerging food and beverage labels. Unlike traditional FMCG companies that spend decades building distribution networks, Reliance has the advantage of owning one of the country’s largest retail and digital commerce platforms. Every Smart Bazaar shelf, JioMart order and grocery store becomes a route-to-market for its expanding portfolio.

The strategy also aligns with consumption trends that are already visible across Smart Bazaar stores. As highlighted in my earlier Business of Food story https://www.businessoffood.in/1000-smart-bazaar-stores-anchoring-reliance-retails-%e2%82%b92-lakh-crore-grocery-play/ categories such as health and wellness, ready-to-cook foods, premium ingredients and regional specialties are growing faster than traditional staples. Brands such as Yoga Bar, Farmley, Gits, MasterChow, Moi Soi, Double Horse and Kaka Halwai, many of which have been recognised as Future Forward Brands at India Food Forum, offer a glimpse into the future of grocery consumption. These are precisely the categories where Reliance can leverage its scale to develop private labels, acquire brands or create new manufacturing capabilities.

The proposed food parks could become the missing link between sourcing and branding. Beyond production, they are expected to integrate procurement, processing, packaging and distribution into a single ecosystem. Such facilities would enable Reliance to standardise quality, improve food safety, reduce wastage and create export-ready products. This becomes even more significant when viewed alongside Mukesh Ambani’s broader vision of turning Reliance into a major manufacturing and export powerhouse with a target of $125-150 billion in exports by 2032.

Technology will play a central role in this transformation. Through its AI platform, JioBrain, Reliance is already embedding intelligence into inventory management, demand forecasting and supply-chain operations. In food retail, AI-driven systems are expected to monitor inventory movement from collection centres to store shelves, reduce wastage in fresh produce and optimise replenishment cycles across the network. Combined with the planned food parks, this could create one of India’s most sophisticated food supply chains.

The broader significance of these developments extends far beyond Reliance Retail’s financial performance. What is emerging is a fully integrated food ecosystem connecting 40,000 farmers, 110 collection centres, over 1,000 Smart Bazaars, 3,100 quick-commerce-enabled stores and 387 million consumers. Few companies globally operate across such a wide spectrum of the food value chain.

For the food industry, the message from Reliance’s 49th AGM was unmistakable. While quick commerce may dominate current headlines and AI may capture investor attention, the real long-term opportunity lies in food, grocery and FMCG. By combining sourcing, retail, manufacturing, technology and consumer brands under one umbrella, Reliance is positioning itself not just as India’s largest retailer but potentially as one of the country’s most influential food companies.

And if the company’s Rs. 1 lakh crore FMCG ambition materialises over the next four years, the food business may well become the defining growth story of Reliance Retail’s next decade.

The post Reliance AGM 2026: Inside the Food, Grocery and FMCG Engine Driving India’s Largest Retailer appeared first on Business of Food.

When Anjan Chatterjee opened Mainland China in Mumbai in 1994, few could have imagined that the restaurant would go on to become one of India’s most influential food brands.

At a time when Chinese food in India largely meant neighbourhood eateries serving heavily Indianised dishes, Mainland China introduced consumers to a more authentic and premium dining experience. Elegant interiors, carefully curated menus, professional service and a consistent dining experience helped create what would eventually become one of the country’s most successful restaurant brands.

Three decades later, that single restaurant has evolved into Speciality Restaurants Ltd., India’s only publicly listed restaurant company, operating more than 126 outlets across restaurants, confectionery formats and cloud kitchens, with annual revenues approaching Rs. 500 crore.

Now, with founder Anjan Chatterjee passing the CEO baton to son Avik Chatterjee, the spotlight is not only on leadership succession but on the evolution of one of India’s most diversified restaurant portfolios.

THE MAINLAND CHINA PHENOMENON

For millions of Indians, Mainland China was their first introduction to premium Chinese dining.

The brand built its reputation around Cantonese, Sichuan and Hunan-inspired dishes adapted carefully for Indian palates without losing authenticity. Signature dishes such as Crispy Chilli Potato, Golden Fried Prawns, Burnt Garlic Rice, Exotic Vegetables in Hot Garlic Sauce and various dim sum offerings became category-defining menu items.

Typically positioned in the Rs. 1,200-2,500 per person spending range depending on market and occasion, Mainland China emerged as a preferred destination for family celebrations, corporate meals and special occasions.

Today, despite the arrival of international Asian dining chains and numerous independent operators, Mainland China remains one of India’s most recognised Chinese restaurant brands.

OH! CALCUTTA: PRESERVING A CULINARY HERITAGE

If Mainland China brought China to India, Oh! Calcutta brought Bengal to the rest of the country.

Widely regarded as India’s most successful regional cuisine restaurant brand, Oh! Calcutta transformed Bengali cuisine from a niche regional offering into a premium dining category.

Its menu celebrates heritage dishes such as Chingri Malai Curry, Kosha Mangsho, Bhetki Paturi, Daab Chingri and traditional Bengali sweets. Average spends typically range from Rs. 1,500-3,000 per person, positioning the brand firmly in the premium dining segment.

More importantly, Oh! Calcutta demonstrated that regional Indian cuisines could command national appeal when packaged with authenticity, storytelling and consistency.

ASIA KITCHEN: MAINLAND CHINA FOR A NEW GENERATION

As dining habits evolved, Speciality Restaurants realised younger consumers wanted faster, more casual and more affordable Asian dining experiences.

Asia Kitchen by Mainland China was born from this insight.

Offering pan-Asian cuisine spanning Chinese, Thai, Japanese and Southeast Asian influences, the brand targets younger urban diners with average spends ranging from Rs. 800-1,500 per person.

The format reflects a broader industry trend where consumers increasingly seek frequent dining occasions rather than only celebratory meals.

SIGREE AND GLOBAL GRILL: THE INDIAN BARBECUE STORY

Long before the explosion of buffet grill concepts across India, Sigree helped popularise interactive barbecue dining.

Built around North Indian kebabs, grilled meats, seafood and regional specialties, the brand became synonymous with family gatherings and celebrations.

Sigree Global Grill later evolved the concept by incorporating international grilling styles, live counters and wider buffet selections, competing directly in India’s rapidly growing experiential dining segment.

These formats typically attract groups and families, generating higher average ticket sizes while benefiting from predictable consumption patterns.

SWEET BENGAL: BEYOND RESTAURANTS

Perhaps one of the most underrated brands in the portfolio is Sweet Bengal.

Created to extend the company’s relationship with consumers beyond restaurant occasions, Sweet Bengal focuses on Bengali sweets, snacks and gifting.

From Rosogolla and Sandesh to Mishti Doi and festive assortments, the brand taps into India’s massive ethnic sweets market while creating recurring purchase occasions beyond dining out.

The confectionery business also offers significantly different economics compared to restaurants, helping diversify revenue streams.

CAFÉ MEZZUNA: THE URBAN EUROPEAN CAFÉ

Among the earliest projects closely associated with Avik Chatterjee, Café Mezzuna represents the group’s move into contemporary European casual dining.

The menu spans wood-fired pizzas, artisanal pastas, salads, steaks and comfort food favourites. Positioned for affluent urban consumers, the format bridges the gap between cafés and full-service restaurants.

With average spends ranging from Rs. 1,200-2,000 per guest, Café Mezzuna caters to consumers seeking international cuisine in a relaxed environment.

GONG: INDIA’S ANSWER TO ASIAN LUXURY DINING

If Mainland China defined the group’s first era, Gong arguably represents its future.

Developed as a contemporary Asian dining and cocktail destination, Gong targets affluent millennials and Gen Z consumers seeking immersive experiences rather than traditional restaurant visits.

The menu blends Japanese, Chinese, Thai and Southeast Asian influences with premium cocktails, stylish interiors and nightlife elements.

Average spends can exceed Rs. 3,000-5,000 per couple, placing the brand squarely in the premium lifestyle dining category.

For Avik Chatterjee, Gong has become a showcase for how experiential dining is reshaping urban consumption patterns.

THE NEW-GEN PORTFOLIO

Over the years, the company has expanded through brands such as Episode One, Haka, Flame & Grill, POH (Progressive Oriental House), Walter’s and several delivery-first concepts.

These brands reflect changing consumer behaviour:

• Smaller and more efficient footprints
• Higher focus on cocktails and experiences
• Younger demographics
• Digital-first customer acquisition
• Delivery integration
• Faster menu innovation cycles

Collectively, they represent the company’s attempt to remain relevant in a market where dining trends change faster than ever before.

THE AVIK ERA

While Anjan Chatterjee built brands around cuisine leadership, Avik Chatterjee’s challenge will be building brands around experiences.

The Indian restaurant market of 2026 is fundamentally different from the market of 1994. Consumers today are influenced by social media, international travel, food delivery platforms, global food trends and experience-driven spending.

This is where Avik’s experience with contemporary concepts, cloud kitchens, bars and new-age dining formats becomes increasingly important.

The next growth phase for Speciality Restaurants is likely to be driven not only by cuisine but by occasions, communities and experiences.

A HOUSE OF BRANDS, NOT A RESTAURANT CHAIN

What makes Speciality Restaurants unique is that it is no longer a restaurant company in the traditional sense. It has evolved into a food and beverage platform housing multiple cuisines, multiple price points and multiple consumer occasions.

From a Rs. 200 box of Bengali sweets at Sweet Bengal to a Rs. 5,000 celebratory dinner at Gong; from heritage Bengali cuisine at Oh! Calcutta to contemporary Asian experiences at Asia Kitchen; from family grill dining at Sigree to European café culture at Café Mezzuna—the company has built one of the broadest culinary portfolios in Indian foodservice.

As Anjan Chatterjee steps back from day-to-day executive responsibilities and Avik Chatterjee takes charge, the real question is not whether the legacy will continue. The question is how far this house of brands can expand as India’s foodservice market marches toward becoming one of the world’s largest dining economies.

The post From Mainland China to Gong: How the Chatterjees Built India’s Most Diverse Restaurant House appeared first on Business of Food.

Compass Group India has appointed Rahul Shinde as Managing Director, bringing one of the foodservice industry’s most experienced growth and operations leaders into one of India’s largest institutional food and facility management businesses.

The appointment comes as workplace dining emerges as an increasingly strategic component of employee experience across corporate campuses, Global Capability Centres (GCCs), manufacturing facilities, healthcare institutions and educational campuses. Employers are investing more heavily in food programmes that support employee wellness, productivity and engagement, creating new opportunities for organised foodservice operators.

Compass Group India is already among the country’s largest players in the sector. The company operates across more than 45 cities, serves over 1.1 million meals every day, manages more than 235 million sq. ft. of facilities, employs over 42,000 people and runs eight central kitchens. The scale of these operations places it at the intersection of some of India’s fastest-growing workplace and institutional ecosystems.

For Compass Group, the challenge is no longer limited to delivering meals efficiently. Clients increasingly expect restaurant-quality food, greater menu variety, healthier options, digital ordering capabilities, sustainability-led operations and data-driven service delivery. As workplace expectations evolve, institutional dining is beginning to borrow ideas from the restaurant industry, creating demand for a new generation of foodservice leadership.

Shinde brings a career spanning strategy consulting, retail transformation and quick-service restaurant operations across India, Southeast Asia, Europe and North America.

Most recently, he served as Chief Executive Officer and Whole-Time Director of Devyani International Limited, India’s largest franchisee of Yum! Brands. During his tenure, the company accelerated expansion across brands such as KFC and Pizza Hut, strengthened digital capabilities, modernised operations and further scaled one of India’s largest organised restaurant portfolios.

Prior to Devyani International, Shinde was General Manager for KFC Greater Asia, overseeing nearly 2,000 restaurants across markets including Japan, Indonesia and South Korea, while also working closely with KFC China, the brand’s largest operator globally.

His earlier leadership assignments included Managing Director, KFC Indian Subcontinent, and Chief Operations Excellence Officer for KFC Great Britain. He also held corporate strategy and transformation roles at Yum! Brands, McKinsey & Company and US retailer JCPenney, building expertise in growth strategy, supply-chain optimisation, analytics and operational excellence.

One of the defining themes throughout his career has been the use of technology to improve customer experience, operational efficiency and business performance. Across multiple markets, he has led initiatives focused on digital engagement, advanced analytics, organisational transformation and next-generation operating models.

His experience spans both franchisor and franchisee environments, providing a rare combination of brand stewardship, operational execution and stakeholder management. Combined with a PhD in Industrial Engineering from the University of Wisconsin–Madison, where his research focused on inventory management and large-scale supply chains, Shinde brings a strong analytical and systems-driven approach to business leadership.

For Compass Group India, his appointment aligns with a broader opportunity unfolding across the institutional foodservices landscape. India’s GCC sector continues to expand rapidly, large manufacturing investments are creating new employment hubs, and healthcare and education infrastructure are scaling across the country. Each of these sectors represents a growing demand pool for organised foodservice and support services.

The workplace cafeteria itself is undergoing a transformation. Digital ordering, cashless transactions, personalised nutrition, wellness-led menus, food traceability and sustainability initiatives are becoming increasingly important to clients and consumers alike. Foodservice operators are being asked to deliver experiences that rival modern restaurants while maintaining the efficiency and consistency required at institutional scale.

Against this backdrop, Compass Group India’s decision to bring in a leader with deep expertise in scaling consumer-facing food businesses signals its intent to strengthen its position in a market that is becoming larger, more sophisticated and increasingly experience-driven.

For Rahul Shinde, the move marks a return to building and scaling businesses in India. For Compass Group India, it represents an investment in leadership capable of navigating the convergence of food, technology, operations and workplace experience that is reshaping the future of institutional dining.

The post Compass Group India Bets on QSR Veteran Rahul Shinde as Workplace Dining Evolves appeared first on Business of Food.

For the past three years, India’s grocery story has been dominated by speed. Ten-minute deliveries. Dark stores. Hyperlocal fulfilment. Instant gratification. From Bengaluru to Mumbai, consumers have embraced the convenience of ordering milk, bread, fruits or detergent and receiving them before a cup of tea has cooled. Quick commerce has become the defining narrative of Indian retail, attracting billions of dollars in investment and transforming consumer expectations.

Yet beneath the headlines lies a much larger story.

While quick commerce is reshaping shopping behaviour among affluent urban households, another retail model is quietly expanding across hundreds of cities and towns. Its promise is not speed but value. Its customers are not ordering emergency ice cream at midnight but stocking monthly grocery baskets. Its competitive advantage lies not in delivery time but in assortment, affordability and trust.

The future of Indian grocery retail may ultimately depend on which opportunity proves larger: the convenience needs of urban consumers or the value aspirations of hundreds of millions of emerging middle-income households. Recent research from Redseer, Bain & Company, NielsenIQ, Kantar, The Knowledge Company and industry data from FMCG companies suggests that the answer may surprise many observers. The next phase of grocery growth is likely to be driven not by faster deliveries, but by broader inclusion.

A Trillion-Dollar Consumption Wave Is Emerging

India’s grocery market is expected to expand from approximately $658 billion in 2025 to nearly $1 trillion by 2030, making it one of the largest food retail markets globally. At the same time, households earning between ₹3 lakh and ₹15 lakh annually are becoming the fastest-growing consumption segment. According to Redseer, consumption among emerging middle-income households could exceed $1 trillion annually by FY30, driven by more than 150 million households.

These consumers are not low-income shoppers.

Nor are they affluent metro households. They represent India’s largest and fastest-growing consumer cohort.

The Real Divide Is Not Geography

For years, grocery retail discussions have been framed as a contest between metropolitan India and smaller cities and towns. The reality is far more sophisticated. The fault line running through India’s grocery market today is not geographic but behavioural.

Increasingly, consumers are splitting into two distinct shopping missions.

The first is driven by convenience. These are the purchases made when milk runs out, when guests arrive unexpectedly, or when a family suddenly needs bread, eggs or snacks. Such purchases are typically small in value but high in urgency. Consumers prioritise speed over savings and are willing to pay a premium for convenience. This is the territory where quick commerce and hyperlocal delivery platforms thrive.

The second mission revolves around planned replenishment. These are weekly and monthly stock-up trips where households purchase staples, edible oils, packaged foods, personal care products and household essentials. Here, consumers are far more price-sensitive. They compare brands, seek discounts, explore regional options and optimise basket value. For these shoppers, assortment, affordability and reliability matter more than delivery speed.

This distinction is crucial because the economics of serving these two missions are fundamentally different. One rewards density and speed; the other rewards assortment depth, procurement efficiency and value engineering.

The Numbers Behind Quick Commerce

Few retail formats anywhere in the world have scaled as rapidly as quick commerce in India.

In just a few years, the sector has evolved from an experimental delivery model into a major retail channel. Industry estimates suggest that gross merchandise value (GMV) has nearly doubled from approximately $6-7 billion in FY24 to $13-14 billion in FY26. At the same time, quick commerce’s share of online grocery orders has risen from roughly half of all transactions to more than two-thirds.

The model has succeeded because it solves a genuine consumer problem. Urban households increasingly value time over money. For dual-income families, ordering groceries instantly often makes more sense than visiting a store.

Why Quick Commerce Cannot Be The Entire Answer

Despite its growth, quick commerce faces structural limitations. Its economics depend heavily on population density. Dark stores become profitable only when a large number of consumers live within a small delivery radius. The model also requires significant investment in fulfilment infrastructure and inventory.

Assortment presents another challenge. Most quick commerce dark stores stock between 4,000 and 8,000 SKUs. By comparison, a large supermarket may carry 20,000 to 40,000 products. Most importantly, the model works best among consumers willing to pay a premium for convenience.

These factors explain why quick commerce remains heavily concentrated in major urban markets despite its impressive growth trajectory.

Why Value Grocery Is Gaining Attention

While investors have focused on speed, another model is quietly addressing a different consumer need. Value grocery platforms are designed around savings rather than immediacy. Instead of promising deliveries in ten minutes, they offer wider assortments, regional brands, affordable pack sizes and scheduled fulfilment. The objective is simple: help households optimise grocery expenditure.

This approach mirrors how a large proportion of Indian households actually shop. A family planning a monthly grocery basket is often more concerned about saving ₹50 on edible oil, finding a preferred regional atta brand or accessing trusted local snacks than receiving the order within minutes. In many ways, value grocery is attempting to digitise traditional grocery behaviour rather than reinvent it.

India’s Grocery Consumer Is Upgrading

Across FMCG earnings calls, consumer surveys and retail studies, one theme appears repeatedly: premiumisation. Indian households are steadily upgrading within categories. The shift is visible across staples, packaged foods, dairy and nutrition products.

Consumers who once purchased loose commodities are increasingly choosing branded alternatives. Functional benefits such as immunity, protein content and fortification are becoming mainstream purchase drivers.

The Protein Revolution Reaches Mainstream Grocery

Perhaps the most significant shift underway is the emergence of protein as an everyday grocery category. Traditionally viewed as a specialised nutrition segment, protein is increasingly entering regular household consumption. Paneer, high-protein dairy products, protein snacks and fortified foods are moving from niche shelves into mainstream grocery baskets.

Industry estimates suggest India’s protein-focused food ecosystem already exceeds ₹50,000 crore.

Why Kiranas Still Matter

Despite repeated predictions of disruption, kiranas remain the backbone of India’s grocery ecosystem. Even by 2030, they are expected to account for approximately 86% of grocery sales. Their resilience stems from advantages that are difficult to replicate digitally.

Trust built over decades, informal credit, proximity to households and deep understanding of local preferences continue to provide a powerful competitive moat. Far from disappearing, kiranas are increasingly becoming part of digital commerce ecosystems as fulfilment partners, pickup points and last-mile delivery enablers.

The Strategic Question

The future of grocery retail is unlikely to belong to a single format. Quick commerce will continue to expand, particularly in affluent urban markets. Modern trade will retain relevance in premium and experiential categories. Kiranas will remain deeply embedded in local communities.

The emerging opportunity lies in creating a profitable middle layer between traditional retail and convenience-led commerce. The most important grocery battle of the next decade may therefore not be Blinkit versus Zepto.

It may be whether organised retail can build a model that delivers affordability, assortment and trust to hundreds of millions of households that still conduct most of their grocery shopping offline.

If quick commerce represents the future of convenience, value grocery may well represent the future of scale. And in a market approaching one trillion dollars, scale is ultimately what determines long-term winners.

The post The Great Grocery Divide appeared first on Business of Food.